Mar 31, 2018
Premises given on operating lease:
The company has given investment properities on operating lease. These Lease arrangements range for a period between 11 months and 6 years old and include both cancellable and non-cancellable leases. Most of the leases are renewable for further period on mutually agreeable terms.
The fair valuation is based on current prices in the active market for similar properties. The main inputs used are quantum, area, location, demand; restrictive entry to the complex, age of building and trend of fair market rent in and around where investment property is located.
This valuation is based on valuation performed by an approved independent valuer. Fair valuation is based on replacement cost method. The fair value Measurement is categorised in level 2 fair value hierachy.
a) During the year ended 31st March 2018 the company has increased its Authroised Capital from Rs, 5,00,00,000 to Rs. 10,00,00,000.
b) During the year ended 31st March 2018 the company has allotted 5,00,000 number of Equity shares at Rs. 80 Per share (Consisting of Rs 5 on Capital and Rs. 75 on premium) under Preferential mode to Strike Right Intergrated Servcies Limited (Member of Promoter Group), due to this preferential issue the Paid up Capital of the Company increased from Rs 4,53,88,000 to 4,78,88,000.
d) Rights, preferences and restricition attached to shares
Equity shares: The Company has one class of equity shares having a par value of Rs.5 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except, in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Securities premium reserve
Securities premium reserve is used to record the premium on issue of share. These reserve is utilised in accordance with the provision of the Act.
1.1 FCNRB Term loan - I from State Bank of India is secured by First charge on entire assets created out of the term loan. Total outstanding as on 31.03.2018 is Rs. 627.70 lakhs as on 31.03.2017 is Rs. 676.26 lakhs and as on 1st April 2016 is Rs. 877.80 lakhs. Term Loan - I is payable in 36 installments commencing from November 2016. Last installment is due in October 2019.
1.2 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 31.03.2018 is Rs. 324.18 lakhs as on 31.03.2017 is Rs. 470.43 lakhs as on 1st April 2016 is Rs. 605.43 lakhs. Term Loan - II is payable in 84 installments commencing from October 2013. Last installment is due in September 2020.
1.3 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 31.03.2018 is Rs. 1149.69 lakhs as on 31.03.2017 is Rs. 1018. 90 lakhs as on 1st April 2016 is Rs. 1049.94 lakhs. Term Loan - III is payable in 31 installments commencing from April 2017. Last installment is due in October 2019.
1.4 FCNRB Term Loan - I from Bank of India is secured by First charge on Windmill and Windmill Land. Total outstanding as on 31.03.2018 is Rs. 345.79 lakhs as on 31.03.2017 is Rs. 365.07 lakhs and as on 1st April 2016 is Rs. 455.46 lakhs. Term Loan is payable in 108 installments commencing from March 2013. Last installment is due in Feb 2022.
1.5 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 31.03.2018 is Rs. 163.53 lakhs as on 31.03.2017 is Rs. 172.65 lakhs as on 1st April 2016 is Rs. 215.53 lakhs. Term Loan - II is payable in 84 monthly installments commencing from April 2015. Last installment is due in Mar 2022.
1.6 Term loan - III from Bank of India is secured by Residential apartment purchased out of term loan. Total outstanding as on 31.03.2018 is Rs. 56.78 lakhs as on 31.03.2017 is Rs. 62.48 lakhs and as on 1st April 2016 is Rs. 67.30 lakhs. Term Loan - III is payable in 137 installments commencing from April 2014. Last installment is due in Aug 2025.
1.7 Term loan - IV from Bank of India is secured first charge on entire assets created out of term loan. Total outstanding as on 31.03.2018 is Rs. 280.62 lakhs, as on 31.03.2017 is Rs. 298.67 lakhs as on 1st April 2016 is Rs. 374.71 lakhs. Term Loan - IV is payable in 72 installments commencing from January 2016. Last installment is due in Dec 2022.
1.8. Two directors have given personal guarantee and one of them had given personal assets as security for the term loans and working capital loans 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 term loans and working capital loans 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 11.24 lakh shares of the company held by him as collateral security for the loan sanctioned by State Bank of India and 10.5 lakh shares of the company held by him as collateral security for the loan sanctioned by Bank of India.
