Lakshmi Automatic Loom Works Limited Board of Directors Mr. S. PATHY Chairman Mr. V.B. HARIBHAKTI Mr. R.C.H. REDDY Mr. R. SANTHARAM Mr. SUDHIR SHARMA Smt. AISHWARYA PATHY Mr. R. VARADARAJAN Mr. N. JAYCHANDER Director-in-Charge Company Secretary & V. P. - Finance Mr. A. DORAISWAMY Registered Office 686, Avanashi Road Pappanaickenpalayam Coimbatore - 641 037 Tamilnadu Works Weaving Machinery and Spares Unit 1 Hosur Industrial Complex Hosur - 635 126 Tamilnadu Other Engineering Services Units 2 & 3 Singarampalayam Kinathukadavu (Post) Pollachi Taluk Coimbatore - 642 109 Tamilnadu Statutory Auditors M/s. N.R. DORAISWAMI & CO Chartered Accountants Bankers INDIAN BANK Registrars and Share Transfer Agents S.K.D.C. Consultants Ltd Kanapathy Towers, 3rd Floor, 1391/A1, Sathy Road, Ganapathy, Coimbatore – 641 006 Telephone No.91-422-2539835, 2539836 & 6549995 Email Id : [email protected]
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Lakshmi Automatic Loom Works Limited Automatic Loom Works Limited Board of Directors Mr. S. PATHY ... Lakshmi Card Clothin g Manufacturin g ... the year was lower at Rs.175.99 lakhs
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AUDITORS’ CERTIFICATE ON COMPLIANCE OF CONDITIONS OF CORPORATE GOVERNANCEAS PER CLAUSE 49 OF THE LISTING AGREEMENT WITH BOMBAY STOCK EXCHANGE
To the Members of Lakshmi Automatic Loom Works Limited :
We have examined the compliance of conditions of Corporate Governance by M/s. Lakshmi
Automatic Loom Works Limited for the year ended 31st March 2013, as stipulated in clause 49 of
the Listing Agreement of the said Company with Stock Exchanges in India.
The compliance of conditions of Corporate Governance is the responsibility of the Management.
Our examination was limited to procedures and implementation thereof, adopted by the Company
for ensuring the compliance of the conditions of Corporate Governance. It is neither an audit nor
an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we
certify that the Company has complied in all material respects with the condition of Corporate
Governance as stipulated in Clause 49 of the Listing Agreement with the Stock Exchange for the
year ended 31st March 2013.
On the basis of the records, maintained by the Shareholders / Investors Grievance Committee of
the Company, we state that no investor grievance is pending for a period exceeding one month.
We further state that our examination of such compliance is neither an assurance as to the future
viability of the Company nor the efficiency or effectiveness with which the Management has
conducted the affairs of the Company.
CHIEF EXECUTIVE OFFICER’S DECLARATION ON CODE OF CONDUCT
I hereby declare that the Board of Directors of the Company have adopted a Code of Conduct for
the Board Members and Senior Management Personnel of the Company and the same has also been
posted in the Company’s website and that all the Board Members and Senior Management Personnel
to whom this Code of Conduct is applicable have affirmed the Compliance of Code of Conduct for
the financial year ended 31-03-2013.
(Sd.) N. JaychanderDirector-in-Charge
C E O
Coimbatore
20.05.2013
Coimbatore
20.05.2013
For N.R. DORAISWAMI & CO
Chartered Accountants
Regn. No. 000771S
(Sd.) Suguna RavichandranPartner
Membership No. 207893
LAKSHMI AUTOMATIC LOOM WORKS LIMITED
16
CEO & CFO CERTIFICATE
The Board of Directors
Lakshmi Automatic Loom Works Ltd
686, Avanashi Road
COIMBATORE – 641037
Sub: Annual Confirmation pursuant to Clause 49(V) of the Listing Agreement.
