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Notes to Accounts of Lakshmi Finance & Industrial Corporation Ltd.

Mar 31, 2015

1. a. Rights attached to equity Shares:

The company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31 March 2015, the amount of per share dividend recognised as distribution to equity shareholders is Rs.3.00 (31 March 2014: Rs. 1.80)

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 to the number of equity shares held by the shareholders.

The Company does not have any current income tax liability as per the normal provisions of the Income tax Act, 1961 and at present is paying only MAT. In view of the inability to assess future taxable income under normal provisions, the extent of net deferred tax asset which may be adjusted in the subsequent years is not ascertainable with virtual certainty at this stage and accordingly in terms of Accounting Standard (AS 22) on "Accounting for Taxes on Income" as specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and based on general prudence, the Company has not recognised any Deferred tax Asset while preparing the accounts for the current year.

2. Depreciation for the year is provided as per Schedule II of the Companies Act, 2013, accordingly Rs. 328,062/- being the remaining Carrying amount of the assets whose remaining useful life is nil is recognised in the opening balance of retained earnings.

3. The Management has initiated steps to evaluate the quality of all its receivables as at the year end and found all of them to be standard and there are no Non-performing Assets in accordance with the prudential norms issued by Reserve Bank of India.

4. In the opinion of the Board, the current assets, loans and advances are expected to realize at least the amount at which they are stated, if realized in the ordinary course of business and provision for all known liabilities have been adequately made in the accounts.

5. During the year, there were no transactions with Micro and Small Enterprises; hence the disclosures as per Micro, Small and Medium Enterprise Development Act, 2006, are not applicable for the time being.

6. There are no separate reportable segments as per the Accounting standard "Segment Reporting "(AS 17).

7. As required by Accounting Standard (AS 28) "Impairment of Assets" ,the Management has carried out the assessment of Impairment of assets and no Impairment was found.

8. Previous year's figures have been regrouped and reclassified wherever necessary to make them comparable with current year's figures.


Mar 31, 2011

1. NATURE OF OPERATIONS

Company is engaged in the business of Money lending and investments in Equity Shares and Mutual Funds.

2. Plant and Machinery given on lease includes equipment costing Rs.45.21 lakhs (previous year Rs.45.21 lakhs) in respect of which leases have expired or otherwise terminated. The Company is in the process of calling back and taking possession of the same.

3. The Management has initiated steps to evaluate the quality of all its receivables as at the year end and found all of them to be standard and there are no Non-performing Assets in accordance with the prudential norms issued by Reserve Bank of India.

4. The balances shown under Loans and Advances, Current Assets, Sundry Creditors and other Current Liabilities are subject to confirmation.

5. In the opinion of the management, the current assets, loans and advances are expected to realize at least the amount at which they are stated, if realized in the ordinary course of business and provision for all known liabilities have been adequately made in the accounts.

6. Disclosure of Sundry Creditors under current liabilities is based on the information available with the Company regarding the status of the suppliers as defined under the "Micro, Small and Medium Enterprises Development Act, 2006" and relied upon by the Auditors.


Mar 31, 2008

1. Contingent Liability not provided for on account of Demand from Sales Tax Department disputed and pending in appeal to the extent of Rs.1,61,394 (previous year Rs. 1,61,394)

2. Plant and Machinery given on lease includes Equipment costing Rs.45.21 Lakhs (previous year Rs. 129.00 Lakhs) in respect of which leases have expired or otherwise terminated. The Company is in the process of calling back and taking possession of the same.

3. In the opinion of the management, the Current Assets, Loans and Advances are expected to realise at least the amount at which they are stated, if realised in the ordinary course of business and provision for all known liabilities have been adequately made in the accounts.

4. The Management has initiated steps to evaluate the quality, of all its receivables as at the year-end and found all of them to be standard and there are no Non-performing Assets in accordance with the prudential norms issued by Reserve Bank of India.

