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Notes to Accounts of Shiva Texyarn Ltd.

Mar 31, 2018


32 Fair value hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The following table presents the fair value measurement hierarchy of financial assets and liabilities measured at fair value on recurring basis as at March 31, 2018, March 31, 2017and April 1, 2016.

(Rs. in lakhs)

Fair value measurement using

Particulars

As at

Date of valuation

Total

Quoted prices in active markets (Level 1)

Significant obervable inputs (Level 2)

Significant un obervable inputs (Level 3)

Financial assets measured at fair value :

1

FVTOCI financial assets designated at fair value:

Investment in equity instruments (quoted)

31-3-2018

31-3-2018

69.59

69.59

-

-

31-3-2017

31-3-2017

68.58

68.58

-

-

1-4-2016

1-4-2016

49.09

49.09

-

-

2

FVTPL financial assets designated at fair value:

Investment in equity instruments (unquoted)

31-3-2018

31-3-2018

9.67

-

-

9.67

31-3-2017

31-3-2017

13.73

-

-

13.73

1-4-2016

1-4-2016

11.41

-

-

11.41

There have been no transfers among Level 1, Level 2 and Level 3 during the year. 33 Financial Risk Management

The Company''s principal financial liabilities, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the company''s operations and to provide guarantees to support its operations. The Company''s principal financial assets include loans, trade and other receivables, and cash and short-term deposits that derive directly from its operations.

The Company''s activities expose it to a variety of financial risks: credit risk, liquidity risk, foreign currency risk and interest rate risk. The Company''s primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the company is foreign exchange risk. The Company uses foreign currency borowings to mitigate foreign exchange related risk exposures.

The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below: Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Compan/s receivables from customers and investment securities. Credit risk arises from cash held with banks and financial institutions, as well as credit exposure to clients, including outstanding accounts receivable. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment.

The following table gives details in respect of percentage of revenues generated from top customer and top 5 customers :

(Rs. in lakhs)

Particulars

For the year ended March 31,2018

For the year ended March 31,2017

Revenue from top customer

4,900.00

1,663.49

Revenue from top 5 customers

9,147.92

6,396.81

One customer accounted for more than 10% of the revenue for the year ended March 31, 2018 , however two of the customers accounted for more than 10% of the receivables for the year ended March 31, 2018. One customer accounted for more than 10% of the revenue for the year March 31, 2017, however four of the customers accounted for more than 10% of the receivables for the year ended March 31, 2017.

Investments

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good credit rating. The company does not expect any losses from non- performance by these counter-parties, and does not have any significant concentration of exposures to specific industry sectors.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk through credit limits with banks.

The Company''s corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management.

The working capital position of the Company is given below :

Particulars

As at March 31, 2018

As at March 31, 201 7

As at April 1, 2016

Cash and cash equivalents

886.33

571.44

571.99

Total

886.33

571.44

571.99

The table below provides details regarding the contractual maturities of significant financial liabilities as at March 31, 2018, March 31, 2017 and Aprill, 2016.

Particulars

As at

Less than 1 year

1 -2 years

2 years and above

Borrowings

March 31 ,2018

10,806.81

7,106.34

115.00

March 31 , 2017

10,818.28

5,670.84

115.00

April 1 , 2016

10,873.32

7,554.25

115.00

Trade payables

March 31, 2018

2,615.06

-

_

March 31, 2017

3,739.01

-

-

April 1,2016

1,821.07

-

-

Other financial liabilities

March 31, 2018

309.41

-

-

March 31, 2017

412.04

-

April 1, 2016

161.26

-

Foreign Currency risk

The Company''s exchange risk arises from its foreign operations, foreign currency revenues and expenses, (primarily in U.S. dollars, British pound sterling and euros) and foreign currency borrowings (primarily in U.S. dollars, British pound sterling and euros). A significant portion of the Company''s revenues are in these foreign currencies, while a significant portion of its costs are in Indian rupees. As a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the Compan/s revenues measured in rupees may decrease. The exchange rate between the Indian rupee and these foreign currencies has changed substantially in recent periods and may continue to fluctuate substantially in the future. The Compan/s management meets on a periodic basis to formulate the strategy for foreign currency risk management.

Consequently, the Company management believes that the borrowings in foreign currency and its assets in foreign currency shall mitigate the foreign currency risk mutually to some extent.

The following table presents foreign currency risk from non-derivative financial instruments as of March 31, 2018, March 31, 2017 and April 1, 2016.

