Notes to Accounts of Sambandam Spinning Mills Ltd.

Mar 31, 2025

t) Provisions and Contingencies

Provisions for legal claims and returns are recognised when the company has a present legal or
constructive obligation as a result of past event, it is probable that an outflow of resources will be required to
settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future
operating losses

When the effect of time value of money is material, the provisions are measured at the present value of
management''s best estimate of the expenditure required to settle the present obligation at the end of the
reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current
market assessments of the time value of money and the risks specific to the liability. The increase in the
provisions due to the passage of time is recognized as finance costs.

A contingent liability is disclosed whenever there is a possible obligation that arises from past events whose
existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the Company or a present obligation that arises from past events is not
recognised as it is not probable to determine the reliability and outflow of resources that will be required to
settle the obligation.

u) Employee benefits

(i) Short-term obligations

All employee benefits that are expectd to be settled within 12 months in which the employees render the
related service are classifed as short-term employee benefits and are recognized in respect of employee''s
services up to the end of the reporting period. The liabilities are presented as current employee benefit
obligations in the balance sheet.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave is not expected to be settled wholly within 12 months after the end of the
period in which the employees render the related service. Therefore they are measured at the present
value of expected future payments to be made in respect of services provided by employees up to the end
of the reporting period using the projected unit credit method. The benefits are discounted using the market
yields at the end of the reporting period that have terms approximating to the terms of the related
obligations. Remeasurements as a result of the experience adjustments and changes in actuarial
assumptions are recognized in profit or loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an the
unconditional right to defer settlement for at least twelve months after the reporting period, regardless of
when the actual settlement is expected to occur.

(iii) Post-employment obligations

The company operates the following post-employment schemes:

(a) Defined benefit plans such as gratuity; and

(b) Defined contribution plans such as provident fund and employee state insurance.

Gratuity obligations

The liability or assets recognized in the balance sheet in respect of gratuity plans is the present value of the
defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined
benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash
outflows by reference to market yields at the end of the reporting period on government bonds that have
terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and the fair value plan assets. This cost is included in employee benefit expense in the statement
of profit and loss.

Remeasurement of gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognized directly in Other Comprehensive Income in the period in which they occur.

Changes in the present value of the defined benefit obligation resulting from plan amendments or
curtailments are recognized immediately in profit or loss.

Defined contribution plans

The company pays provident fund and employee state insurance contributions to publicly administered
funds as per local regulations. The Company has no further payment obligations once the contributions
have been paid. The contributions are accounted for as defined contribution plan and the contributions are
recognized as employee benefit expense when they are due.

(iv) Bonus plans

The Company recognizes a liability and an expense for bonuses. The Company recognizes a provision
where contractually obliged or where there is a past practice that has created a constructive obligation.

v) Earning per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

a) The profit / (loss) attributable to owners of the company

b) By the weighted average number of equity shares outstanding during the financial year.

The weighted average number of equity shares outstanding during the period and for all periods presented
is adjusted for events, other than the coversion of potential ordinary shares, that have changed the number
of ordinary shares outstanding without a corresponding change in resources.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account:

a) The profit / (loss) for the period attributable to the owners of the company

b) The weighted average number of equity shares outstanding during the financial year, is adjusted for
the effects of the all the dilutive potential equity shares.

w) Non-Current Assets held for sale:

The Company classifies non-current assets as held for sale if their carrying amounts will be recovered
principally through a sale rather than through continuing use of the assets and a sale is considered
highly probable.

Non-current assets classified as held for sale are measured at the lower of their carrying amount and the fair
value less cost to sell. Non-current assets are not depreciated or amortized while they are classified as held
for sale.

x) Critical estimates and Judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will
seldom equal the actual results. Management also needs to exercise judgement in applying the Company''s
accounting policies.

This note provides an overview of the areas that involved a higher degree of judgement or complexity, and
of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be
different than those originally assessed. Detailed information about each of these estimates and
judgements is included in relevant notes together with information about the basis of calculation for each
affected line item in the financial statements.

The areas involving critical estimates or judgements are:

1. Estimation of defined benefit obligation

2. Useful lives of fixed assets

Estimates and judgements are continually evaluated. They are based on historical experience and other
factors, including expectations of future events that may have a financial impact on the Company and that
are believed to be reasonable under the circumstances.

Note 41 : Disclosure under IND AS 19:

A. Defined Contribution Plans

The Company has defined contribution plans like Provident Fund and Employee State Insurance Scheme for the
eligible employees of the Company in which both employees and the Company make monthly contributions at a
specified percentage of the covered employees'' salary for the benefit of employees. The total expenses recognised
in Statement of Profit and Loss is Rs. 221.67 Lakhs (for the year ended 31.03.2024 Rs. 202.16 lakhs)

B. Defined Benefit Plans
Gratuity

The Company has an obligation towards Gratuity, a defined benefit retirement plan covering eligible employees.
The plan provides for a lump-sum payment to vested employees at retirement, death, while in employment or on
termination of employment of an amount equivalent to 15 days salary payable for each completed year of service.
Vesting occurs upon completion of five years of service. The Company accounts for the liability for gratuity benefits
payable in the future based on an Actuarial valuation. The Company makes annual contributions to a funded
Company Gratuity scheme administered by the SBI Life Insurance Company Limited.

The Company''s liability towards Gratuity (funded), other retirement benefits and Compensated absences are
actuarially determined at each reporting date using the projected unit credit method.

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk and
salary risk.

Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate
determined by reference to the market yields on government bonds denominated in Indian Rupees. If the actual
return on plan asset is below this rate, it will create a plan deficit.

Interest risk - A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset
by an increase in the return on the plan''s debt investments.

Longevity risk - The present value of the defined benefit plan liability is calculated by reference to the best estimate
of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the
plan participants will increase the plan''s liability.

Salary risk - The present value of the defined benefit plan liability is calculated by reference to the future salaries of
plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

Note 44 : Asset Classified as Held for Sale:

The Company, during the year ended 31.03.2024, has terminated the lease with Kandagiri Spinning Mills Limited.
On account of termination of lease with Kandagiri Spinning Mills Limited during the period, assets held in the leased
premises, except those that have been identified to be used in/shifted to other units of the Company have been
classified as Assets held for sale as per Ind AS 105 ''Non-Current Assets Held for Sale and Discontinued
Operations''. The company has sold part of asset during the year and the carrying amount of Rs. 310.09 lakhs
(31.03.2024 - Rs. 390.09 Lakhs) has been disclosed under the head "Assets classified as held for Sale".

The Company has not charged depreciation to an extent of Rs. 71.11 lakhs during the year ended 31.03.2025
(Rs. 89.45 lakhs) on such assets in accordance with Ind AS 105.

The Company has disposed off Investments held in one of its associate companies viz Salem IVF Centre Private
Limited and recognised profit of Rs. 40.07 lakhs under exceptional item in the statement of profit and loss during the
year ended 31.03.2025.

Note 50 : Disclosure as required under section 186(4) of the Companies Act, 2013:

The Company has not made any fresh investments, given loans or advances or provided secuirty or guarantee
during the current year. The carrying value of investments made in earlier years by the Company as at 31.03.2025 is
Rs. 201.57 lakhs (31.03.2024 Rs. 202.29 lakhs)

Note 51 : Details of Corporate Guarantee:

(a) M/s. Kandagiri Spinning Mills Limited has given Corporate guarantee of Rs. 2279.38 lakhs to CSB bank for the
loan availed by the Company and also gave its immovable properties as collateral security for the above loan.
However, on 18.09.2024 the corporate guarantee has been relieved from corporate guarantee obligation.

(b) M/s. Sambandam Fabrics Private Limited has given Corporate guarantee of Rs. 2435 lakhs to CSB bank for the
loan availed by the Company and also extended its immovable properties as collateral security for the above loan.

The Company manages its capital to ensure that the Company will be able to continue as going concerns while
maximising the return to stakeholders through the optimisation of the debt and equity balance. Capital includes paid up
Equity capital, securities premium and all other reserves attributable to the equity shareholders of the Company. Debt
refers to Long Term Borrowings, Short Term Borrowings and interest accrued thereon for the purpose of Capital
Management of the Company.

The Company determines the amount of capital required on the basis of annual operating plans and long-term product,
other strategic investment plans. The funding requirements are met through equity, non-convertible debt securities, and
other long-term/short-term borrowings.

The capital structure of the Company consists of net debt (Borrowings as detailed in Notes 17 and 22 offset by cash and
cash equivalents) and total equity of the Company. The Company monitors the capital structure on the basis of total debt
to equity ratio and maturity profile of the overall debt portfolio of the Company.

