1. CORPORATE INFORMATION
Santaram Spinners Limited is a public listed company incorporated as
spinning unit, now diversified and in operation of agro processing
products mainly in trading and manufacturing of cotton - kapas, ginning
cotton bales, raw oil and its agro by-products.
2. Terms/right attached to the equity/preference shares:
a. The Company has only one class of equity shares having a par value
of '10 per share, each shareholder is elligible for one vote per share.
The Company delcares and pays dividend in Indian Rupees. Dividend
Proposed by Board of Directors is subject to approval of Shareholders
in the ensuing Annual General Meeting.
b. In the event of liquidation, the Equity Sharesholders are eligible
to receive the remaining Assets of the company after Distribution of
all Preferential amount, in proportion to Shareholding.
c. Company has not alloted any bonus shares, Shares without
consideration in cash and/or bought back any equity shares during the
priod of five years immediately preceeding the Balance sheet date.
Loan from Union Bank of India secured by :
a. Tem loan/Cash Credit is secured by Hypothecation/pledge/charge over
following prime security :
Packing Credit : Hypo. Of RM/WIP/FG & consumables meant for export
FDBP : Export Bills covering export of goods under
confirmed contract/LC
CC Hypo. : Hypo of entire paid stocks & Book Debts. However,
stock/book debts older than 90 days shall not rank
for DP
Term loan : Hypo of P & M - Repayable in 72 Equal monthly
installments starting from May 2012 and interest to be
recovered seperately as and when charged.
b. Collateral Security : EM over the following assets: Factory Land &
Building situated at Rajpur. Tal: Kadi, Dist. Mehsana in the name of
Company.
Further, all the credit facilities are personally guaranteed by Kalyan
J Shah, Managing Director of the Company.
3.A. During the year, there are no Capital Commitment Expenditure.
B. In the opinion of Board of Directors the current assets, loans and
advances are approximately of the value stated if realized in the
ordinary course of business. The provisions for all known liabilities
are adequate.
C. We have verified the transactions recorded in the books with such
documentary evidence as were made available and produced before us.
Where such documentary evidence was not available we have accepted the
voucher / entries as certified by management.
D. Confirmation letters/contra accounts of debit and credit balances of
various parties are received by the Company. Balance due to or due by
various parties, sundry debtors and sundry creditors, loan and advances,
other account and all squared up accounts and other balances are
therefore Subject to adjustment on receipt of confirmation
E. Contingent Liability related to Micro, Small and Medium Enterprises
The Company has not received information from vendors regarding their
status under the Micro, Small and Medium Enterprises Development Act
2006 and hence disclosure relating to amount unpaid to as at year end
together with interest paid/payable under this Act have not been given.
F. Impairment of Assets :
The carrying amounts of assets are reviewed at each balance sheet date,
if there is any indication of impairment based on internal/external
factors. An impairment loss will be recognized wherever the carrying
amount of an asset exceeds its estimated recoverable amount. The
recoverable amount is greater of the assets net selling price and value
in use. In assessing the value in use the estimated future cash flows
are discounted to the present value at the weighted average cost of
capital. During the year there are no impairment losses on assets of
the Company.
G. In compliance of AS - 17 on "Segment Reporting" issued by the
Institute if Chartered Accountants of India, in case of geographical
segment, the domestic turnover of the Company is Rs.13785.78 lacs and
the export turnover of the Company is Rs.3325.88 lacs. The Company
mainly deals in cotton and its by products. Since the by-products such
as oil,khol etc, turnover is less than 10% of the total turnover, no
separate segment is reported.
H. As per Accounting Standard - 18 issued by The Institute of
Chartered Accountants of India, the disclosures of transactions with
the related parties as define in the Accounting Standards are given
below
Key Managerial Personnel Shri. Kalyanbhai J. Shah
Shri. Nirav Shah
Shri. Paresh R.
Shah Shri. Janak G. Nanavaty
Shri. Fenil R. Shah
Smt. Falguni Broker
Relative Key Managerial Personnel No Transaction during the year.
I. Earnings per Share :
The earnings considered in ascertaining the Company's EPS represent
profit for the year after tax. Basic EPS is computed and disclosed
using the weighted average number of equity shares outstanding during
the year.
J. Previous year figures have been regrouped, reconsider wherever
necessary.
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