Mar 31, 2017
1. Pursuant to the enactment of Companies Act, 2013 and according to the application guide on the provisions of Schedule II to the Companies Act, 2013, a sum of Rs.27,01,821, being the difference between depreciation based on the revalued carrying amount of the asset and depreciation based on its original cost, has been transferred to General Reserve from Revaluation Reserve account.
2. The information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. There are no over dues to parties on account of principal amount and/or interest and accordingly no additional disclosures have been made; and (ii) There are no amounts remaining unpaid or unclaimed for a period of seven years in respect of unpaid dividend, matured fixed deposits and interest thereon from the date they became payable by the company and hence there are no amounts remaining to be credited to the Investor Education and Protection Fund.
3. Derivatives - The company uses derivative financial instruments such as forward contracts and option to hedge certain currency exposures, present and anticipated, denominated mostly in US dollars, Euro and Swiss Francs. Generally such contracts are taken for exposures materializing in the next six months. The company actively manages its currency rate exposures and uses these derivatives to mitigate the risk from such exposures. The company has hedged exposure of US $ Nil (March 31, 2016 US $ Nil) as at March 31, 2017 and has a net unhedged exposure of US $ Nil (March 31, 2016 US$ Nil) as at March 31, 2017.
4. Raw material consumed - others include consumption of yarn for manufacture of double yarn.
5. Power and fuel is net of value of power generated by Wind energy converters Rs.7,27,12,865 (2015 16 Rs.6,94,17,256).
6. Human resources - Particulars of managerial remuneration (i) To Managing Director - Salary Rs.21,60,000 (2015-16 Rs.21,60,000), Perquisites Rs.14,40,000 (2015-16 Rs.14,40,000).
7. The company has recognized deferred tax liability of Rs.1,25,89,000 (2015-16 Rs.1,30,55,152) representing timing differences on account of depreciation. As a matter of prudence and in accordance with the Accounting Standard 22, the accrual of deferred tax asset has been restricted (in view of unabsorbed losses under the Income tax Act, 1961). An amount of Rs.1,25,89,000 (2015-16) has accordingly been accrued as deferred tax asset such that impact of net deferred tax considered in the Statement of Profit and loss of the current year is Rs. Nil. Deferred tax asset primarily comprises timing differences on allowances and unabsorbed losses/depreciation.
In the above actuarial valuation the estimated of future salary increases have reckoned the effect of inflation, seniority, promotion and other relevant factors.
8. Gratuity fund is administered through group gratuity scheme with SBI Life Insurance and by the Gratuity Trust through trustees.
9. During the year, the company has recognized the following amounts in the Statement of Profit and Loss:
Salaries, wages and bonus include compensated absences of Rs.5,87,049 (2015-16 Rs.9,21,541) Contribution to provident, gratuity and other funds include contribution to provident fund and family pension fund contribution of Rs.43,13,182 (2015-16 Rs.53,71,762) and gratuity fund of Rs.100,17,469 (2015-16 Rs.16,43,209). Workmen and staff welfare expenses include contribution to employees state insurance of Rs.15,61,942 (2015-16 Rs.20,94,968)
10. During the year, the Company had Specified Bank Notes (SBNs) or other denomination notes as defined in the MCA notification, G.S.R. 308(E), dated March 31, 2017. The details of SBNs held and transacted during the period from November 8, 2016 to December 30, 2016, the denomination-wise SBNs and other notes as per the notification are as follows:
Mar 31, 2015
1. Share Capital
Rights and restrictions in respect of equity shares
The company has one class of equity shares having a par value of Rs.10
each. Each holder of equity shares is entitled to one vote per share.
In the event of liquidation of the Company, holder of equity shares
will be entitled to receive remaining assets of the Company after
distribution of all preferential amount. The distribution will be in
proportion to the number of equity shares held by the shareholders.
2. Contingent liabilities March March
31, 2015 31, 2014
(i) Claims against the company not 3,65,08,688 3,65,08,688
acknowledged as debts
(ii) Bills discounted with banks 47,89,500 2,76,85,194
Out flow relating to above not practicable
to indicate in view of the uncertainties
involved
3. Segment information
The company's primary segment is identified as business segment based
on nature of products, risks, return and the internal business
reporting system (i.e. cotton yarn) and operates in a single
geographical segment as per Accounting Standard 17.