The treasury function provides services to the business, co-ordinates access to domestic financial markets,
monitors and manages the financial risks relating to the operations through internal risk reports which analyze
exposures by degree and magnitude of risks. These risks include market risk (including interest rate risk), credit risk
and liquidity risk.

The Company seeks to minimize the effects of these risks by using derivative financial instruments to hedge risk
exposures. The use of financial derivatives is governed by the Company''s policies approved by the board of
directors, which provide written principles on foreign exchange risk, the use of financial derivatives, and the
investment of excess liquidity. The Company does not enter into or trade financial instruments, including derivative
financial instruments, for speculative purposes.

Market risk

Market risk is the risk that changes in market prices, liquidity and other factors that could have an adverse effect on
realisable fair values or future cash flows to the Company. The Company''s activities expose it primarily to the
financial risks of changes in foreign currency exchange rates and interest rates as future specific market changes
cannot be normally predicted with reasonable accuracy.

Interest rate risk management

The Company is exposed to interest rate risk because it borrow funds at floating interest rates.

Interest rate sensitivity analysis:

The sensitivity analysis below have been determined based on the exposure to interest rates for non-derivative
instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the
amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 25 basis
point increase or decrease is used when reporting interest rate risk internally to key management personnel and
represents management''s assessment of the reasonably possible change in interest rates.

If interest rates had been 25 basis points higher/lower and all other variables were held constant, the Company''s
loss for the year ended March 31,2025 would decrease/increase by Rs. 22.29 Lakhs (March 31,2024: decrease
/increase by Rs. 26.84 Lakhs). This is mainly attributable to the Company''s exposure to interest rates on its variable
rate borrowings.

C. Equity price risk

Equity price risk is related to the change in market reference price of the investments in equity securities. The fair
value of some of the Company''s investments in available-for-sale securities exposes the Company to equity price
risks. In general, these securities are not held for trading purposes. The details of such investments in equity
instruments are given in Note No. 5.

Equity price sensitivity analysis

The fair value of equity instruments as at March 31, 2025 was Rs. 202.09 Lakhs (March 31, 2024:
Rs. 220.05 Lakhs). A 5% change in prices of equity instruments held as at March 31, 2025 would result in an
impact of Rs. 0.13 Lakhs on equity (March 31, 2024 : Rs. 0.16 Lakhs).

Foreign Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of
changes in foreign exchange rate. The Company''s exposure to the risk of changes in foreign exchange rate relates
primarily to the Company''s foreign currency denominated financial assets and financial liabilities.

The Company does not have foreign currency exposure at the end of the reporting period.

Liquidity risk management:

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk
management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

The Company has obtained fund and non-fund based working capital lines from various banks.

The Company also constantly monitors funding options available in the debt and capital markets with a view to
maintaining financial flexibility.

Liquidity tables :

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities
with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of Financial
Liabilities based on the earliest date on which the Company can be required to pay.

Note 55 : Additional Regulatory Information:

i) Title Deeds not held in the name of the Company:

The title deeds of all Immovable Properties are held in the name of the Company.

ii) Fair value of Investment Property:

The Company does not have any investment property as on the reporting date.

iii) Revaluation of Property, Plant and Equipment:

The Company has not revalued any of its Property, Plant and Equipment during the year.

iv) Revaluation of Intangible Assets:

The Company has not revalued any of its intangible assets during the year.

v) Loans and advances granted to Promoters, Directors, KMP''s and Related parties:

The Company has not granted any loans to promoters, directors, KMPs and the related parties as defined
under Companies Act, 2013 either jointly or severally with any other person that are repayable on demand or
without specifying any terms or period of repayment.

vi) Capital Work-in-Progress:

The ageing schedule of Capital Work-in-Progress has been disclosed in the Note No. 1 to the Financial Statements.

vii) Intangible Assets under Development : Not Applicable

viii) Details of Benami Property:

The Company does not have any Benami property, where any proceedings initiated or pending against the
Company for holding any Benami property.

ix) Reconciliation of Statement of Current Assets filed by the Company with Banks for Working capital
facilities availed by the Company:

The Company has availed working capital facilities in excess of Rs. 5 crores in aggregate during the years. The
quarterly stock statements filed by the Company are in agreement with the books of account of the Company.

x) Wilful Defaulter:

The Company has not been declared as willful defaulter by any Bank or Financial Institution (as defined under the
Companies Act, 2013) or consortium thereof or other Lender in accordance with the guidelines on willful defaulters
issued by the Reserve Bank of India.

xi) Relationship with Struck off Companies:

The Company does not have any transaction with Companies struck off under section 248 of the companies Act, 2013
or section 560 of the Companies Act, 1956

xii) Registration/Satisfaction of Charges with Registrar of Companies:

The Company does not have any charges yet to be registered or file the satisfaction of charges with the Registrar of
Companies beyond the statutory period

xiii) Layers of Companies:

The Company does not have any subsidiary Company as on the balance sheet date. However, the Company has
associate companies which is in compliance with the number of layers prescribed under Section 2(87) of the Companies
Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

(xvi) Approved Scheme of Arrangements:

During the year, there is no approved scheme of arrangements.

(xvii) Utilisation of Borrowed funds and Share premium:

The Company has not advanced or loaned or invested funds to any other persons or entities including foreign
entities (intermediaries) with the understanding that the intermediary shall (a) directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the Funding party (ultimate
Beneficiaries) or (b) provide any guarantee or security or the like on behalf of the Ultimate Beneficiaries.

The Company has not received any fund from other persons or entities including foreign entities (intermediaries)
with the understanding that the intermediary shall (a) directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Funding party (ultimate Beneficiaries) or (b) provide any
guarantee or security or the like on behalf of the Ultimate Beneficiaries.

Note 56 :

Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current
year''s classification/ disclosure.

As per our report of even date attached For and on behalf of the board

For P.N. Raghavendra Rao & Co

Chartered ^Accountants S. Devarajan S. Dinakaran

^{Firm Registration N}°. ^{: 003328S} Chairman and Managing Director Joint Managing Director

DIN :00001910 DIN :00001932

Pon Arul Paraneedharan - Partner

Membership No : 212860 S. Natarajan P. Boopalan

Company Secretary Chief Financial Officer

Salem

May 24, 2025

---

Mar 31, 2024

t) Provisions and Contingencies

Provisions for legal claims and returns are recognised when the company has a present legal or constructive obligation as a result of past event, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses

When the effect of time value of money is material, the provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provisions due to the passage of time is recognized as finance costs.

A contingent liability is disclosed whenever there is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events is not recognised as it is not probable to determine the reliability and outflow of resources that will be required to settle the obligation.

u) Employee benefits

(i) Short-term obligations

All employee benefits that are expectd to be settled within 12 months in which the employees render the related service are classifed as short-term employee benefits and are recognized in respect of employee''s services up to the end of the reporting period. The liabilities are presented as current employee benefit obligations in the balance sheet.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave is not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. Therefore they are measured at the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligations. Remeasurements as a result of the experience adjustments and changes in actuarial assumptions are recognized in profit or loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an the unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

(iii) Post-employment obligations

The company operates the following post-employment schemes:

(a) Defined benefit plans such as gratuity; and

(b) Defined contribution plans such as provident fund and employee state insurance.

Gratuity obligations

The liability or assets recognized in the balance sheet in respect of gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Remeasurement of gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized directly in Other Comprehensive Income in the period in which they occur.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in profit or loss.

Defined contribution plans

The company pays provident fund and employee state insurance contributions to publicly administered funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plan and the contributions are recognized as employee benefit expense when they are due.

(iv) Bonus plans

The Company recognizes a liability and an expense for bonuses. The Company recognizes a provision where contractually obliged or where there is a past practice that has created a constructive obligation.

v) Earning per share

(i.) Basic earnings per share

Basic earnings per share is calculated by dividing:

a) The profit / (loss) attributable to owners of the company

b) By the weighted average number of equity shares outstanding during the financial year.

The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, other than the coversion of potential ordinary shares, that have changed the number of ordinary shares outstanding without a corresponding change in resources.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

a) The profit / (loss) for the period attributable to the owners of the company

b) The weighted average number of equity shares outstanding during the financial year, is adjusted for the effects of the all the dilutive potential equity shares.

w) Non-Current Assets held for sale:

The Company classifies non-current assets as held for sale if their carrying amounts will be recovered principally through a sale rather than through continuing use of the assets and a sale is considered highly probable.

Non-current assets classified as held for sale are measured at the lower of their carrying amount and the fair value less cost to sell. Non-current assets are not depreciated or amortized while they are classified as held for sale.

x) Critical estimates and Judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Company''s accounting policies.

