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Page Nos

Board of Directors __________________________________________ 2 - 2

Notice____________________________________________________ 3 - 5

Directors' Report ___________________________________________ 6 - 11

Management Discussion and Analysis ___________________________ 12 - 14

Corporate Governance Report ________________________________ 15 - 23

Auditors' Certificate on compliance of Corporate Governance _______ 24 - 24Independent Auditors Report _________________________________ 25 - 29

Balance Sheet ______________________________________________ 30 - 30

Statement of Profit and Loss __________________________________ 31 - 31

Notes on financial statements _________________________________ 32 - 51

Cash Flow Statement ________________________________________ 52 - 53

Green Initiative _____________________________________________ 55 - 55

Attendance Slip/Proxy Form __________________________________ 57 - 57

Contents

Important Communication to Members

The Ministry of Corporate Affairs has taken a "Green Initiative in the Corporate Governance"

by allowing paperless compliances by the companies and has issued circulars stating that

service of notice / documents including Annual Report can be sent by e-mail to its members.

To support this green initiative of the Government in full measure, members who have not

registered their e-mail addresses, so far, are requested to register their e-mail addresses in

respect of electronic holdings with the Depository through their concerned Depository

Participants.

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NOTICE

NOTICE is hereby given that the 34th Annual GeneralMeeting of the Members of Suryavanshi Spinning Mills

Limited will be held on Saturday, the 28th September,2013 at 12.00 Noon at Gayatri Gardens, Survey

No.26, Sikh village, Near Diamond Point Hotel,

Secunderabad-500 003, to transact the followingbusiness:

ORDINARY BUSINESS

1. To receive, consider and adopt the Audited BalanceSheet as at March 31, 2013, the Statement of Profitand Loss and Cash Flow statement of the companyfor the year ended on that date and the reports of

the Directors and Auditors' thereon.

2. To appoint a Director in the place of Dr. AkkineniNageswara Rao, who retires by rotation and beingeligible, offers himself for re-appointment.

3. To appoint a Director in the place of Sri .D.K.Agarwal, who retires by rotation and beingeligible, offers himself for re-appointment.

4. To appoint Statutory Auditors to hold office fromthe conclusion of this Annual General Meeting untilthe conclusion of the next Annual General Meetingand in this connection, to consider and if thoughtfit, to pass with or without modification(s), thefollowing Resolution as an Ordinary Resolution.

"RESOLVED THAT M/s. Brahmayya & Co.,Chartered Accountants, (Firm's Registration Number0005135) be and are hereby re-appointed asstatutory auditors of the company to hold officefrom the conclusion of this Annual General Meetinguntil the conclusion of the next Annual GeneralMeeting at a remuneration to be decided by theBoard of Directors of the Company".

SPECIAL BUSINESS

5. TO CONSIDER, AND IF THOUGHT FIT, TO PASSTHE FOLLOWING RESOLUTION WITH OR

WITHOUT MODIFICATION(S) AS AN ORDINARYRESOLUTION:

"RESOLVED THAT Sri. Surender Kumar Agarwal,who was appointed as an Additional Director of theCompany with effect from 9th March, 2013 by theBoard of Directors and who holds office upto thedate of the forthcoming Annual General Meeting of

the members of the Company under Section 260of the Companies Act, 1956 but being eligible, offershimself for re-appointment and in respect of whom

the Company has received a notice in writing underSection 257 of the Companies Act,1956 from aMember proposing his candidature for the office ofDirector of the Company, be and is herebyappointed as Director of the Company, liable toretire by rotation".

BY ORDER OF THE BOARDFor SURYAVANSHI SPINNING MILLS LTD

B.R.S. REDDYVICE PRESIDENT (CORPORATE AFFAIRS)

& COMPANY SECRETARY

Place : Secunderabad

Date : 07.05.2013

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NOTES

1. A MEMBER ENTITLED TO ATTEND THE

MEETING IS ENTITLED TO APPOINT A

PROXY TO ATTEND AND VOTE INSTEAD OFHIMSELF AND SUCH PROXY NEED NOT BE

A MEMBER OF THE COMPANY.

2. PROXIES IN ORDER TO BE EFFECTIVE MUST

BE DEPOSITED WITH THE COMPANY NOT

LESS THAN 48 HOURS BEFORE THE TIME

FOR HOLDING THE MEETING.

3. The register of members and share transfer books ofthe Company will be closed from Tuesday, 24thSeptember, 2013 to Saturday, 28th September, 2013(both days inclusive) for the purpose of Annual

General Meeting.4. The shareholders desiring any further information as

regards the accounts are requested to write to theCompany so as to reach it at least one week prior to

the date of the meeting for consideration of themanagement to deal at the meeting.

5. Unclaimed dividends of the following years will betransferred to the Investor Education & ProtectionFund set up by the Central Government on the datesmentioned against them :

For the Date of Due for

Financial Year declaration transfer on

2005-2006 30.09.2006 06.11.2013

2006-2007 09.08.2007 15.09.2014

Members who have not encashed their dividendwarrants pertaining to the above years may have theirwarrants re-validated by sending them to theRegistered Office of the Company.

6. The Companies Act, 1956 provides for the facility ofnomination to the holders of Shares in a Company.

Accordingly members can avai l the faci li ty of

nomination in respect of their shares held either singlyor jointly. Members desiring to avail this facility arerequested to fill up the prescribed nomination formand send the same to the Registered Office of theCompany.

7. The shares of the Company continue to be listed onthe Stock Exchange, Mumbai and the Company haspaid upto date all the listing fees to the Exchange.

8. Members are requested to notify immediately anychange of address to their Depository Participants

(DPs) in respect of their holding in electronic formand to M/s. Karvy Computer Share Private Limited,

Plot No.17 to 24, Vithalrao Nagar, Madhapur,Hyderabad - 500081 Unit: Suryavanshi Spinning MillsLimited in respect of their holding in physical form,if any.

9. The Members are requested to bring their copy ofthe annual report with them at the time of attendingAnnual General Meeting.

EXPLANATORY STATEMENT PURSUANT TO

SECTION 173 (2) OF THE COMPANIES ACT, 1956

REAPPOINTMENT OF RETIRING DIRECTORS

(Item Nos. 2 & 3)

As required by Clause 49 of the Listing Agreement onCorporate Governance particulars of the Directors beingreappointed are provided hereunder.

ITEM NO. 2

DR. AKKINENI NAGESWARA RAO

Dr. Akkineni Nageswara Rao, is Cine Artist by professionand has been on the Board since 18th January, 1992.Dr. Akkineni Nageswara Rao is one of the most wellknown Cine Artists in the State having acted in more

than 250 films and has been recipient of several prestigiousNational Awards including Dada Saheb Phalke Award andPadma Vibhushan. A well known Philanthropist, he isassociated with several cultural and educationalinstitutions. Dr. Akkineni Nageswara Rao holds 400number of equity shares in the company as on 31stMarch, 2013.

Names of other public companies in which Dr. AkkineniNageswara Rao is a Director.

1. Suryajyoti Spinning Mills Limited

2. Suryalakshmi Cotton Mills Limited

ITEM NO.3

Sri. D.K.Agarwal, Promoter and Whole- time Directorof the company, graduated in Commerce and he wasfirst appointed on the Board on 6th September, 1994.He has wide experience in Marketing Operations and heis associated with the company for the last 19 years.

Though Sri. D.K. Agarwal was appointed as the Whole-time Director of the Company for a period of 3 years

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with effect from 30th May, 2012 after obtaining Membersapproval at the Annual General Meeting held on July 30,2012 he has been considered for appointment retiring byrotation inorder to comply with the statutory requirement

of retirement of Directors by rotation, pursuant toprovisions of Sections 255 and 256 of the Companies

Act, 1956.

Accordingly, Sri. D.K.Agarwal will be retiring at the ensuingAnnual General Meeting. On his reappointment, by theMembers at the ensuing Annual General Meeting, theother terms and conditions of appointment of Sri.D.K.Agarwal as Whole-Time Director shall remainunaltered.

Sri. D.K. Agarwal holds 16,23,854 equity shares in theCompany as on 31st March, 2013. Sri. D.K.Agarwal is

also Director of Suryavanshi Industries Limited andAananda Lakshmi Spinning Mills Limited.

REGULARIZATION OF DIRECTOR (ITEM NO.5)

The Board of Directors appointed Sri. Surender KumarAgarwal as an Additional Director of the Company witheffect from 9th March, 2013 pursuant to the provisionsof Section 260 of the Companies Act and Article 104 of

the Articles of Association of the Company. In terms ofSection 260 of the Companies Act, 1956, Sri. SurenderKumar Agarwal holds office up to the date of theforthcoming Annual General Meeting of the Company,but is eligible for re-appointment as Director. Notice in

writing pursuant to Section 257 of the CompaniesAct,1956 has been received from a Member signifyinghis intention to propose Sri. Surender Kumar Agarwal asDirector of the company along with a deposit of

Rs 500/- as required under the provisions of Section 257of the Companies Act,1956 which will be refunded to

the Member, if Sri. Surender Kumar Agarwal is elected asa Director.

Sri. Surender Kumar Agarwal, Graduate in commercehas industrial experience of more than a decade . He isa Promoter Director of M/s. Nikhil Granites (P) Ltd andhas been successfully running this company for the last10 years. He is also Director of M/s. Smartech MarketingPvt Ltd. He is a member of Audit committee andremuneration committee of Suryavanshi Spinning MillsLtd and he does not hold any shares in the company ason 31st March, 2013.

The Board recommends the resolution for the member'sapproval in the Annual General Meeting.

