1.1 During the five reporting periods immediately preceding the
reporting date, no shares have been issued by capitalization of
reserves as bonus shares or for Consideration other than cash.
1.2 The Company has a single class of equity shares. Accordingly all
equity shares rank equally with regard to voting rights, dividends and
share in the Company''s residual assets.
2.1 Loan from Directors:
These amounts have been brought in pursuant to the terms of sanction of
Loans by Bankers and retained as unsecured loans.
2.2 Interest Free Sates Tax Loan:
The Company started to pay this loan from 2006 and will have to pay the
loan fully within the year 2015.
3.1 CONTINGENT LIABILITIES: 31.03.2012 31.03.2011
Rs. In lacs Rs. In lacs
a. Bills discounted NIL NIL
b. Estimated amount of contracts remaining
to be executed on capital account and not
provided for (net of Advances) NIL 1920
3.2. Income Tax assessments have been completed up to the Assessment
3.3 The company has opted the exemption route vide Central Excise
Notification No.30/2004 and 31/2004 dated 09.07.2004.
3.4 As at the end of the year, the Company does not have small-scale
industries as defined by Section 3-J of the Industries (Development and
Regulation) Act, 1951 and to whom more than Rs. 1.00 lac is due and
also for more than 30 days. Hence, the provision of interest does not
arise. There were no overdue payments to Micro, Small and Medium scale
enterprises during the year and there is no amount overdue as on the
date of the Balance Sheet to such enterprises.
3.5 Sundry debtors which are overdue for a period of 6 months and more
include a sum Rs.58.07 lacs (Rs.32.09 lacs) for which the Company has
taken legal action and is hopeful of recovery. Provision has been made
for Rs.32.84 Lacs for Doubtful Debtors.
3.6 Depreciation has been calculated according to Schedule XIV of the
Companies Act, 1956 as amended on straight-line method.
3.7 The Company has received a demand towards Peak Hour Electricity
charges amounting to Rs.55.36 lacs from TNEB against which the Company
has gone on appeal to the Honourable High Court of Madras. The company
has paid this amount Under Protest. This amount has not been
''debited to the Profit & Loss statement nor any provision made in the
accounts, pending disposal of appeal by the Honourable High Court of
3.8 Previous year figures have been regrouped and reclassified
wherever necessary to conform to current year''s classification.
I. Segment-wise Reporting:
The Company is engaged mainly in the manufacture of yarn. The Company
owns Eleven wind mills mainly for captive consumption purpose only.
During the year the value of power generated through these mills is Rs.
12,64,33,405.50 (32509591 units) and this is adjusted with the power
cost of the Company. The processing division is operating mainly for
captive utilization and hence segment-wise reporting as defined in
Accounting Standard 17 is not required.
II. Deferred Tax Assets I Liability:
Deferred tax provision for the current year has been credited to the
profit and loss statement for the year. The Balance of deferred Tax
liability is being disclosed as a liability.
III. Employee Benefits: AS-15:
a. Provident Fund Contribution:
During the year the company has contributed Rs.2468946 /- to Government
Provident fund . The company does not have a separate exempted
As per the records of the company none of the employees come under the
purview of Payment of Gratuity Act.
c. With regard to other terminal benefits payable to employees the
company makes a payment of such benefits every year and hence no
provision is required.
IV. Related Party Disclosure as per AS 18:
1. Related Parties: Associates: (i) N.Rajan & Sons
(i) Amarjothi Colour Melange Spinning Mills Ltd.
2. Key Management Personnel: (i) Sri.R.Premchander, Managing Director
(ii) Sri.R.Jaichander, Joint Managing Director.