Strikeright Intergrated 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.
1.9. Installments falling due in respect of all the above Loans upto 31.03.2018 have been grouped under âCurrent maturities of long-term debtâ (Refer Note 23 (a))
1.10 The carrying amounts of financial and non financial assets as securtity for secured borrowings are disclosed in Note 38
1. Working capital facilities from State Bank of India is secured by paripassu charge on entire current assets such as raw materials, WIP, 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.
3. State Bank of India has sanctioned buyers credit against machinery which is repayable with in one year from the date of sanction.
There are no Micro and Small Enterprises, to who the company owes dues, which are outstanding for more than 45 days as at 31st March 2018. 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.
NOTE :-2 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
I. Background
Lambodhara Textiles Limited incorporated in India in the year 1994 and is a leading premium quality synthetic fancy yarn manufacturing Company. The Company has its wide network of operations in local as well foreign market.
Note 3 - COMMITMENTS Capital Commitments
Estimated value of contract remaining to be executed on Capital account is Rs36.18 lakhs (Previous year Rs. Nil)
Note :- 4 - POST RETIREMENT BENEFIT PLANS
Defined Benefits Plan
Gratuity
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a unfunded plan.
In accordance with IND As 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.
Note :- 5 - SEGMENT REPORTING
Operating Segments:
a) Textile
b) Wind Mills
c) Real Estate
Identification of Segments:
The chief operational decision maker monitors the operating results of its Business segment separately for the purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements, Operating segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108. Segment revenue and results:
The expenses and income which are not directly attributable to any business segment are shown as unallocable expenditure (net of allocable income).
Segment assets and Liabilities:
Segment assets include all operating assets used by the operating segment and mainly consist of property, plant and equipments, trade receivables, Inventory and other operating assets. Segment liabilities primarily includes trade payable and other liabilities. Common assets and liabilities which can not be allocated to any of the business segment are shown as unallocable assets / liabilities.
NOTE 6 RELATED PARTY DISCLOSURES FOR THE YEAR ENDED 31ST MARCH 2018.
a) The following loans have been taken during the year from related parties:
b) Remuneration paid to Managing Director, Mr.Santossh.R. is Rs.16.65 lakhs (Previous Year Rs.12.15 lakhs).
c) Remuneration paid to Whole-Time Director, Ms. Bosco Giulia is Rs.11.10 lakhs (Previous Year Rs.8.40 lakhs).
Cash value of perquisites to Whole-Time Director, Ms. Bosco Giulia is Rs.1.58 lakhs (Previous Year Rs.1.31 lakhs)
d) Remuneration paid to Whole-Time Director, Ms.Vimala.R. is Rs.6.00 lakhs (Previous Year Rs.6.00).
e) Interest paid to Director Mr.Baba Chandrasekar is Rs.30.97 lakhs (Previous Year Rs.40.15 lakhs)
f) (i) Polyester and Viscose Fibre purchase from Strikeright Integrated Services Limited during the year for Rs.1,981.45 lakhs (Previous Year Rs.4,183.47 lakhs)
(ii) Cone yarn sales made to StrikerightIntergrated Services Limited during the year for Rs.22.67 Lakhs (Previous Year Rs.Nil)
Strikeright Integrated Services Limited is a Company in which one Whole Time Director and one Key Management Person of Lambodhara Textiles Limited are directors.
g) During the year Rs.7.11 lacs is paid as salary to one Key Management Person Mr.Ramesh Shenoy (CFO) (Previous year Rs.7.11 lakhs)
h) During the year, lease rent on vehicle paid to Whole Time Director, Ms. Bosco Giulia is Rs.2.40 lakhs (Previous Year Rs.1.20 lakhs).
NOTE - 7 FAIR VALUE MEASUREMENTS
Financial Instrument by category and hierarchy
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.
2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.
The fair values for loans security deposits were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk.
The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.
For Financial assets and Liabilities that are measured at fair value, the carrying amounts are equal to the fair values.
The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1 : quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2 : other techniques for which all inputs which have a significant effect on the recorded fairvalue are observable, either directly or indirectly.
Level 3 : techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.
