Notes to Accounts of Amarjothi Spinning Mills Ltd.

Mar 31, 2024

27.17. Provisions, Contingent liabilities and Contingent Assets:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognised because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability. The Company does not recognise a contingent liability but discloses its existence in the standalone financial statements.

Contingent asset is not recognised in standalone financial statements since this may result in therecognition of income that may never be realised. However, when the realisation of income is virtually certain, then the related asset is not a contingent asset and is recognized.

The Company manages its capital to ensure that it will be able to continue as going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The Company finances its operations by a combination of retained profit and bank borrowings. The Company monitors the capital structure on the basis of total debt to equity and maturity profile of the overall debt portfolio of the Company.

The Company is engaged mainly in the manufacture of yarn. The Company owns fifteen wind mills which were installed mainly for captive utilization of power generated with power cost of yarn production. The following is the power generated from these wind mills which is adjusted with the power cost of the yarn division and processing division.

b) The Company does not have any transactions with companies struck off.

c) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

d) The Company has not traded or invested in Crypto currency or virtual currency during the financial year.

e) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Company or

- provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

f) No funds have been received by the Company from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall:

- directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Funding Party or

- provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

g) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income-tax Act, 1961).

h) The Company has not have been declared as wilful defaulters by any bank or financial institution or government or any government authority.

i) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

j) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

k) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

l) The Company has borrowings from banks on the basis of security of current assets and the quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of accounts.

27.34. Previous year figures have been regrouped and reclassified wherever necessary to conform to current year''s classification.

As per my report of even date On behalf of the Board of Directors

For V.NARAYANASWAMI & CO., R. PREMCHANDER R.JAICHANDER

FRN NO.027417S Managing Director Joint Managing Director

Proprietor DIN : 00390795 DIN : 00390836

V.NARAYANASWAMI, M.A., F.C.A.

Chartered Accountant Member ship No.023661 Place : Tirupur

Date : 29/05/2024

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Mar 31, 2023

27.17. Provisions, Contingent liabilities and Contingent Assets:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognised because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability. The Company does not recognise a contingent liability but discloses its existence in the standalone financial statements.

Disclosure in respect of Related Party Transactions during the year

1. Purchase of goods/assets includes Kanagathara Wind Farms '' 163.75 lakhs; (Previous year '' 168.16 Lakhs). Amarjothi Power Generation and Distribution Company Limited '' 50.94 Lakhs; (Previous year '' 38.48 Lakhs) Vinformax Dimensions Technology Private Limited '' 0.85 Lakhs; (Previous year '' NIL)

2. Sale of Goods/assets includes RPJ Textiles Limited '' 1762.05 Lakhs; (Previous year '' 3770.99 Lakhs). Texin India '' 646.64 Lakhs; (Previous year '' NIL) Texknit '' 216.60 Lakhs; (Previous year '' NIL) Amarjothi Designs '' 944.51 Lakhs; (Previous year '' NIL)

3. Interest Receipts includes Kanagathara Wind Farms '' 14.47 Lakhs; (Previous year ¹'' 12.89).

4. Interest paid includes Sri.R.Premchander '' 24.76 Lakhs; (Previous year '' 20.94 Lakhs). Sri.R.Jaichander '' 378.51 Lakhs; (Previous year '' 324.84 Lakhs).

5. Remuneration to Key Managerial Personnel includes Sri.R.Premchander '' 88.16 Lakhs; (Previous year '' 101.64 Lakhs). Sri.R.Jaichander '' 88.16 Lakhs; (Previous year '' 101.64 Lakhs). Sri.K.Elango '' 7.42 Lakhs; (Previous year '' NIL). Smt.M.Mohana Priya '' 5.44 Lakhs; (Previous year '' 4.57 Lakhs).

