1. Share Capital
Rights and restrictions in respect of equity shares
The company has one class of equity shares having a par value of Rs.10
each. Each holder of equity shares is entitled to one vote per share.
In the event of liquidation of the Company, holder of equity shares
will be entitled to receive remaining assets of the Company after
distribution of all preferential amount. The distribution will be in
proportion to the number of equity shares held by the shareholders.
2. Contingent liabilities March March
31, 2015 31, 2014
(i) Claims against the company not 3,65,08,688 3,65,08,688
acknowledged as debts
(ii) Bills discounted with banks 47,89,500 2,76,85,194
Out flow relating to above not practicable
to indicate in view of the uncertainties
3. 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.
4. Related party disclosure (as required under As 18)
(i) Related parties with whom transactions have taken place during
(1) Key management personnel
Sri R. Selvarajan - Chairman and Managing Director
Sri S. Vijay Shankar - Chief Financial Officer
Ms. J. Asifa - Company Secretary
SPMM Healthcare Services Private Limited
(3) Parties where significant influence exists
S. Palaniandi Mudaliar Charitable Trust
Kandagiri Spinning Mills Gratuity Trust
Sambandam Siva Textiles Private Limited
Sambandam Spinning Mills Limited
5. 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.
6. Pursuant to the enactment of Companies Act, 2013 and according to
the application guide on the provisions of Schedule II to the Companies
Act, 2013, a sum of Rs.27,01,821, being the difference between
depreciation based on the revalued carrying amount of the asset and
depreciation based on its original cost, has been transferred to
General Reserve from Revaluation Reserve account.
7. Pursuant to the enactment of Companies Act, 2013, the Company has
applied the estimated useful lives as specified in Schedule II, except
in respect of certain assets as disclosed in Accounting Policy on
Depreciation/Amortization. Accordingly the unamortized carrying value
is being depreciated/amortised over the revised/remaining useful lives.
The written down value of Fixed Assets whose lives have expired as at
April 1,2014 have been adjusted net of tax, in the opening balance of
profit and loss account amounting to Rs.18,36,586.
8. 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.
9. 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
31,2014 US $ Nil) as at March 31,2015 and has a net unhedged exposure
of US $ Nil (March 31,2014 US$ 2,22,178).
10. Raw material consumed - others include consumption of yarn for
manufacture of double yarn.
11. Power and fuel is net of value of power generated by Wind energy
converters Rs.8,63,00,718 (2013- 14 Rs.9,44,09,019).
12. Human resources - Particulars of managerial remuneration (i) To
Managing Director - Salary Rs.21,60,000 (2013-14 Rs.21,60,000),
Perquisites Rs.14,40,000 (2013-14 Rs.14,40,000); and (ii) To Joint
Managing Director - Salary Rs.Nil (2013-14 Rs.14,40,000), Perquisites
Rs.Nil (2013-14 Rs.9,60,000).
13. Employee benefits
ii) Gratuity fund is administered through group gratuity scheme with
SBI Life Insurance and by the Gratuity Trust through trustees.
iii) During the year, the company has recognised the following amounts
in the Statement of Profit and Loss:
Salaries, wages and bonus include compensated absences of Rs.21,12,807
(2013-14 Rs.4,53,631) Contribution to provident, gratuity and other
funds include contribution to provident fund and family pension fund
contribution of Rs.58,91,503 (2013-14 Rs.50,79,485) and gratuity fund
of Rs.42,52,797 (2013-14 Rs.35,21,996). Workmen and staff welfare
expenses include contribution to employees state insurance of
Rs.22,81,226 (2013-14 Rs.16,89,508)
14. The figures for the previous periods have been reclassified /
regrouped / amended, wherever necessary.