As required by Clause 49(V) of the Listing Agreement with Stock Exchange we hereby certify that :
a) We have reviewed the Financial Statements and the Cash Flow Statement of the Company for
the year ended 31st March, 2013 and that to the best of our knowledge and belief :
i) These Statements do not contain any materially untrue Statements or omit any material
fact or contains Statements that might be misleading.
ii) These Statements together present a true and fair view of the Company’s affairs and are
in compliance with existing accounting standards, applicable laws and regulations.
b) There are, to the best of our knowledge and belief, no transaction entered into by the Company
during the year ended 31st March, 2013 which are fraudulent, illegal or violative of the Company’s
Code of Conduct.
c) We accept responsibility for establishing and maintaining internal controls for Financial
Reporting and that we have evaluated the effectiveness of the internal control systems of the
Company pertaining to the Financial Reporting and we have disclosed to the Auditors and the
Audit Committee, deficiencies in the design or operation of such internal controls, if any, of
which we are aware and the steps we have taken or prepared to take to rectify these deficiencies.
d) We have indicated to the Auditors and the Audit Committee:
i) Significant changes, if any, in internal control over Financial Reporting during the
year;
ii) Significant changes, if any, in accounting policies during the year and that the same have
been disclosed in the notes to the Financial Statements and
iii) that there were no instances of significant fraud of which we have become aware and the
involvement therein, if any, of the Management or an employee having a significant role
in the Company’s internal control system over Financial Reporting.
(Sd.) A. DoraiswamySecretary and
Vice President - Finance
CFO
(Sd.) N. Jaychander
Director-in-Charge
CEOCoimbatore
20.05.2013
17
Auditors’ Report
TO THE MEMBERS OF M/s. LAKSHMI AUTOMATIC LOOM WORKS LIMITED :
Report on the Financial Statements
We have audited the accompanying financial statements of M/s Lakshmi Automatic Loom Works
Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2013, and the Statement
of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management is responsible for the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of the Company in accordance
with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act,
1956 (“the Act”). This responsibility includes the design, implementation and maintenance of internal
control relevant to the preparation and presentation of the financial statements that give a true and
fair view and are free from material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgment, includingthe assessment of the risks of material misstatement of the financial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers internal control relevant to
the Company’s preparation and fair presentation of the financial statements in order to design
audit procedures that are appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of the accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
In our opinion and to the best of our information and according to the explanations given to us, the
financial statements give the information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2013;
b) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2003 (“the Order”) issued by the Central
Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the
Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the best of our knowledge
and belief were necessary for the purpose of our audit;
LAKSHMI AUTOMATIC LOOM WORKS LIMITED
18
Coimbatore
20.05.2013
For N.R. DORAISWAMI & COChartered Accountants
Regn. No. 000771S
(Sd.) Suguna RavichandranPartner
Membership No. 207893
b) in our opinion proper books of account as required by law have been kept by the Company
so far as appears from our examination of those books.
c) the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by
this Report are in agreement with the books of account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement
comply with the Accounting Standards referred to in subsection (3C) of section 211 of the
Companies Act, 1956;
e) on the basis of written representations received from the directors as on March 31, 2013,
and taken on record by the Board of Directors, none of the directors is disqualified as on
March 31, 2013, from being appointed as a director in terms of clause (g) of sub-section
(1) of section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to the rate at which the
cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any
Rules under the said section, prescribing the manner in which such cess is to be paid, no
cess is due and payable by the Company
19
Annexure to the Auditors’ Report(Referred to in paragraph 1 of our report of even date)
In our opinion and according to the information and explanations given to us,
i) a) The Company has maintained proper records to show full particulars including quantitative
details and situation of its fixed assets.
b) The fixed assets of the company have been physically verified during the year by the
management and no material discrepancies between the book records and the physical
inventory have been noticed.
c) No substantial part of fixed assets of the company has been disposed off during the year.
ii) a) As explained to us, inventories of the company have been physically verified during the
year by the management at reasonable intervals.
b) In our opinion and according to the information and explanations given to us, the procedures
of physical verification of inventories followed by the management are reasonable and
adequate in relation to the size of the company and nature of its business.
c) The Company has maintained proper records of inventories and the discrepancies between
the physical inventories and the book records which have been properly dealt with in the
books of account were not material.
iii) The Company has neither granted nor taken any loans, secured or unsecured, to/from
Companies, firms or other parties covered in the register maintained under section 301 of the
Companies Act, 1956. Hence, the question of reporting whether the terms and conditions of
such loans are prejudicial to the interests of the Company and whether reasonable steps for
recovery/repayment of overdue amounts of such loans are taken, does not arise.