Particulars

As at

US $

Euro

Pount / Sterling

Total

Assets

Trade receivables

March 31, 2018

694099

-

694099

March 31, 2017

559433

-

-

559433

April 1, 2016

714346

-

-

714346

Cash and Cash equivalents

March 31, 2018

-

-

-

March 31, 2017

-

-

-

-

April 1,2016

-

-

-

Liabilities

Trade receivables

March 31, 2018

-

-

-

-

March 31, 2017

-

-

-

April 1, 2016

-

-

-

-

Borrowings

March 31, 2018

-

-

-

-

March 31, 2017

-

-

-

April 1, 2016

-

-

-

-

Net Assets / (Liabilities)

March 31, 2018

694099

-

694099

March 31, 2017

559433

-

-

559433

April 1, 2016

714346

-

714346

Foreign currency sensitivity analysis

The Company is mainly exposed to the currency USD on account of outstanding trade receivables and trade payables in USD.

The following table details the Company''s sensitivity to a 5% increase and decrease in INR against the USD. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rates. A positive number below indicates an increase in profit or equity where the INR strengthens 5% against the relevant currency. For a 5% weakening of the INR against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.

(Rs. in lakhs)

Particulars

For the year ended March 31,2018

For the year ended March 31,2017

Impact on profit or (loss) for the year

2.14

-

For a 5% weakening of the INR against the relevant currency, there would be equivalent amount of impact on the profit as mentioned in the above table.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Compan/s debt obligations with floating interest rates and investments.

Interest rate sensitivity analysis

If interest rates had been 1 % higher and all other variables were held constant, the company''s profit for the year ended would have impacted in the following manner:

Particulars

For the year ended March

For the year ended March

31,2018

31,2017

Increase / (decrease) in the Profit for the year

(244.42)

(259.67)

If interest rates were 1% lower, the compan/s profit would have increased by the equivalent amount as shown in the above table.

Capital management

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Company monitors the return on capital. The Compan''s objective when managing capital is to maintain an optimal structure so as to maximize shareholder value.

The capital structure is as follows :

(Rs. in lakhs)

Particulars

As at March 31, 2018

As at March 31, 201 7

As at April 1, 2016

Total equity attributable to the equity share holders of the company

10,810.42

9,922.77

9,160.78

As percentage of total capital

37%

37%

33%

Current borrowings

8,161.84

7,331.74

7,319.53

Non-current borrowings

9,866.31

9,272.38

11,223.04

Total borrowings

18,028.15

16,604.12

18,542.57

As a percentage of total capital

63%

63%

67%

Total capital (borrowings and equity)

28,838.57

26,526.89

27,703.35

The Company is predominantly debt financed which is evident from the capital structure table.

34 Transition to Ind AS

The Company''s financial statements for the year ended March 31, 2018 are prepared in accordance with Ind AS notified under the Companies (Indian Accounting Standards) Rules, 2015. The adoption of Ind AS was carried out in accordance with Ind AS 101, using April 1, 2016 as the transition date. Ind AS 101 requires that all Ind AS standards and interpretations that are effective for the interim Ind AS financial statements for the year ended March 31, 2017 be applied consistently and retrospectively for all fiscal years presented. All applicable Ind AS have been applied consistently and retrospectively wherever required. The resulting difference between the carrying amounts of the assets and liabilities in the financial statements under both Ind AS and Indian GAAP as at the transition date have been recognized directly in equity at the transition date.

In preparing these financial statements, the Company has availed itself of certain exemptions and exceptions in accordance with Ind AS 101 as explained below:

a) Exceptions from full retrospective application :

Estimates exception: Upon an assessment of the estimates made under Indian GAAP, the Company has concluded that there was no necessity to revise such estimates under Ind AS, except where estimates were required by Ind AS and not required by Indian GAAP.

b) Exemptions from retrospective application :

a. The Company has elected to restate the carrying value of the plant and equipment and capital work in progress in accordance with Ind AS, as of April 01, 2016 (transition date) as its deemed cost as of the transition date.

c) Reconciliations:

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from Indian GAAP to Ind AS in accordance with Ind AS 101: equity as at April 1, 2016; equity as at March 31,2017 total comprehensive income for the year ended March 31, 2017; explanation of material adjustments to cash flow statements.

i) Equity reconciliation :

(Rs. in lakhs)

Particulars

Explanation Note

As at March 31, 201 7

As at April 1, 2016

Equity under previous GAAP

16,312.10

15,889.28

Change in treatment of dividend including tax there on

i)

-

288.60

Remeasurement of defined benefit obligations

ii)

2.43

(8.55)

Fair value of quoted investment (net of tax)

iii)

10.01

(5.66)

Assets derecognised

iv)

(32.99)

-

Demerger adjustment done as at April 1 , 2016

v)

(634.09)

Equity as per Incl AS

16,291.55

15,529.56

ii) Total comprehensive income reconciliation

Particulars

Explanation Note

For the year ended March 31,2017

Net income / (loss) under previous GAAP

1,053.11

Remeasurement of defined benefit obligations

(ii)

8.35

Assets derecognised

(iv)

(32.99)

Others

Profit for the year under Ind AS

1,028.47

Remeasurement of defined benefit obligations (Net of taxes)

(iii)

2.63

Fair value of quoted investment (net of tax)

(iv)

15.67

Total comprehensive income under Ind AS

1,046.77

iii) There were no significant reconciliation items between cash flows prepared under Indian GAAP and those prepared under Ind AS.

