Salem Textiles Ltd. के अकाउंट के लिये नोट

Mar 31, 2013

1). To the best of our knowledge and as per the information available with the Management

a). Sundry Creditors include an amount of Rs. 13.32 lacs due to Small Scale Industrial Undertakings and Micro, small and medium enterprises.

b). The SSI, Micro, small and medium enterprises have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

2). 20% secured Non-convertible Debentures are redeemable in three, equal installments commencing from 27.8.98. However as the Company is not in a position to redeem the Debentures, the Company has not redeemed the Debentures

3). The Company has started paying the contribution to the earlier years provident fund. A sum of Rs. 7.79 lakhs towards EPF arrears has been paid by the Company during the year. The Company is taking necessary steps to get time for making the payment of balance amount of EPF arrears and the ESI arrears. ,

4). (a). Balance of Debtors, Creditors and Loans and Advances are subject to confirmation by parties.

(b). In the opinion of the Board, the amounts of Current Assets, Loans and Advances stated in the Balance Sheet are those realizable in the ordinary course of business, excepttheitemsmentionedinsl.no.5&6below.

5). (a). Loans and Advances also includes a sum of Rs. 79.11 lacs paid as advances for purchase of certain machineries for the Tricky Dyeing Plant. Because of the hike in the cost of machinery, the Company could not take delivery. These amounts are not realizable and the Company has not demanded them. In case the Company asks for these amounts, the machinery suppliers may demand from the Company the balance amount towards the machines ordered. As the Company is not in a position to pay and take delivery of the machines, the Company could not demand for return of the amounts advanced . Hence necessary provision for Bad advance is made in the books. ,

(b). The loans and advances includes advance of Rs.116.56 lakhs made to M/s. Cotton Corporation of India (CCI) as an advance made for purchase of raw materials during the year 1995-96. Because of the hike in the raw materials price, the Company could not take delivery of the raw materials from CCI. An award was given under Arbitration and the Col claimed ns.lzy lacs as cairn after adjusting the above advance of Rs.116.56 lakhs. As the Company is not in a position to realize the advance made to CCI, provision for Bad advance is made in the books.

6). Loans and Advances include an amount of Rs. 725.85 Lacs -claimed in March 1998 from insurance Company towards Fire Damages of Cotton, yarn and buildings etc., In respect of this Insurance Claim, the Company had filed a case with Consumer Court. The National Consumer Disputes Redressed Commission passed interim orders dated 14.01.2007 directing the Insurance Company to deposit with the Commission the sum of Rs.72, 36,290/- as assessed by the final surveyor with interest @ 10% from 21.09.1998and''allowing Company to withdraw the amount, by furnishing security and personal guarantee of Managing Director and to return the same in case the compliant is dismissed. Accordingly, the Company withdrew the sum of Rs.1, 36, 21,022/- from the Commission and the count is returnable in case the compliant is dismissed. The final order is awaited.

7). Capital Work-in-Progress consists of one Mono Block Apparatus imported and paid for, but could not be taken delivery, as the Company has no funds to pay Custom Duty. It is stored if, Central Ware-Housing Corporation at Chennai since 1996. The amount of duty and warehousing charges payable is much more than the value of the machinery.

8). The Company had invested Rs.25 lakhs in M/s. Salem Dolerites Ltd., Since that Company , - bad Huge accumulated losses, the worth of the investment is Nil, although it is shown at cost in the Balance Sheet.

9). The Company is not having a whole time Company ''Secretary as required under Sec383(A) of the Companies Act, 1956, as the Company could not get a suitable candidate, in spite of efforts taken.

10). Personnel cost is arrived after excluding booking under other heads.

11). Previous year''s figures have been reclassified to conform to the current year''s classification.

Rs.in Lads

12) Contingent Liabilities 31.03.2013 31.03.2012

a. Claims against the Company not acknowledged as rs ;n l3cs 229 72 229 72 debts ( Net of Advances paid Rs.116.57 lacs) ''

Rs. in Lacs 310.01 310.01

b. Excise Duty disputed by the Company

c. Demand of Yarn Cess disputed by the Company in Lacs 2.76 2.76

d. Fringe Benefit Tax - Disputed by Company Rs. in Lacs 8.03 8.03

e! TNEB Electricity Tax _ Rs. in Lacs 55.51 55.51

f. TNEB peak hour penalty (Net of Advances paid - -

D Rs-ln Lacs 371 371

Rs.58.04 lacs) .

