Mar 31, 2016
1) Accounting Policies: AS-1
1.1 Accounting Convention The financial statements of the Company are prepared under the historical cost convention, on an accrual basis, in accordance with the Generally Accepted Accounting Principles and the provisions of the companies Act,2013 as adopted Consistently by the company
2) Inventories :AS-2
Inventories are valued in consistent with earlier years as under:
Raw Materials - At cost
Stock-in-Process - Raw Material Conversion Cost
Finished Goods - At contract rate (Net)
Waste - At contract rate
Stores and Packing Materials - At cost (on the basis of FIFO method)
3) Depreciation / Amortization : AS : 6
Depreciation is provided on Straight Line Method as per the provisions of Schedule II of the Companies Act 2013.
4) Revenue Recognition :AS-9
Income and expenditure are accounted on accrual basis.
5) Fixed Assets:AS-10
Fixed Assets are shown at cost less depreciation except land. Cost comprises of cost of acquisition, erection expenses and other incidental expenses directly/indirectly contributed to the cost of the assets excluding cenvat/TNVAT.
6) Foreign Currency Transaction :AS-11
Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of negotiation.
7) Employees Benefits:-AS-15
Companyâs Contributions to PF, ESI, EDLI etc., made to the appropriate authorities have been recognized in the Profit & Loss Account. The outstanding liability towards provision for gratuity as per the actuarial valuation is Rs 1,61,55,025/-. So far a provision of Rs.40,55,627/- has been made and a sum of Rs.30,34,513/- has been paid to the LIC Group Gratuity Scheme. No provision has been made towards gratuity liability in the current year.
Leave Encashment:
As per the Rules and Regulations of the Company the eligible leave salary is paid on cash basis within the accounting year.
Bonus:
Bonus is accounted on Cash Basis
8) PENDING LITIGATIONS:
a) Provident Fund
The Company received a demand order dated 19.04.2011 for Rs.56,48,795/= from PF Commissioner, being the contribution payable for omitted wages for the period from April 2009 to December 2009. Against this order the company has filed a stay petition and an Appeal before the Employees Provident Fund Appellate Tribunal, New Delhi. The said forum passed its order on 06.07.2011 directing to deposit 30% of the disputed amount and the company has paid Rs. 1694639/=.
The Company also had preferred a stay petition against the demand order dated 19.04.2011 before the Honourable Madurai Bench of the Madras High Court which granted a stay order on 22.03.2012 directing the company to deposit 50% of the disputed amount less the amount already deposited before the Appellate authority within a period of 4 weeks. The Company has written a letter to the PF Office stating that the amount already deposited i.e. Rs. 16,94,639/= will cover the 50% amount if effect is given to the Tribunal order and is awaiting reply from the concerned authority. Adjudication still pending at Honourable Madurai Bench of the Madras High Court.
The company received a demand order dated 26.04.2012 for Rs.9907086/= from PF Commissioner being the contribution payable for omitted wages for the period from January 2010 to June 2011. Against this order the company has filed a stay petition and an appeal before the Employees provident fund appellate tribunal, New Delhi. The said forum passed its order on 31.05.2012 directing to deposit 50% of the disputed amount.
The company also had preferred a writ petition against the demand order dated 26.04.2012 before the Honourable Madurai Bench of Madras High Court which directed on 21.06.2012 to deposit 50% of the disputed amount before 01.09.2012. The company has paid Rs.4953543/= on 28.08.2012 which will cover the 50% amount and informed to PF Office as well as Appellate Tribunal New Delhi and adjudication is still pending at PF Appellate Tribunal, New Delhi
b) Sales-Tax
Sales tax Assessments(CST) have been completed up to the year ended 31.03.2014. The following liabilities are disputed in appeal and the management is in confidence of success in appeal and hence no provision has been made.
9) Interest on Borrowings: AS 16
The company is following AS -16 with regard to the treatment of borrowing costs. But there are no borrowing costs to be capitalized during the year..
10)Segment Financials as per AS-17 recommended by the Institute of Chartered Accountants of India.
The company operates in a single primary business segment namely manufacture of cotton yam. Since fabric sales is negligible it is included in the total net sales itself. Hence no separate disclosure is required.
15) Deferred Tax Asset/Liability: (AS-22)
Deferred tax resulting from timing differences between book and taxable profit is accounted for using the tax rates in force as on the balance sheet date. The deferred tax assets is recognized and carried forward only to the extent that there is reasonable certainty that the asset will be realized in future.
16) Impairment of Assets (AS-28)
In the opinion of the company, the recoverable amount of the fixed assets of the company will not be lower than the book value of the fixed assets. Hence no provision has been made for impairment.