Explanation notes for Ind AS transition :

i) Under Ind AS, liability for dividend is recognized in the period in which the obligation to pay is established. Under previous GAAP

(till March 31, 2016), a liability is recognized in the period to which the dividend relates, even though the dividend may be approved by the shareholders subsequent to the reporting date.

ii) Under the previous GAAP, actuarial gains or losses were recognised in the statement of profit and loss. Under Ind AS, the actuarial gains or losses from part of remeasurement of the net defined benefit liability / asset is recognised in other comprehensive income. Change in the defined benefit obligation on account of Ind AS is recognised in the statement of profit and loss.

iii) The Company has made an irrevocable election to present the subsequent changes to the fair value of quoted equity onvestments in OCI. Accordingly all fair value changes on the instrument, excluding dividend are recognised in OCI which is not subsequently recycled to statement of profit and loss. Under the previous GAAP these investments were recognised at cost.

iv) Demerger expenses not qualifying for recognition under Ind AS is de-recognised under Ind AS.

v) Under Ind AS the adjustment for business combination (Demerger) is recognised with effect from the appointed date as per the scheme of demerger governed by the court of law i.e April 1, 2015. Under previous GAAP demerger effect was given during the year ended March 31, 2017. Therefore adjustment of the net profit earned by the resulting Company during the year ended March 31, 2017 in the financials as per the previous GAAP is not required.

35 Scheme of demerger

The National Company Law Tribunal (NCLT) vide their proceedings dated 24th August 2017 in Company Petition No.3598360 of 2016, renumbered as TCP/22823/CAA/2017, approved the scheme for demerger of the business of Spinning Unit-1 along with connected wind mills ("approved scheme", in favour of Shiva Mills Limited (formerly known as STYL Ventures Limited) ("SML"). The demerger comes in to effect from April 1, 2015, the appointed day fixed under the Scheme.

The net assets to be transferred to SML as on the appointed day, as per the approved scheme is recognised and disclosed as "Demerger Adjustment Account" to be adjusted against the equity of the Company when shares are allotted by SML to the share holders of Demerged Company.

During the year shares of SML were alloted in accordance with the scheme. Accordingly the demerger adjustment account is adjusted with the equity.

Signatories for notes and additional notes which form part of Balance Sheet and Statement of Profit and Loss.

Subject to our report of even date attached

For and on behalf of the Board

For Deloitte Haskins & Sells LLP

Chartered Accountants

S V Alagappan

S V Arumugam

S K Sundararaman

C.R. Rajagopal

Chairman

Director

Managing Director

Partner

DIN : 00002450

DIN : 00002458

DIN : 00002691

Membership No. 23418

Coimbatore 28th May, 2018

C Krishnakumar

Chief Financial Officer

R Srinivasan

Company Secretary ACS No. 21254


Mar 31, 2016

IV DISCLOSURES PURSUANT TO MICRO, SMALL & MEDIUM ENTERPRISES (DEVELOPMENT) ACT, 2006

The management has initiated the process of identifying enterprises ''which have provided goods and services to the company and ''which qualify under the definition of micro and small enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the disclosure in respect of the amounts payable touch enterprises as at 31st March, 2016 has been made in the financial statements based on information received and available ''with the company. The company has not received any claim for interest from any supplier under the said Act.

V OTHER DISCLOSURES

1 Status of income tax, interest tax, wealth tax and fringe benefit tax assessments :

a) The income tax assessments have been completed up to the assessment year 2013-14 ;

b) The ''wealth tax assessments have been completed up to the assessment year 2013-14 ;

c) No further liability likely to arise as against the completed or pending assessments.

2 In the opinion of Board of Directors :

a) Assets Other than Fixed Assets and Non Current Assets would realize the value stated in the normal course of Business

b) There are no overdue payments to Micro, Small and Medium Enterprises attracting interest in terms of Micro, Shall & Medium^ Enterprises (Development) Act, 2006.

c) There are no amounts required to be transferred to Central Government under the Investor Education and Protection Fund.

3 The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current year presentation.


Mar 31, 2015

1. Rights, Preferences and restrictions attaching to each class of shares including restrictions on distribution of dividends and repayments of Capital :

The Company has only one class of equity shares having par value of Rs.10/- each; Each equity share carries one vote; the shares carry equal right with respect to payment of dividend and repayment of capital in any event.