(ii). List of Related Parties with whom transactions taken place : a. R.P.Rajaram( Relative) : Deposit outstanding Rs.30.00 Lacs .

b. Salem Spices Private Limited ; Car Rent paid Rs. 4.00 Lacs

13). Deferred Taxation

The Company became Sick since 1997-98. The Company made reference to the BIFR. As the matter is pending before BIFR., the working of deferred tax asset/liability is not made in view of the uncertainty of earning taxable income in the near future. The same will be worked out and shown in the accounts as soon as the BIFR approves the proposal for rehabilitation of the Company.

14). Foreign Currency Transactions

During the year, the Company had not entered into any foreign currency transactions.

15). Provisions, Contingent Liabilities and Contingent Assets

As prescribed by the cal in AS 29, Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made.

Contingent liabilities are disclosed unless the possibility of any outflow "in settlement is remote, in the Notes on Accounts. Contingent Assets are neither recognized nor disclosed.

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Mar 31, 2012

01. SHARE CAPITAL

a. Rights, Preferences and Restrictions attached to Shares: Equity Shares:

The Company has one Class of Equity Shares having a par value of Rs. 10/- per share. Each Shareholder is eligible for one vote per share held. In the event of Liquidation of the Company, the holders of Equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion of equity shares held by the Shareholders.

02. LONG TERM BORROWINGS

1. Debentures from UTI to an extent of Rs. 175 Lacs (2011 Rs. 175 lacs) are secured by mortgage of Company's land and buildings and first charge by hypothecation of the whole movable properties, both present and future of the Company (Save and except book debts) and subject to prior charges created/to be created in favour of bankers for Raw materials, Semi finished goods, Finished goods and consumable stores for securing the borrowings for working capital requirement in the ordinary course of business.

2. Term loans from Banks to the extent of Rs. 298.81 Lacs (2011 Rs. 298.81 Lacs) are secured by hypothecation of Stock-in-trade, receivables and other moveable assets with pari-passu agreements from the consortium Banks and Financial Institutions.

3. Term loans from Financial Institutions to an extent of Rs. 1056.24 Lacs (2011 Rs. 1056.24 Lacs) are secured by mortgage of Company's land and buildings and first charge by hypothecation of the whole movable properties, both present and future, of the Company (Save and except book debts) and subject to prior charges created/to be created in favour of bankers for Raw materials, Semi finished goods, Finished goods and consumable stores for securing the borrowings for working capital requirement in the ordinary course of business.

4. Secured loans taken from Bank and the Loans taken from Financial Institutions are guaranteed by the Managing Director.

5. Deferred credits to an extent of Rs. 182.59 Lacs (2011 Rs. 182.59 Lacs) are secured by the hire purchase agreements for the acquisition of certain specific machinery.

6. For all the secured loans the Company has not provided any interest from the year 2004-05 onwards.

03. SHORT TERM BORROWINGS

i. Cash Credit From Banks are secured On the Hypothecation of entire Stock in Trade, Receivables and other movable assets. These assets have also been mortgaged against Letter of Credit and Guarantee given by the Managing Director

ii. Secured Loans taken from Banks are guaranteed by the Managing Director

iii. For all the Secured Loans and Un-secured Loans, the Company has not provided any interest from the year 2004-05 onwards

B. Other Notes on Accounts:

1). To the best of our knowledge and as per the information available with the Management

a). Sundry Creditors include an amount of Rs. 11.83 lacs due to Small Scale Industrial Undertakings and Micro, small and medium enterprises.

b). The SSI, Micro, small and medium enterprises have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

2). 20% secured Non-convertible Debentures are redeemable in three equal installments commencing from 27.8.98. However as the Company is not in a position to redeem the Debentures, the Company has not redeemed the Debentures

3). The Company has started paying the contribution to the earlier years provident fund. A sum of Rs. 26.45 lakhs towards EPF arrears has been paid by the Company during the year. The Company is taking necessary steps to get time for making the payment of balance amount of EPF arrears and the ESI arrears.

4). (a). Balance of Debtors, Creditors and Loans and Advances are subject to confirmation by parties.

(b). In the opinion of the Board, the amounts of Current Assets, Loans and Advances stated in the Balance Sheet are those realizable in the ordinary course of business, except the items mentioned in sl. no. 5 & 6 below.