Mar 31, 2015
The financial statements of the Company are prepared under the
historical cost convention, on an accrual basis, in accordance with the
Generally Accepted Accounting Principles and the provisions of the
companies Act,1956 as adopted Consistently by the company
2) Inventories :AS-2
Inventories are valued in consistent with earlier years as under:
Raw Materials - At cost
Stock-in-Process - Raw Material Conversion Cost
Finished Goods - At contract rate (Net)
Waste - At contract rate
Stores and Packing Materials - At cost (on the basis of FIFO method)
3) Depreciation/Amortization : AS:6
Depreciation is provided on Straight Line Method on prorate basis at
the rates prescribed in schedule XIV to the Companies Act, 1956 and not
as per the provisions of Schedule II of the Companies Act 2013.
4) Revenue Recognition :AS-9
Income and expenditure are accounted on accrual basis.
5) Fixed Assets:AS-10
Fixed Assets are shown at cost less depreciation except land. Cost
comprises of cost of acquisition, erection expenses and other
incidental expenses directly/indirectly contributed to the cost of the
assets excluding cenvat/TNVAT.
6) Foreign Currency Transaction :AS-11
Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of negotiation.
7) EmployeesBenefits:-AS-15
Company's Contributions to PF, ESI, EDLI etc., made to the appropriate
authorities have been recognized in the Profit & Loss Account. The
outstanding liability towards provision for gratuity as per the
actuarial valuation is Rs.1,27,70,045/-. So far a provision of
Rs.40,55,627/-has been made and a sum of Rs.30,34,513/- has been paid
to the LIC Group Gratuity Scheme. No provision has been made towards
gratuity liability in the current year.
Leave Encashment:
As per the Rules and Regulations of the Company the eligible leave
salary is paid on cash basis within the accounting year.
Bonus:
Bonus is accounted on Cash Basis
8) PENDING LITIGATIONS:
a) Provident Fund
The Company received a demand order dated 19.04.2011 for Rs.56,48,795/=
from PF Commissioner, being the contribution payable for omitted wages
for the period from April 2009 to December 2009. Against this order the
company has filed a stay petition and an Appeal before the Employees
Provident Fund Appellate Tribunal, New Delhi. The said forum passed its
order on 06.07.2011 directing to deposit 30% of the disputed amount and
the company has paid Rs.1694639/=.
The Company also had preferred a stay petition against the demand order
dated 19.04.2011 before the Honourable Madurai Bench of the Madras High
Court which granted a stay order on 22.03.2012 directing the company to
deposit 50% of the disputed amount less the amount already deposited
before the Appellate authority within a period of 4 weeks. The Company
has written a letter to the PF Office stating that the amount already
deposited i.e Rs.16,94,639/= will cover the 50% amount if effect is
given to the Tribunal order and is awaiting reply from the concerned
authority. Adjudication still pending at Honourable Madurai Bench of the
Madras High Court.
The company received a demand order dated 26.04.2012 for Rs.9907086/=
from PF Commissioner being he contribution payable for omitted wages
for the period from January 2010 to June 2011. Against this order the
company has filed a stay petition and an appeal before the Employees
provided fund appellate tribunal, New Delhi. The said forum passed its
order on 31.05.2012 directing to deposit50% of the disputed amount.
The company also had preferred a writ petition against the demand order
dated 26.04.2012 before the Honourable Madurai Bench of Madras High
Court which directed on 21.06.2012 to deposit 50% of the disputed amount
before 01.09.2012. The company has paid Rs.4953543/= on 28.08.2012 which
will cover the 50% amount and informed to PF Office as well as Appellate
Tribunal New Delhi and adjudication is still pending at PF Appellate
Tribunal, New Delhi
b) Sales-Tax
Sales tax Assessments have been completed upto the year ended
31.03.2008. The following liabilities are disputed in appeal and the
management is in confidence of success in appeal and hence no provision
has been made.
YFAR ENDED TAX PENALTY
TNGST CST TNGST CST
31.03.1999 1,44,771
31.03.2000 1,63,198
31.03.2004 12,86,570
2004-2005 24,43,232
2006- 2007 35,65,728
2007- 2008 20,56,561
9) lnterestonBorrowings:AS16
The company is following AS -16 with regard to the treatment of
borrowing costs. But there are no borrowing costs to be capitalised
during the year..
10) Segment Financials as perAS-17 recommended by the Institute of
Chartered Accountants of India.
The company operates in a single primary business segment namely
manufacture of cotton yarn. Hence no separate disclosure is required.