iv) In our opinion and according to the information and explanations given to us, there are adequate
internal control procedures commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for the sale of goods. During the
course of our audit, we have not observed any continuing failure to correct major weaknesses
in internal control.
v) In respect of contracts or arrangements entered in the register maintained in pursuance of
section 301 of the Companies Act, 1956;
a) To the best of our knowledge and belief and according to the information and explanations
given to us, contracts or arrangements that needed to be entered into the register have
been so entered.
b) In our opinion, each of these transactions exceeding the value of Rupees five lakhs in
respect of each party during the financial year, have been made at prices which are
reasonable having regard to the prevailing market prices at the relevant time.
LAKSHMI AUTOMATIC LOOM WORKS LIMITED
20
vi) In our opinion and according to the explanations given to us, the Company has not accepted
any deposits from the public.
vii) In our opinion, the internal audit functions carried out during the year by independent chartered
accountants appointed by the management have been commensurate with the size and nature
of its business.
viii) We have broadly reviewed the books of accounts maintained by the Company pursuant to the
rules prescribed by the Central Government for maintenance of cost records under section 209
(1) (d) of the Companies Act, 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained. However we have not made a detailed
examination of the records.
ix) According to the information and explanations given to us in respect of statutory and other dues :
a) The Company has been regular in depositing undisputed statutory dues including Provident
Fund, Employees State Insurance, Investors Education and Protection Fund, Income Tax,
Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess. According to the information
and explanation given to us, no undisputed arrears of statutory dues were outstanding as
on 31.03.2013 for a period of more than 6 months from the date they became payable.
b) At the end of the financial year there were no dues of Sales Tax, Income Tax, Service Tax,
Customs Duty, Wealth Tax, Excise Duty and Cess which have not been deposited on account
of any dispute, except as under :
Central Excise Act/ Service 8.86 2006 - 2008 Additional Commissioner,
x) The accumulated losses of the Company at the end of the financial year ended 31.03.2013
are in excess of 50% of its net worth. The Company has not incurred any cash losses duringthe financial year covered by our audit and the immediately preceding financial year.
xi) Based on our audit procedures and on the information and explanations given by the
management, we are of the opinion that the Company has not defaulted in the repayment of
dues to banks.
xii) According to the information and explanations given to us, the Company has not given any
loans and advances on the basis of security by way of pledge of shares, debentures and other
securities.
Name of Statute Nature
of DuesAmount
Rs. in Lakhs
Period to
which the
amount related
Forum where dispute
is pending
21
xiii) The Company is not a Chit Fund or a Nidhi / Mutual Benefit Fund / Society and as such
reporting under clause 4 (xiii) of the Order is not applicable to the Company.
xiv) The Company is not dealing or trading in shares, securities, debentures and other investments
and as such clause 4 (xiv) of the Order is not applicable to the Company.
xv) In our opinion and according to the information and explanations given to us, the Company
has not given any guarantees for loans taken by others from banks and financial institutions.
xvi) According to the records of the Company, the Company has not obtained any term loans.
Hence the question of commenting on the utilization of such term loans does not arise.
xvii) On the basis of review of utilization of funds on an overall basis, in our opinion, the funds
raised on short term basis have not been used for long term investment during the year.
xviii)The Company has not made any preferential allotment of shares during the year.
xix) The Company has not issued any debentures during the year.
xx) The Company has not raised money by any public issues during the year and hence the
question of disclosure and verification of end use of such money does not arise.
xxi) During the course of our examination of the books of account carried out in accordance with
the generally accepted auditing practices in India, we have not come across any instance of
fraud on or by the Company nor have been informed by the management of any such instance
being noticed or reported during the year.