Sri. Surender Kumar Agarwal is interested in theResolution since it is related to his own appointment. Noother Director of the Company is , in any way, concernedor interested in this Resolution.

BY ORDER OF THE BOARDFor SURYAVANSHI SPINNING MILLS LTD

B.R.S. REDDY

VICE PRESIDENT (CORPORATE AFFAIRS)& COMPANY SECRETARY


Date : 07.05.2013

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DIRECTORS' REPORT

To

The Members

We have pleasure in presenting the 34th Annual Report

of the Company along with the Audited Statements of

Account for the year ended 31st March, 2013.

1. FINANCIAL RESULTS

(` in Lakhs)

Particulars 2012-2013 2011-2012

Total Revenue 27,406.12 27,714.35

Gross profit before financial

cost & Depreciation 56.80 947.51

Less: Depreciation 726.45 713.76

Financial charges 880.72 1047.93

Profit / (Loss) Before Taxation (1550.37) (814.18)

Tax for Earlier years 5.27 2.60

Profit / (Loss) after taxation (1555.64) (816.78)

2. OPERATIONS

Company achieved a Total Revenue of Rs. 274.06

crores (including Other Income of Rs. 5.81 crores)

and incurred a loss of Rs.15.50 crores for the Yearended 31st March, 2013 as against Total Revenue of

Rs. 277.14 crores (including other income of Rs.6.41

crores) and Loss of Rs.8.14 crores for the previous

year ended 31st March, 2012.

The Company's performance was adversely affected

primarily due to steep increase in the power cost

coupled with loss of production during the second

quarter of the year on account of non availability

of power. Cost of power increased abnormally dueto the levy of Fuel Surcharge by APCPDCL which

is higher by 30% of normal power cost supplied by

APCPDCL. In addition to that Company resortedto buy private power at a unit rate as high as Rs.7.50

through open access in order to keep the work

force available and machinery running. The power

cost during the year 2012-13 has gone up byRs. 12.42 crores over the previous years power

cost of Rs. 23.50 crores.

3. DIVIDEND

In view of the adverse factors referred above, your

Company incurred losses for the year under review,

and the Board regret their inability to recommend

any dividend during the year.

4. EXPORTS

During the year 2012-13 the Company's exports

were Rs. 61.21 crores (including merchant exports

of Rs. 3.53 crores) as against the previous years

export turnover of Rs. 63.78 crores (including

merchant exports of Rs. 5.91 crores).

5. EXPANSION & MODERNISATION

Modernization and technological up-gradation

programs continue at all the units of the Company

to maintain competitiveness and to achieve better

quality. Stringent cost control measures remain in

place in all possible areas and are regularly reviewed.

During the year 2012-13, capital expenditure to the

tune of Rs.24.22crores was incurred towards the

installation of Automatic Cone Winding machines at

its units situated at Aliabad and Bhongir and for the

addition of 8400 spindleage at the Rajna unit of the

Company, as against Capital Expenditure of Rs.12.77crores incurred in the previous year.

6. FUTURE OUTLOOK

During the year under review, your Company has

undertaken expansion at its Rajna Unit, Madhya

Pradesh with an investment of Rs.16.26 Crores by

installing an additional 8400 ultra modern spindles.

The said expansion cum modernization was

completed and trial productions are under progress.

The Company also under took the up-gradation

and modernization at its units situated at Bhongirand Aliabad in the State of Andhra Pradesh With

the expected stabil ity of cotton prices and the

completion of ongoing modernization and expansion

schemes at its units, the prospects of the Company

are expected to be promising.

7. CORPORATE GOVERNANCE

A separate report on Corporate Governance isenclosed as a part of this Annual Report. A certificate

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from the Auditors of the Company regarding

compliance with Corporate Governance norms

stipulated under Clause 49 of the Listing Agreement

is annexed to the Report on Corporate Governance.

8. ENVIRONMENT AND POLLUTION CONTROL

Suryavanshi continues to give top priority to

maintenance and performance improvement of allpollution abatement facilities like effluent treatment

plants, air emission control and waste disposal

facilities at its manufacturing plants. As far as possible

rainwater harvesting and treated effluent recyclingis being carried out at manufacturing plants to reduce

dependence on water from other natural resource.

Training, awareness and learning have been always

at the forefront of Suryavanshi's journey to become

world class in environmental performance. It hasinculcated the habit to be in harmony with nature

and in this context, afforestation, maintenance of

green belts and gardens, and reuse of treated waterin horticulture activities are routine practices.

Environment impact assessment and risk analysis

have been performed right from the stage of

planning for implementation of all new majorexpansion projects to incorporate the necessary

measures to minimize adverse environmental

impact.

Al l manu fact ur ing faci li ti es have obta in edenvironmental clearances from the respective

Pollution Control Boards and are in compliance with

all current environmental legislation. As an integral

part of its environment protection drive, theCompany ensures the very minimum quantity of

generation of waste, low emission levels and low

noise pollution levels during operations of all

manufacturing facilities.

9. DIRECTORS

Pursuant to provisions of Section 255 and 256 of

the Companies Act, 1956, Dr.Akkineni NageswaraRao and Sri.D.K.Agarwal, Directors will retire at

the ensuing Annual General Meeting and being

eligible, offer themselves for reappointment.

The Board regrets to record that Sri. B.N.Rathi,

Director who had been associated with theCompany for the last 24 years passed away on 10th

January, 20 13 . Board pl aces on record it scondolences for the sudden demise of Sri.

B.N.Rathi.The Board also places on record itsappreciation for the valuable services and guidancerendered by Sri. B.N.Rathi during his tenure.

The Company has repaid the entire loan amount to

IDBI Bank Limited (IDBI), and as a result, Sri. G.Ganesh has been withdrawn as Nominee Directorof the IDBI from the Board w.e.f. 3rd June, 2013.The Board also places on record its appreciationfor the valuable services and guidance rendered bySri G. Ganesh during his tenure.

Your Directors co-opted Sri . Surender KumarAgarwal as an additional Director with effect from9th March, 2013. It is proposed to regularize hisappointment in the ensuing Annual General Meeting.

The necessary Resolution for obtaining the approval

of Members has been included in notice for theensuing Annual General Meeting.

Brief resume of the Directors retiring by rotation,nature of their expertise in specific functional areasand names of public companies in which they holddirectorships as stipulated under clause 49 of thelisting agreement with the Stock Exchange are givenon Corporate Governance elsewhere in the AnnualReport.

10. DISINVESTMENT IN THE FORTUNE EAGLE

(HK) TRADING LIMITED - ERSTWHILE

SUBSIDIARY COMPANY

The Company during the year 2012-13 disinvestedits entire shareholding of one Hong kong dollar in

the wholly owned subsidiary of M/s. fortuneEagle(HK)Trading Limited, Hong Kong. With thisFortune Eagle (HK) Trading Limited ceased to be

the subsidiary of your Company.

11. AUDITORS

The Statutory Auditors of the Company, M/s.Brahmayya & Co, Chartered Accountants,

Hyderabad will retire at the conclusion of ensuingAnnual General Meeting and are el ig ib le forreappointment.

12. AUDITORS' OBSERVATIONS

With reference to observations made by the

statutory auditors regarding the application of theshort term funds for long term purposes, we have

to state that due to unexpected delay in securing

the long term funds for the companys expansion

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cum modernization schemes the company utilized

short term funds for this purpose to avoid project

over runs. The company has already initiated steps

to rectify this anomaly.

13. COST AUDITORS

Pursuant to the directives of the Central

Government under the provisions of Section 233B

of the Companies Act, 1956, Ms. K. Aruna Prasad,

Cost Accountants (Membership No.11816), has

been appointed as Cost Auditor to submit the

reports to the Central Government. The reports

for the year 2011-12 were submitted on 31st January,

2013 (Due date 31-3-2013) and for the year

2012-13 will be submitted on or before due date.

14. DIRECTORS' RESPONSIBILITY STATEMENT

On the basis of compliance certificates received from

the concerned executives of the respective Divisions

of the Company and subject to disclosures in the

annual accounts, as also on the basis of the discussion

with the Statutory Auditors of the Company from

time to time, we state:

i) that in the preparation of the annual accounts,

the applicable accounting standards have been

followed and proper explanations provided

relating to material departures, if any;ii) that the Directors have followed appropriate

accounting policies and applied them

consistently and made judgments and estimates

that are reasonable and prudent so as to give

a true and fair view of the state of affairs of

the Company at the end of the financial year

31st March,2013 and of the loss of the

Company for that year;

iii) that the Directors have taken proper and

sufficient care to ensure the maintenance of

adequate accounting records in accordance

with the provisions of the Companies Act,

1956 for safeguarding the assets of the

Company and for preventing and detecting

fraud and other irregularities, if any;

iv) that the Directors have prepared the annual

accounts on a going concern basis.

15. CONSERVATION OF ENERGY, TECHNOLOGY

ABSORPTION, FOREIGN EXCHANGE

EARNINGS AND OUTGO

A statement giving details of conservation of energy,

technology absorption, foreign exchange earnings

and outgo, in accordance with the Companies

(Disclosure of Particulars in the Report of Board of

Directors) Rules, 1988 is annexed and marked

Annexure 'A' and forms part of this Report.

16. DEPOSITS

The Company has not invited/accepted deposits

from the public.

17. PARTICULARS OF EMPLOYEES

No employee was in receipt of remuneration inexcess of the limits prescribed under Section 217

(2A) of the Companies Act, 1956, read with the

Companies (Particulars of Employees) Rules,1975

and hence the prescribed information is not required

to be given.