Sales revenue by geographical market is given as under:
Market 2014-2015 2013-2014
(Rs. in lakhs) (Rs.in lakhs)
Asia 517.62 527.70
Europe 587.65 442.57
United Kingdom 25.58 52.84
India 8071.08 8034.32
9201.93 9057.43
11)Related Party Disclosures as per AS-18 recommended by Institute of
Chartered Accountants of India
Reporting entity : Tamilnadu JaiBharath Mills Limited
List of related parties
Associate Companies : ShriRamalinga Mills Ltd.,
Aruppukottai
Harshni Textiles Mills Ltd., Anamalai
Lakshmi Electrical Drives Ltd.,
Textile Division - Sunspintex, Anamalai
Aruppukottai shri Ramalinga Spinners,
Private Ltd, Aruppukottai
Individuals/Firms : T.R.Dhinakaran
D.Nirmala
Manoj kumar Kedia .Kedia Enterprises
T.Balakumar.Texcones,Sankarankoil.
Nirmala & Company
Sri Ramasamy&company
Key Management Personnel : Sri T.R.Dhinakaran, CMD
Sri.DSenthilKumar,
Executive Dirctor.
Sri.V.N.Kittappa
Company Secretary
13) Disclosure regarding lease transactions: AS-19
The Company has not purchased any asset either on financial lease or on
operating lease during the year.
15) Deferred Tax Asset/Liability: (AS-22)
Deferred tax resulting from timing differences between book and taxable
profit is accounted for using the tax rates in force as on the balance
sheet date. The deferred tax assets is recognised and carried forward
only to the extent that there is reasonable certainty that the asset
will be realised in future.
16) Impairmentof Assets(AS-28)
In the opinion of the company, the recoverable amount of the fixed
assets of the company will not be lower than the book value of the
fixed assets. Hence no provision has been made for impairment.
Mar 31, 2012
1.1 Accounting Convention
The financial statements of the Company are prepared under the
historical cost convention, on an accrual basis, in accordance with the
Generally Accepted Accounting Principles in India (Indian GAAP) to
comply with the Accounting Standards notified by the Government of
India / Issued by the Institute of Chartered Accountants of India
(ICAI), as applicable, and the relevant provisions of the Companies
Act, 1956. The accounting policies adopted in the preparation of the
financial statements are consistent with those followed in the previous
year.
1.2 Presentation and disclosure of financial statements
For the year ended 31st March 2012, the revised Schedule VI notified
under the Companies Act 1956, has become applicable to the Company, for
preparation and presentation of its financial statements. Though
adoption of revised schedule VI does not impact recognition and
measurement principles followed, it has significant impact on
presentation and disclosures made in the financial statements. The
Company has also reclassified the previous year figures in accordance
with the requirements applicable in the current year.
An asset has been classified as current when it satisfies any of the
following criteria;
a) It is expected to be realized in, or is intended for sale or
consumption in, the Company's normal operating cycle;
b) It is held primarily for the purpose of being traded;
c) It is expected to be realized within twelve months after the
reporting date; or
d) It is cash or cash equivalent unless it is restricted from being
exchanged or used settle a liability for at least twelve months after
the reporting date.
A liability has been classified as current when it satisfies any of the
following criteria;
a) It is expected to be. settled in the Company's normal operating
cycle;
b) It is held primarily for the purpose of being traded;
c) It is due to be settled within twelve months after the reporting
date; or
d) The company does not have an unconditional right to defer
settlements of the liability for at least twelve months after the
reporting date. Terms of a liability that could, at the option of the
counterparty, result in its settlement by the issue of equity
instruments do not affect its classification. All other assets and
liabilities have been classified as non-current.
1.3 Use of Estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (Including
contingent liabilities) as of the date of the financial statements and
the reported income and expenses like provision for employee benefits,
provision for doubtful trade receivables/advances/contingencies,
provision for warranties, allowance for slow/non-moving inventories,
useful life of fixed assets, provision for retrospective price
increases on purchases, provision for taxation, etc., during the
reporting year. The Management believes that the estimates used in the
preparation of the financial statements are prudent and reasonable.
Future results may vary from these estimates.
3) Depreciation: AS-6
Depreciation has been provided on Straight Line Method at the rates
prescribed under Schedule XIV of the Companies Act 1956.
4) Revenue Recognition :AS-9
Income and expenditure are accounted on accrual basis.
5) Fixed Assets: AS-10
Fixed Assets are shown at cost less depreciation except land and
capital work in progress. Cost comprises of cost of acquisition-
erection expenses and other incidental expenses directly/indirectly
contributed to the cost of the assets.
6) Foreign Currency Transaction :AS-11
Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of negotiation, Exchange
difference between the rates applicable if any at the date of the
transaction and the rates actually realised has been included in the
respective revenue and expense head.
At the year end current liabilities in Foreign Currency are accounted
as per fhe rates prevailing on the Balance Sheet date and the exchange
differences if any are recognised as expenditure in statement of Profit
and Loss Account.
7) Employees Benefits:- AS-15
Company's Contributions to PF, ESI, EDLI etc., made to the appropriate
authorities have been recognized in the Profit & Loss Account. The
Company has not made any provision for accruing liability for Gratuity
payable to its employees. Gratuity payable will be accounted as and
when payments are made and as such liability has not been ascertained.
