Home  »  Company  »  Lambodhara Texti  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Lambodhara Textiles Ltd.

Mar 31, 2016

1. Term loan - II from State Bank of India is secured by first charge on entire assets created out of the term loan. Total outstanding as on 31.03.2016 is (Rs. ’000) 60543 (Previous year (Rs. ’000) Rs. 74043. Term Loan - II is payable in 84 installments commencing from October 2013. Last installment is due in September 2020.

2. FCNRB Term loan III from State Bank of India is secured by first charge on entire assets created out of the term loan. Total outstanding as on 31.03.2016 is (Rs. ’000) 104994 (Previous year (Rs. ’000) Rs. Nil. Term Loan - III is payable in 106 installments commencing from April 2017. Last installment is due in January 2026.

3. Term loan - I from Bank of India is secured by First charge on Windmill and Windmill Land. Total outstanding as on 31.03.2016 is (Rs. ’000) 4554 (Previous year (Rs. ’000) 53250). Term Loan is payable in 108 installments commencing from March 2013. Last installment is due in Feb 2022.

3.5 Term loan - II from Bank of India is secured by first charge on entire assets created out of the term loan. Total outstanding as on 31.03.2016 is (Rs. ’000) 21553 (Previous year (Rs. ’000) 25500. Term Loan - II is payable in 84 monthly installments commencing from April 2015. Last installment is due in Mar 2022.

4. Term loan - III from Bank of India is secured by Residential apartment purchased out of term loan. Total outstanding as on 31.03.2016 is (Rs. ’000) 6730 (Previous year (Rs. ’000) 7155. Term Loan - III is payable in 137 installments commencing from April 2014. Last installment is due in Aug 2025.

5. Term loan - IV from Bank of India is secured first charge on entire assets created out of term loan. Total outstanding as on 31.03.2016 is (Rs. ’000) 37471 (Previous year (Rs. ’000) Nil. Term Loan - IV is payable in 72 installments commencing from January 2016. Last installment is due in Dec 2022.

6. Two directors have given personal guarantee and one of them had given personal assets as security for the loan from State Bank of India and no Guarantee commission has been paid to any directors in this connection. Three directors have given personal guarantee and one of them had given personal assets as security for the loan from Bank of India and no Guarantee Commission has been paid to any directors in this connection. Details of pledge of shares held by directors for availing loan facilities for the company: The Managing director has pledged Rs. 11.24 lakhs shares of the company held by him as collateral security for the loan sanctioned by State Bank of India and Rs. 10.50 lakhs shares of the company held by him as collateral security for the loan sanctioned by Bank of India. Strikeright Integrated Services Limited has given Corporate Guarantee for State Bank of India loan and no Guarantee Commission has been paid. One of the director has given personal guarantee for the Residential property loan from Bank of India and no Guarantee Commission has been paid to the director in this connection.

7. Installments falling due in respect of all the above Loans up to 31.03.2017 have been grouped under “Current maturities of long-term debt” (Refer Note 6 (a))

8. Working capital facilities from State Bank of India is secured by first charge on entire current assets such as raw materials, SIP, finished goods, consumables, spares, stores and receivables and other current assets of the company on paripassu basis with other working capital lenders.

9. Bank of India has sanctioned working capital facilities against paripassu charge on the Inventories and book debts.

10. Remuneration paid to Whole time Director, Ms. Giulia Bosco is (Rs. ’000) 840 (Previous Year (Rs. ’000) 840).

Cash value of perquisites to Whole time Director, Ms. Giulia Bosco is (Rs. ’000) 131 (Previous year (Rs. ’000) 131)

11. Remuneration paid to Whole time Director, Mrs. Vimala. R is (Rs. ''000) 600 (Previous Year (Rs. ’000) 300).

12. Interest paid to Director Mr. Baba Chandrasekar is (Rs. ''000) 3064 (Previous year (Rs. ’000) 531)

13. i Polyester and Viscose purchase from Strikeright Integrated Services Limited., during the year for (Rs. ’000) 267796 (previous year (Rs. ’000) 190821)

14. Interest received from Strikeright Integrated Services Limited., during the year for (Rs. ’000) Nil (previous year (Rs.000) 1472)

15. During the year (Rs. ’000) Nil is paid as advance against purchase and (Rs. ’000) Nil is received back from Strike right Integrated Services Limited. (Previous year (Rs. ’000) 199957)

Strike right Intergrated Services Limited is a Company in which two whole time director and one Key Management person of Lambodhara Textiles Limited are directors.

16. i. During the year conversion charges of (Rs. ’000) 9 is paid to V.R. Textiles

Private Limited. (Previous year (Rs. ’000) 35259).

17. During the year (Rs. ’000) 6 is paid to V.R. Textiles Private Limited towards reimbursement of Expenses. (Previous year (Rs. ’000) 355)

V.R.Textiles Private Limited is related party to the director of the Company under shareholding clause.

18. In the opinion of the Board, Current Assets, Loans and Advances will fetch the amount stated, if realized in the normal course of the business.