This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

The areas involving critical estimates or judgements are:

1. Estimation of defined benefit obligation

2. Useful lives of fixed assets

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.

Note 42 : Disclosure under IND AS 19:

A. Defined Contribution Plans

The Company has defined contribution plans like Provident Fund and Employee State Insurance Scheme for the eligible employees of the Company in which both employees and the Company make monthly contributions at a specified percentage of the covered employees'' salary for the benefit of employees. The total expenses recognised in Statement of Profit and Loss is Rs. 202.16 Lakhs (for the year ended 31.03.2023 Rs. 196.39 lakhs)

B. Defined Benefit Plans Gratuity

The Company has an obligation towards Gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death, while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The Company accounts for the liability for gratuity benefits payable in the future based on an Actuarial valuation. The Company makes annual contributions to a funded Company Gratuity scheme administered by the SBI Life Insurance Company Limited.

The Company''s liability towards Gratuity (funded), other retirement benefits and Compensated absences are actuarially determined at each reporting date using the projected unit credit method.

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk and salary risk.

Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to the market yields on government bonds denominated in Indian Rupees. If the actual return on plan asset is below this rate, it will create a plan deficit.

Interest risk - A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase in the return on the plan''s debt investments.

Longevity risk - The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk - The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

B. Capital Commitments

Estimated amount of contracts remaining to be executed on capital account (net of advances) not provided for is Rs. Nil (31.03.2023 Rs. 26.20 lakhs).

Note 45 : Asset Classified as Helf for Sale:

The Company, during the year ended 31.03.2024, has terminated the lease with Kandagiri Spinning Mills Limited. On account of termination of lease with Kandagiri Spinning Mills Limited during the period, assets held in the leased premises, except those that have been identified to be used in/shifted to other units of the Company have been classified as Assets held for sale as per Ind AS 105 ''Non-Current Assets Held for Sale and Discontinued Operations''. The carrying amount of Rs. 390.09 lakhs has been disclosed under the head "Assets classified as held for Sale".

The Company has not charged depreciation to an extent of Rs. 89.45 lakhs during the year ended 31.03.2024 on such assets in accordance with Ind AS 105.

The Company has decided to dispose of investment in shares of Salem IVF Centre Private Limited, one of its asssociate company. Accordingly such investment has been classified as Asset held for sale as per Ind AS 105 ''Non-Current Assets Held for Sale and Discontinued Operations''.

The Company manages its capital to ensure that the Company will be able to continue as going concerns while maximising the return to stakeholders through the optimisation of the debt and equity balance. Capital includes paid up Equity capital, securities premium and all other reserves attributable to the equity shareholders of the Company. Debt refers to Long Term Borrowings, Short Term Borrowings and interest accrued thereon for the purpose of Capital Management of the Company.

The Company determines the amount of capital required on the basis of annual operating plans and long-term product, other strategic investment plans. The funding requirements are met through equity, non-convertible debt securities, and other long-term/short-term borrowings.

The capital structure of the Company consists of net debt (Borrowings as detailed in Notes 17 and 23 offset by cash and cash equivalents) and total equity of the Company. The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

The treasury function provides services to the business, co-ordinates access to domestic financial markets, monitors and manages the financial risks relating to the operations through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including interest rate risk), credit risk and liquidity risk.

The Company seeks to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed by the Company''s policies approved by the board of directors, which provide written principles on foreign exchange risk, the use of financial derivatives, and the investment of excess liquidity. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

Market risk

Market risk is the risk that changes in market prices, liquidity and other factors that could have an adverse effect on realisable fair values or future cash flows to the Company. The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates as future specific market changes cannot be normally predicted with reasonable accuracy.

Interest rate risk management

The Company is exposed to interest rate risk because it borrow funds at floating interest rates.

Interest rate sensitivity analysis :

The sensitivity analysis below have been determined based on the exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 25 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rates.

If interest rates had been 25 basis points higher/lower and all other variables were held constant, the Company''s profit for the year ended March 31,2024 would decrease/increase by Rs. 26.84 Lakhs (March 31,2023: decrease /increase by Rs. 34.46 Lakhs). This is mainly attributable to the Company''s exposure to interest rates on its variable rate borrowings.

C. Equity price risk

Equity price risk is related to the change in market reference price of the investments in equity securities. The fair value of some of the Company''s investments in available-for-sale securities exposes the Company to equity price risks. In general, these securities are not held for trading purposes. The details of such investments in equity instruments are given in Note No. 5.

Equity price sensitivity analysis

The fair value of equity instruments as at March 31, 2024 was Rs. 202.09 Lakhs (March 31, 2023: Rs. 220.05 Lakhs). A 5% change in prices of equity instruments held as at March 31,2024 would result in an impact of Rs. 0.16 Lakhs on equity (March 31,2023 : Rs. 1.05 Lakhs).

Foreign Currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rate. The Company''s exposure to the risk of changes in foreign exchange rate relates primarily to the Company''s foreign currency denominated financial assets and financial liabilities.

The Company does not have foreign currency exposure at the end of the reporting period.

Liquidity risk management :

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

The Company has obtained fund and non-fund based working capital lines from various banks.

The Company also constantly monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility.

Liquidity tables :

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of Financial Liabilities based on the earliest date on which the Company can be required to pay.

Note 56 : Additional Regulatory Information :

i) Title Deeds not held in the name of the Company:

The title deeds of all Immovable Properties are held in the name of the Company.

ii) Fair value of Investment Property:

The Company does not have any investment property as on the reporting date.

iii) Revaluation of Property, Plant and Equipment:

The Company has not revalued any of its Property, Plant and Equipment during the year.

iv) Revaluation of Intangible Assets:

The Company has not revalued any of its intangible assets during the year.

v) Loans and advances granted to Promoters, Directors, KMP''s and Related parties:

The Company has not granted any loans to promoters, directors, KMPs and the related parties as defined under Companies Act, 2013 either jointly or severally with any other person that are repayable on demand or without specifying any terms or period of repayment.

vi) Capital Work-in-Progress:

The ageing schedule of Capital Work-in-Progress has been disclosed in the Note No. 1 to the Financial Statements.

vii) Intangible Assets under Development: Not Applicable

viii) Details of Benami Property:

The Company does not have any Benami property, where any proceedings initiated or pending against the Company for holding any Benami property.

ix) Reconciliation of Statement of Current Assets filed by the Company with Banks for Working capital facilities availed by the Company:

The Company has availed working capital facilities in excess of Rs. 5 crores in aggregate during the years. The quarterly stock statements filed by the Company are in agreement with the books of account of the Company.

x) Wilful Defaulter:

The Company has not been declared as willful defaulter by any Bank or Financial Institution (as defined under the Companies Act, 2013) or consortium thereof or other Lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.

xi) Relationship with Struck off Companies:

The Company does not have any transaction with Companies struck off under section 248 of the companies Act, 2013 or section 560 of the Companies Act, 1956

xii) Registration/Satisfaction of Charges with Registrar of Companies:

The Company does not have any charges yet to be registered or file the satisfaction of charges with the Registrar of Companies beyond the statutory period

xiii) Layers of Companies:

The Company does not have any subsidiary Company as on the balance sheet date. However, the Company has associate companies which is in compliance with the number of layers prescribed under Section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

(xvi) Approved Scheme of Arrangements:

During the year, there is no approved scheme of arrangements.

(xvii) Utilisation of Borrowed funds and Share premium:

The Company has not advanced or loaned or invested funds to any other persons or entities including foreign entities (intermediaries) with the understanding that the intermediary shall (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding party (ultimate Beneficiaries) or (b) provide any guarantee or security or the like on behalf of the Ultimate Beneficiaries.

The Company has not received any fund from other persons or entities including foreign entities (intermediaries) with the understanding that the intermediary shall (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding party (ultimate Beneficiaries) or (b) provide any guarantee or security or the like on behalf of the Ultimate Beneficiaries.

Note 57 :

Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/ disclosure.

As per our report of even date attached For and on behalf of the board

For P.N. Raghavendra Rao & Co

Chartered ^Accountants S. Devarajan S. Dinakaran

^{Firm Registration N}°. ^{: 003328S} Chairman and Managing Director Joint Managing Director

DIN :00001910 DIN :00001932

Pon Arul Paraneedharan - Partner

Membership No : 212860 S. Natarajan P. Boopalan

Company Secretary Chief Financial Officer

Salem

May 25, 2024

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Mar 31, 2018

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, holders 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 number of equity shares held by the shareholders.

