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Notes to Accounts of VTM Ltd.

Mar 31, 2015

1 Contingent liabilities and Commitments:

(to the extent not provided for)

a) Contingent Liabilities:

i) Letters of credit 0.00 0.00

ii) Tax demands & PF Arrears under disputes 389.93 254.43

The management believes, based on internal assessment and / or legal advice, that the probability of an ultimate adverse decision and outflow of resources of the Company is not probable and accordingly, no provision for the same is considered necessary.

b) Commitments Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) 0 0

Additional information:

Proposed dividends: Amount per Total Amount per Total Re.l/-share Rs. Re.l/-share Rs.

Amount of dividends 0.63 25,343,388 0.70 28,159,320 proposed to be distributed to equity share holders

2 Related Party disclosures as required by Accounting Standard No. 18 are given

below:

(I) Where Control Exists:

Subsidiary Company : NIL

Associated Company : M/s. Colour Yarns Ltd.

(II) Other related parties with whom transactions have been entered into during the year:

(A) Key Managerial Personnel & their Relatives:

Sri T. Kannan Dr.(Smt.) Uma Kannan Sri K. Thiagarajan Sri S. Paramashivan

(B) Enterprises in which Key Managerial Personnel and their Relatives have significant influence:

1. Thiagarajar Mills (P) Ltd.

2. Tamaraiselvi Finance Pvt. Ltd.

3. Thiagarajar Leasing Pvt. Ltd.

4. Sri T. Kannan (HUF)

5. Kalaithanthai Karumuttu Thiagaraja Chettiar Memorial Charitable Trust

6. Thiagarajar College of Engineering

7. sundaram Textiles Ltd.

8. Samy Auto Service

9. Samy Automobiles

10. Murugan Security Services


Mar 31, 2014

1. CONTINGENT LIABILITES AND COMMITMENTS:

(to I he extent not provided fur)

(Rs, in Lakhs)

As at As at

31.03.2014 31.03.2013

a) Contingent Liabilities

i) Letters of credit 0.00 0.00

ii) disputes 254.43 1.61

The management believes, based on internal assessment and / or legal advice, that die ultimate adverse decision and outflow of resources of the Company is not probable and provision tor the same is considered necessary.

b) Commitments

Estimated amount at contracts remaining to be executed on Capital Account and not provided for (net of advances) 0 0

2. NOTES ON ACCOUNTS;

1, Statement of Significant ant Account mg Policies: Basis of preparation of Financial Statements:

AS-I Disclosure of Accounting Policies;

The financial statements have been prepared on the basis of going concern, under the historic coal convention, to comply in all the material aspects with applicable accounting principles in India, the accounting standards notified under Section 211 (3C) of the Companies Act, 1956 and the relevant provision of the said Act.

AS-2 Valuation of Inventories:

a) Raw materials, components, stored and spares are valued at cost determined on weighted average basis. Work in process includes material cost and applicable direct overheads, Finished goods are valued at the aggregate of material pail and applicable direct and indirect overheads or market value whichever is lower.

b} The Excise Duly is exempt on finished grey goods.

c} There is no goods lying in customs bonded warehouses and hence the provision of duty does not arise,

AS-3 Cash Mom Statements:

Cash flow statement has been prepared under "Indirect Method".

AS-4 Contingencies and events occurring after the Balance Sheet Date:

There are no contingencies and events alter the Balance Sheet dale that affect the financial position of the company. Contested liabilities are disclosed by way of a note.

AS-5 Net Profit or loses For the Year, Prior Period items and Changes In accounting Policies:

This is not applicable as there is no change in accounting policies.

AS-6 Depreciation Accounting

Depreciation has been provided in the accounts on the following basis, at die rates prescribed in Schedule XIV to the Companies Act, 1956

a) Plant and Machinery other than Windmill''

i) On additions till 3th December 1977 Under the written down value method.

ii) On additions from L1 January 1978.

Under straight line method at the rates specified in Clause (II) (i) (a).

b) On all Other Assets:

Under the written down value method.

c) Windmill:

Under straight line method at The rates specified in Clause
d) In respect of additions during the year, full depreciation has been provided irrespective of the period of use. Similarly no depreciation to be provided on assets disposed off during the year.

AS-7 Accounting for Construction Contracts;

The Company is not engaged in any con strut-lien business covered by this Standard.

