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

Notes to Accounts of VTX Industries Ltd.

Mar 31, 2014

1. Share Capital

The terms/ rights attached to Equity Shares:

The company has only one class of Equity Shares having par value of Rs. 10/- per share. Each holder of Equity Shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees.

During the year ended 31st March, 2014, the amount of per share dividend recognised as distributions to equity shareholders was Nil (31st March, 2013 : Rs. Nil).

In the event of liquidation of the company, the holders of the 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 share holders.

2. Long term Borrowing

(i) Term loan of Rs. 17,500 Lacs was obtained from a consortium of banks during the FY 2007-08. The amount is repayable in 32 quarterly equal instalments commencing from January 2010 to December 2017. The loan is secured by first charge on entire fixed assets of the company on paripassu basis. The period of default is 24 months (PY 12 months) and the amount of default is Rs. 3332.30 Lacs (PY Rs. 1197.20 Lacs) towards principal and Rs. 3076.17 Lacs (PY Rs. 1479.78 Lacs) towards interest.

(ii) The vehicle loan from bank consists of six loans.

Out of this six loans, four loans of 28.10 Lacs were obtained during FY 2010-11. The amount is repayable in 60 monthly instalments commencing from October 2010 to October 2015. The loans are secured by the respective vehicles purchased. The period of default is 3 months (PY 2 months) and the amount of default is Rs. 1.17 Lacs (PY Rs. 0.56 Lacs) towards principal and k 0.17 Lacs (PY Rs.0.14 Lacs) towards interest.

One loan of Rs. 25 Lacs was obtained during FY 2010-11. The amount is repayable in 60 monthly instalments commencing from September 2010 to August 2015. The loans is secured by the respective vehicle purchased. The period of default is NIL (PY 2 months) and the amount of default is NIL (PY Rs. 0.83 Lacs towards principal and Rs. 0.32 Lacs towards interest).

The balance one loan of Rs. 25 Lacs was obtained during FY 2010-11. The amount is repayable in 48 monthly instalments commencing from March 2011 to February 2015. The loan is secured by the respective vehicles purchased. The period of default is 2 months (PY 2 months) and the amount of default is Rs. 1.20 Lacs (PY Rs. 1.01 Lacs) towards principal and Rs. 0.19 Lacs (Rs. Rs.0.37 Lacs) towards interest.

(iii) The term loan of Rs. 170 Lacs is obtained from TIIC during the FY 2011-12. The loan is repayable in 48 monthly installments commencing from April 2012 to March 2016. The loan is secured by First Charge by way of Hypothecation of over all the movables , machinery, stores, tools & accessories etc, lying at SF No 49/1, 50/1, 51/1A, Valparai Main Road, Pilichinnampalayam Village, Samathur Post, Pollachi Taluk, Coimbatore District and Mortgage over all the piece and parcel of land measuring 1.70 acres at SF No 19/4, and land measuring 1.58 acres at SF No 19/5, situated at Kolarpatty Village, Pollachi Taluk, Coimbatore District, totally measuring 3.28 acres. The period of default is 22 months for principal (PY 10 months) and 5 months for interest (PY 10 months) and the amount of default is Rs. 77 Lacs (PY Rs. 35 Lacs) towards principal and Rs. 6.55 Lacs (PY Rs. 19.72 Lacs) towards interest.

3. Short term borrowings

(i) Working capital limits from consortium of banks is secured by entire stock of raw material, work in progress, finished goods and receivables on pari passu basis and also second charge on fixed assets of the company. These facilities are subject to renewal on early basis.

(ii) The Short term loan of Rs. 500 Lacs was obtained from a financial institution. The loan is repay- able in 24 monthly instalments. The loan is guaranteed by Mr.A.L.Ramachandra,Smtjayanthi Ramachandra and Seshraj Enterprises P Ltd. The period of default is 17 months (PY 11 months) for principal and interest and the amount of defalut is ? 287.76 Lacs (PY Rs. 187.38 Lacs) towards principal and Rs. 59.78 Lacs (PY Rs. 39.62 Lacs) towards interest.

4. Other Current Liablities

* The deposits from shareholders and public have matured and no Interest is payable on them. Unclaimed matured deposits worth Rs. 11.27 lakhs (from shareholders Rs. 1.68 lakhs and public Rs. 9.59 lakhs) (31st March, 2013 Rs. 11.27 lakhs).

