Mar 31, 2015
1. SHARE CAPITAL:
NOTE:
The Company has only one class of equity shares having a par value of
Rs.10 per share. Each Share holder is eligible for one vote per share.
In the event of liquidation the equity share holders are eligible to
receive the remaining assets of the company after distribution of all
preferential amounts in proportion of their share holding.
There are no shares allotted as fully paid without payments being
received in cash, bonus shares or shares bought back in the immediate
preceding 5 previous years.
(b) Customs department filed an appeal before Madras High Court
against the orders of Settlement Commission under Advance License
Scheme in respect of reduction of Interest of Rs.8.26 lakhs allowed to
us.
(c) There is a demand of Rs.3,19,712/- raised by Andhra Pradesh
Electricity Department in respect of Fuel Surcharge adjustment (FSA).
The same is disputed by the Company before Hon'ble High Court and
pending orders no provision is made in the accounts.
2. The Balance of Debtors and Creditors, which in the absence of
confirmations wherever necessary are taken as per the books and are
subject to reconciliation and adjustments thereon having an impact of
revenue nature, if any will be made in the year in which the same are
finalized and settled.
3. In the opinion of Directors, assets other than fixed assets and
non-current investments have the value or realization in the ordinary
course of business at least equal to the amount at which they are
stated.
4. Sales Tax collections not included in the Sales for the year ended
31.03.2015 is Rs.18,56,895/- (previous year Rs.24,84,441/-).
5. Building, Plant & Machinery had been revalued as on 30th September
2002 and land had been revalued as on 30th September 2003 ( by
approved valuers, since their original costs no longer gave a true and
fair view of their then values) and surplus (arisen on revaluation of
Building, Plant & Machinery) amounting to Rs.15,56,26,170/- and
Rs.6,88,20,020/- respectively were credited to Revaluation Reserve
Account. Future salary increase considered in actuarial valuation
takes into account inflation, seniority, promotion and other relevant
factors such as supply and demand in the employment market.
Defined Contribution Schemes
Provident Fund 25,11,303 23,83,671 38,35,020
6. Segmental Reporting (AS-17):
The Company has only Single Reportable Business Segment, i.e. "Yarn
Segment" in terms of requirements of AS-17.
7. Lease (AS-19)
The Lease Agreement provides for an option to the company to renew the
lease period for a further period varying from 1 to 2 years at the end
of the period provided atleast three months' prior notice is given:
Future Minimum lease rent to be received:
b) The Company has provided for Deferred Tax Asset on account of
depreciation that arose on account of assets whose lives have become
NIL as per Schedule-II of the Companies Act, 2013 to the extent of
Rs.95,88,778/-. However, the Company has not considered Deferred Tax
Asset in respect of others as there is no virtual certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized.
Consequent to the enactment of the Companies Act, 2013 and its
applicability for accounting periods commencing from 1st April 2014,
the Company has reassessed the remaining useful life of fixed assets
in accordance with the provisions prescribed under Schedule-II to the
Companies Act 2013. In case of assets which have completed their
useful life, the carrying value (net of residual life) as at 1st April
2014 was Rs.3,06,23,007/- out of which Rs.2,10,34,229/- was
transferred to retained earnings after considering Rs.95,88,778/-
under Deferred Tax. In case of other assets, the carrying value (net
of residual value) is being depreciated over the revised remaining
useful life. The depreciation and amortization expenses charge for the
year would have been higher by Rs.1,56,654/- had the company continued
with the previous useful life of assets.
8. Capital Reserve relates to revaluation of land made during 2013 in
Partnership Firm in which Company is a Partner. The revaluation of
land is done on the basis of valuation certified by Certified Valuer.
Corresponding effect is accounted under receivable from Partnership
Firm.
9. Previous year figures have been re grouped and reclassified
wherever necessary to correspond with current year's
classification/disclosure.