2. Terms of any securities convertible into Equity/Preference Shares issued along with earliest date of conversion in descending order starting from earliest such date : Not applicable

3. Shares reserved for issue under option and Contract / Commitments for the sale of shares / disinvestment including terms and amounts : Not applicable

4. OTHER NOTES TO FINANCIAL STATEMENTS (Rs. in lakhs)

As at As at Particu|ars 31.03.2015 31.03.2014

I ADDITIONAL NOTES TO BALANCE SHEET

A Contingent liabilities

a) Claims against the Company not acknowledged - - as debt

b) Guarantees - -

c) Other money for which the Company is contingently liable:

i) Disputed demands from ESI Authorities pertaining to Corporate office 11.28 11.28

ii) Disputed income tax demand pending in appeal before the first Appellate authority - 1.05

iii) Disputed central sales tax demand in respect of which interim stay granted by Hon'ble High Court of Madras - 16.02

iv) Disputed TNVAT demand in respect of which interim stay granted by Hon'ble High Court of Madras 127.17 404.13

B Commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for 105.09 157.06

b) Uncalled liability on shares and other investments partly paid - -

c) Other Commitments:

The amount of duty concession availed against the pending obligation for import of capital goods under concessional customs duty linked to fulfillment of export obligations 298.61 3,704.81

5. DISCLOSURES PURSUANT TO ACCOUNTING STANDARDS

a) AS 2 - Valuation of inventories

Closing stock of finished goods in textile division is valued excluding excise duty as the company opted for clearance at "Nil" duty and hence no provision for excise duty is made as expense. The method of valuation has no impact on the net profits.

i. Raw materials At weighted average method

ii. Process At weighted average method (incl. appropriate production overhead)

iii. Finished goods At weighted average method (incl. appropriate production overhead)

iv. Stock of packing materials At weighted average method and stores and spares

b) AS 17 - Segment reporting

The company's business relates to single segment only i.e, Textiles and hence no segment reporting is given.

c) AS 18 - Related party disclosures

A. Related parties

i) Holding and Subsidiary Companies : Nil

ii) Associates :

Anamallais Automobiles Private Ltd Anamallais Motors Private Ltd Annamallai Retreading Company Private Ltd Bannari Amman Spinning Mills Ltd Sakthi Murugan Transports Ltd Shiva Cargo Movers Ltd Young Brand Apparel Private Ltd Sundar Ram Enterprise Private Ltd

iii) Key management personnel :

Sri S V Alagappan - Chairman and Managing Director

Sri S K Sundararaman - Executive Director

iv) Relatives of key management personnel :

Dr S V Balasubramaniam - Brother of Chairman and Managing Director

Sri S V Kandasami - Brother of Chairman, Managing Director and F/o. Executive Director

Sri S V Arumugam - Brother of Chairman and Managing Director

Smt A Lalitha - Daughter of Chairman and Managing Director

d) AS 19 - Accounting for leases

Accounting for lease rentals paid under contract for operating lease and rental on time schedule, charged to revenue as and when incurred. The company has not entered into any contract for finance lease.

e) AS 28 - Impairment of assets

The assets of the company have not suffered any impairment as assessed by the Management.

f) AS 29 - Provision, contingent liabilities and contingent assets

a) Provisions : Nil

b) Contingent liabilities

Contingent liabilities are not provided for, but disclosed in the notes on accounts.

c) Contingent assets

i) In the opinion of the management there are no contingent assets.

ii) Contingent assets as a policy are not recognized.

6. DISCLOSURES PURSUANT TO MICRO, SMALL & MEDIUM ENTERPRISES (DEVELOPMENT) ACT, 2006

The management has initiated the process of identifying enterprises which have provided goods and services to the company and which qualify under the definition of micro and small enterprises as defined under Micro, Small and Medium Enterprises Development Act,2006. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31st March, 2015 has been made in the financial statements based on information received and available with the company. The company has not received any claim for interest from any supplier under the said Act.

7. OTHER DISCLOSURES

1 Status of income tax, interest tax, wealth tax and fringe benefit tax assessments :

a) The income tax assessments have been completed upto the assessment year 2012-13.

b) The wealth tax assessments have been completed upto the assessment year 2012-13.

c) No further liability likely to arise as against completed or pending assessments

2 In the opinion of Board of Directors :

a) Assets Other than Fixed Assets and Non Current Assets would realize the value stated in the normal course of Business.

b) There are no overdue payments to Micro, Small and Medium Enterprises attracting interest in terms of Micro, Small & Medium Enterprises (Development) Act, 2006.

c) There are no amounts required to be transferred to Central Government under the Investor Education and Protection Fund.