The amount due and outstanding to be credited to Investors Education and Protection Fund and as at 31s1 March 2014 Rs. 12.08 lakhs (31s1 March, 2013 Rs. 6.78 lakhs).

5. Cash and Bank balances

* Margin money deposits with a carrying amount of Rs. 33.62 Lakhs (PY Rs. 69.21 Lakhs) are to secure the working capital facilities.

6. Contingent Liablility

31-03-2014 31-03-2013

i) Bank Guarantees 48.35 48.35

ii) Letter of Credit - 553.66

iii) Claim against company not acknowledged 303.04 111.78

7. The integrated operations of the Company are considered under a single broad segment viz., Textiles. These operations in the opinion of the management, in the context of AS 17 on "Segment Reporting" issued under the Companies (Accounting Standards) Rules 2006, constitute one single primary segment.

8. The information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of the information available with the company. There are no overdues to parties on account of principal amount and/or interest and accordingly no additional disclosures have been made.

9. In the opinion of the Board of Directors all Current Assets, Loans & Advances have a value on realization in the ordinary course of business of a sum at least equal to the amount at which they are stated and hence no provision is considered necessary in respect thereof.

10. Related party Disclosures for the year ended March 31, 2014

Related Party Relationships Name of Company/Personnel

Subsidiary Companies Vijayeswari USA LLC

Vijayeswari UK Ltd.

Associate Companies LAW Textile Park Pvt. Ltd.

Key Management Personnel Sri. A.L. Ramachandra, Chairman & Managing Director

Smt. Jayanthi Ramachandra, Managing Director

Relatives of Key Management

Personnel Smt. R.Mani

Entities in which Key Management Lakshmi Apparels & Wovens Limited

Personnel have significant Seshraj Apparels Private Limited

influence Seshraj Enterprises Private Limited

Lakshmi Functional Textiles Private Limited

VTX Design Services Private Limited

Coimbatore Lakshmi Investments & Finance Co. Limited

Kay Arr Enterprises

11. Defined Benefit Plan

The Company operates a defined benefit plan for payment of post employment benefits in the form of gratuity.

The benefits under the plan are based on pay and years of service and are vested on completion of five years of service, as provided for in the Payment of Gratuity Act, 1972. The terms of the benefits are common for all the employees of the Company.

12. The companies operating results continue to be materially affected by various factors like working capital liquidity, non delivery of goods on time, cancellation of order, SARFAESI proceedings initiated by Banks etc., The company has incurred net loss of Rs. 23696.51 lacs during the year ended 31st March 2014, and as of that date, the company''s total liabilities exceeded its total assets by Rs. 14417.02 lacs. The company is implementing various measures to improve the company''s operating results and cash flows. In addition, the company continues to explore various options to raise capital in order to meet its short term and long term obligations. The company is currently carrying out job work activities to utilize the capacity available. The company is also in the process of identifying potential investors to overcome the present financial situation. The company is also making necessary effort to recover the amount due to it. In view of the foregoing, the company''s financial statements have been prepared on a going concern basis whereby the realization of assets and discharge of liabilities are expected to occur in the normal course of business.

13. Balances in Trade Receivables, Other Current and Non Current Assets, Loans & Advances, Trade Payables, Other Current Liabilities and Long term and short term borrowings from Banks and financial institutions are subject to confirmation and reconciliation. In the opinion of tke. Management all assets and liabilities disclosed in the balance sheet would realize atleast to the extent stated therein.

14. Based on technical opinion the company classifies the plant and machinery of spinning and processing divisions and wind mills as continuous process plant and accordingly depreciation on these items is charged at rates applicable to continuous process plant under Schedule XIV to the Companies Act, 1956. Due to this technical opinion adopted, depreciation for the year is lower by Rs. 287.21 Lacs (Previous Year Rs. 488.01 Lacs) with consequential effect on the loss for the year.

15. During the past few years, due to working capital constrains, the company could not deliver the goods on time. Consequently major export customers of the company cancelled their orders. This resulted in stagnation of stock over the years which were in various stages like Work In Progress, Finished goods. The company could sell part of these goods locally at a very low margin/loss. Further, due to non availability of working capital facilities, the company could not convert the semi finished goods further. Consequently the stock lying at the year end has been valued at the net realizable value which has been disclosed as an extra-ordinary item.

