1. Repayment:

State bank of India, ICICI Bank , Dena Bank , IDBI Bank and EXIM Bank have absolutely assigned their loan together with underline securities their to and all rights of State bank of India, ICICI Bank , Dena Bank , IDBI Bank and EXIM Bank , title and interest in all agreements, deeds and documents in relation to or in connection with the loan to Invent Assets Securitization & Reconstruction Pvt Ltd. a company incorporated under companies act,1956 and registered as Securitization and asset reconstruction company under section 3 of SARFAESI ACT,2002.

The loans of Axis Bank are stated CDR package duly approved by Axis.

Takeover of outstanding bank dues by asset reconstruction company with reference to default in repayment dues to financial institutions and bank as per note: 3, the total outstanding term loans was Rs.3672.01, Debenture was Rs.111.64 ,FITL was Rs.1291.59 and C.C. A/C was Rs.9495.98 totaling to Rs.14571.21 such outstanding amount was taken over by Invent ) and as per the new repayment schedule a total amount of Rs.11893.73 is now payable to invent against the total outstanding amount. The difference of Rs.2677.48 towards reduced liability of repayment would only be crystallized if no default is made by the company in its repayment to Invent Assets Securitization & Reconstruction Pvt Ltd. , and hence has been carried forward by the company recognizing as a long term liability, under the classification of “Long Term Liabilities” under the head “Pending loan after assignment”.

2 Security

a) Non convertible debentures(NCDs), Term Loan, Funded Interest on NCDs, Funded Interest on Term Loans and Funded Interest on Working Capital are secured by way of first mortgage / charge over the immovable properties and first charge by way of hypothecation over the movable (save and except current assets / book debts and certain items of Plant & Machinery purchased and/or to be purchased under the equipment finance/credit scheme) both present and future, and second charge on the current assets i.e. stock of raw materials, finished and finished goods, consumable stores, book debts, receivables and as such other movables subject to prior charges created and/or to be created in favour of company's bankers on stocks of raw materials, finished and semi-finished goods, consumable stores, book debts and other receivables for securing working capital facilities.

3. Term Loan shall rank pari-passu interest without any preference or priority of one or the other.

4. All Term Loans and Funded Interest Term Loans are additionally secured by personal guarantees of Shri S. K. Somany-Chairman and Shri A. K. Somany-Managing Director of the Company.

5. Derivative Rupee Term Loan along with Funded Interest on Derivative Term Loan under CDR Scheme are secured by way of pari passu third charge on the fixed assets and immovable properties of the company ranking third and subservient in point of priority to the charges created or to be created in favour of the existing lenders. The said loan is additionally secured by personal guarantee of Shri A K Somany - Managing Director of the Company. Repayment of this Term Loan is subjected to availability of cash flow on subservient basis as per stipulation given under Corporate Debt Restructuring (CDR) scheme.

6.Takeover of outstanding bank dues by asset reconstruction company with reference to default in repayment dues to financial institutions and bank as per note: 3, the total outstanding C.C. A/C '9495.98 outstanding amount was taken over by Invent and has been regrouped under Long Term Borrowing for the year 2015-16.

7. The Company out of the GDR issue proceeds had made an investment of USD 15 million, which as on 31st March, 2016 is equivalent to INR Rs.10444.46 lakhs( Previous Year INR Rs.9,852.39 lakhs) , by way of long term loan and also invested in the Equity Share capital i.e 300 equity shares equivalent to INR Rs.34.21 lakhs ( Previous Year INR Rs.34.21 lakhs) of Soma Textile FZC,Umm Al Quwain Free Trade Zone, Umm Al Quwain, U.A.E.(Shifted during the year from Sharjah, U.A.E.) . an associate( Formerly Soma Textile FZE, Sharjah, U.A.E.,a wholly owned subsidiary).

During the financial year, the said associate has earned Profit of AED 11,452 (Previous Year Profit of AED 20,850).The accumulated loss incurred as on 31st March, 2016 is AED 5,53,238 (Previous Year AED 5,64,690 ) as per audited accounts, as certified by SKM International-Chartered Accountant, Independent Auditors.

8. The auditor of the Company M/S. SKM International, Chartered Accountant, Independent Auditors has reported that according to the management all the accounts receivables are good. Major debtors had requested the Company for cooling period of 2 years i.e. till March, 2016. However, their financial position still not improved, they have once again requested for a cooling period of five years from 01/04/2016 after making some part payments. After several rounds of deliberations company has accepted their offer and approved for the cooling period of five years.

9. As per Accounting Standard 15 “Employee Benefits” the disclosure of employee benefits as defined in the Accounting Standard are given below :

Ahmedabad Unit Defined Contribution Plans

10. State bank of India, ICICI Bank , Dena Bank , IDBI Bank and EXIM Bank have absolutely assigned their loan together with underline securities their to and all rights of State bank of India, ICICI Bank , Dena Bank , IDBI Bank and EXIM Bank , title and interest in all agreements, deeds and documents in relation to or in connection with the loan to Invent Assets Securitization & Reconstruction Pvt Ltd. a company incorporated under companies act,1956 and registered as Securitization and asset reconstruction company under section 3 of SARFAESI ACT,2002.

11. Related party transaction

12. Holding Company Not Applicable

13. Associate Company SOMA TEXTILE F.Z.C., Umm Al Quwain, U.A.E.

14. Fellow Subsidiary Not Applicable

15. Other related parties where control exists. Somany Evergreen Knits Ltd.

Kechak Credit & Finvest Ltd.

16. Key management personnel and their relatives Shri S. K. Somany, Chairman

(Shri A. K. Somany, Managing Director is son of Shri S. K. Somany) Shri A. K. Somany, Managing Director (Shri S. K. Somany, Chairman is father of Shri A. K. Somany) Ms Anuja Somany, VP ( Garment Division) ( Shri Arvind Somany is father of Ms Anuja Somany) Shri Shrikant Bhat, Executive Director

Shri Shrikant Bhat, Director, Soma Textile FZC.

17. As the Company's business activity falls within a single primary and geographical segment viz. ‘Textile', the disclosure requirements of Accounting Standard (AS-17) “Segment Reporting”, issued under Companies (Accounting Standards) Rules, 2006 is not applicable.

18. Company has entered into a Registered Development Agreement on 20th November,2012, with Shayona Land Corporation for development of Part Leasehold Land owned by Company, by putting up construction of commercial units on the said land situated at Rakhial (sim), Taluka City, in the Registration District , Ahmedabad and Sub District, Ahmedabad No. 7 (Odhav), bearing final Plot No.80, admeasuring about 10648 square yards equivalent to 8903 square meters of town planning scheme No.10 (Rakhial).

19. Company has disclosed under Regulation 30 of the SEBI (LODR) vide letter dated 14th May, 2016 that company has closed down the spinning and winding department.

20. Previous year figures have been reclassified to conform to this year's classification