4. Related party disclosure (as required under As 18)
(i) Related parties with whom transactions have taken place during
the year
(1) Key management personnel
Sri R. Selvarajan - Chairman and Managing Director
Sri S. Vijay Shankar - Chief Financial Officer
Ms. J. Asifa - Company Secretary
(2) Associate
SPMM Healthcare Services Private Limited
(3) Parties where significant influence exists
S. Palaniandi Mudaliar Charitable Trust
Kandagiri Spinning Mills Gratuity Trust
Sambandam Siva Textiles Private Limited
Sambandam Spinning Mills Limited
5. The land and buildings of the company were revalued as on March
31,2009 by an external valuer on the basis of estimated market value in
the case of land and estimated depreciated replacement cost in the case
of buildings. The resulting net surplus on such revaluation aggregating
Rs.23,09,00,807 has been credited to revaluation reserve.
6. Pursuant to the enactment of Companies Act, 2013 and according to
the application guide on the provisions of Schedule II to the Companies
Act, 2013, a sum of Rs.27,01,821, being the difference between
depreciation based on the revalued carrying amount of the asset and
depreciation based on its original cost, has been transferred to
General Reserve from Revaluation Reserve account.
7. 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 certain assets as disclosed in Accounting Policy on
Depreciation/Amortization. Accordingly the unamortized carrying value
is being depreciated/amortised over the revised/remaining useful lives.
The written down value of Fixed Assets whose lives have expired as at
April 1,2014 have been adjusted net of tax, in the opening balance of
profit and loss account amounting to Rs.18,36,586.
8. The information required to be disclosed under the Micro, Small
and Medium Enterprises Development Act, 2006 has been determined to the
extent such parties have been identified on the basis of information
available with the company. There are no overdues to parties on account
of principal amount and/or interest and accordingly no additional
disclosures have been made; and (ii) There are no amounts remaining
unpaid or unclaimed for a period of seven years in respect of unpaid
dividend, matured fixed deposits and interest thereon from the date
they became payable by the company and hence there are no amounts
remaining to be credited to the Investor Education and Protection Fund.
9. Derivatives - The company uses derivative financial instruments
such as forward contracts and option to hedge certain currency
exposures, present and anticipated, denominated mostly in US dollars,
Euro and Swiss Franks. Generally such contracts are taken for exposures
materializing in the next six months. The company actively manages its
currency rate exposures and uses these derivatives to mitigate the risk
from such exposures. The company has hedged exposure of US $ Nil (March
31,2014 US $ Nil) as at March 31,2015 and has a net unhedged exposure
of US $ Nil (March 31,2014 US$ 2,22,178).
10. Raw material consumed - others include consumption of yarn for
manufacture of double yarn.
11. Power and fuel is net of value of power generated by Wind energy
converters Rs.8,63,00,718 (2013- 14 Rs.9,44,09,019).
12. Human resources - Particulars of managerial remuneration (i) To
Managing Director - Salary Rs.21,60,000 (2013-14 Rs.21,60,000),
Perquisites Rs.14,40,000 (2013-14 Rs.14,40,000); and (ii) To Joint
Managing Director - Salary Rs.Nil (2013-14 Rs.14,40,000), Perquisites
Rs.Nil (2013-14 Rs.9,60,000).
13. Employee benefits
ii) Gratuity fund is administered through group gratuity scheme with
SBI Life Insurance and by the Gratuity Trust through trustees.
iii) During the year, the company has recognised the following amounts
in the Statement of Profit and Loss:
Salaries, wages and bonus include compensated absences of Rs.21,12,807
(2013-14 Rs.4,53,631) Contribution to provident, gratuity and other
funds include contribution to provident fund and family pension fund
contribution of Rs.58,91,503 (2013-14 Rs.50,79,485) and gratuity fund
of Rs.42,52,797 (2013-14 Rs.35,21,996). Workmen and staff welfare
expenses include contribution to employees state insurance of
Rs.22,81,226 (2013-14 Rs.16,89,508)
14. The figures for the previous periods have been reclassified /
regrouped / amended, wherever necessary.
Mar 31, 2014
1. Contingent liabilities
(i) Claims against the company not
acknowledged as debts 3,65,08,688 3,65,08,688
(ii) Bills discounted with banks 2,76,85,194 -
Out flow relating to above not
practicable to indicate in view of
the uncertainties involved
2. Segment information
The company''s primary segment is identified as business segment based
on nature of products, risks, return and the internal business
reporting system (i.e. cotton yarn) and operates in a single
geographical segment as per Accounting Standard 17.