1. Share issue in preceeding five years Aggregate number and class of shares allotted for consideration other than cash, bonus, etc.in the five years immediately preceeeding the Balance Sheet date as on March 31, 2018 is Rs. Nil (2017 and 2016: Nil).

Notes :

A. Securities premium reserve represents premium received on equity shares issued, which can be utilised only in accordance with the provisions of the Companies Act, 2013 (the Act) for specified purposes.

B. General reserve is created from time to time by transferring profits from retained earnings and can be utilised for purposes such as dividend payout, Bonus issue, etc.

C. In respect of the year ended March 31, 2018, the Board of Directors have proposed a dividend of Rs. 2 per equity share of Rs. 10 each (2017 Rs.4 per equity share, 2016: Rs.2 per equity share) subject to approval by the shareholders at the ensuing annual general meeting after which the dividend would be accounted and paid out of the retained earnings available for distribution in accordance with the provisions of the Act. Revaluation reserve of Rs.2707.94 lakhs transferred to Retained earnings on the transition date may not be available for distribution.

Note :

1. These are carried at amortised cost

2. Refer note 23 for current maturities of non current borrowings

3. Refer note. 40 for security and terms of borrowings

4. Refer note 39 for deposits from related parties.

Notes to the Ind AS Reconciliation

The company has adopted Ind AS from April 1, 2017 and accordingly, the transition date is April 1, 2016. The impact of transition is accounted for in the opening retained earnings as on the transition date. Further, such Ind AS impacts have also been adjusted accordingly in the statement of cash flows for the year ended March 31, 2017.

A. Under previous GAAP, ''Livestock'' was included in Fixed Assets. Under Ind AS, the term ''Property, Plant and Equipment'' does not include the same and hence they have been adjusted againt ''Retained earnings'' as on April 1, 2016 (the transition date).

B. Under previous GAAP, long term investments were measured at cost less dimunition in value which is other than temporary. Under Ind AS, non current investments (other than investment in equity instruments of subsidiaries, associates and joint ventures) are measured at fair value through profit and loss. Consequently, the differences, as at the transition date and as at the end of the year 2016-17, respectively, between carrying value as per previous GAAP and fair value, are reflected in total equity and statement of profit and loss.

C. (i) Under previous GAAP, deferred tax was computed under income tax approach method. Under Ind AS deferred tax assets is measured using balance sheet approach and accordingly recognised. Further the effect of these as at the transition date and as at the end of the year 2016-17 are reflected in total equity and statement of Profit and Loss respectively.

(ii) Under previous GAAP, miminum alternate tax entitlements were classified under other non-current assets. Under Ind AS, it is classified as unused tax credits under deferred tax.

D. Under Ind AS adjustment to material prior period errors are made retrospectively by restating the comparitive amounts for the prior periods presented and restating retained earnings at the beginning of the earliest period presented (transition date), in the first set of financial statements after the error is discovered. Accordingly, the amount of such errors have been given effect to by retrospective restatement of the reported figures.

E. Under previous GAAP, proposed dividends were recognised as a provision in the financial statements, even if declared after the balance sheet date. Under Ind AS, proposed dividends are recognised as liabilities in the period in which it is declared by the company, usually when it is approved by the shareholders in the general meeting, or paid.

This resulted in a timing difference and has been reflected in total equity of the relevant financial years.

F. Under Ind AS, grants are accounted for as deferred income. Based on the terms and conditions of the scheme, the grant received is to compensate the import cost of assets subject to an export obligation as prescribed in the EPCG Scheme and accordingly, recognition of grant in the statement of profit and loss is linked to fulfilment of associated export obligations.

G. Under previous GAAP, actuarial gains and losses on employees defined benefit obligations were recognised in profit and loss. Under Ind AS, the actuarial gains and losses on re-measurement of net defined benefit obligations are recognised in other comprehensive income. This resulted in a reclassification between statement of profit and loss and other comprehensive income.

H. Under previous GAAP, there was no separate record in the financial statements for Other Comprehensive Income (OCI). Under Ind AS, specified items of income, expense, gains and losses are presented under OCI.

Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases, and unutilized business loss, depreciation carryforwards and tax credits. Such deferred tax assets and liabilities are computed separately for each taxable entity and for each taxable jurisdiction.

Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which the deductible temporary differences, unused tax losses, depreciation carry-forwards and unused tax credits could be utilized.

2. Retirement benefit plans

Defined contribution plans

In accordance with Indian law, eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees'' salary.

The total expense recognised in Statement of profit and loss of Rs.96.87 lakhs (for the year ended March 31, 2017: Rs.74.70 lakhs) out of which Rs.10.99 lakhs (for the year ended March 31, 2017 : Rs.8.26 lakhs) represents payable by the Company.

Defined benefit plans

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death, while in employment or on termination of employment of an amount equivalent to 15 to 30 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The Company accounts for the liability for gratuity benefits payable in the future based on an actuarial valuation. The Company makes annual contributions to a funded Company gratuity scheme administered by the SBI Life Insurance Company Limited.

Company''s liability towards gratuity (funded), other retirement benefits and compensated absences are actuarially determined at each reporting date using the projected unit credit method.

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk and salary risk.

Investment risk

The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to the market yields on government bonds denominated in Indian Rupees. If the actual return on plan asset is below this rate, it will create a plan deficit.

Interest risk

A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase in the return on the plan''s debt investments.

Longevity risk

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

The Company funds the cost of the gratuity expected to be earned on a yearly basis to SBI Life Insurance Company Limited, which manages the plan assets.

The actual return on plan assets was Rs.19.82 lakhs (2016-17: Rs.42.88 lakhs)

Significant actuarial assumptions for the determination of the defined obligation are discount rate and expected salary increase. The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumption occurring at the end of the reporting period, while holding all other assumptions constant.

3. Financial Instruments

Capital management

The Company manages its capital to ensure that entities in the Company will be able to continue as going concerns while maximising the return to stakeholders through the optimisation of the debt and equity balance.

The Company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic investment plans. The funding requirements are met through equity, non-convertible debt securities, and other long-term/short-term borrowings.

The capital structure of the Company consists of net debt (borrowings as detailed in notes 15 and 20 offset by cash and bank balances) and total equity of the Company. The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

Financial risk management objectives

The treasury function provides services to the business, co-ordinates access to domestic financial markets, monitors and manages the financial risks relating to the operations through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including interest rate risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed by the Company''s policies approved by the board of directors, which provide written principles on foreign exchange risk, the use of financial derivatives, and the investment of excess liquidity. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

Market risk

Market risk is the risk that changes in market prices, liquidity and other factors that could have an adverse effect on realisable fair values or future cash flows to the Company. The company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates as future specific market changes cannot be normally predicted with reasonable accuracy.

Interest rate risk management

The Company is exposed to interest rate risk because it borrow funds at floating interest rates.

Interest rate sensitivity analysis

The sensitivity analyses below have been determined based on the exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 25 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rates.

If interest rates had been 25 basis points higher/lower and all other variables were held constant, the Company''s profit for the year ended March 31, 2018 would decrease/increase by Rs. 45.69 lakhs (March 31, 2017: decrease/increase by Rs.43.28 lakhs). This is mainly attributable to the Company''s exposure to interest rates on its variable rate borrowings.

Equity price risk

Equity price risk is related to the change in market reference price of the investments in equity securities. The fair value of some of the Company''s investments in available-for-sale securities exposes the Company to equity price risks. In general, these securities are not held for trading purposes.

Equity price sensitivity analysis

The fair value of equity instruments as at March 31, 2018 was Rs.1.53 lakhs (March 31, 2017: Rs. 1.87 lakhs and April 1, 2016: Rs. 1.36 lakhs). A 5% change in prices of equity instruments held as at March 31, 2018 would result in a impact of Rs. 0.08 lakhs ( March 31, 2017: Rs. 0.09 lakhs and April 1, 2016: Rs. 0.07 lakhs) on equity.

Offsetting related disclosures:

Offsetting of cash and cash equivalents to borrowings as per the consortium agreement is available only to the bank in the event of a default. Company does not have the right to offset in case of the counter party''s bankruptcy, therefore, these disclosures are not required.

Liquidity risk management

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

The Company has obtained fund and non-fund based working capital lines from various banks.

The Company also constantly monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility.

Notes: 1. Term loans aggregating to Rs.1521.00 lakhs (2017: Rs.2184.05 lakhs, 2016: Rs.4109.99 lakhs) are secured by a first charge on pari passu basis on all Property, Plant and equipment and second charge on pari passu basis on all current assets.

2. Term loans from banks aggregating to Rs.18.49 lakhs (2017 Rs.46.36 lakhs; 2016 Rs. 74.61 lakhs) are secured by hypothecation of certain busses and cars.