Coimbatore
20.05.2013
For N.R. DORAISWAMI & COChartered Accountants
Regn. No. 000771S
(Sd.) Suguna RavichandranPartner
Membership No. 207893
LAKSHMI AUTOMATIC LOOM WORKS LIMITED
22
Balance Sheet as at 31st March, 2013
Particulars Note 31.03.2013 31.03.2012
No. Rs. in Lakhs Rs. in Lakhs Rs. in Lakhs Rs. in Lakhs
I. EQUITY AND LIABILITIES(1) Shareholders’ Funds :
a) Share Capital 1 1460.40 1460.40b) Reserves and Surplus 2 (-) 924.03 (-) 1154.42
Total Shareholder’s Funds 536.37 305.98
(2) Non - Current Liabilities : 3a) Long - term borrowings 10.00 73.74b) Other Long Term Liabilities 446.57 527.74c) Long - term provisions 28.48 35.83
485.05 637.31
(3) Current Liabilities : 4a) Short - term borrowings - 4.09b) Trade payables 7.20 7.72c) Other current liabilities 47.56 63.70d) Short - term provisions 73.36 77.51
128.12 153.02
TOTAL 1149.54 1096.31
II. ASSETS(1) Non - Current Assets :
Fixed Assets : 5(i) Tangible assets 440.32 453.39(ii) Capital work-in-progress 14.79 9.53(iii) Deferred Tax Assets (Net) 79.73 9.65(iv) Long - term loans and advances 39.54 36.52(v) Other non-current assets 13.98 16.70
(2) Current Assets : 6a) Inventories 115.70 178.72b) Trade Receivables 55.10 63.24c) Cash and cash equivalents 313.62 277.19d) Short Term Loans and Advances 42.01 22.56e) Other Current Assets 34.75 28.81
561.18 570.52
TOTAL 1149.54 1096.31
Directors
(Sd.) S. PATHYChairman
(Sd.) R. SANTHARAMDirector
(Sd.) N. JAYCHANDERDirector-in-Charge
(Sd.) A. DORAISWAMYSecretary and
Vice President-FinanceCoimbatore
20.05.2013
As per our report of even date
For N.R. DORAISWAMI & CO
Chartered Accountants
Regn. No. 000771S
(Sd.) SUGUNA RAVICHANDRANPartner
Membership No. 207893
Note : Note 1 to 6 and Significant accounting policies and Notes to Profit and Loss Statement
and Balance Sheet form part of this Balance Sheet
23
Statement of Profit and Loss for the year ended 31st March, 2013
Particulars Note 31.03.2013 31.03.2012
No. Rs. in Lakhs Rs. in Lakhs
Income:I. Revenue from operations 7 348.80 548.92
II. Other income 8 385.68 266.50
III. Total Revenue (I+II) 734.48 815.42
IV. Expenses:Cost of Materials consumed 9 112.49 192.23
Changes in inventories of finished
goods,work in progress 10 2.87 74.89
and stock in trade
Employee benefits expenses 11 207.24 189.82
Finance costs 12 1.27 1.40
Depreciation and amortisation
expenses 34.82 36.54
Other Expenditure 13 174.94 257.23
Total expenses 533.63 752.11
V. Profit before exceptional
and extraordinary items and tax (III-IV) 200.85 63.31
VI. Exceptional items 14 19.13 55.22
VII. Profit before extraordinary
items and tax (V-VI) 219.98 118.53
VIII.Extraordinary items - -
IX. Profit before tax (VII-VIII) 219.98 118.53
X. Tax expense:
(1) Current tax - -
(2) Deferred tax (-) 70.08 (-) 9.65
XI. Profit / (Loss) for the year(IX-X) 290.06 128.18
XII. Earnings per equity share:
(1) Basic 3.77 1.13
(2) Diluted 3.77 1.13
Directors
(Sd.) S. PATHYChairman
(Sd.) R. SANTHARAMDirector
(Sd.) N. JAYCHANDERDirector-in-Charge
(Sd.) A. DORAISWAMYSecretary and
Vice President-Finance
Coimbatore
20.05.2013
As per our report of even date
For N.R. DORAISWAMI & CO
Chartered Accountants
Regn. No. 000771S
(Sd.) SUGUNA RAVICHANDRANPartner
Membership No. 207893
Note : Note 7 to 14 and Significant accounting policies and Notes to Profit and Loss Statement and
Balance Sheet form part of this Profit and Loss Statement.