18. CASH FLOW ANALYSIS

In conformity with the provisions of clause 32 of

the Listing Agreement the Cash Flow Statement for

the year ended 31st March, 2013 is annexed hereto.

19. ACKNOWLEDGEMENTS

The Board of Directors are pleased to place on

record their appreciation of the co-operation and

support extended by All India Financial Institutions,

Banks and various State and Central Government

Agencies.

The Board also wishes to place on record its

appreciation of the valuable services rendered by

the employees of the Company.

For and on behalf of the Board of Directors

(B.N.Agarwal)

Chairman & Managing Director


Date : 07th May, 2013

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ANNEXURE TO THE DIRECTORS' REPORT

Details as required under Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 readwith clause (e) of Subsection (1) of Section 217 of the Companies Act, 1956.

A. CONSERVATION OF ENERGY

(a) Energy conservation measures taken:

An energy audit was undertaken by a firm of consultants to improve upon the energy conservation measures.The recommendations from the audit were implemented.

(b) Additional investments and proposals, if any, being implemented for reduction of consumption of energy -Nil

(c) Impact of the measures at (a) and (b) above for reduction of energy consumption and consequent impacton the cost of production of goods.

The above measures have contributed for the improvement in the power factor.

(d) Total energy consumption and energy consumption per unit of production as per Form A is given below

FORM A

Form for disclosure of particulars with respect to conservation of energy

A. Power & Fuel consumption 2012-13 2011-12

1. ELECTRICITY

a) Purchased

Units (000)Apcpdcl 45114200 53833908

Total amount (Rs. lakhs) 2339.19 2349.75

Rate / Unit (Rs.) 5.19 4.36

Units (000)Private(IEX) 6639490 -

Total amount (Rs. lakhs) 477.56 -

Rate / Unit (Rs.) 7.19 -

FSA Charges (Rs. lakhs) 754.43 -

b) Own Generation

i) Through Generator (LDO/HSD/FO)

Units Nos. 190309.82 23475.42

Unit per liter of Diesel Oil 10.14 10.34

Cost / Unit (Rs.) 47.00 44

ii) Through Steam Generation

Turbine / Generator

2.. COAL (Tonnes) (Specify the quality and where used)

(E/F Grade, Process) 872.44 740.00

3. FURNACE OIL N.A N.A

4. OTHERS / INTERNAL GENERATORS (Please give details) N.A N.A

ANNEXURE - A

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B. TECHNOLOGY ABSORPTION (FORM-B)

(e) Efforts made in Technology absorption as per Form B.

FORM-B

Form of disclosure of particulars with respect to technology absorption

a. Research and Development R & D:

1. Specific areas in which R & D The Company is having R & D in introduction andcarried out by the Company development of value added products

2. Benefits derived as a result of New value added products were developedthe above R & D

3. Future plan of action To further develop more value added products andimprove the quality of the products

4. Expenditure on R & D Expenditure on in-house Research and Development wasnot incurred during the year under review.

i) Capital

ii) Recurring

iii) Total

iv) Total R & D expenditure as apercentage of total turnover

b. Technology absorption, adaptation and innovation

1. Efforts, in brief, made towards technology The Company had adapted indigenous technologyabsorption, adaptation and innovation and innovated upon the same.

2. Benefits derived as a result the above Product improvement, increase in yield, productionefforts, e.g., improvement, cost, reduction, of high value added products.

product development, import substitution, etc.

3. In case of imported technology (imported No technology has been imported during last fiveduring the last 5 years reckoned from the years.beginning of the financial year) followinginformation may be furnished.

(a) Technology imported Nil

(b) Year of import Not applicable

(c) Has technology been fully absorbed Not applicable

(d) If not fully absorbed, areas where this Not applicablehas not taken place, reasons therefor

and future plans of action

C. FOREIGN EXCHANGE EARNINGS AND OUTGO:

(a) Activities relating to exports; Exports of the company amounts to ` 61.21 croresinitiatives taken to increase to various countries like U.S.A, China, Italy, Chile,exports; development of Uruguay,Portugal,Mexico and Russia etc., have beennew export markets for made. The Company is exploring new markets for exportproduction and service and of its products.export plans.

NA}

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(b) Total foreign exchange used and earned(` in Lakhs)

2012-13 2011-12

(i) Foreign Exchange Earned :FOB Value of Exports 5621.75 5695.66

CIF Value of Exports 6121.56 6378.16

ii) Foreign Exchange used

a) Commission on exports 39.55 73.54

b) Foreign Travel Expenses 29.82 14.77

c) Raw material 766.56 -

d) Plant & Machinery 919.60 305.01

e) Spare Parts 45.62 26.49

For and on behalf of the Board of Directors

(B.N.Agarwal)

Chairman & Managing Director

Place : SecunderabadDate : 7th May, 2013

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1. Industry structure & development

The Company is in the business of manufacturing ofCotton, Polyester, Polyester-viscose Blended Yarns andReadymade garments catering to both domestic and

the export markets.

Textile Industry has an overwhelming presence in theeconomic life of the country. It contributes about14% to industrial production 4% to the GDP and

17% to the country's foreign exchange earnings. It isalso the second largest employer in the country, nextonly to agriculture providing direct employment toabout 35 million people directly and almost twice asmany through the allied. The Indian textiles industryis extremely varied, with the hand-spun and hand-

woven sector at one end of the spectrum, and thecapital intensive, sophisticated mill sector at the other.The decentralized powerlooms / hosiery and knittingsector form the largest section of the Textile sector.The yarn industry comprises 3102 mills (including SSI)

with installed spindleage of about 48.66 million. Three

Fourths of the production in the spinning industry isfrom the private sector and the balance from theCooperative / Public Sector units.

The demand for cotton yarn has started dwindlingafter some growth in the first half. The Textile industryhas always lived with cyclical ups and downs but in

the recent past it has been facing an unprecedentedcrisis because of the serious economic slowdown in

global markets, volatility in the European markets,leading to a fall in Exports, the huge fluctuation infiber prices during 2010-11 and deceleration.However the sector is on a gradual recovery phase

in the domestic market and exports have also startedpicking up. It is interesting to note that the Textileindustry in the country has been finding the domesticmarket more attractive than the export market in

the recent years.

2. Future Outlook

The domestic textile and apparel market size was$ 58 billion in 2011 and is projected to grow at 9%CAGR to $ 141 billion by 2021. The key growthsegments are technical textiles which is likely to see

a 10% CAGR, followed by 9% in apparels and 8%in home textiles.

Inspite of the current stressful situation outlined above,the demand for cotton textiles in the long run shallremain strong in India and abroad. Our continuedefforts to maintain quality and scouting for new andbetter markets should promote growth and we hope

to achieve a better performance in the near future.

3. Segmental Financial Review and Analysis

3.1 Yarn

During the year 2012-13, the revenue from thespinning segment has marginally declined toRs. 243.09 crores as compared to the revenueof the previous year of Rs. 244.87 crores.However, due to the severe increase in theprices of raw-material, wages, and power, thecost of manufacturing has been steadily rising

whereas the markets were under pressure dueto demand recession and prevailing generalinflation. It has not been possible to increase

the sell ing prices commensurate with theincrease in the input costs and therefore themargins have been under severe pressure. Due

to given reasons, this segment has incurred aloss of Rs. 8.00 crores before interest and taxas against a loss of Rs. 3.19 crores in the previous

year.

3.2 Readymade Garments

Your Company has been chosen one of thepreferred vendors for the supply of Ready MadeGarments by the big global label and retailers

like Jordache Ltd, USA, and Caulfeild Apparels.Canada, Tharanco Life Styles LLC, USA. YourCompany is well equipped to cater therequirements of the supply of various types ofReadymade Garments viz., Polos, Sweatshirtsand Shorts to cater the requirement ofinternational buyers. Your Company is wellequipped to handle any kind of complicatedneedle work required to make high, fashion

garments. A variety of embellishments, bothIndian and imported are being used.

MANAGEMENT DISCUSSION ANALYSIS REPORT FORMING PART OF THE

ANNUAL REPORT DISCUSSES THE FOLLOWING MATTERS WITH REGARD

TO THE COMPANY'S CORE BUSINESS VIZ., YARN AND READYMADE

GARMENTS

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During the year 2012-13, the revenues fromthe garments segments has declined to Rs.30.96

Crores as compared to the previous year of

Rs.32.27 Crores. The total revenues of our ready

to wear garments affected due to demandrecession coupled with increase in the input cost,

volatile in foreign exchange rates and disruption

of production due to power cuts and various

agitations.

4. Opportunities and threats

4.1 Opportunities

The Government has addressed the

slowdown in textiles by proposing a debtrestructuring package and also taking

various initiatives.

Depreciation of Rupee and decreasing costcompetitiveness of China are likely to give

positive impetus to the Indian Exporters.

Increase in consumption pattern across thecountry along with the rising demand for

high quality premium fabrics.

Large and potential domestic and

international market.

4.2 Threats

Rapid and consistent increase in prices of

raw materials/hybrid cotton leading tolower demand may influence theprofitability of the Company.

Government policy on import duties for

garment imports into India.

Fiscal Tariff Announcements in competing

countries (Pakistan, LDCs).

Very aggressive capacity build up in Least

Developed Countries like Bangladesh etc.,

Power shortage and labour shortage which

also affects the operations of the Company.

5. Risks and concerns

The regular non availability of cotton at reasonable

prices particularly in view of increasing global demand

for cotton may prove an obstacle in continuing

uninterrupted manufacturing operations. Moreover,the increased incentives being provided by our

competitors like China, Pakistan, Bangladesh, Vietnam

etc., are enabling the manufacturers in those countries

to grow ahead of us in the various export markets.