8. The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current year presentation.


Mar 31, 2014

Particulars As at As at 31.03.2014 31.03.2013

I ADDITIONAL NOTES TO BALANCE SHEET

A Contingent liabilities

(a) Claims against the Company not acknowledged as debt - -

(b) Guarantees - -

(c) Other money for which the Company is contingently liable: (i) Disputed demands from ESI Authorities pertaining to Corporate office 11.28 11.28

(ii) Disputed income tax demand pending in appeal before the first Appellate authority 1.05 1.05

(iii) Disputed central sales tax demand in respect of which interim stay granted by Hon''ble High Court of Madras 16.02 16.02

(iv) Disputed TNVAT demand in respect of which interim stay granted by Hon''ble High Court of Madras 404.13 -

III DISCLOSURES PURSUANT TO ACCOUNTING STANDARDS

1) AS 2 - Valuation of inventories

Closing stock of finished goods in textile division is valued excluding excise duty as the company opted for clearance at "Nil" duty and hence no provision for excise duty is made as expense. The method of valuation has no impact on the net profits.

i. Raw materials At weighted average method

ii. Process

At weighted average method (incl. appropriate production overhead)

iii. Finished goods

At weighted average method (incl. appropriate production overhead)

iv. Stock of packing materials and stores and spares At weighted average method

In the absence of detailed information regarding plan assets which is funded with Life Insurance Corporation of India, the composition of each major category of plan assets, the percentage or amount for each category to the fair value of plan assets has not been disclosed. The details of experience adjustments arising on account of plan assets and liabilities as required by paragraph 120(n)(ii) of AS 15 (Revised) on "Employees Benefits" are not readily available in the valuation report furnished by LIC of India and hence, are not furnished.

3) AS 17 - Segment reporting

The company''s business relates to single segment only i.e, Textiles and hence no segment reporting is given.

4) AS 18 - Related party disclosures

A. Related parties

(i) Holding and Subsidiary Companies : Nil

(ii) Associates :

Anamallais Agencies Private Ltd

Anamallais Automobiles Private Ltd

Annamallai Retreading Company Private Ltd

Bannari Amman Flour Mill Ltd

Bannari Amman Spinning Mills Ltd

Sakthi Murugan Transports Ltd

Shiva Cargo Movers Ltd

Shiva Distilleries Ltd

Vedanayagam Hospital Ltd

Sundar Ram Enterprise Private Ltd

(iii) Key management personnel :

Sri S V Alagappan - Chairman and Managing Director

Sri S K Sundararaman - Executive Director

(iv) Relatives of key management personnel :

Dr S V Balasubramaniam - Brother of Chairman and Managing Director

Sri S V Kandasami - Brother of Chairman, Managing Director and F/o. Executive Director

Sri S V Arumugam - Brother of Chairman and Managing Director

Smt A Lalitha - Daughter of Chairman and Managing Director

9) AS 29 - Provision, contingent liabilities and contingent assets

(a) Provisions : Nil

(b) Contingent liabilities

Contingent liabilities are not provided for, but disclosed in the notes on accounts.

(c) Contingent assets

(i) In the opinion of the management there are no contingent assets.

(ii) Contingent assets as a policy are not recognized.

V OTHER DISCLOSURES

1 Status of income tax, interest tax, wealth tax and fringe benefit tax assessments :

(a) The income tax assessments have been completed upto the assessment year 2011-12; disputed income tax demand pending in appeal before the first Appellate authority Rs.1.05 lakhs

(b) The wealth tax assessments have been completed upto the assessment year 2011-12; No further liability in likely to arise as against completed or pending assessments

2 In the opinion of Board of Directors :

(a) Assets Other than Fixed Assets and Non Current Assets would realize the value stated in the normal course of Business

(b) There are no overdue payments to Micro, Small and Medium Enterprises attracting interest in terms of Micro, Small & Medium Enterprises (Development) Act, 2006

(c) There are no amounts required to be transferred to Central Government under the Investor Education and Protection Fund

3 The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current year presentation.

1. General Instructions:

a. There will be one Postal Ballot Form/e-voting for every Client ID No. / Folio No., irrespective of the number of joint holders.

b. Members have option to vote either through Postal Ballot Form or through e-voting. If a member has opted for Physical Postal Ballot, then he/she should not vote by e-voting and vice versa. However, in case Shareholders cast their vote through both physical postal ballot and e-voting, then vote cast through e-voting shall prevail and vote cast through Physical Postal Ballot shall be considered as invalid.

c. Voting in the Postal ballot/e-voting cannot be exercised by a proxy. However, corporate and institutional members shall be entitled to vote through their authorised representatives with proof of their authorization, as stated below.

d. Any query in relation to the Resolutions proposed to be passed by Postal Ballot may be addressed to Mrs M Shyamala, Company Secretary, at the Registered Office of the Company.

e. The Scrutinizer''s decision on the validity of a Postal Ballot/E-voting shall be final and binding.