NOTE : - 8 - FINANCIAL RISK MANAGEMENT Financial risk management objectives and policies
The Companyâs financial risk management is an integral part of how to plan and execute its business strategies. The Companyâs financial risk management policy is set by the Managing Board.
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowings.
The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommend risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures like foreign exchange forward contracts, borrowing strategies and ensuring compliance with market risk limits and policies.
Market Risk- Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Companyâs position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.
The Companyâs borrowings are of fixed rate nature only. Hence interest rate risk is not applicable and hence not sensitivity analysis
Market Risk- Foreign currency risk
The Company operates internationally and portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange risk through its sales and services in overseas and purchases from overseas suppliers in various foreign currencies. Foreign currency exchange rate exposure is partly balanced by purchasing of goods, commodities and services in the respective currencies.
Market Risk - Price risk
(a) Exposure & Sensitivity
Price risk do not arise for the companyâs exposure to equity securities since the equity held by the company as a member consumer under Electricity group captive consumer which are sold at the same price at which it is purchased as per share purchase and share Holders Agreement. Hence disclosure of sensitivity details is not applicable.
(b) Foreign Currency Risk Sensitivity
A change of 5% in Foreign currency would have following impact on profit before tax
Credit risk
Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information.
The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:
i) Actual or expected significant adverse changes in business,
ii) Actual or expected significant changes in the operating results of the counterparty,
iii) Financial or economic conditions that are expected to cause a significant change to the counterpartyâs ability to meet its obligations,
iv) Significant increase in credit risk on other financial instruments of the same counterparty,
v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.
Financial assets are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.
The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.
Trade receivables
Customer credit risk is managed by each business unit subject to the Companyâs established policy, procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on 7 days to 180 days credit term. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit. The Company has no concentration of credit risk as the customer base is widely distributed both economically and geographically.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on actual incurred historical data. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 9. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.
Liquidity Risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Companyâs liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.
(i) Financing arrangements
The Company had access to the following undrawn borrowings facilities at the end of the reporting period
The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time in INR.
NOTE : 9 - CAPITAL RISK MANAGEMENT
(a) Risk Management
The Company aim to manages its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to our shareholders.
The capital structure of the Company is based on managementâs judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.
The Companyâs policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.
Note :- 10 - EXPORT PROMOTION CAPITAL GOODS (EPCG)
Export Promotion Capital Goods (EPCG) scheme allows import of certain capital goods including spares at concessional duty subject to an export obligation for the duty saved on capital goods imported under EPCG scheme. The duty saved on capital goods imported under EPCG scheme being Government Grant, is accounted as stated in the Accounting policy on Government Grant.
Note - 11. EVENT OCCURING AFTER BALANCE SHEET DATE
The board of directors has recommended Equity dividend of Rs. 1 per share (previous year Rs. 1) for the financial year 2017-18.
Note :- 12 - FIRST-TIME ADOPTION OF Ind AS
These are the Companyâs first financial statements prepared in accordance with Ind AS.
The Company has adopted Indian Accounting Standards (Ind AS) notified by the Ministry of Corporate Affairs with effect from 1st April, 2016, with a transition date of 1st April, 2016. Ind AS 101 -First-time Adoption of Indian Accounting Standards requires that all Ind As standards and interpretations that are issued and effective for the first Ind AS financial statements which is for the year ended 31st March, 2017 for the company, be applied retrospectively and consistently for all financial years presented. Consequently, in preparing these Ind AS financial statements, the Company has availed certain exemptions and complied with the mandatory exceptions provided in Ind As 101, as explained below. The resulting difference in the carrying values of the assets and liabilities as at the transition date between the Ind AS and Previous GAAP have been recognised directly in equity (retained earnings or another appropriate category of equity).
Set out below are the Ind AS 101 optional exemptions availed as applicable and mandatory exceptions applied in the transition from previous GAAP to Ind AS.
A. Optional Exemptions availed (a) Deemed Cost
The Company has opted paragraph D7 AA and accordingly considered the carrying value of property, plant and equipments as deemed cost as at the transition date.
B. Applicable Mandatory Exceptions
(a) Estimates
An entityâs estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies).
Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:
-Investment in equity instruments carried at FVPL or FVOCI;
-Impairment of financial assets based on expected credit loss model.
(b) Classification and measurement of financial assets
As required under Ind AS 101 the company has assessed the classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.
C. Transition to Ind AS - Reconciliations
The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS as required under Ind AS 101:
I. Reconciliation of Balance sheet as at April 1, 2016 (Transition Date)
II. A. Reconciliation of Balance sheet as at March 31, 2017
B. Reconciliation of Total Comprehensive Income for the year ended March 31, 2017
III. Reconciliation of Equity as at April 1, 2016 and as at March 31, 2017
IV. Adjustments to Statement of Cash Flows
The presentation requirements under Previous GAAP differs from Ind AS, and hence, Previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The Regrouped Previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with Previous GAAP.
The following explains the material adjustments made while transition from previous accounting standards to IND AS
A Proposed dividend
Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events and accordingly, provision for proposed dividend was recognised as a liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend of Rs. 68.08 Lakhs as at 1st April, 2016 and Rs. 90.78 as at 31st March 2017 included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity has been increased by an equivalent amount.
B Remeasurements of post employment benefit obligation
Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit and loss. Under the previous GAAP, these remeasurements were forming part of the profit and loss for the year. There is no impact on the total equity as at 31st March, 2017
C Government Grant
Apportionment of Government Grant recognised under Export Promotion Capital Goods (EPCG) scheme and corresponding charge of depreciation on account of grossing-up of Property, Plant & Equipment (Refer Note 48).
D Impact of fair valuation of Financial Assets and Liabilities
Under previous GAAP, the Non current financial assets and liabilities were measured at fair value, if any. All changes in the fair value subsequent to the transition date is recognised in the Statement of profit and loss
E Retained earnings
Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments.
F Other comprehensive income
Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as ''other comprehensive incomeâ includes remeasurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP.
The Ind AS adjustments are either non cash adjustments or are regrouping among the cash flows from operating, investing and financing activities. Consequently, Ind AS adoption has no impact on the net cash flow for the year ended 31st March, 2017 as compared with the previous GAAP.
13. During the year, a fraud had happened on the company wherein, funds paid to the supplier was wrongly transferred to unknown person due to hacking of emails from the client and immediate action was taken to recover the same. The amount involved is Rs. 35.97 lakhs with bank of India and necessary police action was undertaken by the company. The claim made with bank of India was included in the claims receivable under other current assets.
14. Previous yearâs figures have been regrouped wherever considered necessary.
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. â000) 60543 (Previous year (Rs. â000) 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. â000) 104994 (Previous year (Rs. â000) 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. â000) 4554 (Previous year (Rs. â000) 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. â000) 21553 (Previous year (Rs. â000) 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. â000) 6730 (Previous year (Rs. â000) 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. â000) 37471 (Previous year (Rs. â000) 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 âCurrent maturities of long-term debtâ (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. â000) 840 (Previous Year (Rs. â000) 840).
Cash value of perquisites to Whole time Director, Ms. Giulia Bosco is (Rs. â000) 131 (Previous year (Rs. â000) 131)
11. Remuneration paid to Whole time Director, Mrs. Vimala. R is (Rs. ''000) 600 (Previous Year (Rs. â000) 300).
12. Interest paid to Director Mr. Baba Chandrasekar is (Rs. ''000) 3064 (Previous year (Rs. â000) 531)
13. i Polyester and Viscose purchase from Strikeright Integrated Services Limited., during the year for (Rs. â000) 267796 (previous year (Rs. â000) 190821)
14. Interest received from Strikeright Integrated Services Limited., during the year for (Rs. â000) Nil (previous year (Rs.000) 1472)
15. During the year (Rs. â000) Nil is paid as advance against purchase and (Rs. â000) Nil is received back from Strike right Integrated Services Limited. (Previous year (Rs. â000) 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. â000) 9 is paid to V.R. Textiles
Private Limited. (Previous year (Rs. â000) 35259).
17. During the year (Rs. â000) 6 is paid to V.R. Textiles Private Limited towards reimbursement of Expenses. (Previous year (Rs. â000) 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.
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