19. The Other long term liabilities represents rent deposit received from parties on lease of properties.

20. There are no Micro and Small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at 31st March 2016. This information as required to be disclosed under the MSMED Act 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

21. Previous year''s figures have been regrouped wherever considered necessary.


Mar 31, 2015

Bank borrowings of term loan and working capital

1.1. TUFS Term loan - I from State Bank of India is secured by First charge on entire assets created out of the term loan, Factory Land and building. Total outstanding as on 31.03.2015 is (Rs. '000) 43750 (Previous year (Rs. '000) 66600). Term Loan - I is payable in 91 installments commencing from April 2009. Last installment is due in October 2016.

1.2 TUFS Term loan - II from State Bank of India is secured by First charge on entire assets created out of the term loan including Windmill land. Total outstanding as on 31.03.2015 is (Rs. '000) 90400 (Previous year (Rs. '000) Rs.95200). Term Loan - II is payable in 109 installments commencing from October 2011. Last installment is due in October 2020

1.3 TUFS Term loan - III from State Bank of India is secured by First charge on entire assets created out of the term loan. Total outstanding as on 31.03.2015 is (Rs. '000) 32711 (Previous year (Rs. '000) Rs. 41950. Term Loan - III is payable in 72 installments commencing from October 2012. Last installment is due in September 2018.

1.4 Term loan - IV from State Bank of India is secured by first charge on entire assets created out of the term loan. Total outstanding as on 31.03.2015 is (Rs. '000) 74043 (Previous year (Rs. '000) Rs. 87618. Term Loan - IV is payable in 84 installments commencing from October 2013. Last installment is due in September 2020.

1.5 Term loan - V from State Bank of India is secured by first charge on entire assets created out of the term loan. Total outstanding as on 31.03.2015 is (Rs. '000) 23715 (Previous year (Rs. '000) Rs. 27437. Term Loan - V is payable in 72 installments commencing from April 2014. Last installment is due in March 2020.

1.6 Term loan - VI from State Bank of India is secured by first charge on the land and proposed commericial-building at Coimbatore. Total outstanding as on 31.03.2015 is (Rs. '000) 27942 (Previous year (Rs. Rs.000) Rs.Nil. Term Loan - VI is payable in 72 installments commencing from April 2016. Last installment is due in March 2022.

1.7. Term loan - I from Bank of India is secured by First charge on Windmill and Windmill Land. Total outstanding as on 31.03.2015 is (Rs. '000) 53250 (Previous year (Rs. '000) Rs. 60954). Term Loan is payable in 108 installments commencing from March 2013. Last installment is due in Feb 2022.

1.8 Term loan - II from Bank of India is secured by first charge on entire assets created out of the term loan. Total outstanding as on 31.03.2015 is (Rs. '000) 25500 (Previous year (Rs. '000) Rs.1313. Term Loan - II is payable in 84 monthly installments commencing from April 2015, last installment is due on March 2022.

1.9. Term loan - III from Bank of India is secured by Residential appartment purchased out of term loan. Total outstanding as on 31.03.2015 is (Rs. '000) 7155 (Previous year (Rs. '000) RS. 7490. Term Loan is payable in 137 installments commencing from April 2014. Last installment is due in Aug 2025.

1.10. Two directors have given personal guarantee and one of them had given personal assets as security for the loan from State Bank of India and no Guarantee commission has been paid to any directors in this connection. Three directors have given personal guarantee and one of them had given personal assets as security for the loan from Bank of India and no Guarantee Commission has been paid to any directors in this connection. Details of pledge of shares held by directors for availing loan facilities for the company:The Managing director has pledged 5.62 lakh shares of the company held by him as collateral security for the loan sanctioned by State Bank of India and 5.25 lakh shares of the company held by him as collateral security for the loan sanctioned by Bank of India.Strikeright Integrated Services Limited has given Corporate Guarantee for State Bank of India loan and no Guarantee Commission has been paid. One of the director has given personal guarantee for the Residential property loan from Bank of India and no Guarantee Commission has been paid to the director in this connection.

1.11. Installments falling due in respect of all the above Loans upto 31.03.2016 have been grouped under "Current maturities of long-term debt" (Refer Note 6 (a))

2. Borrowing cost of (Rs. '000) 580 on State Bank of India Term loan is capitalized towards Building, Plant & machineries and other capital work-in-progress during the year.

3. During the year 2008-09, the real estate land which was a stock in trade with a value of (Rs. '000) 6399 was converted into fixed asset. The same was revalued for a value of (Rs. '000) 83300 resulting in a revaluation reserve of (Rs. '000) 76901.

4. Related party disclosures for the year ended 31st March 2015.

b) Remuneration paid to Managing Director, Mr. Santossh. R is (Rs. '000) 1069 (Previous Year (Rs. '000) 914).

c) Remuneration paid to Whole time Director, Ms. Giulia Bosco is (Rs. '000) 840 (Previous Year (Rs. '000) 840).