LAKSHMI AUTOMATIC LOOM WORKS LIMITED
24
Notes to the Balance Sheet
31.03.2013 31.03.2012
Rs. in Lakhs Rs. in Lakhs Rs. in Lakhs Rs. in Lakhs
NOTE 1 : SHARE CAPITAL
Authorised :
65,00,000 Equity Shares of Rs.10/- each 650.00 650.00
9,00,000 - 6% Cumulative Redeemable
Preference Shares of Rs.100/- each 900.00 900.00
Total 1550.00 1550.00
Issued, Subscribed and fully Paid-up :
61,03,988 Equity Shares of Rs.10/- each fully paid up 610.40 610.40
8,50,000 - 6% Cumulative Redeemable
Preference Shares of Rs.100/- each 850.00 850.00
Total 1460.40 1460.40
NOTE 2 : RESERVES AND SURPLUSSecurities Premium Reserve :
As per last Balance Sheet 457.92 457.92
Other Reserves :
Surplus :
Net Profit transferred from statement
of Profit and Loss 290.06 128.18
Appropriations :
Proposed Dividend on Preference Shares 51.00 51.00
Dividend Tax 8.67 8.27
230.39 68.91
Debit balance in Profit and Loss Account
brought forward from previous year (-)1612.34 (-)1681.25
Negative closing balance (-)1381.95 (-)1612.34
Total (-)924.03 (-)1154.42
NOTE 3 : NON-CURRENT LIABILITIES
a) Long - term borrowings
Unsecured Loans
Agency Deposit 10.00 10.00
Interest accrued and due - 63.74
Total 10.00 73.74
b) Other Long - term liabilities
Trade Payables 91.76 202.13
Others :
Liabilities for capital expenditure 2.02 1.96
Liabilities for other finance 119.99 135.40
Liabilities for expenses 148.75 133.14
Advance received for supply of goods 84.05 55.11
Total 446.57 527.74
25
Notes to the Balance Sheet
31.03.2013 31.03.2012
Rs. in Lakhs Rs. in Lakhs Rs. in Lakhs Rs. in Lakhs
NOTE 3 : NON-CURRENT LIABILITIES (CONTD.)
c) Long - term provisions
Provision for employee benefits :
(i) Provision for Gratutity 24.19 27.52
(ii) Provision for leave encashment 4.18 8.31
(iii) Provision for Bonus 0.11 -
Total 28.48 35.83
NOTE 4 : CURRENT LIABILITIES
a) Short - term borrowings
Secured Loans
(a) Loans repayable on demand
From Banks :
Working Capital Borrowings :
Open Loan - 4.09
b) Trade payables
(i) Due to micro,small and
medium enterprises - 0.12
Due to others 7.20 7.60
7.20 7.72
(ii) Others
Liabilities for capital expenditure 6.17 1.85
Liabilities for other finance 12.01 17.56
Liabilities for expenses 29.38 44.29
Total 47.56 63.70
c) Short - term provisions :
a) Provision for employee benefits
Provision for Gratutity 3.16 6.88
Provision for Leave encashment 3.02 1.65
Provision for Bonus 7.51 9.71
b) Others
Proposed Dividend on Preference Shares 51.00 51.00
D. Amount remitted during the yearin Foreign Currencies :
a) On account of dividends (Net afterdeduction of tax at source) Nil Nil
b) Number of Non-resident shareholders 135 136c) Number of shares held by Non-resident
shareholders on which dividends are due Nil Nild) The year to which dividends related N.A. N.A.
