1.1 Contingent liabilities
(i) Claims against the company not
acknowledged as debts 1,55,39,608 1,18,86,816
(ii) Bills discounted with banks 33,99,369 Nil
Out flow relating to above not practicable to indicate in view of the
1.2 Segment information
The company''s primary segment is identified as business segment based
on nature of products, risks, return and the internal business
reporting system (i.e. cotton yarn) and operates in a single
geographical segment as per Accounting Standard 17.
1.3 The land and buildings of the company were revalued as on March 31,
2009 by an external valuer on the basis of estimated market value in
the case of land and estimated depreciated replacement cost in the case
of buildings. The resulting net surplus on such revaluation aggregating
Rs.23,09,00,807 has been credited to revaluation reserve.
1.4 The information required to be disclosed under the Micro, Small
and Medium Enterprises Development Act, 2006 has been determined to the
extent such parties have been identified on the basis of information
available with the company. There are no overdues to parties on account
of principal amount and/or interest and accordingly no additional
disclosures have been made; and (ii) There are no amounts remaining
unpaid or unclaimed for a period of seven years in respect of unpaid
dividend, matured fixed deposits and interest thereon from the date
they became payable by the company and hence there are no amounts
remaining to be credited to the Investor Education and Protection Fund.
1.5 Derivatives - The company uses derivative financial instruments
such as forward contracts and option to hedge certain currency
exposures, present and anticipated, denominated mostly in US dollars,
Euro and Swiss Franks. Generally such contracts are taken for exposures
materializing in the next six months. The company actively manages its
currency rate exposures and uses these derivatives to mitigate the risk
from such exposures. The company has hedged exposure of US $ Nil (March
31, 2011 US $ 13,33,679) as at March 31, 2012 and has a net unheeded
exposure of US $ Nil (March 31, 2011 US,314).
1.6 Raw material consumed - others include consumption of yarn for
manufacture of double yarn.
1.7 Power and fuel are (i) net of value of power generated by Wind
energy converters Rs.6,71,09,012 (2010-11 Rs.7,87,02,413); (ii) net of
income by way of carbon credit of Rs.Nil (2010-11 Rs.48,99,288); and
(ii) after reckoning the reversal of carbon credit accrued in prior
years of Rs.48,99,288 (2010-11 Rs. 1,53,97,192), as a measure of
abundant caution, due to (a) rejection of claim for the credit by
concerned sanctioning authorities and (b) inordinate delay in issue of
validation report even after completion of inspection and
1.8 Human resources - Particulars of managerial remuneration (i) To
Managing Director - Salary Rs.21,60,000 (2010-11 Rs.21,60,000),
Perquisites Rs.14,40,000 (2010-11 Rs. 14,40,000); and (ii) To Joint
Managing Director - Salary Rs.14,40,000 (2010-11 Rs. 14,40,000),
Perquisites Rs.9,60,000 (2010-11 Rs.9,60,000).
1.10 Depreciation/amortisation - (i) Amortised cenvat credit of Rs.Nil
(2010-11 Rs.7,94,829) deducted from capital reserve has been netted
against the depreciation charge relating to the concerned plant and
machinery; and (ii) Depreciation for the year computed on revalued
assets includes a charge of Rs.28,89,247 (2010-11 Rs.28,89,247) being
the excess depreciation computed by the method followed by the company
prior to revaluation and the same has been transferred from Revaluation
reserve to the Profit and Loss account.
1.11 During the year ended March 31, 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.
Accordingly the Company has reclassified/ regrouped/amended the
previous year''s figures in accordance with the requirements applicable
in the current year.