6. Outstanding receivable from Related parties includes RPJ Textiles Limited '' 57.58 Lakhs;

27.32. Other statutory information:

a) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

b) The Company does not have any transactions with companies struck off.

c) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

d) The Company has not traded or invested in Crypto currency or virtual currency during the financial year.

e) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Company or

- provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

f) No funds have been received by the Company from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall:

- directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Funding Party or

- provide any guarantee, security or the like from or on behalf of the Ultimate Beneficiaries.

g) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income-tax Act, 1961).

h) The Company has not have been declared as wilful defaulters by any bank or financial institution or government or any government authority.

i) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

j) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

k) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

l) The Company has borrowings from banks on the basis of security of current assets and the quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of accounts

27.34. Previous year figures have been regrouped and reclassified wherever necessary to conform to current year''s classification.

As per my report of even date On behalf of the Board of Directors

V. NARAYANASWAMI, M.A., F.C.A. R. PREMCHANDER R.JAICHANDER

Chartered Accountant Managing Director Joint Managing Director

Membership No.023661 (DIN : 00390795) (DIN : 00390836)

Place : Tirupur

Date : 29/05/2023

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Mar 31, 2018

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.

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.

Notes:

3. Long Term Loans From Banks were taken for the purchase of new wind mills and these loans are required to be repaid before July 2023.

4. Loan from Directors have been brought in pursuant to the terms of sanction of Loans by Bankers and retained as unsecured loans.

5. Income Tax assessments have been completed up to the Assessment Year 2015 -2016.

6. The Company declared Dividend at Rs.2 per Equity share for the year ending March 2018. The Total Dividend payable for 6750000 Equity shares comes to Rs.13500000/ - and tax payable on this amounts to Rs.2748282/- .

7. 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 lakh 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.

8. Sundry debtors which are overdue for a period of 6 months and more include a sum Rs.32.68 lakhs (Rs.32.72 lakhs) for which the Company has taken legal action and is hopeful of recovery. Provision has been made for Rs.32.84 Lakhs for Doubtful Debtors.

9. Depreciation has been calculated according to Schedule II of the Companies Act, 2013 as amended on straight-line method.

10. The Company has received a demand towards additional Electricity tax amounting to Rs.26.42 lakhs from TNEB against which the Company has gone on appeal to the Honourable High Court of Madras. The Company has not paid this amount due to dispute. No provision has been made in the accounts, pending disposal of appeal by the Honourable High Court of Madras.

11. 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 thirteen wind mills mainly for captive consumption purpose only. During the year the value of power generated through these mills is Rs. 12,94,42,280.00 (21099028 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 / Liability:

Deferred tax provision for the current year has been credited to the profit and loss account for the year. The Balance of deferred Tax liability is being disclosed as a liability. Deferred Taxation Liability on account of Timing Difference : (Rs.)

III. Employee Benefits: AS-15:

Provident Fund Contribution:

During the year the Company has contributed Rs.2004529/- to Government Provident fund. The Company does not have a separate exempted provident fund.

Gratuity:

As per the records of the Company none of the employees come under the purview of Payment of Gratuity Act.

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.

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Mar 31, 2016

1 Income Tax assessments have been completed up to the Assessment Year 20132014.

2 The Company has opted the exemption route vide Central Excise Notification No.30/ 2004 and 31/2004 dated 09.07.2004.

3 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 lakh 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.

4 Sundry debtors which are overdue for a period of 6 months and more include a sum Rs.32.34 lakhs (Rs.31.44 lakhs) for which the Company has taken legal action and is hopeful of recovery. Provision has been made for Rs.32.84 Lakhs for Doubtful Debtors.

5 Depreciation has been calculated according to Schedule II of the Companies Act, 2013 as amended on straight-line method.

6 The Company has received a demand towards additional Electricity tax amounting to Rs.15.79 lakhs from TNEB against which the Company has gone on appeal to the Honourable High Court of Madras. The Company has not paid this amount due to dispute. No provision has been made in the accounts, pending disposal of appeal by the Honourable High Court of Madras.

7 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. 15,77,98,461.00 (23981529 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 / Liability:

Deferred tax provision for the current year has been credited to the profit and loss account 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.2894844/- to Government Provident fund. The Company does not have a separate exempted provident fund.

b) Gratuity:

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.