3. Term loan from Kotak Mahindra Prime Ltd of Rs.0.11 lakhs (2017: Rs.1.47 lakhs, 2016: Rs.2.68 lakhs) is secured by hypothecation of car.

4. All the above loans are guaranteed by four directors.

* The Company has restated the cash credit balances in accordance with Ind AS 8 on Accounting Policies, Changes in Accounting Estimates and Errors. Refer Note 34 on Ind AS reconciliations for details.

Notes :

1. Cash credit/ short term loans/ Buyer''s credit are secured by a first charge on the Company''s current assets and by a second charge on the Company''s Property, Plant and equipment excluding the charges

2. All the above loans are guaranteed by four directors.

4. The Company has not received any intimation from its suppliers regarding the status under the Micro, Small and Medium Enterprise Development Act, 2006 and disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable, as required under the said Act, have not been furnished.

5. During the current financial year the Company''s management has identified embezzelment of funds aggregating to Rs.1344.25 lakhs by an employee of the company whose services have since been terminated. The said embezzlement had occured over a period of years. The above has also been intimated to BSE Limited and necessary disclosures made under Regulation 30 of SEBI (Listing Obligation and Disclosure Requirements), Regulations 2015 vide letter dated November 21, 2017.

The said amount has been subsequently confirmed by an independent investigation agency. The Company has initiated criminal proceddings against the employee including filing of FIR. Pending the recovery procedures, the standalone Ind AS financial statements have been adjusted to give effect to the above embezzlement. Out of Rs.1344.25 lakhs, Rs.35.00 lakhs has been recovered, a sum of Rs.250.00 lakhs has been considered recoverable and the balance of Rs.1059.26 lakhs has been accounted in the following manner:

(i) Rs.396.25 lakhs has been debited to equity as on April 1, 2016 (transition date), in respect of the amount embezzled prior to that date.

(ii) Rs.380.00 lakhs and Rs.283.01 lakhs have been reflected as provision for embezzlement of funds under ''exceptional items'' in the Statement of Profit and Loss for the financial years ended March 31, 2017 and March 31 2018, respectively.

6. The Company''s primary segment is identified as business segment based on nature of products, risk, returns and internal reporting business systems the company is principally engaged in a single business segment viz. cotton yarn.

7. Disclosure as required under section 186(4) of the Companies Act, 2013:

8. Previous year figures have been regrouped/reclassified/amended wherever necessary to conform to current year classification.

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Mar 31, 2017

1.1 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.

1.2 Related party disclosure

(i) Related parties with whom transactions have taken place during the year

(1) Key managerial personnel

Sri S. Devarajan - Chairman and Managing Director Sri D. Niranjankumar - Chief Financial Officer Sri S. Natarajan - Company Secretary

(2) Relative of Key managerial personnel Smt D. Anupama

Sri J. Sakthivel - Chief Technical Officer

(3) Associate

SPMM Healthcare Services Private Limited Salem IVF Centre Private Limited

(4) Parties where significant influence exists Sambandam Siva Textiles Private Limited

S. Palaniandi Mudaliar Charitable Trust Sambandam Spinning Mills Gratuity Trust

1.3 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.35,33,337, 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.

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 $ 3,16,786 (March 31, 2016 US $ Nil) as at March 31, 2017 and has a net unhedged exposure of US $ Nil (March 31, 2016 US$ Nil) as at March 31, 2017.

1.6 Raw material consumed - others include consumption of yarn for manufacture of double yarn.

1.7 Power and fuel is net of value of power generated by Wind energy converters Rs.14,08,62,187 (2015-16 Rs.8,50,55,197).

1.8 Human resources - Particulars of managerial remuneration (i) To Managing Director - Salary Rs.28,80,000 (2015-16 Rs.21,60,000), Perquisites Rs.19,20,000 (2015-16 Rs.14,40,000); and

(ii) To Joint Managing Directors - Salary Rs.46,80,000 (2015-16 Rs.24,00,000), Perquisites Rs.18,00,000 (2015-16 Rs.12,00,000).

In the above acturial valuation the estimated of future salary increases have reckoned the effect of inflation, seniority, promotion and other relevant factors.

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.26,69,869 (2015-16 Rs.20,47,447) Contribution to provident, gratuity and other funds include contribution to provident fund and family pension fund contribution of Rs.74,70,870 (2015-16 Rs.75,69,450) and gratuity fund of Rs.25,03,009 (2015-16 Rs.47,20,200). Workmen and staff welfare expenses include contribution to employees state insurance of Rs.29,23,204 (2015-16 Rs.29,58,231).

1.9 During the year, the Company had Specified Bank Notes (SBNs) or other denomination notes as defined in the MCA notification, G.S.R. 308(E), dated March 31, 2017. The details of SBNs held and transacted during the period from November 8, 2016 to December 30, 2016, the denomination-wise SBNs and other notes as per the notification are as follows:

1.10 The figures for the previous periods have been reclassified/regrouped/amended, wherever necessary. Signatures to Statement of Accounting Polices and Notes to Standalone Financial Statements.

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Mar 31, 2016

1. 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.35,33,337, 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.

2. 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 over dues 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.

3. 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 Francs. 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, 2015 US $ Nil) as at March 31, 2016 and has a net unhedged exposure of US $ Nil (March 31, 2015 US$ Nil) as at March 31, 2016.

4. Raw material consumed - others include consumption of yarn for manufacture of double yarn.

5. Power and fuel is net of value of power generated by Wind energy converters Rs.8,50,55,197 (2014-15 Rs.10,59,11,210).

6. Repairs to buildings include amortization of cost of structures on leasehold land of Rs. Nil (2014-15 Rs.4,88,042).

7. Human resources - Particulars of managerial remuneration (i) To Managing Director - Salary Rs.21,60,000 (2014-15 Rs.21,60,000), Perquisites Rs.14,40,000 (2014-15 Rs.14,40,000); and (ii) To Joint Managing Directors - Salary Rs.24,00,000 (2014-15 Rs.24,00,000), Perquisites Rs.12,00,000 (2014-15 Rs.12,00,000).

7. Depreciation/amortization - Amortized cenvat credit of Rs. Nil (2014-15 Rs.2,69,722) deducted from capital reserve has been netted against the depreciation charge relating to the concerned plant and machinery.

In the above actuarial valuation the estimated of future salary increases have reckoned the effect of inflation, seniority, promotion and other relevant factors.

8. Gratuity fund is administered through group gratuity scheme with SBI Life Insurance Company Limited and by the Gratuity Trust through trustees.

9. During the year, the company has recognized the following amounts in the Statement of Profit and Loss:

Salaries, wages and bonus include compensated absences of Rs.20,47,447 (2014-15 Rs.18,13,729) Contribution to provident, gratuity and other funds include contribution to provident fund and family pension fund contribution of Rs.75,69,450 (2014-15 Rs.76,86,597) and gratuity fund of Rs.47,20,200 (2014-15 Rs.15,90,406). Workmen and staff welfare expenses include contribution to employees state insurance of Rs.29,58,231 (2014-15 Rs.32,59,811).

10. The figures for the previous periods have been reclassified/regrouped/amended, wherever necessary.

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Mar 31, 2015

1. 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 even 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.

1.1 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.

1.2 Related party disclosure

(i) Related parties with whom transactions have taken place during the year (1) Key managerial personnel

Sri S. Devarajan - Chairman and Managing Director Sri R.S. Shanmugam - Company Secretary Sri D. Niranjankumar- Chief Financial Officer

(2) Relatives of Key managerial personnel

Smt D. Anubama

Sri J. Sakthivel - Chief Technical Officer

(3) Associate

SPMM Healthcare Services Private Limited Salem IVF Centre Private Limited

(4) Parties where significant influence exists

Sambandam Siva Textiles Private Limited S. Palaniandi Mudaliar Charitable Trust Sambandam Spinning Mills Gratuity Trust

1.3 The net assets of the company were revalued as on March 31, 2009 by an external valuer on the basis of (i) estimated market value in the case of land and (ii) estimated depreciated replacement cost in the case of buildings and (iii) estimated amounts realizable/payable in the case other assets and liabilities. The resulting net surplus on such revaluation aggregating Rs.30,02,16,417 has been credited to revaluation reserve.

1.4 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.35,33,337, 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.

1.5 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.25,62,989.

1.6 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.

1.7 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$ Nil) as at March 31,2015.

1.8 Raw material consumed - others include consumption of yarn for manufacture of double yarn.

1.9 Power and fuel is net of value of power generated by Wind energy converters Rs.10,59,11,210 (2013-14 Rs.10,06,72,287).