AS-8 Accounting fur Rest arch and He veJupmtnt:

This Standard stands withdrawn from the date of Accounting Standard 26- Intangible Assets becoming mandatory

AS-9 Revenue Recognition;

a) Income and expenditure are accounted on a going concern basis.

b) Sales are recognised on the time of despatches of the goods to the customers and recorded net of sales returns and includes export benefits.

c) Interest income is recognized on a time proportion basis taking into account the amount of outstanding and rate applicable.

d) Dividend Income: The company has derived income during the current year out of its investment and is recognized when the Company''s right to receive dividend is established.

e) Lease rentals in respect of assets given on "lease" are taken to Profit & Loss Account under the head of Non-Operative Income on the basis of the terms and conditions specified in the lease agreement.

AS-10 Accounting for Fixed Assets;

Fixed Assets are stalled at cost of acquisition which includes expenditure Incurred up to the date Mice asset is put [0 use. less accumulated depreciation Land is stated at cost or revaluation. Building is stated at cost or revaluation less depreciation. Plant and Machinery etc., are started at cost less depreciation.

AS-11 Accounting fm effects in foreign exchange rates:

a) Purchase of imported components and spare parts are accounted based on retirement memos from banks.

b) In respect of exports of cloth made on or before 31,03,2014, the amount due have been accounted at the rate at which the export bills were tendered to the Bank for Collection / Discounting.

c) There is no yearend foreign currency denominated liabilities and receivables,

d) Derivative Transactions;

The Company uses forward exchange contracts to hedge Its exposure in foreign currency,

As on 31st March. 2014 there is no Foreign Exchange Contracts outstanding exposure.

The amendment introduced to AS 11 by Government of India on 3lM March 2009 allowing the loss/profit on restatement of External Commercial Borrowings made for acquisition of Capital assets to be deducted from or added [0 cost of capital asset is not applicable to the company as it has no External Commercial Borrowings

No Mark to Market component arises as the Company do not have any outstanding contract as at the end of the year.

AS-12 Accounting for Government Grants:

The Company has not received any Government grants during the current accounting year. AS-13 Accounting IV Investments:

Investments are stated at cost. Provision for diminution in me carrying cost of investments is made if such diminution is other than temporary in nature.

AS-13 Accounting for Amalgamation :

This standard is not applicable to the company for the year under review.

AS-14 Accounting for Retirement benefits;

Gratuity with respect to defined benefit schemes are accrued based on actuarial valuations, carried out by an independent actuary as at the balance sheet date and being paid to Gratuity Fund.

The estimate of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotions ;and other relevant factors.

Provident Fund, Employees'' State Insurance Scheme and defined contribution plans are Charged to the Profit and Lose Account when incurred

AS-15 Borrowing Cost:

All borrowing costs are charged to revenue except tfl the extent they art- attributable it qualifying assets which are capitalized. During the year under review there was nu hoi-rowing attributable to qualifying assets and hence nu borrowing cost Was capitalized.

AS-16 Segment Reporting:

The Company operates in only one business segment viz.. Textiles. AS-17 Related Party Disclosure:

Disclosure is made as per the requirements of the standard and as per the clarifications issued by the Institute of Chartered Accountants of India.

AS-18 Leases:

This standard is not applicable as the Company does not have any finance lease agreement is force,

AS-19 Earning per Share:

The disclosure is made in the Profit and Loss account as per requirement.

AS-20 Consolidated Financial Statements:

There is no subsidiary company and hence this is not applicable

AS-21 Accounting Tor Taxes on Income:

Provision is made for income tax liability estimated to arise on the results for the year at the current rate of tax in accordance with the, Income Tax Act. 1961.

Deferred tax resulting from timing differences between book and tax profits is accounted for under liability method, at the current rate of tax.

Deferred tax assets arising on account of brought forward losses and unabsorbed depreciation are recognized only when there is virtual certainty supported by convincing evidence dial such assets will be realized.

Deterred tax assets arising on other temporary timing differences are recognized only if there is a reasonable certainty of realization.

AS-22 Accounting for Investments in Associates in Consolidated Financial Statements: Tiles standard is not applicable to the company for die year under review, AS-24 Discontinuing Operations: This is not applicable to die Company. AS-25 Interim Financial Reporting:

Quarterly financial results are published in accordance with the requirement of listing agreement with Stock Exchanges, The recognition and measurement principle as laid down in the standard have been Followed in the preparation of these results.

A5-23 Intangible Assets:

The Com pan v has no intangible assets. Hence this is nm applicable,

AS-24 Financial Reporting of bilateral in Joint Ventures:

Thin standard is not applicable to the Company a* the company does not have any joint venture

AS-25 Impairment of Assets:

As on the Balance Sheet date the carrying amounts of the assets net of accumulated depreciation is nul less than the recoverable amount of inch assets. Hence there is no impairment loss on the assets of the Company .

AS-26 Provisions, Contingent Liabilities and Contingent Assets: Contingent Liabilities are disclosed in Note No.2.