16. Impairment Loss recognised in the Statement of Profit and Loss-NIL (PY- NIL).

17. Figures have been rounded off to the nearest Lacs.

18. The company has reclassified previous year figures to conform to this year''s classification.

19. The Ministry of Corporate Affairs, Government of India, vide circular No.2 and 3 dated 08.02.2011 and 21.02.2011 respectively has granted a general exemption from compliance with Sec 212 of the Companies Act, 1956, subject to fulfilment of confitions specified in the general circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.


Mar 31, 2013

1) Income Tax Assessment have been completed upto the AY 2010-2011

2) Contingent Liablility

31-03-2013 31-03-2012

i) Bank Guarantees 48.35 48.35

ii) Disputed Income tax Demands (Paid out of the above Rs. 30.54 Lakhs (Previous year Rs. 57.84 lakhs) 123.58 57.84

iii) Letter of Credit 553.66 905.36

iv) Bills discounted 2,979.75 1,889.83

v) Claim against company not acknowledged 111.78 -

3) The integrated operations of the Company are considered under a single broad segment viz., Textiles. These operations in the opinion of the management, in the context of AS 17 on "Segment Reporting" issued under the Companies (Accounting Standards) Rules 2006, constitute one single primary segment.

4) The information required to be disclosed under the Micro,Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of the information available with the company. There are no overdues to parties on account of principal amount and /or interest and accordingly no additional disclosures have been made.

5) In the opinion of the Board of Directors all Current Assets, Loans & Advances have a value on realization in the ordinary course of business of a sum at least equal to the amount at which they are stated and hence no provision is considered necessary in respect thereof.

6) Based on technical opinion the company classifies the plant and machinery of spinning and processing divisions and wind mills as continuous process plant and accordingly depreciation on these items is charged at rates applicable to continuous process plant under Schedule XIV to the Companies Act, 1956. Due to this technical opinion adopted, depreciation for the year is lower by Rs. 488.01 Lakhs (Previous Year Rs. 478.19 Lakhs) with consequential effect on the profits for the year.

7) Impairment Loss recognised in the Profit and Loss Account - NIL (PY- NIL).

8) Figures have been rounded off to the nearest Lakhs.

9) The Company has reclassified previous year figures to conform to this year''s classifications.

10) The Ministry of Corporate Affairs, Government of India, vide circular No.2 and 3 dated 08.02.2011 and 21.02.2011 respectively has granted a general exemption from specified with Sec. 212 of the Companies Act, 1956, subject to fulfilment of conditions stipulated in the general circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.


Mar 31, 2012

The terms/ rights attached to Equity Shares:

The company has only one class of Equity Shares having par value of Rs. 10/- per share. Each holder of Equity Shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees.

During the year ended 31st March, 2012, the amount of per share dividend recognised as distributions to equity shareholders was Nil (31st March, 2011 : Rs. 0.60)

In the event of liquidation of the company, the holders of the 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 share holders.

(i) Term loan of Rs. 17,500 Lakhs was obtained from a consortium of banks during the FY 2007-08. The amount is repayable in 32 quarterly equal instalments commencing from January 2010 to December 2017. The loan is secured by first charge on entire fixed assets of the company on paripassu basis. The period of default is 6 months for principal and amount is Rs. 863.94 Lakhs (PY 6 months Rs. 690.05 Lakhs) and in case of interest the period of default is 9 months and the amount is Rs. 830.78 Lakhs.

(ii) The vehicle loan from bank consists of six loans.

Out of this six loans, four loans of Rs. 28.10 Lakhs were obtained during FY 2010-11. The amount is repayable in 60 monthly instalments commencing from October 2010 to October 2015. The loans are secured by the respective vehicles purchased.

One loan of Rs. 25 Lakhs was obtained during FY 2010-11. The amount is repayable in 60 monthly instalments commencing from September 2010 to August 2015. The loans is seucred by the respective vehicle purchased.

The balance one loan of Rs. 25 Lakhs was obtained during FY 2010-11. The amount is repayable in 48 monthly instalments commencing from March 2011 to February 2015. The loans are seucred by the respective vehicles purchased.