Since a sizeable production of cotton yarn andreadymade garments is exported by your Company

Volatility in foreign currency exchange rates vis--visIndia Rupee is another area of concern. The Company

has in place various Management information systems,which enable the management to take decisions onexposures relating to exports, imports, foreigncurrency loans, etc. The Company continues tostrengthen these systems to minimize the risk involved

due to adverse movement of exchange rates.

6. Internal Control Systems and their adequacy

The Company has proper and adequate internalcontrol system commensurate with the size andcomplexity of the organization. The Company hasundertaken a comprehensive review of all internal

control systems to take care of the needs of theexpanding size of the Company and also upgraded

the IT support systems. A system of internal audit tomeet the statutory requirement as well as to ensureproper implementation of management andaccounting controls is in place. The Audit Committeeperiodically reviews the adequacy of the internal auditfunctions.

7. Material Developments in Human Resources /

Industrial Relations Front, including

number of people employed

There are no material developments in the HumanResources area. The industrial relations have been

genera lly sat isfactory. The Company constantlyreviews the man power requirements and has aproperly equipped Department to take care of the

requirements. The total number of people employedby the Company as on 31.03.2013 was 1306.

8. Discussion on financial performance

OPERATIONS

The Total Revenues for the year 2012-13 was atRs.274.06 crores shows a marginal decline of about1% over the previous year. Due to steep increase inpower cost and consequential production loss and

volati li ty in foreign exchange fluctuat ions, theCompany incurred loss of Rs 1,555.64 Lakhs. The

Company during the year 2012-13 achieved aproduction of yarn & readymade garments of 130.22Lakh kgs and 14.01 Lakh pieces as against theproduction of corresponding previous year of 135.21Lakh kgs and 15.90 Lakh pieces respectively. The

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production in spinning and Readymade garmentsdivisions has shown marginal decrease over theprevious year. The average yarn realization in thedomestic market at Rs.161 per kg is marginally higher

by 3.7%. In the Medical textile division, the Company'sproduction during the year 2012-13 was higher by28.65% over the previous year.

The Cotton rates have been lower in the year whilethe rates of PSF was higher by Rs.6/- per kg. Thesteep increase in the power cost due to levy of fuelsurcharge adjustment by the APCPDCL, consequentialloss of production due to non-availability ofuninterrupted quality power particularly during thesecond quarter of the year 2012-13 have adverselyaffected the performance of the Company. TheCompany was forced to buy the power from thirdparties at an exorbitant rates. Due to the aboveunfavourable factors, the Company during the year2012-13 suffered a net loss of Rs.15.50 Crores asagainst the loss of Rs.8.14 Crores during thecorresponding previous year.

Cautionary Statement

Statements in this report on Management Discussionand Analysis, describing the Company's objectives,projections, estimates, expectations or predictions

may be forward looking, considering the applicablelaws and regulations. These statements are based oncertain assumptions and expectation of future events.

Actual results could, however, differ materially fromthose expressed or implied. Important factors thatcould make a difference to the Company's operationsinclude global and domestic demand-supplyconditions, finished goods prices, raw materials costsand availability, fluctuations in exchange rates, changesin Government regulations and tax structure,economic development within India and the countries

with which the Company has business contacts.

The Company assumes no responsibility in respectof the forward looking statements herein, whichundergo changes in future on the basis of subsequentdevelopment, information or events.

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CORPORATE GOVERNANCE REPORT

1. BRIEF STATEMENT ON COMPANY'S PHILOSOPHY ON CODE OF GOVERNANCE

Suryavanshi's Corporate culture has meant working always proactively to meet the expectations of its customers,shareholders, employees, business associates, the society at large and in complying with the dictates of theregulatory frame work both in letter and spirit. The Company believes Corporate Governance is an effectiveinstrument for realization of this corporate aim and accordingly endeavors to function with integrity in a transparent

environment.

2. BOARD OF DIRECTORS

a) Composition and category of directors as on 31st March, 2013 / Number of other Board of

Directors or Committees of which Member / Chairman

No.of other No.of other Board

Name of the Category Directorships in Committees of which

Directors public limited

companies Member Chairman

Sri. B.N. Agarwal Chairman & Managing Director- Nil Nil Nil

Promoter/ Executive

Sri. Rajender Kumar Joint Managing Director 2 Nil Nil

Agarwal Promoter - Executive

R.Surender Reddy Non-Executive - Independent 6 2 7

Dr.A.Nageswara Rao Non-Executive - Independent 2 2 2

Sri. Jeetender Kumar Executive Director Promoter - 2 2 Nil

Agarwal ExecutiveSri.Devender Kumar Wholetime Director Promoter - 2 Nil Nil

Agarwal Executive

Sri.B.N.Rathi* Non-Executive - Independent 2 1 Nil

(up to 09-01-2013)

Sri.G. Ganesh** IDBI Nominee Director

Non-Executive-Independent Nil 2 Nil

Sri Surender Kumar Agarwal Non-Executive - Independent Nil 2 Nil(W.e.f.09-03-2013)***

* Sri. B.N.Rathi passed away on 10 th January, 2013.

** Sri. G. Ganesh has been withdrawn as nominee Director of IDBI Bank Limited w.e.f 3rd June, 2013

*** Sri. Surender Kumar Agarwal was co-opted as an additional Director of the Company with effect from 9th March, 2013.

Number of Board of Directors meetings held, dates on which meetings were held

During the Financial year ended 31st March, 2013, 8 (Eight) Board Meetings were held on 30th April, 2012, 30thMay, 2012, 10th August, 2012, 10th November, 2012, 12th February, 2013, 19th February, 2013, 9th March, 2013and 31st March, 2013.

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b) Attendance of each Director at the Board of Directors Meeting and the last Annual General

Meeting.

Name of the Director Number of Board Meetings Attendance at the last

attended during the period Annual General Meeting

1st April, 2012 to 31st March, 2013 hled on 30/07/2012

Sri. B.N.Agarwal 8 Present

Sri. Rajender kumar Agarwal 8 Absent

Sri. R.Surender Reddy 5 Present

Dr.A.Nageswara Rao 5 Absent

Sri. Jeetender Kumar Agarwal 8 Present

Sri. B.N.Rathi 1 Absent

Sri. Devender Kumar Agarwal 8 Present

Sri. G. Ganesh 5 Present

Sri. Surender Kumar Agarwal 1 N.A.

(w.e.f. 09-03-2013)

REAPPOINTMENT OF RETIRING DIRECTORS

As required by Clause 49 of the Listing Agreement on Corporate Governance particulars of the Directors beingreappointed are provided elsewhere in the Annual Report.

3. AUDIT COMMITTEE

a) Brief description of terms of reference

i. Oversight of Company's financial reporting process and disclosure of financial information.

ii. Review of financial statements before submission to Board.

iii. Review of adequacy of internal control systems and internal audit functions.

iv. Review of Company's financial and risk management policies.

b) Composition, name of members and Chairperson

i. Sri. R.Surender Reddy - Chairman, Non-Executive & Independent

ii. Dr.Akkineni Nageswara Rao - Member, Non-Executive & Independent

iii. Sri. J.K.Agarwal - Member, Executive & Promoter

iv. Sri. G.Ganesh (upto 02.06.13) - Member, IDBI Nominee &Independent

v. Sri. Surender kumar Agarwal - Member, Non-Executive & Independent(w.e.f. 09-03-2013)

c) Meetings and attendance during the year

Sri. R. Surender Reddy, Chairman of the Audit Committee was present at the previous Annual GeneralMeeting of the Company held on 30th July, 2012.

During the financial year ended March 31, 2013 - Four Audit Committee Meetings were held on 17th May,2012, 10th August, 2012, 10th November, 2012 and 12th February, 2013.

Name No. of the Meetings attended

R.Surender Reddy 4

Dr.Akkineni Nageswara Rao 4

J.K.Agarwal 4

G.Ganesh (upto 02-06-2013) 3

Sri.Surender Kumar Agarwal (w.e.f. 09-03-2013) -

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4. REMUNERATION COMMITTEE

a) Brief description of terms of reference.

To formulate a remuneration policy and approve the remuneration or revision in the remuneration payableto the Executive Directors.

b) Composition, Name of members and Chairperson

1. Dr.Akkineni Nageswara Rao - Chairman - Non-executive - Independent

2. Sri B.N.Rathi* - Member - Non-executive - Independent

3. Sri G.Ganesh** - Member - IDBI Nominee - Independent

4. Sri Surender Kumar Agarwal*** - Member - Non - executive - Independent

* Sri B.N.Rathi ceased to be the member of Remunerative Committee due to Death with effect from10th January, 2013.

** Sri. G. Ganesh has been withdrawn as nominee Director of IDBI Bank Limited w.e.f 3rd June, 2013

*** Sri Surender Kumar Agarwal was appointed as an additional director of the company and also memberof audit committee and Remuneration committee with effect from 9th March, 2013.

c) Attendance during the year

During the financial year ended March 31, 2013, one Remuneration Committee Meeting was held on 30thMay, 2012.

d) Remuneration policy

To periodically review the remuneration package of whole time Directors and recommend suitable revisionto the Board.

e) Details of remuneration to all the Directors, as per format in main report.