AS-37 Financial Instruments: Recognition and Measurement:

This standard is not applicable |o the company for the year under review.

AS-28 Financial Instruments: Presentation;

This standard is not applicable to the Company far the year under review

AS-29 Financial Instruments : Disc Insures:

This standard is not applicable to the company for the year under review

3. Related Party disclosures as required by Accounting Standard No. IS are given below:

I Where Control Exists:

Subsidiary Company Nil

II Other related parties with whom transactions have been entered into during the year

(A) Key Management Personnel (Chairman):

Sri. T. Kannan Sri. K.Thiagarajan

(B) Relauves of Key Managemeni Personnel:

Smt. Uma Kannan

Smt. Lakshmi Murugesan

(C) Enterprises m which Key Management Personnel have significant influence::

1. Thiagarajar Mills (p) Ltd

2. Colour Yarns Lid.

3. Tamaraiselvi Finance Pvt. Lid.

4. Thiagarajar Telekom Solutions Lid.

5. Sree Devi Karumari Finance pvt. Ltd.

6. Sree Thiagaraja finance Pvt. Ltd.

7. Thirumagal Finance Pvt. Lid.

8. Thiagarajar Leasing Pvt. Ltd.

9. Thiagarajar Rubbers Pvt. Ltd.

10. Karuuttu Farms Pvt. Ltd.

11. Kannappan Traders Pvt. Ltd.

12. Sivakami Textile Traders Pvt. Ltd.

I3. SIMA Texltile Processing Centre Ltd.

14. Sri T.Kannan(HUF)

15. Thiagarajar Knitters,

16. Guruvayoorappan Investments,

17. Avittarn Investments,

18. Thirumagal Investments.

19. Karumuttu Investments.

20. Madurai Celebrate Committee.


Mar 31, 2013

Other Information

1. During the year, the company splitted/sub-divided Rs.10/- paid up per share into Re.l/-paid up per share.

2. The company has issued only one class of shares referred to as equity shares having paid up value of Re.l/- per share and each shareholder is entitled to one vote per share.

3. The company declares dividend on equity shares. In the event of declaration of interim dividend, the same is as per decision of the Board of Directors. Final dividend is proposed by Board of Directors and approved by the shareholders of the company at the Annual General Meeting.

4. In the event of liquidation, shareholder will be entitled to receive remaining assets of the company after distribution of all preferential amount. The distribution will be in proportion to the no. of equity share held by the shareholder.

5. The company has no Holding nor any Subsdiary Company.

6. During the last five years immediately preceding the date of Balance Sheet, the company has neither issued any shares as Bonus shares nor for consideration other than cash and has not bought back any shares.

7. Equity Shares include :

Particulars of equity share holders holding more than 5% of the total number of equity shares

8. CONTINGENT LIABLITIES AND COMMITMENTS:

(to the extent not provided for)

a) Contingent Liablities

i) Letters of credit 0.00 557.40

ii) Tax demands under disputes 1.61 1.61

9. Related Party disclosures as required by Accounting Standard No.18 are given below:

I Where Control Exists:

Subsidiary Company : Nil

II Other related parties with whom transactions have been entered into during the year:

(A) Key Management Personnel (Chairman) : Thiru T. Kannan

(B) Relatives of Key Management Personnel:

1. Tmt. Uma Kannan

2. Tmt. Lakshmi Murugesan

3. Sri K. Thiagarajan

(C) Enterprises in which Key Management Personnel have significant influence:

1. Thiagarajar Mills (P) Ltd.

2. Colour Yarns Ltd.

3. Tamaraiselvi Finance Pvt. Ltd.

4. Thiagarajar Telekom Solutions Ltd.

5. Sree Devi Karumari Finance Pvt. Ltd.

6. Sree Thiagaraja Finance Pvt. Ltd.

7. Thirumagal Finance Pvt. Ltd.

8. Thiagarajar Leasing Pvt. Ltd.

9. Thiagarajar Rubbers Pvt. Ltd.

10. Karumuttu Farms Pvt. Ltd.

11. Kannappan Traders Pvt. Ltd.

12. Sivakami Textile Traders Pvt. Ltd.

13. SIMA-Textile Processing Centre Ltd.

14. Sri T. Kannan (HUF)

15. Thiagarajar Knitters

16. Guruvayoorappan Investments

17. Avittam Investments

18. Thirumagal Investments

19. Karumuttu Investments

20. Celebrate Madurai Committee

(D) The following transactions were carried out with the related parties in the ordinary course of business: i) Details relating to parties referred in item I above.