Mar 31, 2014
AS-1 CONTINGENT LIABILITY
a) A provision is recognized when the company has a present obligation
as a result of past events and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which reasonable estimate can be made. Provisions are not discounted to
the present value and are determined based on Management estimate.
These are reviewed at each balance sheet date and adjusted to reflect
the current best estimate.
b) Contingent liabilities are disclosed by way of notes to financial
statements. Provision is made if it becomes probable that an out flow
of future economic benefits will be required for an item previously
dealt with as a contingent liability.
c) Contingent liability under various fiscal laws includes those in
respect of which the Company/Department is in appeal.
OTHERS
(i) USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted Accounting Pri nciples requires Management to make estimates
and assumptions that affects the reported amounts of assets and
liabilities and the disclosures of contingent liabilities as at the
date of the financial statements and reported amount of revenues and
expenses during the reporting period. Actual results could differ from
these estimates. Any revision to the estimates is recognized
prospectively.
(ii) CENVAT
a) The Value of CENVAT benefit is being reduced from the value of
purchase of materials. Consumption of materials is arrived at
accordingly.
b) The value of CENVAT benefit eligible in respect of capital item is
reduced from the cost and depreciation is claimed accordingly.
(iii) SUNDRY DEBTORS AND ADVANCES
Doubtful advances are disclosed by way of notes.
NOTE:
The C ompany has only one class of equity shares having a par value of
Rs.10 per share. Each Shareholder is eligible for one vote per share.
In the event of liquidation the equity share holders are eligible to
receive the remaining assets of the company after distribution of all
preferential amounts in proportion of their share holding.
There are no shares alloted as fully paid without payments being
received in cash, bonus shares or shares bought back in the immediatley
preceding previsous years.
Details of Security :
i) Secured by equitable mortgage of 4.135 acres of vacant land situated
at Coimbatore with all its present and future superstructure
ii) Hire Purchase Loans are secured by hypothecation of respective
assets
Aggregage amount of loans guaranteed by Chairman & Managing Director
towards term loans:
3. Customs department filed an appeal before Madras High Court against
the orders of Settlement Commission under Advance License S cheme in
respect of reduction of Interest of Rs.8.26 lakhs allowed to us.
4. There is a demand of Rs.3,19,712/- raised by Andhra Pradesh
Electricity Department in respect of Fuel Surcharge adjustment (FSA).
The same is disputed by the Company before Hon ble High Court and
pending orders no provision is made in the accounts.
5. a) Income Tax assessments from Assessment year 2012-13 and onwards
are pending.
b) Sales Tax Asses sments pending:
a) Under TNGST:1999-00 to 2000-01 & 2004-05 to 31.12.06
b) Under TNVAT:01.01.07 to 31.03.14
c) Under CST (TN):1999-00 to 2013-14
d) Under KGST:2005-06
e) Under CST (Kerala):2005-06
f) Under APVAT:2011-12 to 2013-14
g) Under CST (AP):2011-12 to 2013-14
2. Balance of Sundry Debtors and Sundry Creditors are subject to
confirmation, reconciliation and consequent adjustments thereof.
3. In the opinion of Directors, assets other than fixed assets and
non-current investments have the value or realization in the ordinary
course of business at least equal to the amount at which they are
stated.
4.Sales Tax collections not included in the Sales for the year ended
31.03.2014 is Rs.24,84,441/-(previous year Rs.65,61,597/-).
5. Disclosure required under the Micro, Small and Medium Enterprises D
evelopment Act, 2006 (the Act) are given as follows:
6. Building, Plant & Machin ery had been revalued as on 30th
September 2002 and land had been revalued as on 30th September 2003 (
by approved valuers, since their original costs no longer gave a true
and fair view of their then values) and surplus (arisen on revaluation
of Building, Plant & Machinery) amounting to Rs.15,56,26,170/- and
Rs.6,88,20,020/- respectively were credited to Revaluation Reserve
Account.