(During 01.04.2012 to 31.03.2013)

(` in Lakhs)

Name of the Director Designation Salary & Perquisites Total

Commission

Sri. B.N.Agarwal Chairman & Managing Director 23.57 2.84 26.41

Sri. Rajender Kumar Agarwal Joint Managing Director 21.89 4.53 26.42

Sri. Jeetender Kumar Agarwal Executive Director 21.68 4.57 26.25

Sri. Devender Kumar Agarwal Whole time Director 21.68 4.48 26.16

Sitting Fees

Name Designation Amount ( )

Sri. R.Surender Reddy Director 22500

Sri. B.N.Rathi Director 3500

Dr. A.Nageswara Rao Director 26000

Sri. G.Ganesh Nominee - IDBI 21500

The Company does not have any stock option plan or performance linked incentive for the Executive Directors.The appointments are made for a period of three years on the terms and conditions in the respective resolutionpassed by the Members in the General Meetings, which do not provide for severance fees.

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5. SHAREHOLDERS / INVESTORS GRIEVANCE COMMITTEE

a) Name of Non-Executive Director heading the Committee : Dr.Akkineni Nageswara Rao

b) Name and designation of Compliance Officer : Sri. B.R.S.Reddy, Vice-President(Corporate Affairs) & Company Secretary

c) Number of Shareholders Complaints received so far :No. of Complaints received for the 4th Quarter - 10No. of Complaints received for the Year ended 31st March 2013-16

d) Number not solved to the satisfaction of shareholders : NIL

e) Number of pending share transfers : NIL

6. GENERAL BODY MEETINGS

a) Location and time, where last three AGMs held.

Financial Year Date Venue Time

2009-10 29/09/2010 Gayatri Gardens, Survey No.26, 10.00 A.M.

Sikh Village, Near Diamond Point HotelSecunderabad - 500 003

2010-11 29/07/2011 Gayatri Gardens, Survey No.26, 10.00 A.M.Sikh Village, Near Diamond Point HotelSecunderabad - 500 003

2011-12 30/07/2012 Rajdhani Hall, First floor, Lions Bhavan, Behind LIC & 10.15 A.M.HDFC Bank, Near Paradise Circle (West),S.D.Road, Secunderabad-500003

b) Special resolutions passed at the last 3 Annual General Meetings

1. At the AGM held on 29.09.2010 -Approving the reappointment of Sri R K Agarwal, Joint Managing Director.

2. At the AGM held on 29.07.2011 -No special resolutions were passed.

3. At the AGM held on 30.07.2012

1) Approving the re-appointment of Sri J.K.Agarwal, Executive Director for a period of three yearson the revised terms and conditions.

2) Approving the re-appointment of Sri D.K.Agarwal, Whole Time Director for a period of threeyears on the revised terms and conditions.

3) Approving the revision in the remuneration payable to Sri B.N.Agarwal, Chairman and ManagingDirector for the remaining period of his appointment from 30.05.2012 to 30.01.2014.

4) Approving the revision in the remuneration payable to Sri R.K.Agarwal, Joint Managing Directorfor the remaining period of his appointment from 30.05.2012 to 20.05.2015.

5) Approval for keeping Register of Members, Index of Members and copies of Annual Returns along

with the copies of certificates and documents or any or more of them required to be annexedthereto under Section 160 and 161 of the said Act, be kept at the office of the Company'sRegistrars and Transfer Agents, M/s Karvy Computershare Private Limited, Plot No. 17-24, Vittalraonagar, Madhapur, Hyderabad 500 081 w.e.f. 31st July, 2012 instead of being kept at the RegisteredOffice of the Company.

c) Whether Special resolutions were put through postal ballot last year, details of voting pattern. No

d) Whether any resolutions are proposed to be conducted through postal ballot.Provisions of Companies Act, 1956 regarding passing of resolutions through postal ballot shall be complied

with whenever necessary.

e) Procedure for postal ballot.Prescribed procedure shall be complied with whenever necessary.

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Name of the Party Relationship Name of Current Year Previous YearTransaction Amount Amount

a. Transactions during the year

Key Management

Sri B.N.Agarwal Key Management Remuneration 26.41 16.95Chairman and Managing Director

Sri R.K.Agarwal Key Management Remuneration 26.42 16.24Joint Managing Director

Sri J.K.Agarwal Key Management Remuneration 26.25 14.69Executive Director

Sri D.K.Agarwal Key Management Remuneration 26.16 14.62Whole time Director

RelativesMrs.Narbada Bai Agarwal Wife of sri B.N.Agarwal Rent 1.60 1.60Mrs. Yamuna Devi Agarwal Wife of sri R.K.Agarwal Rent 1.60 1.60Mrs. Meenal Agarwal Wife of sri J.K.Agarwal Rent 1.60 1.60Mr. Rishikesh Agarwal Son of Sri R.K.Agarwal Salary 6.00 6.00

M/s. Suryavanshi Industries Ltd Enterprise in which the Purchase of 627.57 3441.56Key management personal Raw Materialand relatives are intrested

M/s. Suryalakshmi Cotton Mills Ltd Enterprise in which the Purchase of 257.23 -Key management personal Raw Materialand relatives are intrested

M/s. Suryajyoti Spinning Mills Ltd Enterprise in which the Purchase of 58.55 -

Key management personal Raw Materialand relatives are intrested Sale of Yarn 354.88 -

b. Payable as at 31.03.2013

M/s. Suryavanshi Industires Ltd Enterprise in which the Purchase of - 466.72Key management personal Raw Materialand relatives are intrested

M/s. Suryalakshmi Cotton Mills Ltd Enterprise in which the Purchase of 50.37 -Key management personal Raw Materialand relatives are intrested

M/s. Suryajyoti Spinning Mills Ltd Enterprise in which the Purchase of 5.24 -Key management personal Raw Materialand relatives are intrested

c. Receivable as at 31.03.2013

M/s. Sheshadri Power and Enterprise in which the Advance for 116.87 115.20Infrastructure Pvt Ltd Key management personal Investment

and relatives are intrested

M/s. Suryavanshi Integrated Enterprise in which the Investment 2.40 2.40Apparel Park Ltd Key management personal

and relatives are intrested

M/s. Venkateshwara Apparels Enterprise in which the 3.57 -Key management personaland relatives are intrested

M/s. Suryajyoti Spinning Mills Ltd Enterprise in which the Sale of Yarn 24.94 -Key management personaland relatives are intrested

7. DISCLOSURES

a) Disclosures on materially significant related party transactions i.e., transactions of the company of material nature, with its

promoters, the directors or the management, their subsidiaries or relatives, etc., that may have potential conflict with theinterests of Company at large. (Figures in ` Lakhs)

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b) CEO / CFO Certification

In terms of Clause 49(V) of the Listing Agreement, the Certificate duly signed by Managing Director and VicePresident (Finance) of the Company was placed before the Board of Directors along with the financialstatements for the year ended March 31, 2013, at its meeting held on 7th May, 2013.

c) Details of non-compliance by the Company, penalties, strictures imposed on the Company by Stock Exchangeor SEBI or any statutory authority, on any matter related to capital markets, during the last three years. NIL

d) Details of compliance with mandatory requirements and adoption of non-mandatory requirements.

Mandatory requirements: All complied with.

Non-mandatory requirements :

a. The Board : The Board is headed by an Executive Chairman.

i. Remuneration Committee : Please refer to the Clause 4 above.

ii. Shareholder Rights : Half-yearly reports is not being sent to each household of shareholders asshareholders are intimated through the press and the Company's Website www.suryavanshi.com.

iii. Audit qualifications : Auditors observation was clarified in the Directors Report.

iv. Training of Board members : The Company shall work out a plan for training its Board members.

v. Mechanism for evaluating non-executive Board members : Not yet evolved.

vi. Whistle Blower Policy : Not yet established.

b) Proceeds from Preferential Issues and its utilization: The Company has not raised any funds throughpublic issue, rights issue, and on preferential issue basis during the year under review.

c) Shares held by Non-executive Directors :

Sri. R. Surender Reddy - 1000

Sri. B.N.Rathi - Nil

Sri. G.Ganesh - Nil

Dr. Akkineni Nageswar Rao - 400

Sri. Surender Kumar Agarwal - Nil

8. MEANS OF COMMUNICATION

a) Quarterly results.

Quarterly report is not being sent to each household of shareholders as shareholders are intimated throughthe press and the Company's Website www.suryavanshi.com

b) Quarterly results are normally published in which newspapers

The Quarterly results are usually published in Business Standard and Andhra Bhoomi, Hyderabad edition.

c) Any website, where displayed

www.suryavanshi.com

d) & e) Whether it also displays official news releases and the presentations made to institutional investors orto the analysts.

The website shall be used for this purpose, when the occasion arises.

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9. GENERAL SHAREHOLDER INFORMATION

a) AGM : Date, Time and Venue

Date : Saturday, 28th September, 2013

Time : 12.00 Noon

Venue : Gayatri Gardens, Survey No.26, Sikh Village,

Near Diamond Point Hotel, Secunderabad-500003.

b) Financial Year : 1st April to 31st March following

c) Date of Book Closure :

Tuesday, 24th September,2013 to Saturday, 28th September, 2013 (both days inclusive)

d) Dividend Payment Date : Not applicable as the Board has not recommended any dividend.

e) Listing on Stock Exchanges & Stock Code

The Company's Shares are listed in the following Stock Exchange.

Name of the Stock Exchange Code Address

The Bombay Stock Exchange Limited 514140 Phiroze Jeejeebhoy Towers,

Dalal Street, MUMBAI - 400001

f) Market Price Data: High, Low during each month in last financial year and Performance in comparison tobroad - based indices such as BSE Sensex, CRISIL index, etc.