1.10 Repairs to buildings include amortization of cost of structures on leasehold land of Rs.4,88,042 (2013-14 Rs.3,25,398).

1.11 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 Directors - Salary Rs.24,00,000 (2013-14 Rs.24,00,000), Perquisites Rs.12,00,000 (2013-14 Rs.12,00,000).

1.12 Expenditure related to Corporate Social Responsibility as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof- Rs.2,80,000 (2013-14 Rs.Nil).

1.13 Depreciation/amortisation - (i) Amortised cenvat credit of Rs.2,69,722 (2013-14 Rs.4,12,185) deducted from capital reserve has been netted against the depreciation charge relating to the concerned plant and machinery.

(i) Term loans from banks aggregating Rs.40,85,91,477 (March 31, 2014 Rs.57,85,50,306) are secured by a first charge on the Company's fixed asset the charge stated in (ii) to (iv) infra and secured by a second charge on the Company's current assets;

(ii) Term loans from banks to an extent of Rs. Nil (March 31, 2014 Rs.2,51,00,000) are secured by a first charge on the Company's wind mills;

(iii) Term loans from banks to an extent of Rs.8,55,868 (2013-14 Rs.l 1,69,318) are secured by hypothecation of certain buses and cars;

(iv) Term loan from Kodak Mahindra Prime Limited of Rs.3,07,583 (2013-14 Rs.30,92,617) is secured by hypothecation of car;

(v) Cash credit/short term loan/buyers credit facilities(FC) are secured by a first charge on the Company's current assets except the stock of cotton pledged for goods loan facility and by a second charge on the Company's fixed assets excluding the charges mentioned in (ii) to (iv) supra;

(vi) Goods loan facilities are secured by pledge of cotton; and ( vii) All the above loans are guaranteed by four directors.

In the above acturial valuation the estimated of future salary increases have reckoned the effect of inflation, seniority, promotion and other relevant factors.

ii) Gratuity fund is administered through group gratuity scheme with SBI Life Insurance Company Ltd. and 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. 18,13,729 (2013-14 Rs.16,40,974)

Contribution to provident, gratuity and other funds include contribution to provident fund and family pension fund contribution of Rs.76,86,597 (2013-14 Rs.68,34,888) and gratuity fund of Rs. 15,90,406 (2013-14 Rs.40,68,155).

Workmen and staff welfare expenses include contribution to employees state insurance of Rs.32,59,811 (2013-14 Rs.31,90,655).

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Mar 31, 2014

1. 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 shareholder is el igible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeing. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

For the year For the year ended ended March 31, 2014 March 31, 2013 Rupees Rupees

1.1 Contingent liabilities

(i) Claims against the company not acknowledged as debts 4,59,05,014 4,59,05,014

(ii) Guarantees 96,66,200 96,66,200

(ii) Bills discounted with banks — —

Out flow relating to above not practicable to indicate in view uncertainties involved

1.2 The net assets of the company were revalued as on March 31, 2009 by an external valuer on the basis of

(i) estimated market value in the case of land and

(ii) estimated depreciated replacement cost in the case of buildings and

(iii) estimated amounts realizable/payable in the case other assets and liabilities. The resulting net surplus on such revaluation aggregating Rs.30,02,16,417 has been credited to revaluation reserve.

1.3 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.

(i) 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.

1.4 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, 2013 US $ 7,01,932) as at March 31, 2013 and has a net unhedged exposure of US $ Nil (March 31, 2013 US$ 1,31,400) as at March 31, 2013.

1.5 Raw material consumed - others include consumption of yarn for manufacture of double yarn.

1.6 Power and fuel is net of value of power generated by Wind energy converters Rs.10,06,72,287 (2012-13 Rs.12,52,72,864).

1.7 Repairs to buildings include amortization of cost of structures on leasehold land of Rs.3,25,398 (2012-13 Rs.3,25,398).

1.8 Human resources - Particulars of managerial remuneration

(i) To Managing Director - Salary Rs.21,60,000 (2012-13 Rs.21,60,000),

Perquisites Rs.14,40,000 (2012-13 Rs.14,40,000); and

(ii) To Joint Managing Directors - Salary Rs.24,00,000 (2012-13 Rs.24,00,000),

Perquisites Rs.12,00,000 (2012-13 Rs.12,00,000).

1.9 Depreciation/amortisation -

(i) Amortised cenvat credit of Rs.4,12,185 (2012-13 Rs.5,05,752) 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.37,64,401 (2012-13 Rs.37,64,401) 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.

---

Mar 31, 2013

1.1 Contingent liabilities

(i) Claims against the company not acknowledged as debts 4,59,05,014 3,92,50,691

(ii) Guarantees 96,66,200 96,66,200

(ii) Bills discounted with banks — 20,75,857 Out flow relating to above not practicable to indicate in view uncertainties involved

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 yam) and operates in a single geographical segment as per Accounting Standard 17.

1.3 Related party disclosure

(i) Related parties with whom transactions have taken place during the year

(1) Key management personnel : Sri S. Devarajan - Chairman and Managing Director

(2) Associate . SPMM Healthcare Services Private Limited

(3) Parties where significant Sambandam Siva Textiles Private Limited influence exists - S. Palaniandi Mudaliar Charitable Trust

Sambandam Spinning Mills Gratuity Trust

1.4 The net assets of the company were revalued as on March 31, 2009 by an external valuer on the basis of (i) estimated market value in the case of land and (ii) estimated depreciated replacement cost in the case of buildings and (iii) estimated amounts realizable/payable in the case other assets and liabilities. The resulting net surplus on such revaluation aggregating Rs.30,02,16,417 has been credited to revaluation reserve.

1.5 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.

1.6 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 $ 7,01,932 (March 31, 2012 US $ Nil) as at March 31, 2013 and has a net unhedged exposure of US $ 1,31,400 (March 31, 2012 US$ Nil) as at March 31,2013.

1.7 Raw material consumed -others include consumption of yarn for manufacture of double yarn.

1.8 Power and fuel are (i) net of value of power generated by Wind energy converters Rs.12,52,72,864 (2011 -12 Rs.7,87,59,616) and (ii) after reckoning the reversal of carbon credit accrued in prior years of Rs. Nil (2011-12 Rs.50,28,883), 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 documentation.

1.9 Repairs to buildings include amortization of cost of structures on leasehold land of Rs.3,25,398 (2011 -12 Rs.3,25,398).

1.10 Human resources - Particulars of managerial remuneration (i) To Managing Director - Salary Rs.21,60,000 (2011-12 Rs.21,60,000), Perquisites Rs. 14,40,000 (2011-12 Rs. 14,40,000); and (ii)To Joint Managing Directors - Salary Rs.24,00,000 (2011 -12 Rs.24,00,000), Perquisites Rs. 12,00,000 (2011 -12 Rs. 12,00,000).

1.11 Depreciation/amortisation - (i) Amortised cenvat credit of Rs.5,05,752 (2011-12 Rs.7,95,724) 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.37,64,401 (2011-12 Rs.37,64,401) 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.

1.12 The figures for the previous periods have been reclassified/regrouped/amended, wherever necessary.

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Mar 31, 2012

1.1 Contingent liabilities

(i) Claims against the company not acknowledged as debts 3,92,50,691 3,36,24,998

(ii) Guarantees 96,66,200 96,66,200

(iii) Bills discounted with banks 20,75,857 4,37,29,637

Out flow relating to above not practicable to indicate in view uncertainties involved

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 Related party disclosure

(i) Related parties with whom transactions have taken place during the year

(1) Key management personnel Sri S. Devarajan - Chairman and Managing Director

(2) Associate SPMM Healthcare Services Private Limited

(3) Parties where significant S. Palaniandi Mudaliar Charitable Trust and influence exists Sambandam Spinning Mills Graluity Trust

1.4 the net assets of the company were revalued as on March 31,2009 by an external valuer on the basis of (i) estimated market value in 1he case of land and (ii) estimated depreciated replacement cost in the case of buildings and (iii) estimated amounts realizable/payable in the case other assets and liabilities. The resulting net surplus on such revaluation aggregating to Rs.30,02,16,417 has been credited to revaluation reserve.

1.5 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 1he basis of information available with the company. There are no overdue 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.

1.6 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 1he 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 $ 15,32,060) as at March 31, 2012 and has a net unhedged exposure of US $ Nil (March 31, 2011 US$5,76,159).

1.7 Raw material consumed - others include consumption of yarn for manufacture of double yarn.

1.8 Power and fuel are (i) net of value of power generated by Wind energy converters Rs.7,87,59,616 (2010-11 Rs.8,02,95,274); (ii) net of income by way of carbon credit of Rs.Nil (2010-11 Rs.50,28,883); and(ii) after reckoning 1he reversal of carbon credit accrued in prior years of Rs.50,28,883 (2010- 11 Rs.2,17,83,937), 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 documentation.

