Notes to Accounts of Kovilpatti Lakshmi Roller Flour Mills Ltd.

Mar 31, 2023

Provisions, Contingent liabilities and Contingent assets Provisions

Provisions are recognised when the Company has a present obligation (legal or
constructive) as a result of a past event and it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.

Provisions are discounted, if the effect of the time value of money is material, using
pre-tax rates that reflects the risks specific to the liability. When discounting is used, an
increase in the provisions due to the passage of time is recognised as finance cost.

These provisions are reviewed at each Balance Sheet date and adjusted to reflect the
current best estimates.

Necessary provision for doubtful debts, claims, etc., are made if realisation of money
is doubtful in the judgement of the management.

Contingent liability

A contingent liability is a possible obligation that arises from past events whose
existence will be confirmed by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the company or a present obligation
that is not recognized because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises in extremely rare cases
where there is a liability that cannot be recognized because it cannot be measured
reliably. Contingent liabilities are disclosed separately.

Show cause notices issued by various Government authorities are considered for
evaluation of contingent liabilities only when converted into demand.

Contingent assets

Where an inflow of economic benefits is probable, the Company discloses a brief
description of the nature of the contingent assets at the end of the reporting period,
and, where practicable, an estimate of their financial effect.

p) Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents
are short-term balances with original maturity of less than 3 months, highly liquid
investments that are readily convertible into cash, which are subject to insignificant risk
of changes in value.

q) Cash Flow Statement

Cash flows are presented using indirect method, whereby profit / (loss) before tax
is adjusted for the effects of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments.

Bank borrowings are generally considered to be financing activities. However, where
bank overdrafts which are repayable on demand form an integral part of an entity''s
cash management, bank overdrafts are included as a component of cash and cash
equivalents for the purpose of Cash flow statement.

r) Earnings per share

The basic earnings per share are computed by dividing the net profit for the period
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the period.

Diluted EPS is computed by dividing the net profit after tax by the weighted average
number of equity shares considered for deriving basic EPS and also weighted average
number of equity shares that could have been issued upon conversion of all dilutive
potential equity shares. Dilutive potential equity shares are deemed converted as of
the beginning of the period, unless issued at a later date. Dilutive potential equity
shares are determined independently for each period presented. The number of
equity shares and potentially dilutive equity shares are adjusted for bonus shares, as
appropriate.

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Mar 31, 2016

1. Rupee term loan availed from Canara Bank carries interest @ 12.15 % p.a., (base rate 2.50 p.a,). The loan is repayable quarterly installment of Rs. 12.14 lakhs each. The interest is payable on quarterly basis. The loan matures in August, 2017. The loan is secured by way of exclusive charge on Land, Buildings and Machineries pertaining to 1 No 1250 KW Wind Mill situated at Parameshwarapuram Village, Tirunelveli District.

2. Rupee term loan availed from IDBI Bank Ltd., carries interest @ 12.75% p.a., (base rate 3% p.a,). The loan is repayable on quarterly basis. The interest is payable on monthly basis. The loan matures in April, 2020. The loan is secured by exclusive charge on the Land and Buildings of the foundry division.

3. Rupee term loan availed from ICICI Home Finance Limited carries interest @ 11.60 %.pa.,( HFLR - 5.50%.). The loan is repayable on 120 monthly installments of Rs. 5.07 lakhs. The loan matures in January, 2025. The loan is secured by exclusive charge on the land and buildings of the Company''s properties situated at Chamiers Road, Chennai.

4. Rupee term loan availed from TATA Capital Financial Services Ltd., carries interest @ 13 % pa., (LTLR - 5.25%). The loan is repayable on 60 monthly installments. The loan matures in November, 2019. The loan is secured by exclusive charge on specified foundry equipment.

5. Vehicle loan availed from Canara Bank, HDFC Bank Ltd. Kotak Mahindra Prime Ltd., and ICICI Bank. The loan is repayable on monthly basis and are secured by the respective vehicles.

6. Working capital loans from Canara Bank carries an interest rate @ 11.40% (base rate 1.75%) and is secured by pari-passu first charge on all the current assets and pari-passu second charge on flour mill and sheet metal immovable assets except those under exclusive charge.

7. Working capital loans from HDFC Bank Ltd. carries an interest rate @ 11.30 % (base rate 2 %) and is secured by pari-passu first charge on all the current assets and pari-passu second charge on flour mill and sheet metal immovable assets except those under exclusive charge.

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Mar 31, 2015

1. Income tax appeals are pending before the Supreme Court for the assessment years 1991-92 to 1993-94, 1995-96 and 1996-97 Commercial tax and levy of PF damages are pending in appeal.

Income Tax appeal for the assessment year 2007 - 2008 is pending with Commissioner Appeal.

Service tax appeal with CESTAT is pending.

2. During the year the Company has accounted for the deferred taxation which represents the amount determined and considered upto the Balance Sheet date, in accordance with Accounting Standard 22 issued by the Institute of Chartered Accountants of India, to neutralise the tax effect of "timing differences" between taxable income & depreciation and accounting income & depreciation that originate in one period and are capable of reversal in subsequent periods.

3. Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the "Micro, Small and Medium Enterprises Development Act, 2006". Based on the information and evidence available with the company, there are no dues to micro and small enterprises, outstanding as on 31st March, 2015.

4. Discontinuing operation

AS 24 20(a to d)

On 12th November, 2014, the Board of Directors annuounced a plan for closure of the Textile Division which represents a separate business segment as per Segment Reporting. The disposal is consistent with the Company's long-term strategy to focus its activities.

5. Comparative figures for previous year have been re-classified and re-grouped wherever necessary to confirm to this year's classifications.

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Mar 31, 2014

31.03.2014 31.03.2013

1 Number of employees who are in receipt or entitled to receive emoluments amounting in aggregate Rs. 5,00,000/- or more per month Nil Nil

2 Contingent Liabilities

Claims, Excise and Customs Duty, Taxes and other matter-not acknowledged by the Company

a ) Guarantees by Banks Nil Nil

b ) Claims against the company not acknowledged as debts 2223758 3123758

3 During the year the Company has accounted for the deferred taxation which represents the amount determined and considered upto the Balance Sheet date, in accordance with Accounting Standard 22 issued by the Institute of Chartered Accountants of India, to neutralise the tax effect of "timing differences" between taxable income & depreciation and accounting income & depreciation that originate in one period and are capable of reversal in subsequent periods.

4 Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the "Micro, Small and Medium Enterprises Development Act, 2006". Based on the information and evidence available with the company, there are no dues to micro and small enterprises, outstanding as on 31.03.2014.

5 Related Party Disclosure

The following are the transactions with related parties in terms of AS 18 issued by the Institute of Chartered Accountants of India. Reimbursement of expenses has not been treated as related party transactions.

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Mar 31, 2013

1 During the year the Company has accounted for the deferred taxation which represents the amount determined and considered upto the Balance Sheet date, in accordance with Accounting Standard 22 issued by the Institute of Chartered Accountants of India, to neutralise the tax effect of "timing differences" between taxable income & depreciation and accounting income & depreciation that originate in one period and are capable of reversal in subsequent periods.

2 Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the "Micro, Small and Medium Enterprises Development Act, 2006". Based on the information and evidence available with the company, there are no dues to micro and small enterprises, outstanding as on 31.03.2013.

3 Comparative figures for previous year have been re-classified and re-grouped wherever necessary to confirm to this year''s classifications.

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Mar 31, 2012

1 During the year the Company has accounted for the deferred taxation which represents the amount determined and considered upto the Balance Sheet date, in accordance with Accounting Standard 22 issued by the Institute of Chartered Accountants of India, to neutralise the tax effect of "timing differences" between taxable income & depreciation and accounting income & depreciation that originate in one period and are capable of reversal in subsequent periods.

2 Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the "Micro, Small and Medium Enterprises Development Act, 2006". Based on the information and evidence available with the company, there are no dues to micro and small enterprises, outstanding as on 31.03.2012.

3 Related Party Disclosure

The following are the transactions with related parties in terms of AS 18 issued by the Institute of Chartered Accountants of India. Reimbursement of expenses has not been treated as related party transactions.

In accordance with my report of date attachedFor and on behalf of the Board

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Mar 31, 2010

1. CONTINGENT LIABILITIES

Claims, Excise and Customs Duty, Taxes and other matter-not 2009-10 2008-09 acknowledged by the Company

(a ) Guarantees by Banks 4410000 4410000

(b) Claims against the Company not acknowledged as debts 1242811 1242811

Customs authority has confirmed import duty demands aggregating Rs.19,47,408/- in respect of wheat imported. The Company has disputed the said demand and has filed appeal to Appellate Authority.

2. Loss of Rs.97,88,700/- from a forex derivative contract entered for a value of Rs.500 lakhs which was unwounded during the year has been included in interest.

3. Income tax appeals are pending before the Supreme Court for the Assessment years 1991-92 to 1993-94, 1995-96 and 1996-97 Commercial tax and levy of PF damages are pending in appeal.

4. During the year the Company has accounted for the deferred taxation which represents the amount determined and considered upto the Balance Sheet date, in accordance with Accounting Standard 22 issued by the Institute of Chartered Accountants of India, to neutralise the tax effect of timing differences between taxable income & depreciation and accounting income & depreciation that originate in one period and are capable of reversal in subsequent periods.

5 . Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the "Micro, Small and Medium Enterprises Development Act, 2006". Based on the information and evidence available with the company, there are no dues to micro and small enterprises, outstanding as on 31.03.2010.

6. Related Party Disclosure

The following are the transactions with related parties in terms of AS 18 issued by the Institute of Chartered Accountants of India. Reimbursement of expenses has not been treated as related party transactions.

21. Comparative figures for previous year have been re-classified and re-grouped wherever necessary to confirm to this years classifications.