Month The Stock Exchange, Mumbai

Share Price (`) Sensex

High Low High Low

April, 2012 14.19 11.25 17,664.10 17,010.16

May, 2012 13.40 10.62 17,432.33 15,809.71

June, 2012 13.15 10.20 17,448.48 15,748.98

July, 2012 13.47 10.92 17,631.19 16,598.48

August, 2012 12.30 10.12 17,972.54 17,026.97

September, 2012 13.62 10.56 18,869.94 17,250.80

October, 2012 14.50 11.50 19,137.29 18,393.42

November, 2012 13.69 10.77 19,372.70 18,255.69

December, 2012 11.76 10.32 19,612.18 19,149.03

January, 2013 12.25 10.45 20,203.66 19,508.93February, 2013 12.00 8.31 19,966.69 18,793.97

March, 2013 11.25 8.30 19,754.66 18,568.43

g) Registrar and Share Transfer Agents

Karvy Computershare Pvt. Ltd.Plot No.17 to 24,

Vittal Rao Nagar,Madhapur,Hyderabad 500 081 (A.P.) IndiaPh # +91 040 44655208

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h) Share Transfer System:

The share transfers are processed and the share certificates are returned to the shareholders within amaximum period of 15 days from the date of receipt, subject to the documents being valid and completein all respects.

i) Shareholding pattern as on 31st March, 2013.

Category No. of Shares held % of holding

Promoters 7704063 58.07

Mutual Funds 700 0.01

Banks & Financial Institutions 1150 0.01

FII's Nil 0.00

Private Corporate Bodies 1774980 13.38

NRI's 41004 0.31

Indian Public 3744526 28.22

Total 13266423 100.00

Distribution of shareholding As on 31.03.2013

Nominal Value Share holders Amount

Number % to Holder In ` % to Total

Upto 5000 6471 84.44 8523930 6.43

5001 - 10000 368 4.99 3008470 2.26

10001 - 20000 222 3.01 3448050 2.60

20001 - 30000 62 0.84 1591990 1.20

30001 - 40000 32 0.43 1137020 0.86

40001 - 50000 38 0.52 1775600 1.34

50001 - 100000 56 0.76 3879840 2.92

100001 - above 74 1.00 109299330 82.39

Total 7323 100.00 132664230 100.00

j) Dematerialisation of shares and liquidity

The Company's shares are available for dematerialization on both the Depositories i.e., National Securities

Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) 1,14,77,190 sharesamounting to 86.51 % of the Capital have been dematerialized by investors as on 31st March, 2013.

ISIN : INE431C01015

Address of Registrars for Dematerialistion of Shares.

Karvy Computershare Pvt. Ltd.

Plot No.17 to 24,

Vittal Rao Nagar, Madhapur,

Hyderabad 500 081 (A.P.), India

Ph # +91 040 44655208

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k) Outstanding GDRs/ADRs/Warrants or any Convertible instruments,conversion date and likely

impact on equity.

NOT APPLICABLE as the Company has not issued any of the above instruments.

l) Plant Locations Bhongir-508116,Nalgonda District, Andhra Pradesh, India

Aliabad, Shamirpet-500078, Medchal taluq, R.R.District, Andhara Pradesh, India.

Nagpur-Bhopal Road, Rajna-480340, Pandurna Taluq, Chindwara District, Madhya Pradesh.

Garment Division, Plot No.28 B, IDA, Bhongir, Nalgonda District, Andhra Pradesh-508116

m) Address for correspondence :

a) For transfer / dematerialization of shares, change of address of members and other queries relating tothe shares of the Company:

Karvy Computershare Pvt. Ltd.

(Unit - Suryavanshi Spinning Mills Limited)

Plot No.17 to 24,Vittal Rao Nagar, Madhapur,

Hyderabad 500 081 (A.P.) India

Ph # +91 040 44655208

b) any queries relating to dividend of earlier years , annual reports, etc.

The Company Secretary,

Suryavanshi Spinning Mills Limited,

6th Floor, Surya Towers, 105, S.P.Road,

Secunderabad - 500 003.

Phone No(s) : 040 - 30512700

Fax No : 040 - 30512725

Email ID : [email protected]

The above report has been approved by the Board of Directors in their meeting held on 7th May, 2013.

Declaration on Code of Conduct

As provided under Clause 49 of the Listing Agreement with the Stock Exchanges, all Board members and Senior

Management Personnel have affirmed compliance with Suryavanshi Spinning Mills Limited Code of Conduct for the year

ended March 31, 2013.

For SURYAVANSHI SPINNING MILLS LIMITED

B.N. Agrawal

Place : Secunderabad Chairman & Managing Director Date : 07-05-2013

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Auditors Certificate on compliance of Corporate Governance

To the members of SURYAVANSHI SPINNING MILLS

LIMITED, SECUNDERABAD.

We have examined the compliance of conditions of

Corporate Governance by SURYAVANSHI SPINNING

MILLS LIMITED, SECUNDERABAD, A.P.for the year

ended 31st March, 2013 as stipulated in Clause 49 of the

listing agreement of the Company with Stock Exchanges

in India.

The compliance of the conditions of Corporate

Governance is the responsibility of the management. Our

examination was limited to the procedures and

implementation thereof, adopted by the Company forensuring the compliance of the conditions of Corporate

Governance. It is neither an audit nor an expression of

an opinion on the financial statements of the Company.

In our opinion and to the best of our information and

according to the explanations given to us, the Company

has complied with the conditions of Corporate

Governance as stipulated in the above listing agreement.

We state that in respect of investor grievances received

during the year ended 31st March, 2013, no investor

grievances are pending against the Company as per the

records maintained by the Company. We further state

that such compliance is neither an assurance as to the

future viability of the Company nor the efficiency or

effectiveness with which the management has conducted

the affairs of the Company.

For BRAHMAYYA & CO.,Chartered Accountants

Firm Regn. No.000513S

K S RAO

Place : Hyderabad Partner Date : 07.05.2013 (Membership No.15850)

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INDEPENDENT AUDITORS REPORT

To the Members of

SURYAVANSHI SPINNING MILLS LIMITED,SECUNDERABAD.

Report on the Financial Statements:

We have audited the accompanying financial statements

of SURYAVANSHI SPINNING MILLS LILMITED,

SECUNDERABAD ("the Company"), which comprise

the Balance Sheet as at March 31, 2013, and the Statement

of Profit and Loss and Cash Flow Statement for the year

then ended, and a summary of significant accounting

policies and other explanatory information.

Management's Responsibility for the FinancialStatements:

Management is responsible for the preparation of these

financial statements that give a true and fair view of the

financial position, financial performance and cash flows of

the Company in accordance with the Accounting

Standards referred to in sub-section (3C) of section 211

of the Companies Act, 1956 ("the Act"). This responsibility

includes the design, implementation and maintenance of

internal control relevant to the preparation and

presentation of the financial statements that give a true

and fair view and are free from material misstatement,whether due to fraud or error.

Auditors Responsibility:

Our responsibility is to express an opinion on these

financial statements based on our audit. We conducted

our audit in accordance with the Standards on Auditing

issued by the Institute of Chartered Accountants of India.

Those Standards require that we comply with ethical

requirements and plan and perform the audit to obtain

reasonable assurance about whether the financial

statements are free from material misstatement.

An audit involves performing procedures to obtain audit

evidence about the amounts and disclosures in the financial

statements. The procedures selected depend on the

auditor's judgment, including the assessment of the risks

of material misstatement of the financial statements,

whether due to fraud or error.

In making those risk assessments, the auditor considers

internal control relevant to the Company's preparation

and fair presentation of the financial statements in order

to design audit procedures that are appropriate in the

circumstances. An audit also includes evaluating the

appropriateness of accounting policies used and thereasonableness of the accounting estimates made by

management, as well as evaluating the overall presentation

of the financial statements. We believe that the audit

evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion.

Opinion:

In our opinion and to the best of our information and

according to the explanations given to us, the financial

statements give the information required by the Act in

the manner so required and give a true and fair view inconformity with the accounting principles generallyaccepted in India:

a. in the case of the Balance Sheet, of the state of

affairs of the Company as at March 31, 2013;

b. in the case of the Statement of Profit and Loss , of

the loss for the year ended on that date; and

c. in the case of the Cash Flow Statement, of the cash

flows for the year ended on that date

Report on Other Legal and Regulatory Requirements:

1. As required by the Companies (Auditor's Report)

Order, 2003 ("the Order") issued by the Central

Government of India in terms of sub-section (4A)of section 227 of the Act, we give in the Annexure

a statement on the matters specified in paragraphs

4 and 5 of the Order.

2. As required by section 227(3) of the Act, we reportthat:

a. we have obtained all the information and

explanations which to the best of our

knowledge and belief were necessary for thepurpose of our audit;

b. in our opinion proper books of account as

required by law have been kept by theCompany so far as appears from our

examination of those books;

c. the Balance Sheet, Statement of Profit and

Loss, and Cash Flow Statement dealt with by

this Report are in agreement with the books

of account;

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Referred to in paragraph 3 of our report of even date,

1. a. The Company has maintained proper records

showing full particulars, including quantitativedetails and situation of fixed assets.

b. As explained to us, the management hasphysically verified most of the fixed assetsduring the year and there is a regularprogramme of verification which, in ouropinion, is reasonable having regard to the sizeof the Company and the nature of the assets.No material discrepancies were noticed onsuch verification.

c. The fixed assets disposed off during the year

are not substantial and hence it has not affectedthe going concern status of the Company

2. a. The inventory has been physical ly verifiedduring the year by the management. In ouropinion, the frequency of verification isreasonable.

b. In our opinion, the procedures of physicalverif ication of inventories followed by themanagement are reasonable and adequate inrelation to the size of the company and thenature of its business.

c. The Company is maintaining proper recordsof inventory. The discrepancies noticed onphysical verification between the physicalstocks and book records were not material.