Cash value of perquisites to Whole time Director, Ms. Giulia Bosco is (Rs. '000) 131 (Previous year (Rs. '000) 131)

d) Remuneration paid to Whole time Director, Mrs. Vimala. R is ('000) 300 (Previous Year (Rs. '000) Nil).

e) i. Polyester and Viscose purchase from Strike right Integrated Services Limited., during the year for (Rs. '000) 190821 (previous year (Rs. '000) 151592)

ii. Interest received from Strike right Integrated Services Limited., during the year for ('000) 1472 (previous year ('000) Nil)

iii. During the year ('000) 199957 is paid as advance against purchase and ('000) 199957 is received back from Strike right Intergrated Services Limited. (Previous year ('000) Nil) Company in which two whole time director and one Key Management person of Lambodhara Textiles Limited are directors.

f) i. During the year conversion charges of ('000) 35259 is paid to V.R. Textiles Limited. (Previous year ('000) Nil).

iii. During the year ('000) 355 is paid to V.R. Textiles Limited towards reimbursement of Expenses. (Previous year ('000) Nil)

One of the relative of Managing director is a director in V.R.Textiles Limited.

g) During the year ('000) 600 is paid as salary to one Key Management person

Mr. Ramesh Shenoy (CFO) (Previous year (Rs.540)

5. In the opinion of the Board, Current Assets, Loans and Advances will fetch the amount stated, if realised in the normal course of the business.

6. There are no Micro and Small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at 31st March 2015. This information as required to be disclosed under the MSMED Act 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

7. Previous year's figures have been regrouped wherever considered necessary.


Mar 31, 2014

NOTE 1 - LONG TERM BORROWINGS

Bank borrowings of term loan and working capital

1.1. TUFS Term loan - I from State Bank of India is secured by First charge on entire assets created out of the term loan, Factory Land and building. Total outstanding as on 31.03.2014 is (Rs. ''000) 66600 (Previous year (Rs. ''000) 83100). Term Loan - I is payable in 91 installments commencing from April 2009. Last installment is due in October 2016.

1.2 TUFS Term loan - II from State Bank of India is secured by First charge on entire assets created out of the term loan including Windmill land. Total outstanding as on 31.03.2014 is (Rs. ''000) 95200 (Previous year (''000) Rs. 99900). Term Loan - II is payable in 109 installments commencing from October 2011. Last installment is due in October 2021.

1.3 TUFS Term loan - III from State Bank of India is secured by First charge on entire assets created out of the term loan. Total outstanding as on 31.03.2014 is (Rs. ''000) 41950 (Previous year (''000) Rs. 51190. Term Loan - III is payable in 72 installments commencing from October 2012. Last installment is due in September 2018.

1.4 Term loan - IV from State Bank of India is secured by first charge on entire assets created out of the term loan. Total outstanding as on 31.03.2014 is (Rs. ''000) 87618 (Previous year (''000) Rs. 84073. Term Loan - IV is payable in 84 installments commencing from October 2013. Last installment is due in September 2020.

1.5 Term loan - V from State Bank of India is secured by first charge on entire assets created out of the term loan. Total outstanding as on 31.03.2014 is (Rs. ''000) 27437 (Previous year (Rs.000) Rs.Nil. Term Loan - V is payable in 72 installments commencing from April 2014. Last installment is due in March 2020.

1.6. Term loan - I from Bank of India is secured by First charge on Windmill and Windmill Land. Total outstanding as on 31.03.2014 is (Rs. ''000) 60954 (Previous year (''000) Rs. 68658). Term

Loan I is payable in 108 installments commencing from March 2013. Last installment is due in Feb 2022.

1.7 Term loan - II from Bank of India is secured by first charge on entire assets created out of the term loan. Total outstanding as on 31.03.2014 is (Rs. ''000) 1313 (Previous year (''000) Rs.Nil. Term Loan - II is payable in 84 monthly installments commencing from 1 year after final disbursement.

1.8 Term loan - III from Bank of India is secured by Residential appartment purchased out of term loan. Total outstanding as on 31.03.2014 is (Rs. ''000) 7490 (Previous year Rs. Nil). Term Loan is payable in 137 installments commencing from April 2014. Last installment is due in Aug 2025

1.9 Two Directors have given personal guarantee and one of them had given personal assets as security for the loan from State Bank of India and no Guarantee commission has been paid to any directors in this connection. Three Directors have given personal guarantee and one of them had given personal assets as security for the loan from Bank of India and no Guarantee Commission has been paid to any Directors in this connection. Details of pledge of shares held by directors for availing loan facilities for the Company:The Managing Director has pledged 5.62 lakh shares of the Company held by him as collateral security for the loan sanctioned by State Bank of India and 5.25 lakh shares of the company held by him as collateral security for the loan sanctioned by Bank of India. Strikeright Integrated Services Limited has to give Corporated Guarantee for State Bank of India loan and no Guarantee Commission has been paid.One of the Director has given personal guarantee for the Residential property loan from Bank of India and no Guarantee Commission has been paid to the Director in this connection.

1.10 Installments falling due in respect of all the above Loans upto 31.03.2015 have been grouped under "Current maturities of long-term debt" (Refer Note 6 (a))

NOTE 2 - SHORT TERM BORROWINGS

1. Working capital facilities from State Bank of India is secured by first charge on entire current assets such as raw materials, SIP, finished goods, consumables, spares, stores and receivables and other current assets of the company on paripassu basis with other working capital lenders.