-Nil-

10. Previous year''s figures have been regrouped wherever necessary.


Mar 31, 2012

Additional Information:

a) Cash Credit and other facilities are secured against hypothecation of stock of raw materials, goods in process, finished goods, stores, second change on all fixed assets,

b) No loans have been Guaranteed by Directors or Others

1. CONTINGENT LIABLITIES AND COMMITMENTS:

(to the extent not provided for)

a) Contingent Liabilities

i) Letters of Credit 557.40 112.83

ii) Tax demands under disputes 1.61 76.60

The management believes, based on internal assessment and / or legal advice, that the probability of an ultimate adverse decision and outflow of resources of the company is not probable and accordingly, no provision for the same is considered necessary.

2. Related Party disclosure as required by Accounting Standard No 15 are given below:

I. Where Contol Exists

Subsidiary Company: Nil

II. Other related parties with whom transactions have been entered into during the year

(A) Key Management Personnel (Chairman):

Thiru T Kannan

(B) Relatives of Key Management Personnel:

1. Dr (Tmt) Radha Thiagarajan

2. Tmt Uma Kannan

3. Tmt Lakshmi Murugesan

(C) Enterprises in which Key Management Personnel have significant influence:

1. Thiagarajar Mills (P) Ltd.

2. Colout Yarns Ltd.

3. Tamaraiselvi Finance Pvt Ltd

4. Thiagarajar Telekom Solutions Ltd

5. Sree Devi Karumari Finance Pvt Ltd

6. Sree Thiagaraja Finance Pvt Ltd

7. Thirumagal Finance Pvt Ltd

8. Thiagarajar Leasing Pvt Ltd

9. Thiagarajar Rubbers Pvt Ltd

10. Karumuttu Farms Pvt Ltd

11. Kannappan Traders Pvt Ltd

12. Sivakami Textile Traders Pvt Ltd

13. SIMA Textile Processing Centre Ltd

14. Sri T Kannan (HUF)

15. Thiagarajar Knitters

16. Guruvayorrappan Investments

17. Avittam Investments

18. Thirumagal Investments

19. Karumuttu Investments

3. Previous Year's figures have been regrouped wherever necessary.


Mar 31, 2010

1. SECURED LOANS:

a) Term Loan from Bank is secured by hypothecation of specified machinery of the Company.

b) Cash Credit and other facilities are secured against hypothecation of stock of raw materials, goods in process, finished goods, stores, second charge on all fixed assets.

2. Income Tax assessment from Assessment Year 2008-2009 are pending.

3. The Company has Disputed Tax liability as at March 31, 2010 as detailed below:

4. Related Party disclosures as required by Accounting Standard No. 18 are given below:

I Where Control Exists:

Subsidiary Company : Nil

II Other related parties with whom transactions have been entered into during the year:

(A) Key Management Personnel: Thiru T. Kannan

(B) Relatives of Key Management Personnel:

1. Dr. (Tmt.) Radha Thiagarajan 2. Tmt. Uma Kannan 3. Tmt. Lakshmi Murugesan

(C) Enterprises in which Key Management Personnel have significant influence:

1. Thiagarajar Mills (P) Ltd. 2. Colour Yarns Ltd. 3. Tamaraiselvi Finance Ltd. 4. Sree Devi Karumari Finance Pvt. Ltd. 5. Sree Thiagaraja Finance Pvt. Ltd. 6. Thirumagal Finance Pvt. Ltd. 7. Thiagarajar Leasing Pvt. Ltd. 8. Thiagarajar Rubbers Pvt. Ltd. 9. Karumuttu Farms Pvt. Ltd. 10. Kannappan Traders Pvt. Ltd. 11. Sivakami Textile Traders Pvt. Ltd. 12. Paramount Textile Mills Pvt. Ltd. 13. SIMA Textile Processing Centre Ltd. 14. Thiagarajar Knitters 15. Guruvayoorappan Investments 16. Avittam Investments 17. Thirumagal Investments 18. Karumuttu Investments

(D) The following transactions were carried out with the related parties in the ordinary course of business: i) Details relating to parties referred in item I above.

-Nil-

5. The portion of Deferred Tax assets and liabilities in pursuance of Account Standard 22 issued by the Institute of Chartered Accountants of India is as stated below:

6. A sum of Rs.226.17 Lakhs was paid as ex-gratia payment to workers who retired from the Company under the Voluntary Retirement Scheme for the financial years from 31.03.2005. The said expenditure is treated as Deferred Revenue expenditure to be written off over a period of 5 years. Accordingly a sum of Rs.200.98 Lakhs has been written off as in earlier years and in addition the balance of Rs.25.19 Lakhs has been written off during the year in pursuance of Accounting Standard 15.

7. Previous years figures have been regrouped wherever necessary.

 
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