3. a. The company has not granted any loans,secured or unsecured to companies, firms orother parties covered in the registermaintained under section 301 of theCompanies Act 1956.

b. In view of our comment in paragraph 3(a)above, III (b), (c) & (d) of the aforesaid order

are not applicable to the companyc. During the year, the company has taken

unsecured loans from 7 parties covered in theregister maintained under section 301 of thecompanies Act 1956 and the maximum amountinvolved during the year was ` 273.75 lakhs.

d. In our opinion the rate of interest and otherterms and conditions on which loans have beentaken from the other parties listed in theregister maintained under section 301 of the

ANNEXURE TO THE AUDITORS' REPORT

Companies Act 1956 are not prima-facie

prejudicial to the interests of the company.e. The company is regular in payment of the

principal amount and interest thereon asstipulated.

4. In our opinion and according to the information andexplanations given to us, there are adequate internalcontrol systems commensurate with the size of theCompany and the nature of its business with regard

to purchase of inventory and fixed assets and withregard to sale of goods and services. During thecourse of our audit, we have not observed any

continuing failure to correct major weaknesses ininternal control system.

5. a) In our opinion and according to the informationand explanations given to us, we are of theopinion that the particulars of contracts orarrangements referred to in section 301 of

the Companies Act, 1956 have been enteredin the register to be maintained under thatsection.

b) In our opinion and according to the informationand explanations given to us, the transactions

made in pursuance of contracts or arrangementsentered in the register maintained underSection 301 of the Companies Act, 1956 havebeen made at prices which are reasonablehaving regard to prevailing market prices at

the relevant time.

6. The Company has not accepted any deposits fromthe public. Hence the provisions of Section 58A,58AA and other relevant provisions of theCompanies Act, 1956 and the Companies(Acceptance of Deposits) Rules, 1975 are not

applicable.7. In our opinion, the Company has an internal audit

system commensurate with its size and nature of itsbusiness.

8. We have broadly reviewed the books of accountrelating to materials, labour and other items of costmaintained by the company pursuant to the Rulesmade by the Central Government for themaintenance of cost records under section 209(1)(d)of the Companies Act, 1956 in respect of yarn and

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10. The Company has accumulated losses at the end ofthe financial year. The Company has incurred cashlosses during the financial year covered by our auditand in the immediately preceding financial year.

11. In our opinion and according to the informationand explanations given to us, the Company has notdefaulted in repayment of dues to any financialinstitutions and banks.

12. The Company has not granted loans and advanceson basis of security by way of pledge of shares,debentures and other securities.

13. The company is neither a chit fund nor a nidhi mutualbenefit fund/society. Therefore, the provisions ofclause 4(xiii) of the above referred Order are notapplicable to the company.

14. The Company is not dealing or trading in shares,securities, debentures and other investments.

are of the opinion that prima facie the prescribedaccounts and records have been made andmaintained.

9. a) According to the records the Company is

regular in depositing with appropriateauthorities undisputed statutory dues includingProvident Fund, Investor Education andProtection Fund, Employees' State Insurance,Income-tax, Sales Tax, Wealth Tax, Service Tax,Custom Duty, Excise Duty, Cess and othermaterial statutory dues applicable to it.

b) According to the information and explanationsgiven to us, no undisputed amounts payable inrespect of Income-Tax, Sales Tax, Wealth Tax,Service Tax, Custom Duty, Excise Duty and

Cess were in arrears, as at 31st March, 2013.c) According to the records of the Company and

the information and explanations given to us,the dues of sales tax, Income Tax, CustomsDuty, Wealth Tax, Service Tax, Excise Dutyand Cess which have not been deposited onaccount of any dispute are as follows :

Sl. Nature of the Nature of the Amount Period to which Forum where

No Statu29te Dues ( ) the amount relates dispute is

(Financial Year) pending

1 M.P. Sales Tax Act Sales Tax dues 3,39,773/- 2003-2004 Deputy Commissioner (Appeal) Sales Tax, Bhopal,Madhya Pradesh.

2 M.P. Sales Tax Act Sales Tax dues 7,25,736/- 2004-2005 Deputy Commissioner (Appeal) Sales Tax, Bhopal,Madhya Pradesh.

3 Andhra Pradesh Sales Tax dues 27,98,569/- 2001-2002 Hon'ble A.P. High Court,General Sales Tax Hyderabad(APGST) Act, 1957

4 Andhra Pradesh Sales Tax dues 40,27,678/- 1997-1998 I Addl.Chief Judge,

General Sales Tax City Civil Court,(APGST) Act, 1957. Secunderabad.(Case filed byBharat PetroleumCorporation Ltd.)

5 Customs Act, 1962 Interest on 20,32,054/- 2003-2004 Hon'ble High Court,Customs Duty Jabalpur, Madhya Pradesh

6 Customs Act, 1962 Customs Duty 16,14,454/- 2002-03 Tribunal CESAT, New Delhi

7 Sales Tax Sales Tax 31,06,747/- 2007-08 Asst. Commissioner of Commercial taxes, Hyderabad

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Therefore, the provisions of clause 4(xiv) of theCompanies (Auditor's Report) Order, 2003 are notapplicable to the Company

15. According to the information and explanations givento us, the Company has not given any guaranteefor loans taken by others from banks or financialinstitutions.

16. In our opinion and according to the informationand explanations given to us the term loans wereapplied for the purpose for which the loans wereobtained.

17. In our opinion and according to the informationand explanations given to us the funds raised onshort-term basis have been used for long-terminvestment.

18. During the year, the Company has not made anypreferential allotment of shares to parties andCompanies covered in the Register maintainedunder section 301 of the Companies Act, 1956.

19. During the year, the Company has not issued anydebentures and therefore the question of creatingsecurity or charge in respect thereof does not arise.

20. During the year, the Company has not made anypublic issue and therefore the question of disclosing

the end use of money raised by public issue doesnot arise.

21. Based upon the audit procedures performed andaccording to the information and explanations given

to us, we report that no fraud on or by the Companyhas been noticed or reported during the year.

For BRAHMAYYA & CO.,

Chartered Accountants

Firm's Registration Number: 000513S

(K.S.RAO)

Place : Hyderabad Partner

Date : 07.05.2013 Membership Number: 015850

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Balance Sheet as at 31st March, 2013

Note As at As atParticulars No. 31.03.2013 31.03.2012

Equity and liabilitiesShareholders funds

Share capital 1 1,326.87 1,326.87Reserves and surplus 2 1,457.68 3,013.32

2,784.55 4,340.19Non-current liabilities

Long-term borrowings 3 3,572.58 2,510.90Long-term provisions 4 167.74 191.50

3,740.32 2,702.40Current liabilities

Short-term borrowings 5 5,654.87 4,960.19Trade payables 6 4,728.97 4,140.65

Other current liabilities 7 2,013.02 1,862.23Short-term provisions 8 65.82 21.41

12,462.68 10,984.48

Total 18,987.55 18,027.07Assets

Non-current assets

Fixed assets 9 Tangible assets 8,058.60 7,670.24 Intangible assets 0.38 0.38Capital work-in-progress 1,712.79 476.65

9,771.77 8,147.27Non-current investments 10 4.97 4.97

Long-term loans and advances 11 547.33 481.28 10,324.07 8,633.52

Current assets

Inventories 12 4,353.01 5,568.27Trade receivables 13 2,182.73 1,906.84Cash and cash equivalents 14 490.51 547.78Short-term loans and advances 15 419.88 322.11Other current assets 16 1,217.35 1,048.55

8,663.48 9,393.55

Total 18,987.55 18,027.07

Notes on financial statements 1 to 36

The notes referred to above, form an integral part of these financial statements.As per our report of even date For and on behalf of the Board

for Brahmayya & Co., B.N. AgarwalChartered Accountants Chairman & Managing Director Firms' Registration Number: 000513S

K.S. Rao B. Somasekhara Rao R.K. AgarwalPartner Vice President (Finance & Accounts) Joint Managing Director Membership Number: 15850

B.R.S. Reddy Dr. Akkineni Nageswara RaoPlace : Hyderabad Vice President (Corp. Affairs) Director Date : 7th May, 2013 and Company Secretary

(Figures in ` Lakhs)

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Revenue

Revenue from operations 17 26,824.96 27,072.98

Other income 18 581.16 641.37

Total Revenue 27,406.12 27,714.35

Expenses

Cost of materials consumed 19 18,486.41 18,119.07

Purchases of Stock-in-Trade 511.96 925.67

Changes in inventories of finished goods,work-in-progress and Stock-in-Trade 20 72.99 927.84

Power and fuel 21 3,667.71 2,456.65

Employee benefits expense 22 2,198.45 2,129.49

Finance costs 23 880.72 1,047.93

Depreciation and amortization expense 726.45 713.76

Other expenses 24 2,411.80 2,208.12

Total expenses 28,956.49 28,528.53

Profit/(Loss) before tax (1,550.37) (814.18)

Tax expense

For earlier years 5.27 2.60

Profit/(Loss) for the period, after tax (1,555.64) (816.78)

Earnings per equity share:

(1) Basic (11.73) (6.15)

(2) Diluted (11.73) (6.15)

Notes on financial statements 1 to 36

Note Current Year Previous Year

Particulars No. 2012-13 2011-12

Statement of Profit and Loss for the year ended 31st March, 2013 (Figures in ` Lakhs)

The notes referred to above, form an integral part of these financial statements.As per our report of even date For and on behalf of the Board

for Brahmayya & Co., B.N. AgarwalChartered Accountants Chairman & Managing Director Firms' Registration Number: 000513S

K.S. Rao B. Somasekhara Rao R.K. AgarwalPartner Vice President (Finance & Accounts) Joint Managing Director Membership Number: 15850

B.R.S. Reddy Dr. Akkineni Nageswara RaoPlace : Hyderabad Vice President (Corp. Affairs) Director Date : 7th May, 2013 and Company Secretary

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Particulars As at 31.03.2013 As at 31.03.2012

Number Amount Number Amount

1 Share Capital

Authorised

Equity Shares of ` 10 each 35250000 3,525.00 35250000 3,525.00

35250000 3,525.00 35250000 3,525.00

Issued


13270923 1327.09 13270923 1,327.09

Subscribed & paid up


Less:Allotment Money in Arrears

(Dues from Directors and Officers ` Nil) - 0.22

13266423 1,326.64 13270923 1,326.87

Forfeited Shares: 0.23

Total 13266423 1,326.87 13270923 1,326.87

(a) The Company has only one class of shares referred to as equity shares having a par value of `10/- each. Each

holder of equity shares is entitled to one vote per share.