2. Bank of India has sanctioned working capital facilites against paripassu charge on the Inventories and book debts.

NOTE 3 - LONG TERM BORROWINGS

Bank borrowings of term loan and working capital

3.1. TUFS Term loan - I from State Bank of India is secured by First charge on entire assets created out of the term loan, Factory Land and building. Total outstanding as on 31.03.2014 is (Rs. ''000) 66600 (Previous year (Rs. ''000) 83100). Term Loan - I is payable in 91 installments commencing from April 2009. Last installment is due in October 2016.

3.2 TUFS Term loan - II from State Bank of India is secured by First charge on entire assets created out of the term loan including Windmill land. Total outstanding as on 31.03.2014 is (Rs. ''000) 95200 (Previous year (''000) Rs. 99900). Term Loan - II is payable in 109 installments commencing from October 2011. Last installment is due in October 2021.

3.3 TUFS Term loan - III from State Bank of India is secured by First charge on entire assets created out of the term loan. Total outstanding as on 31.03.2014 is (Rs. ''000) 41950 (Previous year (''000) Rs. 51190. Term Loan - III is payable in 72 installments commencing from October 2012. Last installment is due in September 2018.

3.4 Term loan - IV from State Bank of India is secured by first charge on entire assets created out of the term loan. Total outstanding as on 31.03.2014 is (Rs. ''000) 87618 (Previous year (''000) Rs. 84073. Term Loan - IV is payable in 84 installments commencing from October 2013. Last installment is due in September 2020.

3.5 Term loan - V from State Bank of India is secured by first charge on entire assets created out of the term loan. Total outstanding as on 31.03.2014 is (Rs. ''000) 27437 (Previous year (Rs.000) Rs.Nil. Term Loan - V is payable in 72 installments commencing from April 2014. Last installment is due in March 2020.

3.6. Term loan - I from Bank of India is secured by First charge on Windmill and Windmill Land. Total outstanding as on 31.03.2014 is (Rs. ''000) 60954 (Previous year (''000) Rs. 68658). Term

Loan I is payable in 108 installments commencing from March 2013. Last installment is due in Feb 2022.

3.7 Term loan - II from Bank of India is secured by first charge on entire assets created out of the term loan. Total outstanding as on 31.03.2014 is (Rs. ''000) 1313 (Previous year (''000) Rs.Nil. Term Loan - II is payable in 84 monthly installments commencing from 1 year after final disbursement.

3.8 Term loan - III from Bank of India is secured by Residential appartment purchased out of term loan. Total outstanding as on 31.03.2014 is (Rs. ''000) 7490 (Previous year Rs. Nil). Term Loan is payable in 137 installments commencing from April 2014. Last installment is due in Aug 2025

3.9 Two Directors have given personal guarantee and one of them had given personal assets as security for the loan from State Bank of India and no Guarantee commission has been paid to any directors in this connection. Three Directors have given personal guarantee and one of them had given personal assets as security for the loan from Bank of India and no Guarantee Commission has been paid to any Directors in this connection. Details of pledge of shares held by directors for availing loan facilities for the Company:The Managing Director has pledged 5.62 lakh shares of the Company held by him as collateral security for the loan sanctioned by State Bank of India and 5.25 lakh shares of the company held by him as collateral security for the loan sanctioned by Bank of India. Strikeright Integrated Services Limited has to give Corporated Guarantee for State Bank of India loan and no Guarantee Commission has been paid.One of the Director has given personal guarantee for the Residential property loan from Bank of India and no Guarantee Commission has been paid to the Director in this connection.

3.10 Installments falling due in respect of all the above Loans upto 31.03.2015 have been grouped under "Current maturities of long-term debt" (Refer Note 6 (a))

NOTE 5 - SHORT TERM BORROWINGS

1. Working capital facilities from State Bank of India is secured by first charge on entire current assets such as raw materials, SIP, finished goods, consumables, spares, stores and receivables and other current assets of the company on paripassu basis with other working capital lenders.

2. Bank of India has sanctioned working capital facilites against paripassu charge on the Inventories and book debts.

I. SIGNIFICANT ACCOUNTING POLICIES

a. i) Basis of Accounting :

These financial statements have been prepared to comply with Accounting Principles Generally accepted in India (Indian GAAP), the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. The financial statements are prepared on accrual basis under the historical cost convention, except for certain fixed assets which are carried at revalued amounts. The financial statements are presented in Indian rupees rounded off to the nearest rupees in thousands.

ii) Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of income and expenses during the period.

iii) Current / Non Current Classification

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/ non-current classification of assets and liabilities.

iv) Revenue recognition

Revenue from sale of goods is recognised when all the significant risks and rewards of ownership in the goods are transferred to the buyer as per the terms of the contract, the Company retains no effective control of the goods transferred to a degree usually associated with ownership and no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods. Sales are recognised net of trade discounts, rebates, sales taxes and excise duties (on goods manufactured and outsourced).