3. The land and buildings of the company were revalued as on March 31,
2009 by an external valuer on the basis of estimated market value in
the case of land and estimated depreciated replacement cost in the case
of buildings. The resulting net surplus on such revaluation aggregating
Rs.23,09,00,807 has been credited to revaluation reserve.
4. The information required to be disclosed under the Micro, Small
and Medium Enterprises Development Act, 2006 has been determined to the
extent such parties have been identified on the basis of information
available with the company.
(i) There are no overdues to parties on account of principal amount
and/or interest and accordingly no additional disclosures have been
made; and
(ii) There are no amounts remaining unpaid or unclaimed for a period of
seven years in respect of unpaid dividend, matured fixed deposits and
interest thereon from the date they became payable by the company and
hence there are no amounts remaining to be credited to the Investor
Education and Protection Fund.
5. Derivatives - The company uses derivative financial instruments
such as forward contracts and option to hedge certain currency
exposures, present and anticipated, denominated mostly in US dollars,
Euro and Swiss Franks. Generally such contracts are taken for exposures
materializing in the next six months. The company actively manages its
currency rate exposures and uses these derivatives to mitigate the risk
from such exposures. The company has hedged exposure of US $ Nil (March
31, 2013 US $ Nil) as at March 31, 2014 and has a net unhedged exposure
of US $ 2,22,178 (March 31, 2013 US$ 9,04,602).
6. Raw material consumed - others include consumption of yarn for
manufacture of double yarn.
7. Power and fuel is net of value of power generated by Wind energy
converters Rs.9,44,09,019 (2012-13 Rs.10,94,14,250).
8. Human resources - Particulars of managerial remuneration
(i) To Managing Director - Salary Rs. 21,60,000 (2012-13 Rs.
21,60,000), Perquisites Rs.14,40,000
(2012-13 Rs.14,40,000);
(ii) To Joint Managing Director - Salary Rs.14,40,000 (2012-13
Rs.14,40,000), Perquisites
Rs. 9,60,000 (2012-13 Rs.9,60,000).
9. Depreciation / Amortisation - Depreciation for the year computed
on revalued assets includes a charge of Rs.28,89,247 (2012-13
Rs.28,89,247) being the excess depreciation computed by the method
followed by the company prior to revaluation and the same has been
transferred from Revaluation reserve to the Profit and Loss account.
Mar 31, 2013
1.1 The land and buildings of the company were revalued as on March
31,2009 by an external valuer on the basis of estimated market value in
the case of land and estimated depreciated replacement cost in the case
of buildings. The resulting net surplus on such revaluation aggregating
Rs.23,09,00,807has been credited to revaluation reserve.
1.2 The information required to be disclosed under the Micro, Small and
Medium Enterprises Development Act, 2006 has been determined to the
extent such parties have been identified on the basis of information
available with the company. There are no overdues to parties on account
of principal amount and/or interest and accordingly no additional
disclosures have been made; and (ii) There are no amounts remaining
unpaid or unclaimed for a period of seven years in respect of unpaid
dividend, matured fixed deposits and interest thereon from the date
they became payable by the company and hence there are no amounts
remaining to be credited to the Investor Education and Protection Fund.
1.3 Derivatives - The company uses derivative financial instruments
such as forward contracts and option to hedge certain currency
exposures, present and anticipated, denominated mostly in US dollars,
Euro and Swiss Franks. Generally such contracts are taken for exposures
materializing in the next six months. The company actively manages its
currency rate exposures and uses these derivatives to mitigate the risk
from such exposures. The company has hedged exposure of US $ Nil (March
31,2012 US $ Nil) as at March 31,2013 and has a net unhedged exposure
of US $ 9,04,602 (March31,2012US$ Nil).
1.4 Raw material consumed-others include consumption of yarn for
manufacture of double yarn.
1.5 Power and fuel are (i) net of value of power generated by Wnd
energy converters Rs.10,94,14,250 (2011-12 Rs.6,71,09,012)and (ii)
after reckoning the reversal of carbon credit accrued in prior years of
Rs. Nil (2011-12 Rs.48,99,288), as a measure of abundant caution, due
to (a) rejection of claim for the credit by concerned sanctioning
authorities and (b) inordinate delay in issue of validation report even
after completion of inspection and documentation.
1.6 Human resources - Particulars of managerial remuneration (i) To
Managing Director - Salary Rs.21,60,000 (2011-12 Rs.21,60,000),
Perquisites Rs.14,40,000 (2011-12 Rs. 14,40,000); and (ii) To Joint
Managing Director - Salary Rs.14,40,000 (2011-12 Rs.14,40,000),
Perquisites Rs.9,60,000(2011-12Rs.9,60,000).