5. Disclosure of Sundry creditors under current liabilities is based on the information available with the Company regarding the status of the suppliers as defined under the "Micro, small and medium Enterprises Development Act, 2006," During the year the Company has paid no interest in terms of section 16 of the said Act.

6. INVESTMENTS:

a) 250 Equity shares of AP Mahesh Co-operative Urban Bank Limited costing Rs. 5000/- are held in the name of Sri. K. Harishchandra Prasad, Managing Director of the Company.

b) 700 Equity Shares of L-Pack Polymers Ltd., are held in the name of Nominees.

7. Balances under receivables and payables are subject to confirmation.

8. The following are the details of the transactions with related parties as required to be disclosed as per the Accounting Standard 18:

9. The Companys operations predominantly relate to only one Segment i.e., Investment in Mutual Funds and Equity Shares. Hence, there are no other reportable segments as per Accounting Standard (AS 17) issued by the Institute of Chartered Accountants of India.

10. As required by Accounting Standard (AS 28) "Impairment of Assets" issued by the Institute of Chartered Accountants of India, the Management has carried out the assessment of Impairment of assets and no Impairment loss has been recognized during the year.

11. The other particulars as required under Part-II, Schedule VI to the Companies Act, 1956 are not given, as they are not applicable to the Company for the time being.

12. Previous years figures have been regrouped and reclassified wherever necessary to make them comparable with current years figures.


Mar 31, 2000

1. Contingent Liabilities not provided for on account of:

Current Previous year year Rs. Rs.

i) Demand from Income Tax Department disputed and pending in appeal to the extent of 42,83,903 34,14,630

ii) Liability on partly paidup equity shares 1,29,711 1,14,017

2. Plant and Machinery shown under Fixed Assets are given on hire to the subsidiary company "L-PACK POLYMERS LIMITED" on job work basis.

3. Plant and Machinery given on lease includes Equipment costing Rs.418.23 Lakhs in respect of which leases are expired or otherwise terminated. The Company is in the process of calling back and taking possession of the same.

4. The Company has terminated two lease contracts during the year. The future instalments of lease rentals in respect of these leases are about Rs.13.74 Lakhs.

5. During the Financial Year 1999-2000 assets to the extent of Rs.2.64 Lakhs (Previous Year 105.43 Lakhs) have been identified as sub-standard in accordance with the prudential norms issued by Reserve Bank of India and accordingly provisioning for Non-Performing Assets and derecognition of income has been made in the accounts.

6. The Companys appeal against the Block Assessment order for the Block period, 1.1.1986 to 17.10.1996 is pending before the Income tax Appellate Authorities in respect of the disputed tax demand of Rs.2,02,49,233/-. The Board of Directors of the Company are of the opinion that there is a strong case in favour of the Company and for other reasons considered by the Board, no provision is considered necessary on account of the above tax demand.

7. INVESTMENTS:250 Equity shares of AP Mahesh Co-operative Urban Bank Limited costing Rs.5,000/- are held in the name of Sri.K Harishchandra Prasad, Managing Director of the Company.

8. Secured Loans Cash Credit

a) From The Federal Bank Limited is secured by hypothecation of specified leased assets and receivables thereon.

b) From Bank of Mahrashtra is secured by hypothecation of specified leased assets/HP agreements and receivables thereon. The above facility is also collaterally secured by pledge of Units of Unit Trust of India.

c) From Bank of Bahrain & Kuwait B.S.C., is secured by hypothecation of specified leased assets and receivables thereon. The above facility is also collaterally secured by pledge of units of Unit Trust of India.

The above Cash credits are also guaranteed by the Managing Director in his personal capacity.

9. Balances under receivables and payables are subject to confirmation.

10. The other particulars as required under Part-II, Schedule VI to the Companies Act, 1956 are not given as they are not applicable.

11. Previous years figures have been regrouped and reclassified wherever necessary to make them comparable with current years figures.

12. The Statement on significant accounting policies forms an integral part of financial statements.

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