Income from export incentives such as duty drawback and premium on sale of import licenses, and lease license fee are recognised on accrual basis.

Income from services rendered is recognised based on agreements/ arrangements with the customers as the service is performed using the proportionate completion method when no significant uncertainty exists regarding the amount of the consideration that will be derived from rendering the service and is recognised net of service tax, as applicable.

Interest on investments is recognized on a time proportion basis taking into account the amounts invested and the rate of interest.

Dividend income on investments is recognized when the right to receive dividend is established.

b. Fixed Assets and Depreciation :

Tangible Assets

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated depreciation and impairment loss, if any. The cost of tangible assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.

Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Projects under which assets are not ready for their intended use are shown as Capital Work-in-Progress.

Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization /depletion and impairment loss, if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition for the intended use and net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets.

Depreciation

Depreciation on fixed assets is provided on straight-line basis at the rates specified in Schedule XIV of the Companies Act 1956. In respect of assets costing less than Rs.5,000/- the policy of the Company is to charge depreciation at 100% on Prorata basis to the period of use.

c. Investments

Current investments are carried at lower of cost and quoted / fair value, computed category-wise. Long term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

d. Inventory valuation

Inventories are valued as follows :

i) Raw materials, materials in process, finished goods and Goods for Trade are valued at Cost or Net Realizable Value, whichever is lower.

ii) Stores, Spares, Etc., are valued, either at Cost or at Cost less amounts written off.

iii) Goods in transit are valued at cost to date.

iv) ''Cost'' comprises all cost of purchase, costs of conversion and other costs incurred in bringing the inventory to their present location and condition. Cost formula used is ''First in First Out'' as applicable.

e. Value Added Tax:

The value added tax is accounted for by reducing the Purchase cost of the related items.

f. Retirement Benefits:

1. Provident fund is accounted on accrual basis with contribution to recognized funds.

2. Leave encashment benefit are paid annually as per the policy of the company.

3. Gratuity liability has been provided in the books of accounts as per the actuarial valuation certificate provided by Consulting Actuary.

g. Borrowing Cost :

a) Borrowing costs that are directly attributable to the acquisition / construction of a qualifying asset are capitalized as part of the cost of that asset till the time it is ready to put to use.

b) All other Borrowing costs are recognized as expenditure during the period in which these are incurred.

h. Taxes on income :

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/ period. Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognised if there is virtual certainty that sufficient future taxable income will be available to realise the same.

Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

i. Foreign currency Transactions

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the statement of profit and loss.

Foreign currency monetary assets and liabilities (other than those covered by forward contracts) as on the balance sheet date are revalued in the accounts on the basis of exchange rates prevailing at the balance sheet date and exchange difference arising there from is charged to Statement of Profit & Loss

In the case of transactions covered by forward contracts, the difference between the contract rate and the exchange rate prevailing on the date of transaction is charged to profit & loss Account, proportionately over the contract period. Exchange differences on such contracts are recognized in the statement of Profit & Loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expenses for the year.

j. Earnings per share:

Earnings per share is calculated by dividing the net profit for the year attributable to equity shareholders by weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net Profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

k. Cash Flow Statement :

The cash Flow statement is prepared by the indirect method set out in Accounting Standard 3 on cash flow statement and presents cashflows by operating, investing and financing activities of the Company.

Cash and cash equivalents presented in the cash flow statement consists of cash on hand and demand deposits with banks as on the balance sheet date.

l. Trade receivables and Loans and Advances

Trade receivables and Loans and advances are stated after making adequate provisions for doubtful balances.

m. Operating lease:

Operating lease payments are recognized as expenditure in the Statement of Profit & Loss on a straight line basis, which is representative of the time pattern of benefits received from the use of assets taken on lease.

n. Provisions, Contingent Liabilities and Contingent Assets.

Provision is recognised in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.

Contingent assets are neither recognised nor disclosed in the financial statements.

o. Impairment

a) The Carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

b) After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

c) A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there no impairment.

p. Government Grants

The company recognizes government grants only when there is reasonable assurance that the conditions attached to them shall be complied with and the grants will be received. Grants relating to specific fixed assets are shown as deduction from the gross value of the assets. Grants related to revenue is recognized as income over the periods necessary to match the grant on a systematic basis to the costs that it is intended to compensate. The capital grants towards promoters contribution is recognized as capital reserve.

II. OTHER NOTES

1. Estimated value of contract remaining to be executed on Capital Account is (Rs. ''000) 51588 (Previous Year (Rs.''000) 9905).

2. Details of contingent liabilities 31.03.2014 31.03.2013

i. Employees'' State Insurance Corporation 563 563 demand, Appeal before the Employee Insurance Court.

ii. Dispute on outstanding balance against 1234 1234 the lease finance and hire purchase, the case is before the High court of Karnataka

iii.Cross Subsidy surcharge to TNGDCL 2239 Nil

3. Borrowing cost of (Rs. ''000) 580 on State Bank of India Term loan is capitalized towards Building, Plant & machineries and other capital work-in-progress during the year.

4. In accordance with the revised Accounting Standard – 15 details are given below which is certified by the actuary and relied upon by the auditors and the company has provided the liability in accounts, to meet its liability from internal generation.

