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Notes to Accounts of Kandagiri Spinning Mills Ltd.

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.