7. Particulars regarding investment in the capital of M/s.Dove Real
Estates:
b) The company has not provided for deferred tax asset as on
01.04.2001.
c) The company has also not provided for deferred tax asset for the
current year on account of prudence as there is no virtual certainty
that sufficient future taxable income will be available against which
such deferred tax asset can be realized.
8. Capital Reserve relates to revaluation of land in Partnership Firm
in which Company is a Partner. Th e revaluation of land is done on the
basis of valuation certified by Certified Valuer. Corresponding effect
is accounted under receivable from Partnership Firm.
9. Previous year figures have been re grouped and reclassified
wherever necessary to correspond with current year''s
classification/disclosure.
Mar 31, 2013
AS-1 ACCOUNTING FOR TAXES ON INCOME
Deferred tax resulting from timing differences between book and tax
profits is accounted under liability method as enacted or substantially
enacted rate as on the date of balance sheet. Deferred tax asset, other
than those arising on account of unabsorbed depreciation or carry
forward of losses under tax laws are recognised and carried forward
subject to consideration of prudence only to the extent that there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax asset can be realized.
Deferred tax asset, arising on account of unabsorbed depreciation or
carry forward of loss under tax laws are recognised and carried forward
subject to consideration of prudence only to the extent that there is
virtual certainty that sufficient future taxable income will be
available against which such deferred tax asset can be realized.
AS-2 INTANGIBLE ASSETS
Software is being amortized over a period of 4 years
AS-3 IMPAIRMENT OF ASSETS
An asset is impaired when the carrying amount of the asset exceeds its
recoverable amount. An impairment loss is charged to the statement of
Profit and Loss in the year in which an asset is identified as
impaired. An impairment loss recognized in prior accounting year is
reversed if there has been a change in the estimate of the recoverable
amount.
AS-4 CONTINGENT LIABILITY
a) A provision is recognized when the company has a present obligation
as a result of past events and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which reasonable estimate can be made. Provisions are not discounted to
the present value and are determined based on Management estimate.
These are reviewed at each balance sheet date and adjusted to reflect
the current best estimate.
b) Contingent liabilities are disclosed by way of notes to financial
statements. Provision is made if it becomes probable that an outflow of
future economic benefits will be required for an item previously dealt
with as a contingent liability.
c) Contingent liability under various fiscal laws includes those in
respect of which the Company/Department is in appeal.
OTHERS
(i) USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted Accounting Principles requires Management to make estimates
and assumptions that affects the reported amounts of assets and
liabilities and the disclosures of contingent liabilities as at the
date of the financial statements and reported amount of revenues and
expenses during the reporting period. Actual results could differ from
these estimates. Any revision to the estimates is recognized
prospectively.
(ii) CENVAT
a) The Value of CENVAT benefit is being reduced from the value of
purchase of materials. Consumption of materials is arrived at
accordingly.
b) The value of CENVAT benefit eligible in respect of capital item is
reduced from the cost and depreciation is claimed accordingly.
1. Customs department filed an appeal before Madras High Court against
the orders of Settlement Commission under Advance Licence Scheme in
respect of reduction of Interest of Rs.8.26 lakhs allowed to us.
2. There is a demand of Rs. 3,19.712/- raised by Andhra Pradesh
Electricity Department in respect of Fuel Surcharge adjustment (FSA).
The same is disputed by the Company before Hon''ble High Court and
pending order no provision is made in the accounts.
3. a) Income Tax assessments from Assessment year 2010-11 and onwards
are pending. b) Sales Tax Assessments pending''.
a) Under TNGST : 1999-00 to 2000-01 & 2004-05 to 31.12.06
b) Under TNVAT : 01.01.07 to 31.03.12
c) Under CST(TN) : 1999-00 to 2011-12
d) Under KGST : 2005-06
e) Under CST (Kerala) : 2005-06
f) Under APVAT : 2009-10 & 2011-12
g) Under CST (AP) : 2009-10 & 2011-12
4. Balance of Sundry Debtors and Sundry Creditors are subject to
confirmation, reconciliation and consequent adjustments thereof.