(iii) The term loan of Rs. 170 Lakhs is obtained from TOC during the FY 2011-12. The loan is repayable in 48 monthly installments commencing from April 2012 to March 2016. The loan is secured by First Charge by way of Hypothecation of over all the movables , machinery', stores , tools & accessories etc , lying at SF No 49/1,50/1, 51/1A , Valparai Main Road, Pilichinnampalayam Village, Samathur Post, Pollachi Taluk, Coimbatore District and Mortgage over all the piece and parcel of land measuring 1.70 acres at SF No 19/4, and land measuring 1.58 acres at SF No 19/5 , situated at Kolarpatty Village , Pollachi Taluk, Coimbatore District , totally measuring 3.28 acres.

(iv)The term loan of Rs.106.31 Lakhs was obtained from Religare Finvest Ltd during the FY 2011-12. The loan is repayable in 46 monthly installments commencing from January 2012 to October 2015.

(i) Working capital limits from consortium of banks of Rs. 14,896 Lakhs is secured by entire stock of raw material work in progress, finished goods, margin money and receivables on pari passu basis and also second charge on fixed assets of the company. These facilities are subject to renewal on early basis.

(ii) The Short term loan of Rs. 500 Lakhs was obtained from SE investments Ltd (classified as working capital loan from financial institution). The loan is repayable in 24 monthly instalments. The loan is guaranteed by Mr.A.L.Ramachandra,Smt.Jayanthi Ramachandra and Seshraj Enterprises P Ltd.

1) Contingent Liablility

31-03-2012 31-03-2011

i) Bank Guarantees 48.35 48.35

ii) Disputed Income tax Demands (Paid out of the above Rs. 57.84 Lakhs (Previous year Rs 127.85 lakhs) 57.84 294.52

2) The integrated operations of the Company are considered under a single broad segment viz., Textiles. These operations in the opinion of the management, in the context of AS 17 on "Segment Reporting" issued under the Companies (Accounting Standards) Rules 2006, constitute one single primary segment.

3) The information required to be disclosed under the Micro,Small and Medium Enterprises Development Act 2006 has been determined to the extent such parties have been identified on the basis of the information available with the company. There are no pverdues to parties on account of principal amount and /or interest and accordingly no additional disclosures have been made.

4) In the opinion of the Board of Directors all Current Assets, Loans & Advances have a value on realization in the ordinary course of business of a sum at least equal to the amount at which they are stated and hence no provision is considered necessary in respect thereof.

b) Defined Benefit Plan

The Company operates a defined benefit plan for payment of post employment benefits in the form of gratuity.

The benefits under the plan are based on pay and years of service and are vested on completion of five years of service, as provided for in the Payment of Gratuity Act 1972. The terms of the benefits are common for all the employees of the Company.

5) Based on technical opinion the company classifies the plant and machinery of spinning and processing divisions and wind mills as continuous process plant and accordingly depreciation on these items is charged at rates applicable to continuous process plant under Schedule XIV to the Companies Act,1956. Due to this technical opinion adopted, depreciation for the year is lower by Rs. 478.19 Lakhs (Previous Year Rs. 371.70 Lakhs) with consequential effect on the profits for the year.

6) Impairment Loss recognised in the Profit and Loss Account - NIL (PY- NIL).

7) Figures have been rounded off to the nearest Lakhs.

8) Till the year ended 31st March, 2011, the company was using pre - revised Schedule VI to the Companies Act, 1956, for preparation and presentation of its Finanacial Statements. During the year ended 31st March, 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the company. The company has reclassified previous year figures to conform to this year's classification.

9) The Ministry of Corporate Affairs, Government of India, vide circular No.2 and 3 dated 08.02.2011 and 21.02.2011 respectively has granted a general exemption from compliance with Sec. 212 of the Companies Act, 1956, subject to fulfilment of conditions stipulated in the general circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.


Mar 31, 2011

Rs. in Lakhs

As on As on 31.03.2011 31.03.2010

1) Contingent Liablility

i) Letter of Credit 1,088.76 822.58

ii) Bank Guarantees 48.35 48.35

iii) Disputed Income tax Demands (Paid out of the above Rs. 127.85 Lakhs (Previous year Rs. 91.10 lakhs) 294.52 294.52

2) The information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of the information available with the Company. There are no overdues to parties on account of principal amount and / or interest and accordingly no additional disclosures have been made.