5. Related party disclosures for the year ended 31st March 2014.

b) Remuneration paid to Managing Director, Mr. Santossh. R is (Rs. ''000) 914 (Previous Year (Rs. ''000) 911).

c) Remuneration paid to Whole time Director, Ms.Giulia Bosco is (Rs. ''000) 840 (Previous Year (Rs. ''000) 660).

d) Cash value of perquisites to Whole time Director, Ms. Giulia Bosco is (Rs. ''000) 144 (Previous year (Rs. ''000) 69)

e) Remuneration paid to Whole time Director, Ms. Vimala. R is (Rs.) Nil (Previous Year (Rs. ''000) 180).

f) i. Polyester and Viscose purchase from Strikeright Integrated Services Limited., during the year for (Rs. ''000) 151592 (previous year (Rs. ''000) 25054) Company in which One Whole time Director and one Director of Lambodhara Textiles Limited are Directors.

6. In the opinion of the Board, Current Assets, Loans and Advances will fetch the amount stated, if realised in the normal course of the business.

7. There are no Micro and Small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at 31st March 2014. This information as required to be disclosed under the MSMED Act 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

8. Previous year''s figures have been regrouped wherever considered necessary.


Mar 31, 2013

1. Estimated value of contract remaining to be executed on Capital Account is (Rs.OOO) 9905 [Previous Year (Rs.OOO) 8187]

2. Details of contingent liabilities 31.03.2013 31.03.2012 (Rs. OOO) (Rs. OOO)

i. Employees'' State Insurance Corporation demand, 758 758 the case is before the Employee Insurance Court.

ii. Dispute on outstanding balance against 1234 1234 the lease finance and hire purchase, the case is before the High court of Karnataka

3. Borrowing cost of (Rs.''000) 1957 on State Bank of India Term loan and (Rs.''000) 362 on Kotak Mahindra Bank is capitalized towards Building, Plant & machineries and other capital work-in-progress during the year. Further (Rs.''000) 344 being exchange fluctuation gain on import of machinery is reduced in the cost of the machinery capitalized.

During the year 2008-09, the real estate land which was a stock in trade with a value of Rs. (Rs.''000) Rs.6399 was converted into fixed asset. The same was revalued for a value of (Rs.''000) Rs.83300 resulting in a revaluation reserve of (Rs.''000) 76901.

4. Vehicles in the Fixed Assets of the Company include two Trax Jeeps, tractor and a Innova Car purchased in the name of a director valuing (Rs.''000) 2831.

5. In the opinion of the Board, Current Assets, Loans and Advances will fetch the amount stated, if realised in the normal course of the business.

6. There are no Micro and Small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at 31st March 2013. This information as required to be disclosed under the'' MSMED Act 2006 has been determined to the extent such parties have been identified on the basis of information available with the company,

7. Previous year''s figures have been regrouped wherever considered necessary.


Mar 31, 2012

Bank borrowings of term loan and working capital

1.1 TUFS Term Loan-I from State Bank of India is secured by first charge on Factory Land, and building and other assets purchased out of the term loan. Total outstanding as on 31.03.2012 is (Rs.'000) 3016 [Previous year (Rs.'000) 6387], Term Loan-I is payable in 78 installments commencing from April 2007. Last installment is due in September 2013.

1.2 TUFS Term Loan-ll from State Bank of India is secured by first charge on entire assets created out of the term loan, Factory Land and building. Total outstanding as on 31.03.2012 is (Rs.'000) 96300 [Previous year (Rs.'000) 109150]. Term Loan-ll is payable in 91 installments commensing from April 2009. Last installment is due in October 2016.

1.3 TUFS Term Loan-Ill from State Bank of India is secured by first charge on entire assets created out of the term loan including wind mill land. Total outstanding as on 31.03.2012 is (Rs.'000) 103500 [Previous year (Rs.'000) 69533]. Term Loan-Ill is payable in 109 installments commensing from October 2011. Last installment is due in October 2021.

1.4 TUFS Term Loan-IV from State Bank of India is secured by first charge on entire assets created out of the term loan. Total outstanding as on 31.03.2012 is (Rs.'000) 40069 [Previous year Rs.Nil]. Term Loan-IV is payable in 72 installments commensing from October 2012. Lat installment is due in September 2018.

1.5 Term loan from Bank of India is secured by first charge on Windmill and Windmill Land. Total outstanding as on 31.03.2012 is (Rs.'000) 69300 [Previous year Rs.Nil]. Term loan is payable in 108 installments commencing from March 2013. Last installment is due in Feb 2022.

1.6 Term loan from Kotak Mahindra Bank is secured by Residential Appartment purchased out of term loan. Total outstanding as on 31.03.2012 is (Rs.'000) 8285 [Previous year (Rs.'000) 8361). Term loan is payable in 240 installments commencing from August 2010. Last installment is due in August 2030.

1.7 Two directors have given personal guarantee and one of them had given personal assets as security for the loan from State Bank of India and no Guarantee Commission has been paid to any directors in this connection.