2. Instructions for voting physically by Postal Ballot Form:

a. A member desirous of exercising his/her Vote by Postal Ballot may complete this Postal Ballot Form and send it to the Scrutinizer, Mr R Dhanasekaran, Practicing Company Secretary (CP No.7745), C/o. M/s. S.K.D.C. CONSULTANTS LTD Kanapathy Towers, 3rd Floor, 1391/A-1, Sathy Road, Ganapathy, Coimbatore - 641 006.

b. This Form must be completed and signed by the Member, as per specimen signature registered with the Company or Depository Participant, as the case may be. In case of joint holding, this Form must be completed and signed (as per the specimen signature registered with the Company) by the first named Member and in his/her absence, by the next named Member.

c. In respect of shares held by corporate and institutional members (companies, trusts, societies, etc.), the completed Postal Ballot Form should be accompanied by a certified copy of the relevant Board Resolution/appropriate authorization, with the specimen signature(s) of the authorized signatory(ies) duly attested.

d. Voting rights shall be reckoned in proportion to the paid-up equity shares registered in the name of the Member as on 11th July, 2014.

e. The consent must be accorded by recording the assent in the column ''FOR'' or dissent in the column ''AGAINST'' by placing a tick mark (3) in the appropriate column in the Postal Ballot Form. The assent or dissent received in any other form shall not be considered valid.

f. Members are requested to fill the Postal Ballot Form in indelible ink and avoid filling it by using erasable writing medium(s) like pencil.

g. Duly completed Postal Ballot Form should reach the Scrutinizer not later than the close of working hours (17:00 hrs.) on 22nd August, 2014. All Postal Ballot Forms received after this date will be strictly treated as if no reply has been received from the Member.

h. A Member may request the Company for a duplicate Postal Ballot Form, if so required, and the same duly completed should reach the Scrutinizer not later than the date specified under instruction No. 2(g) above.

i. Members are requested not to send any other paper along with the Postal Ballot Form. They are also requested not to write anything in the Postal Ballot Form except giving their assent or dissent and putting their signature. If any such other paper is sent, the same will be destroyed by the Scrutinizer.

j. Incomplete, unsigned or incorrectly ticked Postal Ballot Forms will be rejected.

k. The results would be displayed on the Company''s website www.shivatex.co.in, besides communicating to the Stock Exchanges where the Company''s shares are listed.


Mar 31, 2013

1) AS 17 - Segment reporting

The company''s business relates to single segment only i.e, Textiles and hence no segment reporting is given.

2) AS 18 - Related party disclosures

A. Related parties

(i) Holding and Subsidiary Companies : Nil

(ii) Associates :

Anamallais Agencies Private Ltd

Anamallais Automobiles Private Ltd

Annamallai Infrastructures Ltd

Annamallai Retreading Company Private Ltd

Bannari Amman Flour Mill Ltd

Bannari Amman Spinning Mills Ltd

Sakthi Murugan Transports Ltd

Shiva Cargo Movers Ltd

Shiva Distilleries Ltd

Vedanayagam Hospital Ltd

Sundar Ram Enterprise Private Ltd (iii) Key management personnel :

Sri S V Alagappan - Chairman and Managing Director

Sri S K Sundararaman - Executive Director

(iv) Relatives of key management personnel :

Dr S V Balasubramaniam - Brother of Chairman and Managing Director

Sri S V Kandasami - Brother of Chairman, Managing Director and F/o. Executive Director

Sri S V Arumugam - Brother of Chairman and Managing Director

Smt A Lalitha - Daughter of Chairman and Managing Director

3) AS 28 - Impairment of assets

The assets of the company have not suffered any impairment as assessed by the Management.

4) AS 29 - Provision, contingent liabilities and contingent assets

(a) Provisions : Nil

(b) Contingent liabilities

Contingent liabilities are not provided for, but disclosed in the notes on accounts.

(c) Contingent assets

(i) In the opinion of the management there are no contingent assets.

(ii) Contingent assets as a policy are not recognized.


Mar 31, 2012

I. ADDITIONAL NOTES TO BALANCE SHEET

As at As at

31.03.2012 31.03.2011 (Rupees in lakhs)

A Contingent liabilities

(a) Claims against the Company not acknowledged as debt - -

(b) Guarantees - -

(c) Other money for which the Company is contingently liable:

Disputed demands from ESI Authorities pertaining to

Corporate office 5.32 5.32

B Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for 333.81 332.04

(b) Uncalled liability on shares and other investments partly paid - -

(c) Other Commitments :

The amount of duty concession availed against the pending obligation for import of capital goods under confessional customs duty linked to fulfillment of export obligations 3,365.10 3,298.81

C Proposed dividends

(a) On Preference Shares :

Total amount of proposed dividend - -

Number of Shares - -

Amount of dividend per share - -

Arrears of cumulative dividend - -

(b) On Equity Shares :

Total amount of proposed dividend - 324.07

Number of shares 21,604,521 21,604,521

Amount of dividend per share - 1.50

D Unutilised amount of proceeds of securities issued for specific purpose Nil Nil

E Diminution in value of assets other than fixed assets & non-current investments Nil Nil

In the absence of detailed information regarding plan assets which is funded with Life Insurance Corporation of India, the composition of each major category of plan assets, the percentage or amount for each category to the fair value of plan assets has not been disclosed. The details of experience adjustments arising on account of plan assets and liabilities as required by paragraph 120(n)(ii) of AS 15 (Revised) on "Employees Benefits" are not readily available in the valuation report furnished by LIC of India and hence, are not furnished.