3) In the opinion of the Board of Directors all Current Assets, Loans & Advances have a Value on realization in the ordinary course of business of a sum of at least equal to the amount at which they are stated and hence no provision is considered necessary in respect thereof.

4) Power and Fuel Cost of Rs. 1491.08 (Previous year Rs. 1136.45) Lakhs is net of wind energy generation income of Rs. 335.22 (Previous year Rs. 353.09) Lakhs. In addition, income receivable from units generated and banked of Rs. 55.33 (Previous year Rs. 103.63) lakhs is included in other income.

5) Accounts of the wholly owned subsidiaries viz., Vijayeswari USA LLC and Vijayeswari UK Limited as on 31.03.2011 have been consolidated in terms of AS 21 "Consolidated Financial Statements". The Financial statements of the subsidiaries used for consolidation are unaudited and certifed by the management for consolidation purposes. Audit adjustments upto year ended 31st March 2010 have been given effect to in the consolidated financial statements

6) The integrated operations of the Company are considered under a single broad segment viz., Textiles. These operations in the opinion of the management, in the context of AS 17 on "Segment Reporting" issued under the Companies (Accounting Standards) Rules 2006, constitute one single primary segment.

7) Related party Disclosures for the year ended March 31, 2011

Subsidiaries and Key Management Personnel & Relatives:

Sale of goods includes Vijayeswari UK Ltd. Rs. 1608.81 lakhs (Previous year Rs. 1343.84 lakhs) and Vijayeswari USA LLC Rs. 320.76 lakhs (Previous year Rs. 97.06 lakhs). Purchases and Services Received is of Vijayeswari UK Limited Rs. 4.97 lakhs and Advances is of Vijayeswari USA LLC Rs. 39.70 lakhs. Lease Rent includes R. Mani Rs. 54.24 lakhs (previous year Rs. 54.24) and Jayanthi Ramachandra Rs. 12.00 lakhs (Previous year Rs. 12 lakhs).

Other Related Parties:

Sale of goods includes Lakshmi Apparels and Wovens Ltd Rs. 1992.64 lakhs. Purchase of fixed Assets includes Lakshmi Apparels and Wovens Ltd Rs. 18.72 lakhs and Seshraj Enterprises P Ltd Rs. 25 lakhs. Purchase & Services received includes Lakshmi Apparels and Wovens Ltd Rs. 1178.95 lakhs and Seshraj Apperals P Ltd Rs. 664.19 lakhs. Lease Rent includes Lakshmi Apparels and Wovens Ltd Rs. 4.58 lakhs (previous year Rs. 142.09 lakhs) and Seshraj Enterprises P Ltd Rs. 2.59 lakhs. Dividend paid includes Seshraj Enterprises P Ltd Rs. 38.95 lakhs.

Related Party Relationships

Relationships Name of Company / Personnel

Subsidiary Companies Vijayeswari USA LLC

Vijayeswari UK Ltd.

Key Management Personnel K. Rajagopal, Chairman & Managing Director (Upto 16.01.2011)

A.L. Ramachandra, Chairman & Managing Director

Jayanthi Ramachandra, Managing Director

Relatives of Key Management R.Mani Personnel R.Gopinath

Other Related Parties-Associates Lakshmi Apparels & Wovens Limited

Seshraj Apparels Private Limited

Seshraj Enterprises Private Limited

Coimbatore Lakshmi Investments & Finance Co. Limited

Kay Arr Enterprises

Note : Related Party relationship is as identified by the Company & relied upon by the Auditors.

8 Based on technical opinion the Company classifies the plant and machinery of spinning and processing divisions and wind mills as continuous process plant and accordingly depreciation on these items is charged at rates applicable to continuous process plant under Schedule XIV to the Companies Act, 1956. Due to this technical opinion adopted, depreciation for the year is lower by Rs. 371.70 Lakhs (Previous Year Rs. 295.83 Lakhs)with consequential effect on the profits for the year.

9 The new integrated project has been completed and put to effective economic use as of 20th September 2010. Borrowing cost of Rs. 495.98 lakhs relating thereto has been capitalized.

10 Figures have been rounded off to the nearest thousand rupees and expressed in lakhs and figures for the previous year have been regrouped and reclassified wherever necessary to confirm to this year's classification.