1.7 Depreciation/amortisation - Depreciation for the year computed on
revalued assets includes a charge of Rs.28,89,247 (2011 -12
Rs.28,89,247) being the excess depreciation computed by the method
followed by the company prior to revaluation and the same has been
transferred from Revaluation reserve to the Profit and Loss account.
Mar 31, 2012
1.1 Contingent liabilities
(i) Claims against the company not
acknowledged as debts 1,55,39,608 1,18,86,816
(ii) Bills discounted with banks 33,99,369 Nil
Out flow relating to above not practicable to indicate in view of the
uncertainties involved
1.2 Segment information
The company's primary segment is identified as business segment based
on nature of products, risks, return and the internal business
reporting system (i.e. cotton yarn) and operates in a single
geographical segment as per Accounting Standard 17.
1.3 The land and buildings of the company were revalued as on March 31,
2009 by an external valuer on the basis of estimated market value in
the case of land and estimated depreciated replacement cost in the case
of buildings. The resulting net surplus on such revaluation aggregating
Rs.23,09,00,807 has been credited to revaluation reserve.
1.4 The information required to be disclosed under the Micro, Small
and Medium Enterprises Development Act, 2006 has been determined to the
extent such parties have been identified on the basis of information
available with the company. There are no overdues to parties on account
of principal amount and/or interest and accordingly no additional
disclosures have been made; and (ii) There are no amounts remaining
unpaid or unclaimed for a period of seven years in respect of unpaid
dividend, matured fixed deposits and interest thereon from the date
they became payable by the company and hence there are no amounts
remaining to be credited to the Investor Education and Protection Fund.
1.5 Derivatives - The company uses derivative financial instruments
such as forward contracts and option to hedge certain currency
exposures, present and anticipated, denominated mostly in US dollars,
Euro and Swiss Franks. Generally such contracts are taken for exposures
materializing in the next six months. The company actively manages its
currency rate exposures and uses these derivatives to mitigate the risk
from such exposures. The company has hedged exposure of US $ Nil (March
31, 2011 US $ 13,33,679) as at March 31, 2012 and has a net unheeded
exposure of US $ Nil (March 31, 2011 US$96,314).
1.6 Raw material consumed - others include consumption of yarn for
manufacture of double yarn.
1.7 Power and fuel are (i) net of value of power generated by Wind
energy converters Rs.6,71,09,012 (2010-11 Rs.7,87,02,413); (ii) net of
income by way of carbon credit of Rs.Nil (2010-11 Rs.48,99,288); and
(ii) after reckoning the reversal of carbon credit accrued in prior
years of Rs.48,99,288 (2010-11 Rs. 1,53,97,192), as a measure of
abundant caution, due to (a) rejection of claim for the credit by
concerned sanctioning authorities and (b) inordinate delay in issue of
validation report even after completion of inspection and
documentation.
1.8 Human resources - Particulars of managerial remuneration (i) To
Managing Director - Salary Rs.21,60,000 (2010-11 Rs.21,60,000),
Perquisites Rs.14,40,000 (2010-11 Rs. 14,40,000); and (ii) To Joint
Managing Director - Salary Rs.14,40,000 (2010-11 Rs. 14,40,000),
Perquisites Rs.9,60,000 (2010-11 Rs.9,60,000).
1.10 Depreciation/amortisation - (i) Amortised cenvat credit of Rs.Nil
(2010-11 Rs.7,94,829) deducted from capital reserve has been netted
against the depreciation charge relating to the concerned plant and
machinery; and (ii) Depreciation for the year computed on revalued
assets includes a charge of Rs.28,89,247 (2010-11 Rs.28,89,247) being
the excess depreciation computed by the method followed by the company
prior to revaluation and the same has been transferred from Revaluation
reserve to the Profit and Loss account.
1.11 During the year ended March 31, 2012, the revised Schedule VI
notified under the Companies Act, 1956, has become applicable to the
Company, for preparation and presentation of its financial statements.
Accordingly the Company has reclassified/ regrouped/amended the
previous year's figures in accordance with the requirements applicable
in the current year.
Mar 31, 2011
1. Issued and subscribed capital include 20,05,650 (March 31,2010 -
20,05,650) Equity shares allotted as fully paid up by way of bonus
shares by capitalisation of part of General reserve.
