1. Contingent Liabilities : (Rs. in Lakhs)
(To the extent not provided for ) 31.03.12 31.03.11
i) Claim against the Company not
acknowledged as debts 29 23
ii) Counter Guarantee given to Banks 5,95 5,94
iii) On Account of Bill discounted 46,66 1,42,63
iv) Disputed income tax demand not
provided for-Appeals filed before
Appellate Authorities are pending - 2,00
v) Disputed Sales tax demand not
provided for 35 14
vi) Disputed Service tax not provided for 1,11 9
vii) On account of export obligation covered by
letter of undertaking 47,03 61,00
2. No significant restriction is attached on the investments held
3. The Cash and Cash equivalents in the Cash flow statement include
foreign currency balances, which does not include any amount, which is
of restrictive reliability.
4. Power and fuel cost is net of Rs. 24.07 Crores (P.Y.Rs 19.44
Crores) being electricity generated through wind mills.
5. The amount of borrowing cost capitalized during the year Rs. 1.26
Crores /- (PY Rs.3.74 Crores)
6. In view of the loss incurred by the Company no income tax is
7. Deferred tax liability mainly represent timing differences
relating to depreciation of Rs. 51.99 Crores (P.Y Rs. 44.29 Crores) and
Deferred asset mainly represent timing'' difference on account of
carried forward depreciation permissible Rs. 12.97 Crores(PY: 12.47
Crores) under Income tax Act 1961. The MAT credit available is Rs. 9.64
8. Disclosure regarding Derivative Instruments:
a) The Company enters into forward contracts either to hedge its
foreign exchange exposure or to reduce costs and not for any
speculative purposes. The Company has not entered into any derivative
deals during the year and the Company has'' no outstanding derivative
exposure as on 31st March 2012
b) The net loss incurred by the company on cancellation of Forward
Contracts during the year is grouped under miscellaneous expenditure.
As the company has taken forward cover only for hedging purposes, the
Company is not required to mark to market the forward contracts as on
the Balance Sheet date.
9. Based on the information available with the Company, the principal
amount due to Micro and small enterprises on 31.03.2012 is Rs. NIL.
There has been no overdue principal amount and therefore no interest is
paid / payable.
10. The Company has adopted the Accounting Standard (AS) 15 (Revised)
from the year 2008.
(a) Post employment benefits
(b) Provident fund and other funds
Being a defined contribution plan, the company makes fixed monthly
contributions, in respect of covered employees, to the Government
managed funds and the company has no legal obligation to pay any
further sum beyond the contribution made towards the claims settled.
The company has during the year recognized Rs.190.81(PY.160.84) lacs as
expense towards contribution towards these plans.
The Company provides for gratuity, a defined benefit plan, covering
eligible employees. The provision for the accrued liability as at the
balance sheet date is made as per actuarial valuation, using the
Projected unit credit method. Based on the valuation the incremental
liability is contributed to the gratuity trust. Trustees administer
the contributions made, by investing the funds in approved securities.
The company has an obligation to make good the short fall, if any,
between the contributions and the settlements.
11) In the opinion of the board, all the assets other than fixed asset
and non-current investments have a value on realization in the ordinary
course of business at least equal to the amount at which they are
12) There is no amount due and outstanding to be credited to
investor''s education and protection fund.
13) Confirmation of balances have not been received from parties.
14) Previous year figures have been regrouped wherever necessary to
conform to the current years classification.
15) Figures have been rounded off to the nearest lakh in the financial
statement and in the accompanying notes.
Notes : 1. Mr. Manikam Ramaswami, Chairman and Managing Director is the
key management personnel of the enterprise and his remuneration
particulars are disclosed in the notes on accounts .
2. Mr. P. Manivannan is employed on a whole time basis and hence his
name has been included. His remuneration particulars are disclosed in
the notes on accounts. Sri Shridhar Subrahmanyam, Director is paid
professional charges as given in the notes.
3. There is no transaction with Loyal Dimco Group, A.E.B.E. Greece.
Uniloyal Expotex Limited, Chennai, and Shri Teyem Processors Ltd.,
during the year.
4. The information regarding applicable transactions as given in
clause 24 of AS 18 is given above.