1 AS 17 - Segment Reporting

The company's business relates to single segment only i.e, Textiles and hence no segment reporting is given.

2 AS 18 - Related party disclosures A. Related parties

(i) Holding and Subsidiary Companies :

Nil

(ii) Associates :

Anamallais Agencies Private Ltd Anamallais Automobiles Private Ltd Annamallai Infrastructures Ltd Annamallai Retreading Company Private Ltd

3 AS 19 - Accounting for leases

Accounting for lease rentals paid under contract for operating lease and rental on time schedule, charged to revenue as and when incurred. The company has not entered into any contract for finance lease.

V OTHER DISCLOSURES

1 Status of income tax, interest tax, wealth tax and fringe benefit tax assessments :

(a) The income tax assessments have been completed upto the assessment year 2009-10; No further liability likely to arise as against completed or pending assessments

(b) The wealth tax assessments have been completed upto the assessment year 2009-10; No further liability likely to arise as against completed or pending assessments

2 In the opinion of the Board of Directors, all the current assets, loans and advances would realisse value stated in the normal course of business of the company

3 There are no amounts required to be transferred to Central Government under the Investor Education and Protection Fund

4 These financial statements have been prepared in the format prescribed by the Revised Schedule VI to the Companies Act 1956. Previous period figures have been recasted/restated to confirm to the classification of the current period.


Mar 31, 2010

I. OTHER INFORMATION 1. SECURED LOANS

i) Term Loan granded by Canara Bank :

The loan is secured by hypothecation of windmills installed by the Company and by equitable mortgage of the land on which the wind mills are installed. The loan is further secured by personal guarantees of Chairman, Managing Director and a Director of the Company.

ii) Term Loans granted by ICICI Bank:

a) The loans are secured by the immovable properties as first mortgage and also by hypothecation of the movables, both belonging to the Companys Spinning Unit I, subject to the charges created/to be created in favour of the banks on current assets for working capital finance.

b) A loan with an outstanding amount of Rs.98.96 lakhs (Rs.178.12 lakhs) is secured by a Corporate Guarantee executed by Shiva Distilleries Ltd.

c) A loan with an outstanding amount of Rs.237.50 lakhs (Rs.287.50 lakhs) is also secured by personal guarantee of a Director of the Company.

iii) Short Term Loan granted by ICICI Bank & IDBI Bank:

The loans are secured by a subservient charge on the current assets of the spinning unit(s) subject to the charges created/to be created in favour of the banks on current assets for working capital finance.

iv) Term Loan granted by Indian Overseas Bank:

The loan is secured by hypothecation of windmills acquired by the Company and dedicated for consumption of power at the Spinning Unit-I; the loan is further secured by equitable mortgage of the land on which the windmills are installed.

v) Term Loan granted by Bank of Maharastra:

The loan is secured by hypothecation of the movables belonging to the Companys Spinning Unit-I, subject to the charges created/to be created in favour of the banks on current assets for working capital finance and First charge on the immovables of the said unit on pari passu basis, which is pending for creation.

vi) Term Loan granted by Indian Overseas Bank, UCO Bank, State Bank of Hyderabad & Canara Bank:

The loans availed for the new spinning, knitting, garment units and processing facilities are secured by hypothecation of movables and also by a first charge on the immovables of the new spinning and knitting units.

vii) Term Loan granted by Bank of Baroda:

The loan availed for meeting long term working capital requirements is secured by hypothecation of movables subject to charges created/to be created in favour of bank for working capital requirments and also by a first charge on the immovables of the Spinning Unit-I at Dindigul on pari passu basis.

viii) Term Loan granted by Indian Overseas Bank:

The loan availed for augmenting wind power capacity by an additional 5.75 MW is secured by hypothecation of new windmills installed by the Company and by Equitable Mortgage of the land on which the wind mills are installed.

ix) Working Capital facilities from Canara Bank, Indian Overseas Bank & ICICI Bank:

The Working Capital facilities are secured by hypothecation of companys current assets of the textile Spinning Unit-I at Dindigul viz. stock of raw materials, stock in process, finished goods, stores and spares, bills receivables, book debts and other movables wherever situated. The charges are ranking pari passu. These working capital limits are further secured by second mortgage of the immovable properties of the textile Spinning Unit-I.

x) Working Capital facilities from Indian Overseas Bank & Canara Bank:

The Working Capital Limit facilities for the new spinning unit are secured by hypothecation of current assets of the new Spinning unit viz. stock of raw materials, stock in process, finished goods, stores and spares, bills receivables, book debts and other movables wherever situated. The charges are ranking pari passu. These working capital limits are further secured/to be secured by second mortgage of the immovable properties of the new Spinning unit-II.