5. In the opinion of Directors, assets other than fixed assets and
non-current investments have the value or realization in the ordinary
course of business at least equal to the amount at which they are
stated.
6. Sales Tax collections not included in the Sales for the year ended
31.03.2013 is Rs.65,61,597/- (previous year Rs.59,78,344/-)
7. Disclosure required under the Micro, Small and Medium Enterprises
Development Act, 2006 (the Act) are given as follows:
8. Building, Plant & Machinery had been revalued as on 30th September
2002 and land had been revalued as on 30th September 2003 ( by approved
valuers, since their original costs no longer gave a true and fair view
of their then values) and surplus (arisen on revaluation of Building,
Plant & Machinery) amounting to Rs. 15,56,26,170/- and Rs.6,88,20,020/-
respectively were credited to Revaluation Reserve Account.
9. Segmental Reporting (AS-17):
The Company has only Single Reportable Business Seqmant, i.e. "Yarn
Segment" in terms of requirements of AS-17.
10. Exceptional item in Statement of Profit and Loss represents
surplus arising on conversion of land, being capital asset, to stock in
trade during the year. The value of converted land is taken at the
value as certified by certified valuer.
11. Capital Reserve relates to revaluation of land in Partnership Firm
in which Company is a Partner. The revaluation of land is done on the
basis of valuation certified by Certified Valuer. Corresponding effect
is accounted under receivable from Partnership Firm.
12. Previous year figures have been re grouped and reclassified
wherever necessary to correspond with current year''s
classification/disclosure.
Mar 31, 2012
(i) USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted Accounting Principles requires Management to make estimates
and assumptions that affects the reported amounts of assets and
liabilities and the disclosures of contingent liabilities as at the
date of the financial statements and reported amount of revenues and
expenses during the reporting period. Actual results could differ from
these estimates. Any revision to the estimates is recognized
prospectively.
(ii) CENVAT
a) The Value of CENVAT benefit is being reduced from the value of
purchase of materials. Consumption of materials is arrived at
accordingly.
b) The value of CENVAT benefit eligible in respect of capital item is
reduced from the cost and depreciation is claimed accordingly.
(iii) SUNDRY DEBTORS AND ADVANCES
Doubtful advances are disclosed by way of notes.
1. ADDITIONAL INFORMATION TO FINANCIAL STATEMENTS
2. Customs department filed an appeal before Madras High Court against
the orders of Settlement Commission under Advance Licence Scheme in
respect of reduction of Interest of Rs. 8.26 lakhs allowed to us.
3. a) Income Tax assessments are completed upto and including
Assessment year 2009-10.
b) Sales Tax Assessments pending:
a) Under TNGST : 1999-00 to 2000-01 & 2004-05 to 31.12.06
b) Under TNVAT : 01.01.07 to 31.03.11
c) Under CST(TN) : 1999-00 to 2010-11
d) Under KGST : 2005-06
e) Under CST (Kerala) : 2005-06
f) Under APVAT : 2009-10 & 2010-11
g) Under CST (AP) : 2009-10 & 2010-11
4. Balance of Sundry Debtors and Sundry Creditors are subject to
confirmation, reconciliation and consequent adjustments thereof.
5. In the opinion of Directors, assets other than fixed assets and
non-current investments have the value or realization in the ordinary
course of business at least equal to the amount at which they are
stated.
6. Sales Tax collections not included in the Sales for the year ended
31.03.2012 is Rs. 59,78,344/- (previous year Rs. l,11,62,019/-)
7. Building, Plant & Machinery had been revalued as on 30th September
2002 and land had been revalued as on 30th September 2003 (by approved
valuers, since their original costs no longer gave a true and fair view
of their then values) and surplus (arisen on revaluation of Building.
Plant & Machinery) amounting to Rs. 15,56,26,170/- and Rs.
6,88,20,020/- respectively were credited to Revaluation Reserve
Account.