5). (a). Loans and Advances also includes a sum of Rs. 79.11 lacs paid as advances for purchase of certain machineries for the Trichy Dyeing Plant. Because of the hike in the cost of machinery, the Company could not take delivery. These amounts are not realizable and the Company has not demanded them. In case the Company asks for these amounts, the machinery suppliers may demand from the Company the balance amount towards the machines ordered. As the Company is not in a position to pay and take delivery of the machines, the Company could not demand for return of the amounts advanced. Hence necessary provision for Bad advance is made in the books.

(b). The loans and advances includes advance of Rs. 116.56 lakhs made to M/s. Cotton Corporation of India (CCI) as an advance made for purchase of raw materials during the year 1995-96. Because of the hike in the raw materials price, the Company could not take delivery of the raw materials from CCI. An award was given under Arbitration' and the CCI claimed Rs. 229.72 lacs as claim after adjusting the above advance of Rs. 116.56 lakhs. As the Company is not in a position to realize the advance made to CCI, provision for Bad advance is made in the books.

6). Loans and Advances include an amount of Rs. 725.85 Lacs claimed in March 1998 from insurance Company towards Fire Damages of Cotton, yarn and buildings etc., In respect of this Insurance Claim, the Company had filed a case with Consumer Court. The National Consumer Disputes Redressel Commission passed interim orders dated 14.01.2007 directing the Insurance Company to deposit with the Commission the sum of Rs. 72,36,290/- as assessed by the final surveyor with interest @ 10% from 21.09.1998 and allowing Company to withdraw the amount, by furnishing security and personal guarantee of Managing Director and to return the same in case the compliant is dismissed. Accordingly, the Company withdrew the sum of Rs. 1, 36,21,022/- from the Commission and the amount is returnable in case the compliant is dismissed. The final order is awaited.

7). Capital Work-in-Progress consists of one Mono Block Apparatus imported and paid for, but could not be taken delivery, as the Company has no funds to pay Custom Duty. It is stored in Central Ware-Housing Corporation at Chennai since 1996. The amount of duty and warehousing charges payable is much more than the value of the machinery.

8). The Company had invested Rs. 25 lakhs in M/s. Salem Dolerities Ltd., Since that Company had huge accumulated losses, the worth of the investment is Nil, although it is shown at cost in the Balance Sheet.

9). The Company is not having a whole time Company Secretary as required under Sec 383(A) of the Companies Act, 1956, as the Company could not get a suitable candidate, inspite of efforts taken.

10). Personnel cost is arrived after excluding booking under other heads.

11). Previous years figures have been reclassified to conform to the current year's classification.

12) Contingent Liabilities Rs. in Lacs 31.03.2012 31.03.2011

a. Claims against the Company not acknowledged as Rs. in lacs 229.72 229.72 debts (Net of Advances paid Rs. 116.57 lacs)

b. Excise Duty disputed by the Company Rs. in Lacs 310.01 310.01

c. Demand of Yarn Cess disputed by the Company Rs. in Lacs 2.76 2.76

d. Fringe Benefit Tax - Disputed by Company Rs. in Lacs 8.03 8.03

e. TNEB Electricity Tax Rs. in Lacs 55.51 55.51

f. TNEB peak hour penalty (Net of Advances paid Rs. 58.04 lacs) Rs. in Lacs 3.71 49.03

13) Related Party Disclosures

(ii). List of Related Parties with whom transactions taken place :

a. R. P. Rajaram (Relative): Deposit outstanding Rs. 30.00 Lacs

b. Salem Spices Private Limited : Car Rent paid Rs. 4.80 Lacs

14). Deferred Taxation

The Company became Sick since 1997-98. The Company made reference to the BIFR. As the matter is pending before BIFR, the working of deferred tax asset/liability is not made in view of the uncertainty of earning taxable income in the near future. The same will be worked out and shown in the accounts as soon as the BIFR approves the proposal for rehabilitation of the Company.

15). Foreign Currency Transactions

During the year, the Company had not entered into any foreign currency transactions.

16). Provisions, Contingent Liabilities and Contingent Assets

As prescribed by the ICAI in AS 29, Provisions are recognised when there is a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Contingent liabilities are disclosed unless the possibility of any outflow in settlement is remote, in the Notes on Accounts. Contingent Assets are neither recognised nor disclosed.