2. CURRENT ASSETS

i) Balances with scheduled banks in deposit accounts subject to lien/pledge in favour of Government authorities in the ordinary course of the business of the Company, is Rs. 240.00 Lakhs (Previous year Rs.280.00 Lakhs).

ii) Closing stock of finished goods in textile division is valued excluding excise duty as the Company opted for clearance at ‘Nil duty and hence no provision for excise duty is made as expense. The method of valuation has no impact on the netprofits.

iii) In the opinion of the Board of Directors, all the current assets, loans and advances would realize value stated in the normal course of business of the Company.

In the absence of detailed information regarding Plan assets which is funded with Life Insurance Corporation of India, the composition of each major category of plan assets, the percentage or amount for each category to the fair value of plan assets has not been disclosed. The details of experience adjustments arising on account of plan assets and liabilities as required by paragraph 120(n)(ii) of AS 15 (Revised) on "Employees Benefits" are not readily available in the valuation report furnished by LIC of India and hence, are not furnished.

3 . CONTINGENT LIABILITIES

The Company is contingently liable for:

Current Year Previous Year

(Rs. in lakhs)

i) Disputed Income Tax demand remanded by the second Appellate Authority, pending revision for the assessment year 1998-99 30.13 30.13

ii) Disputed Interest Tax demands remanded by the second Appellate Authority, pending revision of assessments. 61.98 61.77

iii) The amount of duty concession availed against the pending 2991.15 2319.34 obligation (for import of capital goods under concessional customs duty linked to fulfillment of export obligations)

iv) Disputed demands from ESI Authorities pertaining to Corporate Office 5.32 5.32



4. RELATED PARTIES DISCLOSURE AS REQUIRED BY ACCOUNTING STANDARD 18 A. Related parties:

i) Holding and Subsidiary Companies:Nil

ii) Associates:

Anamallais Agencies Private Ltd

Anamallais Automobiles Private Ltd

AA Tyre Retreading Company Private Ltd

Annamallai Infrastructures Ltd

Bannari Amman Flour Mill Ltd

Bannari Amman Spinning Mills Ltd

Bannari Amman Sugars Ltd

Sakthi Murugan Transports Private Ltd

Shiva Cargo Movers Ltd

Shiva Distilleries Ltd

iii) Joint venture:

Bannari Amman Apparel Private Ltd

iv) (1) Key management personnel:

Sri S V Alagappan - Managing Director

Sri A Senthil - Executive Director

(2) Relatives of key management personnel:

Dr S V Balasubramaniam - Brother of Managing Director

Sri S V Arumugam - Brother of Managing Director and Father of Executive Director

Sri S V Balakrishnan - Brother of Managing Director

Smt A Lalitha - Daughter of Managing Director

5. DISCLOSURE FOR IMPAIRMENT LOSS AS PRESCRIBED UNDER ACCOUNTING STANDARD 28

No impairment loss was incurred during the year 2009-10 as per assessment made by the Company with reference to fixed assets owned by the Company as at the close of the year.

6. INCOME TAX, INTEREST TAX, WEALTH TAX AND FBT ASSESSMENTS

i) Status of Assessments:

a) The income tax assessments have been completed up to the assessment year 2007-08. Against completed assessments, wherever revision of assessments are pending for giving effect to Appellate Orders, provision if any required, which may not be significant, will be made on completion of revision proceedings.

b) Differential provision, if any required, for tax on book profit U/s 115JA or U/s 115JB, based on retrospective amendments made by Finance (No.2) Act, 2009, will be considered on cumulative basis (net of refund) upon revision of all tax assessments with effect from Asst. Year 1998-99; the amount of net provision, may not be significant.

c) Levy of interest tax was withdrawn with effect from Asst. Year 2000-01; for past assessments, where revision orders are pending as against Appellate orders, provision, if any required, will be made on completion of revision proceedings.

d) The wealth tax assessment is pending for completion for the assessment year 2007-08; provision if any will be made based on outcome of the assessment.

7. DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES

The Company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the Micro, Small and Medium Enterprises Development Act, 2006) claiming their status as micro, small or medium enterprises. Consequently, the amount paid/payable to these parties during the year is NIL.

In the opinion of the Board of Directors, there were no overdue sundry creditors requiring payment of any interest on overdue liability.

8. There are no amounts required to be transferred to Central Government under the Investor Education and Protection Fund.

9. Previous years figures are regrouped wherever required to conform to current year groupings and figures in brackets denote previous years figures.

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