8. Segmental Reporting (AS-17):
The Company has only Single Reportable Business Segment, i.e. "Yarn
Segment" in terms of requirements of AS-17.
9. i. Related party disclosure (AS-18)
(As identified by the Management)
Associates Key Management Relatives
Personnel of Key
Management
Personnel
Sri Jaganatha
Ginning. & Oil
Mills (JGOM) Sri R. Doraiswami
Sri Jaganatha
Textiles Ltd (SJTL) Sri D.
Lakshminarayanaswamy Smt. R. Suhasini
Suhasini Spinners
Ltd. (SSL) Smt. L. Nagaswarna Smt. L. Swathy
Swathy Processors
Ltd. (SPL)
Sri Ramakrishna
Yarn Carriers
Ltd. (SRYC)
Dove Real Estates
10. The revised Schedule VI has become effective from 1st April 2011
for the preparation of financial statements. This has significantly
impacted the disclosure and presentation made in the financial
statements. Previous year's figures have been regrouped and
reclassified where ever necessary to correspond with the current year's
classification/disclosure.
Mar 31, 2011
Year ended Year ended
31.03.2011 31.03.2010
Rs. Rs.
1. Contingent Liabilities not
provided for in accounts:
a) Bills discounted with Banks
pending realisation:-
[i] Export Bills Nil Nil
[ii] Domestic Bills Nil 43,89,905
b) Following Sales Tax assessments
are contested before Madras High
Court and stayed:-
Asst. Year Nature of Dispute Disputed Demand
(Rs. in Lakhs)
31.03.2011 31.03.2010
1995-96 TNGST Demand 54.59 54.59
1998-99 TNGST Demand 61.66 61.66
(Rs.31/- lacs since paid as
per Madras High Court
Interim Order.)
1999-00 TNGST Pre-assessment Demand 89.37 89.37
2000-01 TNGST, Additional Sales Tax 121.97 121.97
1.4.2004 to
31.12.2006 TNGST Additional Sales Tax 7.43 7.43
c) Customs department filed an appeal before Madras High Court against
the orders of Settlement Commission under Advance Licence Scheme in
respect of reduction of Interest of Rs.8.26 lakhs allowed to us.
2. Balance of Sundry Debtors and Sundry Creditors are subject to
confirmation, reconciliation and consequent adjustments thereof.
3. In the opinion of Directors, current assets, loans and advances
have the value at which they are stated in the Balance Sheet, if
realised in the ordinary course of business.
4. Sales Tax collections not included in the Sales for the year ended
31.03.2011 is Rs.l,11,62,019/- (Previous year Rs. 95,35,049/-)
5. Disclosure required under the Micro, Small and Medium Enterprises
Development Act, 2006 (the Act) are given as follows:
a) Principal amount due Nil Nil Interest due on the above Nil Nil
b) Interest paid during the period beyond the appointed day Nil Nil
c) Amount of interest due and payable for the period of
delay in making payment without adding the interest
specified under the Act Nil Nil
d) Amount of interest accrued and remaining unpaid at
the end of the period Nil Nil
e) Amount of further interest remaining due and payable
even in the succeeding years, until such date when the
interest dues as above are actually paid to the small
enterprise for the purpose of disallowance as a
deductible expenditure under Section 23 of the Act Nil Nil
The above information and that given in Schedule 13 "Current
Liabilities" regarding micro enterprises and small enterprises has been
determined on the basis of information available with the Company. This
has been relied upon by the Auditors.
6. Building, Plant & Machinery had been revalued as on 30th September
2002 and land had been revalued as on 30th September 2003 ( by approved
valuers, since their original costs no longer gave a true and fair view
of their then values) and surplus (arisen on revaluation of Building,
Plant & Machinery) amounting to Rs. 15,56,26,170/- and Rs.6,88,20,020/-
respectively were credited to Revaluation Reserve Account.