Provident Fund
The Company received a demand order dated 19.04.2011 for Rs.56,48,795/=
from PF Commissioner, being the contribution payable for omitted wages
for the period from April 2009 to December 2009. Against this order the
company has filed a stay petition and an Appeal before the Employees
Provident Fund Appellate Tribunal, New Delhi. The said forum passed its
order on 06.07.2011 directing to deposit 30% of the disputed amount and
the company has paid Rs. 1694639/=.
The Company also had preferred a stay petition against the demand order
dated 19.04.2011 before the Honourable Madurai Bench of the Madras High
Court which granted a stay order on 22.03.2012 directing the company to
deposit 50% of the disputed amount less the amount already deposited
before the Appellate authority within a period of 4 weeks. The Company
has written a letter to the PF Office stating that the amount already
deposited i.e Rs. 16,94,639/= will cover the 50% amount if effect is
given to the Tribunal order and is awaiting reply from the concerned
authority.
8) Interest on Borrowings: AS 16
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitaiised as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
9) Segment Financials as per AS-17 recommended by the Institute of
Chartered Accountants of India.
The company operates in a single primary business segment namely
manufacture of cotton yarn. Hence no separate disclosure is required.
10) Related Party Disclosures as per AS-18 recommended by Institute of
Chartered Accountants of India
Reporting entity
Tamilnadu Jai Bharath Mills Limited
List of related parties
Associate Companies
Shri Ramalinga Mills Ltd.,
Aruppukottai
Harshni Textiles Mills Ltd., Anamalai
Lakshmi Electrical Drives Ltd.,
Textile Division - Sunspintex, Anamalai
Anjppukottai Shri Ramalinga Spinners Pvt.Ltd., -
Aruppukottai
Sri Jayajothi & Co.Ltd.,
O.E.Division,
Virudhunagar
Sri Jayajothi Textiles Mills Pvt.Ltd.,
Keelarajakularaman,
Rajapalayam
Individuals/Firms
SriT.R.Dhinakaran
SmtD.Nirmala
Kedia Enterprises
Nirmala & Company
Key Management Personnel
Sri D.Senthilkumar,
Managing Director.
12) 1. Disclosure regarding lease transactions: AS-19
The Company has not purchased any asset either on financial lease or on
operating lease during the year.
14)Deferred Tax Asset/Liability: (AS-22)
Deferred tax resulting from timing differences between book and taxable
profit is accounted for using the tax rates in force as on the balance
sheet date. The deferred tax assets is recognised and carried forward
only to the extent that there is reasonable certainty that the asset
will be realised in future.
15) Impairment of Assets (AS-28)
In the opinion of the company, the recoverable amount of the fixed
assets of the company will not be lower than the book value of the
fixed assets. Hence no provision has been made for impairment.
Mar 31, 2010
1) Accounting Policies: AS-1
The financial statements are prepared on historical cost convention on
accrual basis and on a going concern concept. The accounts have been
drawn in accordance with the Accounting Standards referred to in Sub-
Section (3C) of Section 211 of the Companies Act, 1956.
2) Inventories :AS-2
Inventories are valued as under:
Raw Materials - At cost
Stock-in-Process - At cost
Finished Goods - At contract rate (Net)
Waste - At contract rate
Stores and Packing Materials - At cost (on the basis of FIFO method)
3) Depreciation :AS-6
Depreciation has been provided on Straight Line Method at the rates
prescribed under Schedule XIV of the Companies Act 1956.
4) Revenue Recognition :AS-9
Income and expenditure are accounted on accrual basis.
5) Fixed Assets:AS-10
Fixed Assets are shown at cost less depreciation except land and
capital work in progress. Cost comprises of cost of acquisition,
erection expenses and other incidental expenses directly/indirectly
contributed to the cost of the assets.
6) Foreign Currency Transaction :AS-11
Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of negotiation.
Exchange difference between the rates applicable if any at the date of
the transaction and the rates actually realised has been included in
the respective revenue and expense head.
At the year end current liabilities in Foreign Currency are accounted
as per the rates prevailing on the Balance Sheet date and the exchange
differences if any are recognised as expenditure in Profit and Loss
Account.
7) Employees Benefits:- AS-15
Companys Contributions to PF, ESI, EDLI etc., made to the appropriate
authorities have been recognized in the Profit & Loss Account. Approved
Gratuity Fund has been established and contributions to that fund are
being made through LIC.
The company has made a provision towards gratuity for a sum of
Rs.8,52,513/- in this year. On the basis of Actuarial Valuation
furnished by LIC for this Account, the Total accrued gratuity is
Rs.98,07,662/- against which the company has made a provision of
Rs.30,34,513/- only upto this year.
8) Interest on Borrowings: AS 16
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
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