(b) 41,62,536 Equity Shares of `10/- each are allotted as fully paid up with out payment being received in cash

to the erstwhile share holders of suryavanshi textile limited (STL) as per scheme of amalgamation of STL with

the company.

(c) Disclosure pursuant to note no. 6(A)(d) Part I of schedule VI of the Companies Act

Particulars As at As at

31 March 2013 31 March 2012

Equity shares Equity shares

Shares outstanding at the begning of the yeara) Fully paid Equity shares of ` 10/- each 13266423 13266423

b) partly paid Equity shares of ` 5/- each 4500 4500

Shares issues during the year - -

Shares forfeited during the year 4500 -

Shares outstanding at the end of the year

a) Fully paid Equity shares of ` 10/- each 13266423 13270923

Notes on financial statements


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(d) Disclosure pursuant to Note no. 6(A)(g) of Part I of Schedule VI to the Companies Act, 1956 (if more than 5%)

Name of Shareholder As at 31.03.2013 As at 31.03.2012

No. of % of Holding No. of % of Holding

Shares held Shares held

Jeetender Kumar Agarwal 1671287 12.60 - -

Devender Kumar Agarwal 1623854 12.24 - -

Rajender Kumar Agarwal 1565836 11.80 - -

Suryavanshi Industries Limited - - 3842579 28.95

Westend Developers Ltd 1300000 9.80 1950000 14.69

B N Agarwal Family Trust 724873 5.46 724873 5.46

2 Reserves and Surplus(Figures in ` Lakhs)

Particulars As at As at31.03.2013 31.03.2012

a. Capital Redemption Reserve

At the commencement of the year 8.00 8.00

Closing Balance 8.00 8.00

b. Securities Premium Account

At the commencement of the year 2,731.00 2,731.00

Closing Balance 2,731.00 2,731.00

c. State Subsidy



d. Export Allowance Reserve



e. Surplus

At the commencement of the year 240.69 1,057.47

Add : For current year (1,555.64) (816.78)

Closing Balance (1,314.95) 240.69

Total 1,457.68 3,013.32


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Particulars As at As at

31.03.2013 31.03.2012

3 Long Term Borrowings

Secured

i. Term loans

- from banks

a) ICICI Bank Ltd. - 46.59

b) ICICI Bank ltd (erstwhile Bank of Rajasthan Ltd) 809.88 1,016.17

c) Andhra Bank-I 240.53 334.91

d) Andhra Bank -II 485.18 -

e) Andhra Bank - Working capital term loan 210.00 313.00

f) State Bank of Hyderabad - Working capital term loan 98.30 139.00

g) State Bank of Hyderabad - Buyer`s credit against FLC 249.66 245.34

h) Andhra Bank - Buyer`s credit against FLC 864.08 -

2,957.63 2,095.01

NOTES:

1. Term Loans refered at (b) to (d) and buyers credit refered at (h) above are secured by mortgage of fixed assets

present and future of the company on first charge pari passu basis and guaranteed by four Directors of the

Company.

2. Working capital term loans referred at (e) and (f) above are Secured by way of hypothecation of Raw materials,Stock-in-process, finished goods and stores and spares and book debts of the Company and also secured by way

of second charge on fixed assets of the company on pari passu basis and guranteed by four Directors of the

Company.

3. Buyers' credit refered at (g) above is secured by way of exclusive charge on specified plant and machinery and

guaranteed by four Directors of the Company

Terms of Repayment

Name of the Bank Rate of Quarterly Interest Instalments

b) ICICI Bank ltd (erstwhile Bank of Rajasthan Ltd) 15.00% 36 monthly c) Andhra Bank-I 14.75% 11

d) Andhra Bank -II 15.00% 20

e) Andhra Bank - Working capital term loan 15.00% 8

f) State Bank of Hyderabad - Working capital term loan 15.00% 8

g) State Bank of Hyderabad - Buyer`s credit against FLC (*)

(*) Repayable in two years by way of providing cash margin

h) Andhra Bank - Buyer`s credit against FLC (**)

(**) Liable to be converted in to term loan



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Other loans and advances

Vehicle hire purchase loan :

HDFC Bank Ltd 0.97 4.60

Kotak Mahindra Bank Ltd 17.84 17.42

Axis Bank 15.31 -

TATA Capital Ltd - 3.64

Total 34.12 25.66

Vehicle hire Purchase Loans above are secured by hypothecation of therespective asset and guranteed by one of the directors of the company

Terms of Repayment: Monthly instalments

Unsecured

Deferred sales tax liability 429.08 390.23

Loan from Others 151.75 -

Total 580.83 390.23

Grand Total 3,572.58 2,510.90

The deferred sales tax liability amounting to ` 429.08 lakhs shown under unsecured loans above, is due for repaymentas under

Year ` lakhs Year of Repayment

2000-01 14.71 2014-15

2001-02 45.69 2015-16

2002-03 28.82 2016-17

2003-04 67.49 2017-18

2004-05 34.88 2018-19

2005-06 75.59 2019-20

2006-07 70.82 2020-212007-08 14.78 2021-22

2008-09 25.47 2022-23

2011-12 10.51 2024-25

2012-13 40.32 2025-26

429.08




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4 Long Term Provisions

(a) Provision for employee benefits

Gratuity (unfunded) 156.15 191.50

Leave Encashment (unfunded) 11.59 -

Total 167.74 191.50

5 Short Term Borrowings

Secured

(a) Loans repayable on demand

(i) Andhra Bank-I 3,445.73 3,430.64

(ii) Andhra Bank-II 507.59 -

(iii) State Bank of Hyderabad-I 1,557.48 1,485.64

(iv) State Bank of Hyderabad-II 100.00 -

Total 5,610.80 4,916.28

Working Capital Loans refered above (i) to (iii) are Secured by way of hypothecation of Raw materials, Stock-in-process, finished goods and stores and spares and book debts of the Company and also secured by way of secondcharge on fixed assets of the company on pari passu basis and guranteed by four directors of the company.

(b) Other loans and advances

Vehicle Hire Purchase Loan :

HDFC Bank Ltd. 3.63 11.87

Kotak Mahindra Bank Ltd. 26.63 28.04

Axis Bank 10.17 -

TATA Capital Ltd. 3.64 4.00

Total 44.07 43.91

Grand Total 5,654.87 4,960.19

6 Trade Payables

Dues to : Small and Micro Enterprises (*) 85.72 25.63

: Other than Small and Micro Enterprises 4,643.25 4,115.02

Total 4,728.97 4,140.65

Trade payable include ` 441.88 lakhs payable towards supply of capital machinery against letter of credit openedby Andhra Bank under the terms of project sanction.

(*) Interest paid, payable or accrued and due to Micro and small enterprises is Rs. NIL (Previous Year Rs. NIL)

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7 Other Current Liabilities(a) Current maturities of long-term debt

i. Term loans

- from banks

ICICI Bank Ltd. - 62.72

ICICI Bank ltd (erstwhile Bank of Rajasthan Ltd) 223.47 206.28

IDBI Bank Ltd - 560.00

State Bank of India - 121.64

Andhra Bank-I 94.36 87.48

Andhra Bank - Working capital term loan 103.00 58.00

State Bank of Hyderabad - Working capital term loan 43.51 18.00

464.34 1,114.12

(b) Interest accrued and due on borrowings

IDBI Bank Limited 3.99 23.39

Andhra Bank 6.60 -

State Bank of India - 1.62

ICICI Bank Ltd. 13.16 -

(c) Unpaid dividend 3.93 3.93

(d) Other payables (*) 1,084.85 431.21

(e) Other payables - Statutory dues 21.98 11.95

(f) Salary & Reimbursements 180.64 161.74

(g) Contribution to PF & ESI 19.09 15.03

(h) Bonus Payable 27.76 36.09

(i) Advances received against sales 179.93 52.34

(j) Sales tax deferment payable 1.47 5.35

(k) Security Deposits Payable 5.28 5.46

1,548.68 748.11

Total 2,013.02 1,862.23

(*) Includes provision for Fuel surcharge Adjustment (FSA) of ` 604.69 lakhs

8 Short Term Provisions

(a) Provision for employee benefits

Gratuity (unfunded) 63.29 15.50

Leave Encashment (unfunded) 2.53 5.91

Total 65.82 21.41

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