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Mar 31, 2015

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.

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.

3. Loan from Directors:

These amounts have been brought in pursuant to the terms of sanction of Loans by Bankers and retained as unsecured loans.

4. Interest Free Sales Tax Loan:

The Company started to pay this loan from 2006 and will have to pay the loan fully within the year 2015-16.

5. CONTINGENT LIABILITIES :

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 5.00

6. Income Tax assessments have been completed up to the Assessment Year 2012- 2013.

7. The Company has opted the exemption route vide Central Excise Notification No.30/2004 and 31/2004 dated 09.07.2004.

8. 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.

9. Sundry debtors which are overdue for a period of 6 months and more include a sum Rs.31.44 lacs (Rs.32.82 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.

10. Depreciation has been calculated according to Schedule II of the Companies Act, 2013 as amended on straight-line method.

11. The Company has received a demand towards Peak Hour Electricity charges amounting to Rs.55.26 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 account nor any provision made in the accounts, pending disposal of appeal by the Honourable High Court of Madras.

12. Previous year figures have been regrouped and reclassified wherever necessary to conform to current year's classification.

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Mar 31, 2014

1.1 CONTINGENT LIABILITIES: 31.03.2014 31.03.2013 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) 5.00 NIL

1.2 Income Tax assessments have been completed up to the Assessment Year 2012- 2013.

1.3 The Company has opted the exemption route vide Central Excise Notification No.30/2004 and 31/2004 dated 09.07.2004.

1.4 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.

1.5 Sundry debtors which are overdue for a period of 6 months and more include a sum Rs.32.82 lacs (Rs.30.80 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.

1.6 Depreciation has been calculated according to Schedule XIV of the Companies Act, 1956 as amended on straight-line method.

1.7 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 account nor any provision made in the accounts, pending disposal of appeal by the Honourable High Court of Madras.

NOTES FORMING PART OF ACCOUNTS - DISCLOSURES

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.14,95,17,309.00 (24443368 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 / Liability:

Deferred tax provision for the current year has been debited to the profit and loss account 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.3748419/- to Government Provident fund. The Company does not have a separate exempted provident fund.

b. Gratuity:

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

2. Key Management Personnel: (i) Sri.R.Premchander, Managing Director

(ii) Sri.R.Jaichander, Joint Managing Director.

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Mar 31, 2013

1.1 The Company''s wholly owned subsidiary, M/s.AMARJOTHI COLOUR MELANGE SPINNING MILLS LTD has been amalgamated with the Company on 1st April 2012 vide the order of Honourable High Court of Madras Dated on 1st February 2013. Hence the accounts of the Company for the year ended 31.03.2013 includes the Operations of the Amalgamated subsidiary Company for the full year.

1.2 Authorised share capital includes 30,00,000 Equity shares of Rs.10/- each being authorised share capital of Rs.3,00,00,000 of erstwhile Amarjothi Colour Melange Spinning mills Ltd which stood combined with authorised share capital of the Company based on the Scheme of Amalgamation approved by the Hon''ble High Court of Madras vide its Order dated 1 st February 2013

1.3 There was a major Fire Accident in one of the yarn storage godowns of the Company on 19.01.2013 as a result of which stock of Finished goods amounting to 440121 kgs was destroyed by Fire alongwith certain Machinery spares , Machinery & Building has also been damaged. Necessary Insurance claim has been lodged with the insurer. The cost of the stock of Finished goods has been shown under other income. The cost of spares damaged has been credited in the stores consumed account similarly the cost of the damaged machinery and building has been written off in the Fixed Assets under deletion. As soon as the claim is settled, necessary adjustment will be made in the accounts.

1.4. CONTINGENT LIABILITIES:

31.03.2013 31.03.2012 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

1.5. Income Tax assessments have been completed up to the Assessment Year 2011 - 2012.

1.6. The company has opted the exemption route vide Central Excise Notification No.30/ 2004 and 31 /2004 dated 09.07.2004.

1.7. 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.

1.8.Sundry debtors which are overdue for a period of 6 months and more include a sum Rs.30.80 lacs (Rs.58.07 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.