7. Segmental Reporting (AS-17):
The Company has only Single Reportable Business Segment, i.e. "Yarn
Segment" in terms of requirements of AS-17.
8. Related party disclosure (AS-18) (As identified by the Management)
i. Related party Relationships :
Associates Key Management Personnel Relatives of
Key Management
Personnel
Sri Jaganatha
Ginning.& Oil
Mills (JGOM) Sri R Doraiswami Smt D Ranganayaki
Sri Jaganatha
Textiles Ltd (SJTL) Sri D Lakshminarayanaswamy Smt R Suhasini
Suhasini Spinners
Ltd (SSL) Smt L Nagaswarna Smt L Swathy
Swathy Processors
Ltd (SPL)
Sri Ramakrishna
Yarn Carriers Ltd
(SRYC)
Dove Real Estates
9. a) The company has not provided for Deferred tax asset as on
01.04.2001
b) The company has also not provided for Deferred tax asset on account
of prudence for the current year as there is no virtual certainty that
sufficient future taxable income will be available against which such
Deferred Tax Asset can be realized.
10. The figures have been rounded off to the nearest rupee and previous
years figures have been re-grouped and re-classified wherever
necessary.
Mar 31, 2010
OTHERS
i) USE OF ATES
The pre of financial statements in conformity with l ted Accounting
Principles requires Management to make e mptions that affects the repo
a ounts of assets and liabilities and the dis o ngent liabilities as at
the date of the financial statements a unt of revenues and expense the
reporting period. Actual results could o e estimates. Any revision to
the estimates is recognized
(ii) CENVA
a) The CENVAT benefit is being reduced from e urchase of materials.
Consumption of materials is a gly.
b) The CENVAT benefit eligible in respect of c e educed from the cost
and depreciation is claimed accordi
2. Contingent Liabilities not provided for in accounts:
a) Bills discounted with Banks pending realisation:-
[i] Export Bills Nil Nil
[ii] Domestic Bills 43,80,905 Nil
B)Following Sales Tax assessments are
contested before H rt and stayed:- Asst.
Year Nature of Dispute Disputed Demand
(Rs. in Lakhs)
31.03.2010 31.03.2009
1995-96 TNGST Demand 54.59 54.59
1998-99 TNGST Demand 61.66 61.66
( Rs.31/- lacs since paid as per
Madras High Court Order.)
1999-00 TNGST Pre-ass-
essment Demand 89.37 89.37
2000-01 TNGST, Additi-
onal Sales Tax 121.97 121.97
1.4.2004 to
31.12.2006 TNGST Additional
Sales Tax 7.43 7.43
c) Customs department filed an appeal before Madras High Court against
the orders of Settlement Commission under Advance Licence Scheme in
respect of reduction of Interest of Rs.8.26 lakhs allowed to us.
3. Balance of Sundry Debtors and Sundry Creditors are subject to
confirmation, reconciliation and consequent adjustments thereof.
4. In the opinion of Directors, current assets, loans and advances
have the value at which they are stated in the Balance Sheet, if
realised in the ordinary course of business.
5. Building, Plant & Machinery had been revalued as on 30th September
2002 and land had been revalued as on 30th September 2003 ( by approved
valuers, since their original costs no longer gave a true and fair view
of their then values) and surplus (arisen on revaluation of Building,
Plant & Machinery) amounting to Rs.15,56,26,170/- and Rs.6,88,20,020/-
respectively were credited to Revaluation Reserve Account.
6. Segmental Reporting (AS-17):
The Company has only Single Reportable Business Segment, i.e. "Yarn
Segment" in terms of requirements of AS-17.
7. a) The company has not provided for Deferred tax asset as on
01.04.2001
b) The company has also not provided for Deferred tax asset on account
of prudence for the current year as there is no virtual certainty that
sufficient future taxable income will be available against which such
Deferred Tax Asset can be realized.
8. The figures have been rounded off to the nearest rupee and previous
years figures have been re-grouped and re-classified wherever
necessary.