1.9 Repairs to buildings include amortization of cost of structures on leasehold land of Rs.3,25,398 (2010-11 Rs.3,25,398).

1.10 Human resources - Particulars of managerial remuneration (i) To Managing Director - Salary Rs.21,60,000 (2010-11 Rs.21,60,000), Perquisites Rs.l4,40,000 (2010-11 Rs. 14,40,000); and (ii) To Joint Managing Directors - Salary Rs.24,00,000 (2010-11 Rs.24,00,000), Perquisites Rs.l 2,00,000 (2010-11 Rs.l 2,00,000).

1.11 Depreciation/amortisation - (i) Amortised cenvat credit of Rs.7,95,724 (2010-11 Rs.1 2,67,410) deducted from capital reserve has been netted against the depreciation charge relating to 1he concerned plant and machinery; and (ii) Depreciation for 1he year computed on revalued assets includes a charge of Rs.37,64,401 (2010-11 Rs.37,64,401) being the excess depreciation computed by 1he method followed by the company prior to revaluation and the same has been transferred from Revaluation reserve to the Profit and Loss account.

In the above actuarial valuation, the estimate of future salary increases have reckoned the effect of inflation, seniority, promotion and other relevant factors.

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.6,05,967 (2010-11 Rs.6,17,078)

Contribution to provident, gratuity and other funds include contribution to provident fund and family pension fund contribution of Rs.63,28,918 (2010-11 Rs.60,47,768) and gratuity fund of Rs.79,23,091 (2010-11 Rs.49,83,211).

Workmen and staff welfare expenses include contribution to employees state insurance of Rs.22,65,296 (2010-11 Rs.24,32,815)

1.12 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.

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Mar 31, 2011

1. Issued and subscribed capital include 24,85,900 (March 31, 2010 - 24,85,900) Equity shares allotted as fully paid up by way of bonus shares by capitalisation of part of General reserve.

2. Movement in reserves - (i) Additions: Amount appropriated from the profit and loss account to General reserve Rs. 10,00,00,000 (March 31,2010 Rs.1,50,00,000); (ii) Deduction: Amount amortised from Cenvat credit relating to capital assets and adjusted in Depreciation in Schedule 2.8 Rs. 12,67,410 (March 31, 2010 Rs. 17,11,562).

3. Particulars for secured loans - (i) Term loans from banks to an extent of Rs.81,56,17,148 (March 31, 2010 Rs.88,40,29,004) are secured by a first charge on the Company's immovable and movable properties (excluding book debts) subject to the charge stated in (iii) infra, (ii) Term loans from banks to an extent of Rs.20,57,30,489 (March 31, 2010 Rs.22,56,15,094) are secured by hypothecation of certain specific assets, (iii) Cash credit/short term loan/buyer's credit facilities are secured by a first charge on the Company's current assets except the stock of cotton pledged for goods loan facility and by a second charge on the Company's immovable and movable properties (other than those covered under the first charge mentioned in (i) supra, (iv) Goods loan facilities ate secured by pledge of stock of cotton; and (v) All the above loans are guaranteed by four directors.

4. Unsecured loans include - (i) fixed deposits from directors Rs.7,15,000 (March 31, 2010 Rs. 12,15,000), and (ii) amounts repayable within twelve months from the balance sheet date Rs. 1,86,36,400 (March 31, 2010Rs.2,65,20,025).

5. Fixed assets - (i) Gross block includes Rs.33,31,48,842 added on revaluation of land and buildings as at March 31, 2009 based on report by an external valuer; and (ii) Deductions under plant and machinery includes terminal excise duty refund under Export Promotion Capital Goods Scheme, of Rs.61,37,531 (March 31, 2010 Rs.73,68,389).

6. The net assets of the company were revalued as on March 31,2009 by an external valuer on the basis of (i) estimated market value in the case of land, (ii) estimated depreciated replacement cost in the case of other fixed assets; and (iii) estimated amounts realisable/payable in the case of other assets and liabilities. The resulting net surplus on such revaluation aggregating to Rs.30,02,16,417 has been credited to revaluation reserve.

7. (i) Investments are long term, non trade and unquoted unless otherwise stated; (ii) Cost of quoted investments Rs.60,272 (March 31,2010 Rs.27,972); (iii) Market value of quoted investments Rs.1,46,167 (March 31, 2010 Rs.1,13,810); and (iv) Cost of unquoted investments Rs.2,09,75,000 (March 31, 2010 Rs.2,09,75,000).

8. Loans and advances include Income tax paid in advance/deducted at source, net of provisions therefor. The income tax liability for March 31,2011 as minimum alternate tax under section 115JB of the Income tax Act, 1961 amounting to Rs.3,85,00,000 is eligible to be carried forward and set off against future income tax under section 115JAA of the Income tax Act, 1961 and hence the minimum alternate credit entitlement Is reckoned in the above head.

9. (i) 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/a 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.

10. 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 $ 15,32,060 (March 31, 2010 US $ 53,85,348) as at March 31, 2011 and has a net unhedged exposure of US $ 5,76,159 (March 31, 2010 US$1,41,199).

11. Estimated capital expenditure commitments (net of advances) Rs.10,71,4 7,366 (March 31, 2010 Rs.16,66,62,174).

12. Contingent liabilities: (i) Claims against the Company not acknowledged as debts Rs.2,06,08,526 (March 31, 2010 Rs. 1,42,30,330); (ii) Guarantees issued by the company's bankers towards disputed power tariff concession availed Rs.96,66,200 (March 31,2010 Rs.96,66,200), (iii) Bills discounted with bankers Rs.4,37,29,637 (March 31, 2010 Rs.2,83,55,291) and (iv) Other contingent liabilities Rs. 1,30,16,472 (March 31, 2010 Rs.92,41,174).

13. Sales and conversion charges earned - Power generated by Wind energy converters represents sale of power (net of captive consumption) generated by wind energy converters.

14. Other income - Miscellaneous income includes net gain on foreign currency transaction and translation (other than considered as financial cost) Rs.2,70,038 (2009-10 Rs. Nil).

15. Raw material consumed - others include consumption of yarn for manufacture of double yarn in 2010-11.

16. Power and fuel are (i) net of value of power generated by Wind energy converters Rs.8,02,95,274 (2009-10 Rs.8,82,48,105); (ii) net of income by way of carbon credit of Rs.50,28,883 (2009-10 Rs. 1,07,25,017); and (ii) after reckoning the reversal of carbon credit accrued in prior years of Rs.2,17,83,937 (2009-10 Rs. Nil), 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 documentation.

17. Repairs to buildings include amortization of cost of structures on leasehold land of Rs.3,25,398 (2009- 10 Rs.3,25,398) and repairs to plant and machinery include amortization of cost of planned replacement of worn out parts of plant and machinery Rs.Nil (2009-10 Rs.36,44,514).

18. Human resources - Particulars of managerial remuneration (i) To Managing Director - Salary Rs.21,60,000 (2009-10 Rs.21,60,000), Perquisites Rs.14,40,000 (2009-10 Rs. 14,40,000); and (ii) To Joint Managing Directors - Salary Rs.24,00,000 (2009-10 Rs.24,00,000), Perquisites Rs. 12,00,000 (2009- 10 Rs. 12,00,000).

19. Other expenses - Miscellaneous expenses include (i) payments to auditors for Financial audit Rs.3,50,000 (2009-10 Rs.2,80,000), Cost audit Rs.44,000 (2009-10 Rs.44,000), Taxation work Rs.1,55,000 (2009-10 Rs.1,20,000), Other work Rs.1,08,000 (2009-10 Rs.78,000) and Expenses reimbursed to Statutory auditors Rs.1, 10,135 (2009-10 Rs.98,479), Cost auditors Rs.9,867 (2009-10 Rs.16,184); (ii) net loss on foreign currency transaction and translation (other than considered as financial cost) Rs.Nil (2009-10 Rs.2,21,661).

20. Financial expenses - (I) Interest paid on fixed loans Rs.9,93,87,257 (2009-10 Rs.9,25,90,369) includes Rs.40,625 (2009-10 Rs.36,509) to the Managing Director; and (ii) Bank and other financial charges Include (a) amortisation of loan raising expenses Rs. 5,45,274 (2009-10 Rs.6,53,463) and (b) foreign currency transaction and translation loss (net) Rs.87,56,436 (2009-10 gain (net) Rs.47,54,794).

