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
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 ÃNil 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.