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Mar 31, 2011

1.CONTINGENT LIABILITIES

a. Claims against the Company not acknowledged as debts ( Net of Rs. in Lacs 229.72 229.72 Advances paid Rs.116.57 lacs)

b. Excise Duty disputed by the Company Rs. in Lacs 310.01 310.01

c. Demand of Yarn Cess disputed by the Company Rs. in Lacs 2.76 2.76

d. Fringe Benefit Tax – Disputed by Company Rs. in Lacs 8.03 8.03

e. TNEB Electricity Tax Rs. in Lacs 55.51 55.51

f. TNEB peak hour penalty ( Net of Advances paid Rs.12.72 lacs) Rs. in Lacs 49.03 63.34

2. To the best of our knowledge and as per the information available with the Management a). Sundry Creditors include an amount of Rs. 12.61 lacs due to Small Scale Industrial Undertakings and Micro, small and medium enterprises

b). The SSI, Micro, small and medium enterprises have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

3. 20% secured Non-convertible Debentures are redeemable in three equal installments commencing from 27.8.98. However as the Company is not in a position to redeem the Debentures, the Company has not redeemed the Debentures

4. The Company has started paying the contribution to the earlier years provident fund. A sum of Rs. 39.54 lakhs towards EPF arrears has been paid by the Company during the year. The Company is taking necessary steps to get time for making the payment of balance amount of EPF arrears and the ESI arrears.

5. (a). Balance of Debtors, Creditors and Loans and Advances are subject to confirmation by parties.

(b).In the opinion of the Board, the amounts of Current Assets, Loans and Advances stated in the Balance Sheet are those realizable in the ordinary course of business, except the items mentioned in sl.no.12 & 13 below.

6. (a).Loans and Advances also includes a sum of Rs. 79.11 lacs paid as advances for purchase of certain machineries for the Trichy Dyeing Plant. Because of the hike in the cost of machinery, the Company could not take delivery. These amounts are not realizable and the Company has not demanded them. In case the Company asks for these amounts, the machinery suppliers may demand from the Company the balance amount towards the machines ordered. As the Company is not in a position to pay and take delivery of the machines, the Company could not demand for return of the amounts advanced . Hence necessary provision for Bad advance is made in the books.

(b). The loans and advances includes advance of Rs.116.56 lakhs made to M/s. Cotton Corporation of India (CCI) as an advance made for purchase of raw materials during the year 1995-96. Because of the hike in the raw materials price, the Company could not take delivery of the raw materials from CCI. An award was given under Arbitration and the CCI claimed Rs.229.72 lacs as claim after adjusting the above advance of Rs.116.56 lakhs. As the Company is not in a position to realize the advance made to CCI, provision for Bad advance is made in the books.

7. Loans and Advances include an amount of Rs. 725.85 Lacs claimed in March 1998 from Insurance Company towards Fire Damages of Cotton, yarn and buildings etc.,

In respect of this Insurance Claim, the Company had filed a case with Consumer Court. The National Consumer Disputes Redressel Commission passed interim orders dated 14.01.2007 directing the Insurance Company to deposit with the Commission the sum of Rs.72, 36,290/- as assessed by the final surveyor with interest @ 10% from 21.09.1998 and allowing Company to withdraw the amount, by furnishing security and personal guarantee of Managing Director and to return the same in case the compliant is dismissed. Accordingly, the Company withdrew the sum of Rs.1, 36, 21,022/- from the Commission and the amount is returnable in case the compliant is dismissed. The final order is awaited.

8. Income tax assessments have been completed up to the assessment year 2007-2008 U/S 143(3) of the Income Tax Act, 1961. In the absence of taxable income, as per the provisions of the Income Tax Act, 1961, no provision has been made for taxation in the accounts.

9. Capital Work-in-Progress consists of one Mono Block Apparatus imported and paid for, but could not be taken delivery, as the Company has no funds to pay Custom Duty. It is stored in Central Ware-Housing Corporation at Chennai since 1996. The amount of duty and warehousing charges payable is much more than the value of the machinery.

10. The Company had invested Rs.25 lakhs in M/s. Salem Dolerities Ltd., Since that Company had huge accumulated losses, the worth of the investment is Nil, although it is shown at cost in the Balance Sheet.

11. The Company is not having a whole time Company Secretary as required under Sec 383(A) of the Companies Act, 1956, as the Company could not get a suitable candidate, inspite of efforts taken.