2. Movement in reserves - (i) Additions: Amount appropriated from the
profit and loss account to General reserve Rs.7,00,00,000 (March
31,2010 Rs. 1,25,00,000); (ii) Deduction: Amount amortised from Cenvat
credit relating to capital assets and adjusted in depreciation in
Schedule 2.8 Rs.7,94,829 (March 31, 2010 Rs.10,96,661).
3. Particulars for secured loans - (i) Term loans from banks to an
extent of Rs.54,36,55,861 (March 31, 2010 Rs.59,79,82,240) are secured
by a first charge on the Company's immovable and movable properties
(excluding book debts) subject to the charge stated in (iii) infra,
(ii) Term loans from banks to an extent of Rs.12,92,31,774 (March 31,
2010 Rs. 16,54,38,978) are secured by hypothecation of certain specific
assets, (iii) Cash credit/buyer's credit facilities are secured by a
first charge on the Company's current assets except the stock of cotton
pledged for goods loan facility and by a second charge on the Company's
immovable and movable properties (other than those covered under the
first charge mentioned in (i) supra, (iv) Goods loan facilities are
secured by pledge of stock of cotton; (v) Vehicle loan from Reliance
Capital Limited of Rs.3,72,253 (March 31, 2010 Rs.6,02,780) is secured
by hypothecation of specific vehicle; and (vi) All the above loans are
guaranteed by three directors.
4. Unsecured loans include - (i) Fixed deposits from directors
Rs.3,33,15,000 (March 31,2010 Rs.3,68,15,000) and (ii) amounts
repayable within twelve months from the balance sheet date
Rs.1,68,74,000 (March 31, 2010 Rs.3,56,04,000).
5. Fixed assets - (i) Gross block includes Rs.23,09,00,807 added on
revaluation of land and buildings as at March 31, 2009 based on report
by an external valuer; and (ii)Deductions under plant and machinery
includes terminal excise duty refund under Export Promotion Capital
Goods Scheme, of Rs.7,65,946 (March 31, 2010 Rs.64,15,452).
6. The land and buildings of the Company were revalued as on March 31,
2009 by an external valuer on the basis of estimated market value in
the case of land and estimated depreciated replacement cost in the case
of buildings. The resulting surplus on such revaluation aggregating to
Rs.23,09,00,807 has been credited to Revaluation reserve.
7. (i) Investments are long term, non trade and unquoted unless
otherwise stated; (ii) Cost of quoted investments Rs.45,00,000 (March
31, 2010 Rs.45,00,000); (iii) Market value of quoted investments
Rs.89,10,000 (March 31,2010 Rs.68,31,000); and (vi) Cost of unquoted
investments Rs.2,00,00,000 (March 31, 2010 Rs.2,00,00,000)
8. Loans and advances include Income tax paid in advance/deducted at
source, net of provisions therefor. The income tax liability for March
31, 2011 as minimum alternate tax under section 115JB of the Income tax
Act, 1961 amounting to Rs.2,80,00,000 is eligible to be carried forward
and set off against future income tax under section 115JAA of the
Income tax Act, 1961 and hence the minimum alternate credit entitlement
is reckoned in the above head.
9. (i) The information required to be disclosed under the Micro, Small
and Medium Enterprises Development Act, 2006 has been determined to the
extent such parties have been identified on the basis of information
available with the company. There are no over dues to parties on
account of principal amount and/or interest and accordingly no
additional disclosures have been made; and (ii) There are no amounts
remaining unpaid or unclaimed for a period of seven years in respect of
unpaid dividend, matured fixed deposits and interest thereon from the
date they became payable by the company and hence there are no amounts
remaining to be credited to the Investor Education and Protection Fund.
10. Derivatives - The Company uses derivative financial instruments
such as forward contracts and option to hedge certain currency rate
exposures, present and anticipated, denominated mostly in US dollars,
Euro and Swiss Franks. Generally such contracts are taken for exposures
materializing in the next six months. The Company actively manages its
currency rate exposures and uses these derivatives to mitigate the risk
from such exposures. The Company has hedged exposure of US $ 13,33,679
(March 31, 2010 US $ 44,95,292) as at March 31, 2011 and has a net
unhedged exposure of US$ 96,314 (March 31, 2010 - US$ 1,80,163) as at
the said date.
11. Estimated capital expenditure commitments (net of advances)
Rs.4,42,33,683 (March 31, 2010 Rs.11,43,65,171).