Mar 31, 2010

Rs. in Lakhs

As on As on 31.03.2010 31.03.2009

1) Estimated Amount of Contracts remaining to be executed on Capital Account and not provided for (Net of Advances) 1,485.79 928.33

2> Income- tax Assessment have been completed upto the Assessment year 2006-07

3) Contingent Liablility

i) Letter of Credit 822.58 364.04

ii) Bank Guarantees 48.35 44.35

iii) Disputed Income tax Demands (Since paid Rs.91.10 lakhs) 294.52 57.77

4) The information required to be disclosed under the Micro, Small and Medium enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of the information available with the Company. There are no overdues to parties on account of principal amount and / or interest and accordingly no additional disclosures have been made.

5) In the opinion of the Board of Directors all Current Assets, Loans & Advances have a Value on realization in the ordinary course of business of a sum of at least equal to the amount at which they are stated.

6) Power and Fuel Cost of Rs.1136.45 (P.Y 944.92) Lakhs is net of wind energy generation income of Rs.353.09 (P.Y 368.81 )Lakhs. In addition, income receivable from units generated and banked is Rs.103.63 lakhs (Previousyear Rs.216.12)

7) Accounts of the wholly owned subsidiaries viz., Vijayeswari USA LLC and Vijayeswari UK Limited as on 31.03.2010 have been consolidated in terms of AS 21 "Consolidated Financial Statements". The Financial statements of the subsidiaries used for consolidation are unaudited and certifed by the management for consolidation purposes. Audit adjustments up to year ended 31st March 2009 have been given effect to in the consolidated financial statements.

8) The integrated operations of the Company are considered under a single broad segment viz., Textiles These operations in the opinion of the management, in the context of AS 17 on "Segment Reporting" issued under the Companies (Accounting Standards) Rules 2006, constitute one single primary segment.

Related Party Relationships

Relationships Name of Company / Personnel

Subsidiary Companies Vijayeswari USA LLC

Vijayeswari UK Ltd.

Key Management Personnel K. Rajagopal, Chairman & Managing Director

A.L. Ramachandra, Managing Director Jayanthi Ramachandra, Joint Managing Director

Relatives of Key Management R.Mani

Personnel R.Gopinath

Other Related Parties- Associates Lakshmi Apparels & Wovens Limited

Seshraj Apparels Private Limited Seshraj Enterprises Private Limited Coimbatore Lakshmi Investments & Finance Co. Limited Kay Arr Enterprises

Note : Related Party relationship is as identified by the company & relied upon by the Auditors.

9 Based on technical opinion, the company classifies the plant and machinery of spinning and processing divisions and wind mills as continuous process plant and accordingly depreciation on these items is charged at rates applicable to continuous process plant under schedule XIV to the Companies Act,1956. Due to this technical opinion adopted, depreciation for the year is lower by Rs.295.83 Lakhs (Previous Year Rs.244.83 Lakhs)with consequential effect on the profit for the year.

10 Provision for dimunition in the value of investment in the wholly owned subsidiary viz., VTX-USA LLC to the extent of Rs.8.93 Lakhs has been made, in view of the accumulated losses of the subsidiary company.The company is of the view that the losses in the last few years arose due to the recessionary phase in USA. With the signs of economic recovery now, in the opinion of the company, such accumulated losses would be wiped out in the next few years and hence no provision is considered necessary therefor.

11 a). Since certain commissioned assets relating to the new integrated project have not been put to effective economic use pending implementation of integrated project in whole, the borrowing costs and expenses pertaining thereto for the year amounting to Rs. 1027.14 lakhs have been capitalized. Consequent to this accounting policy borrowing cost and expenses relating to such assets charged off in earlier years amounting to Rs. 689.61 lacs are reversed and capitalized. Also, depreciation provided is lower by Rs. 278.71 lakhs on such assets considering them to be under implementation and depreciation thereon charged off in earlier years amounting to Rs. 264.20 lakhs has been reversed

b). Foreign exchange loss under exceptional items represents the loss on foreign exchange forward/ options contract.

12 Figures have been rounded off to the nearest thousand rupees and expressed in lakhs and figures for the previous year have been regrouped and reclassified wherever necessary to conform to this years classification.

 
Subscribe now to get personal finance updates in your inbox!