12. Personnel cost is arrived after excluding booking under other heads.

13. Previous years figures have been reclassified to conform to the current year's classification.

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Mar 31, 2010

31.3.2010 31.3.2009

1.CONTINGENT LIABILITIES

a. Claims against the Company not acknowledged as debts ( Net of Rs. in Lacs 229.72 229.72 Advances paid Rs.116.57 lacs)

b. Excise Duty disputed by the Company Rs. in Lacs 310.01 310.01

c. Demand of Yarn Cess disputed by the Rs. in Lacs 2.76 2.76 Company

d. Fringe Benefit Tax – Disputed by Rs. in Lacs 8.03 8.03 Company

e. TNEB Electricity Tax Rs. in Lacs 55.51 55.51

f. TNEB peak hour penalty Rs. in Lacs 63.34 0.00

8. To the best of our knowledge and as per the information available with the Management

a). Sundry Creditors includes an amount of Rs. 12.50 lacs due to Small Scale Industrial undertakings and Micro, small and medium enterprises

b). The SSI, Micro, small and medium enterprises have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

2. 20% secured Non-convertible Debentures are redeemable in three equal installments commencing from 27.8.98. However as the Company is not in a position to redeem the Debentures, the Company could not redeem the Debentures

3. The Company has started paying the contribution to the earlier years provident fund. A sum of Rs. 26.37 lakhs towards EPF arrears has been paid by the Company during the year. The Company is taking necessary steps to get time for making the payment of balance amount of EPF arrears and the ESI arrears.

4. (a). Balance of Debtors, Creditors and Loans and Advances are subject to confirmation by parties.

(b).In the opinion of the Board, the amounts of Current Assets, Loans and Advances stated in the Balance Sheet are those realizable in the ordinary course of business, except the items mentioned in sl.no.12 & 13 below.

5. (a).Loans and Advances also includes a sum of Rs. 79.11 lacs paid as advances for purchase of certain machineries for the Trichy Dyeing Plant. Because of the hike in the cost of machinery, the Company could not take delivery. These amounts are not realizable and the Company has not demanded them. In case the Company asks for these amounts, the machinery suppliers may demand from the Company the balance amount towards the machines ordered. As the Company is not in a position to pay and take delivery of the machines, the Company could not demand for return of the amounts advanced . Hence necessary provision for Bad advance is made in the books.

(b). The loans and advances includes advance of Rs.116.56 lakhs made to M/s. Cotton Corporation of India (CCI) as an advance made for purchase of raw materials during the year 1995-96. Because of the hike in the raw materials Cost, the Company could not take delivery of the raw materials from CCI. An award was given under Arbitration and the CCI claimed Rs.229.72 lacs as claim after adjusting the above advance of Rs.116.56 lakhs. As the Company is not in a position to realize the advance made to CCI, provision for Bad advance is made in the books.

6. Loans and Advances include an amount of Rs. 725.85 Lacs claimed in March 1998 from Insurance Company towards Fire Damages of Cotton, yarn and buildings etc.,

In respect of this Insurance Claim, the Company had filed a case with Consumer Court. The National Consumer Disputes Redressel Commission passed interim orders dated 14.01.2007 directing the Insurance Company to deposit with the Commission the sum of Rs.72, 36,290/- as assessed by the final surveyor with interest @ 10% from 21.09.1998 and allowing Company to withdraw the amount, by furnishing security and personal guarantee of Managing Director and to return the same in case the compliant is dismissed. Accordingly, the Company withdrew the sum of Rs.1, 36, 21,022/- from the Commission and the amount is returnable in case the compliant is dismissed. The final order is awaited.

7. Income tax assessments have been completed up to the assessment year 2007-2008 U/S 143(3) of the Income Tax Act, 1961. In the absence of taxable income, as per the provisions of the Income Tax Act, 1961, no provision has been made for taxation in the accounts.

8. Capital Work-in-Progress consists of one Mono Block Apparatus imported and paid for, but could not be taken delivery, as the Company has no funds to pay Custom Duty. It is stored in Central Ware-Housing Corporation at Chennai since 1996. The amount of duty and warehousing charges payable is much more than the value of the machinery.

9. The Company had invested Rs.25 lakhs in M/s. Salem Dolerities Ltd., Since that Company had huge accumulated losses, the worth of the investment is Nil, although it is shown at cost in the Balance Sheet.

10. The Company is not having a whole time Company Secretary as required under Sec 383(A) of the Companies Act, 1956.

11. Personnel cost is arrived after excluding booking under other heads.

12. Previous years figures have been reclassified to conform to the current years classification.