21. Depreciation/amortisation - (i) Amortised cenvat credit 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.37,64,401 (2009-10 Rs.37,64,401) 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.

22 Segment information

The Company is principally engaged in a single business segment viz.. cotton yarn and operates in a single geographical segment as per Accounting Standard 17 on 'Segment Reporting'.

23 Related party disclosure

(i) Related parties with whom transactions have taken place during the year

(1) Key management personnel - Sri S. Devarajan - Chairman and Managing Director

(2) Associate - SPMM Healthcare Services Private Limited

(3) Parties where significant - (i) S. Palaniandi Mudaliar influence exists Charitable Trust (ii) sambandam Spinning Mills Gratuity Trust

24 Employee benefits -

(ii) Gratuity is administered through Group Gratuity Scheme with SBI Life Insurance Company Limited and by the Gratuity trust through trustees.

(iii) During the year, the Company has recognised the following amounts in the Profit and Loss account in Schedule 2.5:

- Salaries, wages and bonus include compensated absences of Rs. 10,98,078 (2009-10 Rs. 20,30,482).

- Contribution to provident, gratuity and other funds include contribution to Provident fund and family pension fund contribution of Rs. 60,47,768 (2009-10 Rs.53,29,346) and gratuity fund of Rs.49,83,211 (2009-10 Rs.36,33,803).

- Workmen and staff welfare expenses include contribution to Employee State Insurance of Rs.24,32,815 (2009-10 Rs.20,59,440).

25 Figures for the previous year have been regrouped reclassified to make them comparable to the classification adopted in the current year.

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Mar 31, 2010

1 Segment information

The Company is principally engaged in a single business segment viz.. cotton yarn and operates in one geographical segment as per Accounting Standard 17 on Segment Reporting.

2 Related party disclosure

(i) Related parties with whom transactions have taken place during the year

(1) Key management personnel - Sri S. Devarajan - Chairman and Managing Director

(2) Associate - SPMM Healthcare Services Private Limited

(3) Parties where significant - S. Palaniandi Mudaliar Charitable Trust influence exists . sambandam Spinning Mills Gratuity Trust

3 Issued and subscribed capital include 24,85,900 (March 31, 2009 - 24,85,900) Equity shares allotted as fully paid up by way of bonus shares by capitalisation of part of General reserve.

4 Movement in reserves - (i) Additions: (1) Amount appropriated from the profit and loss account to General reserve Rs. 1,50,00,000 (March 31, 2009 Rs. Nil); and (2) Amount credited to Revaluation. reserve on account of revaluation of net assets of the Company Rs. Nil (March 31, 2009 Rs.30,02,16,417); (ii) Deduction: Amount amortised from Cenvat credit relating to capital assets and adjusted in Depreciation in Schedule 2.8 Rs.l 7,11,562 (March 31, 2009 Rs. 18,10,284).

5 Particulars for secured loans - (i) Term loans from banks to an extent of Rs.88,40,29,004 (March 31, 2009 Rs.87,98,19,756) are secured by a first charge on the Companys immovable and movable properties (excluding book debts) subject to the charge stated in (iii) infra, (ii) Term loans from banks to an extent of Rs.22,56,15,094 (March 31, 2009 Rs.24,23,48,662) are secured by hypothecation of certain specific assets, and (iii) Cash credit/buyers credit facilities are secured by a first charge on the Companys current assets and by a second charge on the Companys immovable and movable properties (other than those covered under the first charge mentioned in (i) supra, and (iv) All the loans are guaranteed by four directors.

6 Unsecured loans include - (i) fixed deposits from directors Rs. 12,15,000 (March 31, 2009 Rs.65,000), and (ii) amounts repayable within twelve months from the balance sheet date Rs.2,65,20,025 (March 31, 2009 Rs.l,85,27,437).

7 Fixed assets - (i) Cost of additions and capital work-in-progress includes borrowing cost of Rs. Nil (March 31, 2009 Rs. 1,48,66,583) and other expenses in the course of construction Rs. Nil (March 31, 2009 Rs.96,56,514); (ii) Deductions under plant and machinery includes terminal excise duty refund under Export Promotion Capital Goods Scheme, of Rs.73,68,389 (March 31, 2009 Rs.l,21,64,036); and (iii) Gross block includes Rs.33,31,48,842 added on revaluation of land and buildings as at March 31, 2009 based on report by an external valuer.

8 The net assets of the Company were revalued as on March 31, 2009 by an external valuer on the basis of (i) estimated market value in the case of land, (ii) estimated depreciated replacement cost in the case of other fixed assets; and (iii) estimated amounts realisable/payable in the case of other assets and liabilities. The resulting net surplus on such revaluation aggregating to Rs,30,02,16,417 has been credited to revaluation reserve.

9 All investments are long term, non trade and quoted unless otherwise stated. Market value of quoted investments Rs.l,13,810 (March 31, 2009 Rs.61,940).

10 Loans and advances Include Income tax paid in advance/deducted at source, net of provisions therefor. The income tax liability for March 31, 2010 as minimum alternate tax under section 115JB of the Income tax Act, 1961 amounting to Rs.96,00,000 is eligible to be carried forward and set off against future income tax under section 115JAA of the Income tax Act, 1961 and hence the minimum alternate credit entitlement is reckoned in the above head.

11 (i) 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 dMdend, 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.

12 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 $ 53,85,348 (March 31, 2009 US $ 7,18,636) as at March 31, 2010 and has a net unhedged exposure of US $ 1,41,199 (March 31, 2009 US$10,52,570).

13 Estimated capital expenditure commitments (net of advances) Rs. 16,66,62,174 (March 31, 2009 Rs. 16,04,74,658).

14 Contingent liabilities: (i) Claims against the Company not acknowledged as debts Rs.57,64,988 (March 31, 2009 Rs. 13,38,921); (ii) Guarantees issued by the Companys bankers towards disputed power tariff concession availed Rs.96,66,200 (March 31, 2009 Rs.96,66,200), (Hi) Bills discounted with bankers Rs.2,83,55,291 (March 31,2009 Rs.2,84,65,403) and (fv) Other contingent liabilities Rs.92,41,174 (March 31, 2009 Rs. Nil).

15 Raw materials consumed - others include consumption of yarn for manufacture of double/two-for- one yarn in 2008-09.

16 Power and fuel are net of (i) amount realised towards power generated through Wind energy converters and adjusted against the cost of power purchased from state electricity board Rs.l 0,11,26,530 (2008-09 Rs.8,59,41,751) and (ii) income from carbon credits Rs. 1,07,25,017 (2008-09 Rs. 1,65,58,074).

17 Repairs to buildings include amortization of cost of structures on leasehold land of Rs.3,25,398 (2008- 09 Rs.3,25,380) and repairs to plant and machinery include amortization of cost of planned replacement of worn out parts of plant and machinery Rs.36,44,514 (2008-09 Rs.26,64,072).

18 Human resources - Particulars of managerial remuneration (i) To Managing Director - Salary Rs.21,60,000 (2008-09 Rs.l4,40,000), Perquisites Rs.l4,40,000 (2008-09 Rs.9,60,000), (ii) To Joint Managing Directors - Salary Rs.24,00,000 (2008-09 Rs.l6,00,000), Perquisites Rs.l2,00,000 (2008-09 Rs.l0,40,000), (iii) To Whole-time Director - Salary Rs. Nil (2008-09 Rs.7,20,000), Perquisites Rs. Nil (2008-09 Rs.4,80,000).

19 Other expenses - (i) Donation and charity include contribution to Communist Party of India Rs. Nil (2008-09 Rs.l0,000), (ii) Miscellaneous expenses include payments to auditors for Financial audit Rs.2,80,000 (2008-09 Rs.2,80,000), Cost audit Rs.44,000 (2008-09 Rs.44,000), Taxation work Rs. 1,20,000 (2008-09 Rs.95,000), Other work Rs. 78,000 (2008-09 Rs.55,000) and Expenses reimbursed to Statutory auditors Rs.98,479(2008-09 Rs.89,581), Cost auditors Rs.l6,184 (2008-09 Rs.20,364).

20 Financial expenses - (i) Interest paid on fixed loans Rs.9,49,89,428 (2008-09 Rs.9,35,23,672) includes Rs.36,509 (2008-09 Rs. Nil) to the Managing Director; and (ii) Bank and other financial charges include amortisation of loan raising expenses Rs. 6,53,463 (2008-09 Rs.9,40,010).

21 Depreciation/amortisation - (i) Amortised cenvat credit 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.37,64,401 (2008-09 Rs. Nil) 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.

22 Figures for the previous year have been regrouped to make them comparable to the classification adopted in the current year.