12. Contingent liabilities - (i) Claims against the Company not
acknowledged as debts Rs.9,64,200 (March 31, 2010 Rs. 10,04,679); (ii)
Bills discounted with bankers Rs. Nil (March 31, 2010 Rs.3,77,67,631);
and (iii) Other contingent liabilities Rs.1,09,22,616 (March 31, 2010
Rs.83,24,909).
13. Other income - Miscellaneous income includes net gain on foreign
currency transaction and translation (other than considered as
financial cost) Rs.1,52,460 (2009-10 Rs.9,17,140).
14. Raw materials consumed - others include consumption of yarn for
manufacture of double/two-for- one yarn.
15. Power and fuel are (i) net of value of power generated by Wind
energy converters Rs.7,87,02,413 (2009-10 Rs.7,72,19,698); (ii) net of
income by way of carbon credit of Rs.48,99,288 (2009-10 Rs.78,97,103);
and (ii) after reckoning the reversal of carbon credit accrued in prior
years of Rs. 1,53,97,192 (2009-10 Rs. Nil), as a measure of abundant
caution, due to (a) rejection of claim for the credit by concerned
sanctioning authorities and (b) inordinate delay in issue of validation
report even after completion of inspection and documentation.
16. Repairs to plant and machinery include amortization of cost of
planned replacement of worn out parts of plant and machinery Rs. Nil
(2009-10 Rs.38,10,442).
17. Human resources - Particulars of managerial remuneration (i) To
Managing Director - Salary Rs.21,60,000 (2009-10 Rs.21,60,000),
Perdqisites Rs.14,40,000 (2009-10 Rs.14,40,000), (ii) To Joint Managing
Director - Salary Rs.14,40,000 (2009-10 Rs.14,40,000), Perquisites
Rs.9,60,000 (2009-10 Rs.9,60,000).
18. Other expenses - (i) Miscellaneous expenses include payments to
auditors for Financial audit Rs.3,00,000 (2009-10 Rs.2,50,000), Cost
audit Rs.44,000 (2009-10 Rs.44,000), Taxation work Rs.1,40,000 (2009-10
Rs.1,10,000), Other work Rs.1,00,000 (2009-10 Rs.1,05,000) and Expenses
reimbursed to Statutory auditors Rs.98,080 (2009-10 Rs.94,201), Cost
auditors Rs.9,867 (2009-10 Rs.22,792).
19. Financial expenses - (i) Interest paid on fixed loans Rs.6,75,57,691
(2009-10 Rs.6,69,76,988) includes Rs.29,34,792 (2009-10 Rs.26,60,658)
to the Managing Director; and (ii) Bank and other financial charges
include (i) amortisation of loan raising expenses Rs.9,46,280 (2009-10
Rs.9,46,280) and (b) foreign currency transaction and translation loss
(net) Rs.86,22,737 (2009-10 gain (net) Rs.65,68,083).
20. Depreciation/amortization - (i) Amortised cenvat credit deducted
from capital reserve has been netted against the depreciation charge
relating to the concerned plant and machinery; and (ii) Depreciation
for the year computed on revalued assets includes a charge of
Rs.28,89,247 (2009-10 Rs.28,89,238) being the excess depreciation
computed by the method followed by the company prior to revaJuation and
the same has been transferred from Revaluation reserve to the Profit
and Loss account.
21. Segment information
The Company is principally engaged in a single business segment viz.,
cotton yarn and operates in a single geographical segment as per
Accounting Standard 17 on 'Segment Reporting'.
22. Related party disclosure
(i) Related parties with whom transactions have taken place during the
year
(1) Key management personnel - Sri R. Selvarajan - Chairman and
Managing Director
(2) Parties where significant - S. Palaniandi Mudaliar Charitable
influence exists Trust
- Kandagiri Spinning Mills Gratuity
Trust
23. Employee benefits -
(ii) Gratuity fund is administered through Group Gratuity Scheme with
SBI Life Insurance and by the Gratuity trust through trustees.
(iii) During the year, the Company has recognised the following amounts
in the Profit and Loss account in Schedule 2.5:
- Salaries, wages and bonus include compensated absences of Rs.3,50,697
(2009-10 Rs.11,68,078).
- Contribution to provident, gratuity and other funds include
contribution to Provident Fund and Family Pension Fund contribution of
Rs.47,00,007 (2009-10 Rs.42,27,440) and gratuity fund of Rs.9,58,092
(2009-10 Rs.8,07,212).