Three directors have given personal guarantee and one of them had given personal assets as security for the loan from Bank of India and no Guarantee commission has been paid to any directors in this connection.

Details of pledge of shares held by directors for availing loan facilities for the company:

The Managing director has pledged 4.62 lakh shares of the company held by him as collateral security for the loan sanctioned by State Bank of India and 5.25 lakh shares of the company held by him as collateral security for the loan sanctioned by Bank of India.

1.8 Installments falling due in respect of all the above Loans upto 31.03.2013 have been grouped under "Current maturities of long-term debt" [Refer Note 7(a)]

1. Working capital facilities from State Bank of India is secured by first charge on entire current assets such as raw materials, SIP, finished goods, receivables, stores, spares, consumables and other current assets.

2. Bank of India has sanctioned working capital facilities against paripassu charges on the inventories and book debts and same is yet to be utilised.

II. OTHER NOTES

1. Estimated value of contract remaining to be executed on Capital Account is (Rs.000) 8187 [Previous Year (Rs.000) 35690]

2. Details of contingent liabilities 31.03.2012 31.03.2011 (Rs.000) (Rs.000)

i. Employees' State Insurance Corporation demand, the case is before the Employee Insurance Court. 758 758

ii. Reassessment pending with DCIT (Asst. Year 05-06) 771 771

iii. Dispute on outstanding balance against the lease finance and hire purchase, the case is before the High court of Karnataka 1234 1234

iv. Letter of credit given to supplier Nil 19877

3. Borrowing cost of (Rs.000) 1356 on State Bank of India Term loan (Rs.000) 999 on Bank of India Term Loan and (Rs.000) 1018 on Kotak Mahindra Bank is capitalized towards Building, Plant & machineries and other capital work-in-progress during the year. Further (Rs.'000) 1511 being exchange fluctuation gain on import of machinery is reduced in the cost of the machinery capitalized.

During the year 2008-09, the real estate land which was a stock in trade with a value of (Rs.'000) Rs.6399 was converted into fixed asset. The same was revalued for a value of (Rs.'000) Rs.83300 resulting in a revaluation reserve of (Rs.'000) Rs.76901.

4. In accordance with the revised Accounting Standard - 15 details are given below which is certified by the actuary and relied upon by the auditors and the company has provided the liability in accounts, to meet its liability from internal generation.

a) Remuneration paid to Managing Director, Mr.Santossh.R. is (Rs.'000) 910 [Previous Year (Rs.'000) 907].

b) Remuneration paid to Whole Time Director, Ms.Giulia Bosco is (Rs.'000) 600 [Previous Year (Rs.'000) 570].

c) Remuneration paid to Whole Time Director, Ms.Vimala.R. is (Rs.000) 240 [Previous Year (Rs.'000) 240].

d) i. Cotton sales to M/s.V.R. Textiles Private Ltd., during the year for (Rs.'000) 3952 [Previous Year (Rs.'000) 36352],

ii. Yarn purchase from M/s.V.R. Textiles Private Ltd., during the year for (Rs.'000) Nil [Previous year (Rs.'000) 6632].

iii. Polyester purchase from M/s.V.R. Textiles Private Ltd., during the year for (Rs.Q00) 7662 [Previous year (Rs.'000) Nil].

(The Managing Director and one of the Whole Time Director are the Directors' of the above company)

e) Polyester purchase from M/s.Strikeright Integrated Services Limited., during the year for (Rs.'000) 5696 [previous year (Rs.'000) Nil].

Company in which Managing Director and other two directors of M/s.Lambodhara Textiles Limited are directors.

g) Interest paid to Mr. Santossh.R Managing Director is (Rs.'000) Nil [Previous year (T000) 220] [TDS (Rs.'000) 22].

5. Vehicles in the Fixed Assets of the Company include two Trax Jeeps, tractor and a Innova Car purchased in the name of a director valuing (Rs.'000) 2831.

6. In the opinion of the Board, Current Assets, Loans and Advances will fetch the amount stated, if realised in the normal course of the business.

8. There are no Micro and Small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at 31st March 2012. This information as required to be disclosed under the MSMED Act 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

9. Previous year's figures have been regrouped wherever considered necessary.


Mar 31, 2011

1. Estimated value of contract remaining to be executed on Capital Account (net of advances) is Rs. 3,56,90,204 (Previous Year Rs. 97,64,597).

2. Details of contingent liabilities 31.03.2011 31.03.2010

i. Employees State Insurance Corporation 7,57,748 7,57,748 demand, the case is before the Employee Insurance Court.

ii. Reassessment pending with DCIT 7,70,884 9,88,139 (Asst. Year 05-06)

iii. Dispute on outstanding balance against 12,34,325 12,34,325 the lease finance and hire purchase, the case is before the High court of Karnataka

iv. Letter of credit given to supplier 1,98,77,324 Nil

5. Two directors have given personal guarantee and one of them had given personal assets as security for the loan from State Bank of India and no Guarantee Commission has been paid to any director in this connection.

Details of pledge of shares held by Directors for availing loan facilities for the company:

The Managing Director has pledged 4.62 lakh shares of the company held by him as collateral security for the loan sanctioned by SBI.

