Notes to Accounts of Sri Malini Spinning Mills Ltd.

Mar 31, 2013

1. As per the scheme approved by the High Court of Judicature at Chennai, the shares of the Company held by P.A. Spinning Mills (P) Limited consequent to capital reduction of 2,18,550 equity shares of Rs.10 each stands extinguished on amalgamation of P.A. Spinning Mills (P) Limited. Hence, the amount of Rs. 21,85,500 is reduced from the share capital and also from the goodwill amount credited on amalgamation of P.A. Spinning Mills (P) Limited with the Company.

a. No interest on unsecured loans from Erstwhile Directors and Others is provided for the year ended 31.3.2013.

b. Balances in the Balance Sheet are as extracted from the generai ledger and subject to confirmation.

2. Long term borrowings in the balance sheet represents the following

a. From Erstwhile Directors Rs.2,60,83,597/- (No interest provided in the books of accounts).

b. From Companies and Others Rs.5,64,77,614/- No interest payable on these loans.

3. Loans And Advances includes deposits and advances recoverable in cash or in kind or for value to be received. These advances are considered as good by the board.

4. Since there is no taxable income under the provision of income Tax act, 1961 no provision for Taxation has been made.

5. The amount due to Small Scale and Ancillary Industries, as at the close of the financial year has not been identified and hence the amount outstanding, if any, is not ascertainable.

6. Figures are rounded off to the nearest rupee.

7. Previous year figures have been re-grouped wherever necessary.

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Mar 31, 2012

1. Foreign Currency Transactions:- Nil

a. Defered Revenue Expenditure:- Nil

2. Investments:- Nil

3. Related Parties, Transactions during the year under report is NIL

4. Defered Tax:- Nil

5. Research and Development:- Nil

6. As per the scheme approved by the High Court of Judicature at Chennai, the shares of the Company held by P.A. Spinning Mills (P) Limited consequent to capital reduction of -2,18,550 equity shares of Rs.10 each stands extinguished on amalgamation of PA. Spinning Mills (P) Limited. Hence, the amount of Rs. 21,85,500 is reduced from the share capital and also from the goodwill amount credited on amalgamation of P.A. Spinning Mills (P) Limited with the Company.

7. Long term borrowings in the balance sheet represents the following

a. Sundaram Finance Limited (Loan Taken Rs. 12.75 Crores & Rs.4.00 Crores) which in turn advanced to a company in which the directors are not interested. Balance as at 31.03.2012 is Rs.115487197/-this loan is Guaranteed by the directors. The obligations in respect Rs.12.75 crores and Rs.4.00 Crores loans are getting completed on 22.2.2014 and 17.11.2013 respectively.

b. From Erstwhile Directors Rs.26083597/- (No interest provided in the books of accounts).

c. From Companies and Others Rs.19586081/- No interest payable on these loans.

8. Loans And Advances includes

a. Rs.8.26 Crores receivable from Thiruvalluvar Private Limited which is advanced out of the Loan taken from Sundaram Finance Limited.

9. Since there is no taxable income under the provision of income Tax act, 1961 no provision for income Taxation has been made

10. The amount due to Small Scale and Ancillary Industries as at the close of the financial year has not been identified and hence the amont outstanding, if any, is not ascertainable.

11. Figures are rounded off to the nearest rupee.

12. Previous year figures have been re-grouped wherever necessary.