- Workmen and staff welfare expenses include contribution to Employee
State Insurance of Rs.10,41,117 (2009-10 Rs.10,30,660).
24. Figures for the previous year have been regrouped to make them
comparable to the classification adopted in the current year.
Mar 31, 2010
1 Segment information
The Company is principally engaged in a single business segment viz.,
cotton yarn arid operates in one geographical segment as per Accounting
Standard 17 on Segment Reporting.
2 Related party disclosure
(i) Related parties with whom transactions have taken place during the
year
(1) Key management personnel - Sri R. Selvarajan - Chairman and
Managing Director
(2) Parties where significant 1 - S. Paianiandi Mudaliar Charitable
Trust influence exists I - Ksndagiri Spinning Mills Gratuity Trust
3 Issued and subscribed capital include 20,05,650 (March 31, 2009 -
20,05,650} Equity shares allotted as fully paid up by way of bonus
shares by capitalisation of part of General Reserve.
4 Movement in reserves - (i) Additions: (1) Amount appropriated from
the profit and loss account to General reserve Rs. 1,25,00,000 (March
31, 2009 Rs.Nil); and (2) Amount credited to Revaluation reserve on
account of revaluation of land and buildings of the company Rs.Nil
(March 31, 2009 Rs.23,09,00,807); (ii) Deduction: Amount amortised from
Cenvat credit relating to capital assets and adjusted in depreciation
in Schedule 2.8 Rs.10,96,661 (March 31, 2009 Rs.8,71,656).
5 Particulars for secured loans - (i) Term loans from banks to an
extent of Rs.59,79,82,240 (March 31, 2009 Rs.61,80,86,980) are secured
by a first charge on the Companys immovable and movable properties
(excluding book debts) subject to the charge stated in (iii) infra,
(ii) Term loans from banks to an extent of Rs. 16,60,41,758 (March 31,
2009 Rs.16,89,38,465) are secured by hypothecation of certain specific
assets, (iii) Cash, credit/buyers credit facilities are secured by a
first charge on the Companys current assets and by a second charge on
the Companys immovable and movable properties (other than those
covered under the first charge mentioned in (i) supra, and (iv) All the
loans are guaranteed by three directors.
6 Unsecured loans include - (i) Fixed deposits from directors
Rs.3,68,15,000 (March 31,2009 Rs.3,45,15,000) and (ii) amounts
repayable within twelve months from the balance sheet date
Rs.3,56,04,000 (March 31, 2009 Rs.24,58,000).
7 Fixed assets - (i) Cost of additions and capita) work-in-progress
includes borrowing cost of Rs. Nil (March 31, 2009 Rs.91,59,367) and
other expenses in the course of construction Rs. Nil (March 31, 2009
Rs.92,61,599); (ti)Deductions under plant and machinery includes
terminal excise duty refund under Export Promotion Capital Goods Scheme
of Rs.64,15,452 (March 31, 2009 Rs.90,04,444); and (iii) Gross block
includes Rs.23,09,00,807 added on revaluation of land and buildings as
at March 31, 2009 based on report by an external valuer.
8 The land and buildings of the Company were revalued as on March 31,
2009 by an external valuer on the basis of estimated market value in
the case of land and estimated depreciated replacement cost in the case
of buildings. The resulting surplus on such revaluation aggregating to
Rs.23,09,00,807 has been credited to Revaluation Reserve.
9 All investments are long term, non trade and quoted unless otherwise
stated. Market value of quoted investments Rs. 68,31,000 (March 31,
2009 Rs.26,46,000).
10 Loans and advances include Income tax paid in advance/deducted at
source, net of provisions therefor. The income tax liability for March
31, 2010 as minimum alternate, tax under section 115JB of the Income
tax Act, 1961 amounting to Rs.62,00,000 is eligible to be carried
forward and set off against futune income tax under section 1I5JAA of
the Income tax Act, 1961 and hence the minimum alternate credit
entitlement is reckoned in the above head.
11 (i) The information required to be disclosed under trie Micro, Smail
and Medium Enterprises Development Act, 2006 has been determined to the
extent such parties have been identified on the basis of information
available with the company. There are no overdues to parties on account
of principal amount and/or interest and accordingly no additional
disclosures have been made; and (ii) There are no amounts remaining
unpaid or unclaimed for a period of seven years in respect of unpaid
dividend, matured fixed depcs;ts and interest thereon from the date
they became payable by the company and hence there are no amounts
remaining to be credited to the Investor Education and Protextion Fund.