6. Loans from State Bank of India

Existing facilities available with the State Bank of India as on 31st March 2011 has the first charge on land, building, plant & machinery and the stock-in-trade of the Company as security for the working capital credit facilities and term loans.

7. Borrowing cost of Rs. 12,77,622 on State Bank of India Term loan, and Rs. 5,50,652 on Kotak Mahindra Bank is capitalized towards Building, Plant & machineries and other capital work-in-progress during the year.

8. The Company is engaged in agricultural operations. The expenditure incurred on the agricultural operations is deferred and will be charged on realisation of the produce. The company has sold its agriculture land and standing crops during the year and the deferred cost is adjusted fully.

9. Segment Reporting as at 31st March 2011.

The Company is having the main business of textiles and the other businesses are real estate, agriculture and Windmill. With regard to agricultural operations during the year, the company has incurred an expense of Rs. 13,189/- and has earned an income of Rs. 12,50,108 which includes sales of crops which are adjusted against agricultural expenses as referred in Note 8 above. There is no operation on real estate business during the year. With regard to Windmill Operation, Company has earned an income of Rs. 19,656.

During the year 08-09, the real estate which was a stock in trade with a value of Rs. 63,99,334 was converted into fixed asset. The same was revalued for a value of Rs. 8,33,00,000 resulting in a revaluation reserve of Rs. 7,69,00,666.

10. In accordance with the revised Accounting Standard - 15 details are given below which is certified by the actuary and relied upon by the auditors and the company has provided the liability in accounts, to meet its liability from internal generation.

11. Related party disclosures for the year ended 31st March 2011.

b) Remuneration paid to Managing Director, Mr.Santossh.R. is Rs. 9,06,630/- (Previous Year Rs. 9,06,629/-).

c) Remuneration paid to Whole Time Director, Ms.Giulia Bosco is Rs. 5,70,000/- (Previous Year Rs. 2,40,000).

d) Remuneration paid to Whole Time Director, Ms.Vimala.R. is Rs. 2,40,000/- (Previous Year Rs. 2,40,000).

e) i. Cotton sales to V.R. Textiles Private Ltd., during the year for Rs. 3,63,51,982/- (Previous Year Rs. 3,43,83,074/-).

ii. Yarn purchase from V.R. Textiles Private Ltd., during the year for Rs. 66,32,449/- (Previousyear Rs. Nil)

(The Managing Director and one of the Whole Time Director are the Directors of the above company)

f) Interest paid to Mr. Santossh.R Managing Director is Rs. 2,20,169 (TDS Rs. 22017) (Previous year Rs. Nil)

18. Vehicles in the Fixed Assets of the Company include two Trax Jeeps and a tractor purchased in the name of a director valuing Rs.13,21,067.

19. In the opinion of the Board, Current Assets, Loans and Advances will fetch the amount stated, if realised in the normal course of the business.

20. There are no Micro and Small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at 31st March 2010. This information as required to be disclosed under the MSMED Act 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

21. Previous years figures have been regrouped wherever considered necessary.


Mar 31, 2010

Other Notes

1. Estimated value of contract remaining to be executed on Capital Account is Rs.97,64,597 (Previous Year Rs.Nil).

2. Two directors have given personal guarantee and one of them had given personal assets as security for the loan from State Bank of India and no Guarantee commission has been paid to any director in this connection.

Details of pledge of shares held by Directors for availing loan facilities for the company:

The Managing Director has pledged 4.62 lakh shares of the company held by him as collateral security, and based on this collateral security, the company has availed working capital facility of Rs.7.34 crores, Foreign Currency Demand Loan of Rs.8.16 crores and Term Loan of Rs.17.60 crores from State Bank of India, Commercial Branch, Tirupur.

3. Loans from State Bank of India Existing facilities available with the State Bank of India as on 31st March 2010 has the first charge on land, building, plant & machinery and the stock-in-trade of the Company as security for the working capital credit facilities and term loans.

4. Borrowing cost of Rs.10,18,361/- on State Bank of India Term loan, is capitalized towards Building, Plant & machineries and other capital work-in-progress during the year.

5. The Company is engaged in agricultural operations. The expenditure incurred on the agricultural operations is deferred and will be charged on realisation of the produce.

6. Segment Reporting as at 31st March 2010. The Company is having the main business of textiles and the other businesses are real estate and agricultural operations. With regard to agricultural operations during the year, the company has incurred an expense of Rs.60,032/- and has earned an income of Rs.1,52,230/- which are adjusted against agricultural expenses as referred in Note 7 above. There is no operation on real estate business during the year.

7. Vehicles in the Fixed Assets of the Company include, two Trax Jeeps, One car and a Tractor purchased in the name of a director valuing Rs. 24,46,804/-

8. In the opinion of the Board, Current Assets, Loans and Advances will fetch the amount stated, if realised in the normal course of the business.

9. There are no Micro and Small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at 31s1 March 2010. This information as required to be disclosed under the MSMED Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

10. Previous years figures have been regrouped wherever considered necessary.

Find IFSC