1.9. Depreciation has been calculated according to Schedule XIV of the Companies Act, 1956 as amended on straight-line method.

1.10. 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 account nor any provision made in the accounts, pending disposal of appeal by the Honourable High Court of Madras.

1.11 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. 19,39,47,528.00 (34642420 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 / Liability:

Deferred tax provision for the current year has been debited to the profit and loss account for the year. The Balance of deferred Tax liability is being disclosed as a liability.

Deferred Taxation Liability on account of Timing Difference : (Rs.)

As on 01.04.2012 158729635.77

Add: Transfer to Profit & Loss a/c -5322560.00

Balance of Liability as on 31.03.2013 153407075.77

III. Employee Benefits: AS-15:

a. Provident Fund Contribution:

During the year the company has contributed Rs. 1848823/- to Government Provident fund . The company does not have a separate exempted provident fund.

b. Gratuity:

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

2. Key Management Personnel: (i) Sri.N.Rajan, Chairman

(ii) Sri.R.Premchander, Managing Director (iii) Sri.R.Jaichander, Joint Managing Director.

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Mar 31, 2012

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 Year 2010-2011.

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 Madras.

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 provident fund.

b. Gratuity:

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.

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Mar 31, 2011

1. CONTINGENT LIABILITIES: 31.03.2011 31.03.2010 Rs. In lacs Rs. In lacs

a. Bills discounted NIL NIL

b. Estimated amount of contracts rema -ining to be executed on capital account and not provided for (net of Advances) NIL 1920

2. Income Tax assessments have been completed up to the Assessment Year 2009 - 2010.

3. The company has opted the exemption route vide Central Excise Notification No.30/ 2004 and 31/2004 dated 09.07.2004.

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.

5. Sundry debtors which are overdue for a period of 6 months and more include a sum Rs.32.09 lacs (Rs.32.41 lacs) for which the Company has taken legal action and is hopeful of recovery. These Debtors have been provided in full.

6. Depreciation has been calculated according to Schedule XIV of the Companies Act, 1956 as amended on straight-line method.

7. The Company has received a demand towards Peak Hour Electricity charges amounting to Rs.26.89 lacs from TNEB against which the Company has gone on appeal to the Honourable High Court of Madras, which has granted a stay on the collection of the amount, pending disposal of the Appeal.

8 Previous year figures have been regrouped and reclassified wherever necessary to conform to current year’s classification.

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Mar 31, 2010

1. CONTINGENT LIABILITIES: 31.03.2010 31.03.2009 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) 1920 NIL



2. Income Tax assessments have been completed up to the Assessment Year 2008 - 2009.

3. The company has opted the exemption route vide Central Excise Notification No.30/ 2004 and 31/2004 dated 09.07.2004.

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.

5. Sundry debtors which are overdue for a period of 6 months and more include a sum Rs.32.41 lacs (Rs.21.04 lacs) for which the Company has taken legal action and is hopeful of recovery. These Debtors have been provided in full.

6. Depreciation has been calculated according to Schedule XIV of the Companies Act, 1956 as amended on straight-line method.

7. The Company has received a demand towards Peak Hour Electricity charges amounting to Rs.26.89 lacs from TNEB against which the Company has gone on appeal to the Honourable High Court of Madras, which has granted a stay on the collection of the amount, pending disposal of the Appeal.

I. Segment-wise Reporting:

The Company is engaged 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.10,62,31,868/-(3,20,31,013 /-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. Employee Benefits: AS-15:

a. Provident Fund Contribution:

During the year the company has contributed Rs.6373911 /- to Government Provident fund . The company does not have a separate exempted provident fund.

b. Gratuity:

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.

III. Related Party Disclosure as per AS 18:

1. Related Parties: Associates: (i) N.Rajan & Sons

2. Key Management Personnel: (i) Sri.R.Premchander, Managing Director

(ii) Sri.R.Jaichander, Joint Managing Director.

3. Relatives of Key Management personnel: (i) Smt.J.Nandhini