12 Derivatives - The Company uses derivative financial instruments such
as forward contracts and option to hedge certain currency rate
exposures, present and anticipated, denominated mostly in US dollars,
Euro and Swiss Franks. Generally such contracts are taken for exposures
materializing in the next six months. The Company actively manages its
currency rate exposures and uses these derivatives to mitigate the risk
from such exposures. The Company has hedged exposure of US $ 44,95,292
(March 31, 2009 US $ 5,34,299) as at March 31, 2010 and has a net
unhedged exposure of US$ 1,80,163 (March 31, 2009 - US$ 9,08,921) as at
the said date.
13 Estimated capital expenditure commitments (net of advances) Rs.
11,43,65,171 (March 31, 2009 Rs.4,42,29,871).
14 Contingent liabiiities - (i) Claims against the Company not
acknowledged as debts Rs.lO,04,679(March 31, 2009 Rs.5,90,261); (ii)
Bills discounted with bankers Rs.3,77,67,631 (March 31, 2009
Rs.2,06,82,400); and (iii) Other contingent liabilities Rs.83,24,909
(March 31, 2009 Rs. Nil).
15 Raw materials consumed - others include consumption of yarn for
manufacture of double/two- for-one yarn.
16 Power and fue! are net of (i) amount realised towards power
generated through Wind Energy Converters end adjusted against the cost
of power purchased from state electricity board Rs.7,72,19,698 (2008-09
Rs.6,45,38,556) and (ii) income from carbon credits Rs.78,97,103
(2008-09 Rs.l,27,86,811).
17 Repairs to plant and machinery inciude amortization of cost of
planned replacement of worn out parts of plant and machinery
Rs.38,10,442 (2008-09 Rs.28,08,095).
18 Human resources - Particulars of managerial remuneration (i) To
Managing Director - Salary Rs.21,60,000 (2008-09 Rs. 14,40,000),
Perquisites Rs.14,40,000 (2008-09 Rs.9,60,000), (ft) To Joint Managing
Director - Salary Rs.14,40,000 (2008-09 Rs.9,60,000), Perquisites
Rs.9,60,000 (2008-09 Rs.6,40,000).
19 Other expenses - (i) Donation and charity include contribution to
Communist Party of India Rs. Nil (2008-09 Rs.l0r000); and (ii)
Miscellaneous expenses include payments to auditors for Financial audit
Rs.2,50,000 (2008-09 Rs.2,50,000), Cost audit Rs.44,000 (2008-09
Rs.44,000), Taxation work Rs.1,10,000 (2008-09 Rs.95,000), Other work
Rs.1,05,000 (2008-09 Rs.70,000) and Expenses reimbursed to Statutory
auditors Rs.94,201 (2008-09 Rs.99,035), Cost auditors Rs.22,792
(2008-09 Rs.32,453).
20 Financial expenses - (i) Interest paid on fixed loans Rs7,07,97,688
(2008-09 Rs.6,11,32,981) includes Rs.26,60,658 (2008-09 Rs.23,07,234)
to the Managing Director; and (ii) Bank and other financial charges
include amortisation of loan raising expenses Rs.9,46,280 (2008-09
Rs.9,82,350).
21 Depreciation/amortization - (i) Amortised cenvat credit deducted
from capital reserve has been netted against the depreciation charge
relating to the concerned plant and machinery; and (ii) Depreciation
for the year computed on revalued assets includes a charge of
Rs.28,89,238 (2008-09 Rs, Nil) being the exces? depreciation computed
by the method followed by the Company prior to revaluation and the same
has been transferred from Revaluation Reserve to the Profit and Loss
account.
(ii) Gratuity fund is administered through Group Gratuity Scheme with
5BI Life Insurance and by the Gratuity trust through trustees.
(iii) During the year, the Company has recognised the following amounts
in the Profit and Loss account in Schedule 2.5:
- Salaries, wages and bonus include compensated absences of Rs.
14,72,675 (2008-09 Rs.10,14,367).
- Contribution to provident, gratuity and other funds include
contribution to Provident Fund and Family Pension Fund contribution of
Rs.42,27,440 (2008-09 Rs.30,24,558) and gratuity fund of Rs.8,07,212
(2008-09 Rs.28,10,830).
- Workmen and staff welfare expenses include contribution to Employee
State Insurance of Rs.10,30,660 (2008-09 Rs.6,98,695).
22 Figures for the previous year have been regrouped to make them
comparable to the classification adopted in the current year.