E. Earnings in Foreign Exchange :Export of goods calculated on F.O.B. Basis 211.96 386.08
3. Remuneration to Auditors :a) Audit Fees 0.50 0.50
b) Other Fees :For Taxation Matters 0.40 -For Other Services 0.18 0.33For Management Services - -For Reimbursement of Expenses 0.04 -
Total 1.12 0.83
LAKSHMI AUTOMATIC LOOM WORKS LIMITED
34
}
31.03.2013 31.03.2012
Rs. in Lakhs Rs. in Lakhs
Gratuity Leave Gratuity Leave
(Unfunded) encashment (Unfunded) encashment
(Unfunded) (Unfunded)
4. Defined Benefit PlansA. Expense recognised during year ended 31.03.2013
1. Current Service Cost 1.57 3.87 1.74 3.90
2. Interest Cost 2.38 0.73 2.74 1.083. Expected return on plan assets - - - -4. Actuarial Losses / (Gains) during the year (-) 1.25 (5.58) (2.57) (8.04)
5. Total Expense 2.70 (0.98) 1.91 (3.06)B. Actual return on plan assets
1. Expected return on Plan Assets - - - -2. Actuarial(Loss) / Gain on Plan assets - - - -3. Actual return on Plan assets - - - -
C. Net Asset/(Liability)recognised
in the Balance Sheet1. Present value of the obligation as on 31.03.2013 27.35 7.20 34.40 9.962. Fair value of plan assets as on 31.03.2013 - - - -3. Difference 27.35 7.20 34.40 9.964. Unrecognised past service cost - - - -5. Liability recognised in the Balance Sheet 27.35 7.20 34.40 9.96
D. Change in Present value of the obligationduring the year ended 31.03.20131. Present value of the obligation
as at 01.04.2012 34.40 9.96 36.08 14.10
2. Current Service Cost 1.57 3.87 1.74 3.903. Interest Cost 2.38 0.73 2.74 1.084. Benefits paid 9.75 (1.78) 3.59 1.08
5. Actuarial(gain)/loss on obligation (1.25) (5.58) (2.57) (8.04)6. Present value of obligation as at 31.03.2013 27.35 7.20 34.40 9.96
E. Change in Assets during the year ended 31.03.2013
1. Fair value of plan assets as at 01.04.2012 - - - -2. Expected return on plan assets - - - -3. Contributions made 9.75 1.78 3.59 1.08
4. Benefits paid (9.75) (1.78) (3.59) (1.08)5. Actuarial gain/(loss) on plan assets - - - -6. Fair value of plan assets as at 31.03.2013 - - - -
F. Major categories of plan assets as apercentage of total plan
Qualifying Insurance policies
Own plan assets Nil Nil Nil NilTotal
G. Actuarial Assumptions
1. Discount rate 8.05% 8.05% 8% 8%2. Salary escalation 5% 5% 5% 5%3. Expected rate of return on plan assets 0% 0% 0% 0%
4. Attrition rate 10% 10% 10% 10%
35
5. The open loan availed from bank is secured by exclusive charge on the current assets and
extension of charge on the fixed assets of the Company. The loan is further secured by personal
guarantee of the chairman.
6. 8,50,000 - 6% Cumulative Redeemable Preference Shares of Rs.100/- each issued and
alloted on 24.2.2010 are redeemable in one instalment on expiry of ten years from date of
allotment in February, 2020. No provision for payment of Dividend of Rs 51.00 Lakhs and
applicable corporate tax thereon for the financial year ending 31.3.2013 has been made.
7. (i) The Company has only one class of equity shares referred to as equity shares having a
face value of Rs 10/- each. Each holder of equity shares is entitled to one vote per share.
(ii) The details of shareholders holding more than 5% shares as at 31st March,2013 and
31st March,2012 are set out below.
As at 31st March,2013 As at 31st March,2012
No. of % held No. of % held
Shares Shares
M/s ITEMA (Switzerland) LTD 1000000 16.38 1000000 16.38
M/s Voltas Ltd 615200 10.08 615200 10.08
Mr Pathy. S 467944 7.67 467944 7.67
Mrs Aishwarya Pathy 715085 11.72 452190 7.41
M/s Lakshmi Machine Works Ltd 441110 7.23 441110 7.23
M/s The Lakshmi Mills Company Ltd 330000 5.41 330000 5.41
8. There are no derivative finanacial Instruments either for hedging or for speculation outstandingas at the Balance Sheet date.
9. Estimated amount of contracts remaining to be executed on Capital Account and not provided
for Rs. 18.00 Lakhs (previous year Rs. Nil Lakhs).
10. Deferred tax assets / liabilities comprises timingdifferences on account of :
Rs. in Lakhs
2012-13 2011-12
Assets :
Carry forward losses to the extent recognised * 116.61 34.90
V R S Expenditure 13.28 25.60
Share Issue Expenses 0.91 0.30
Provision for bad and doubtful debts 0.66 2.75
Section 43B disallownces 3.16 3.59
134.62 67.14
Liabilities :
Depreciation 54.89 57.49
Deferred Tax Asset (net) recognised in the accounts 79.73 9.65
* Refer Accounting Policy No. 11C.
LAKSHMI AUTOMATIC LOOM WORKS LIMITED
36
11. The following contingent liabilities have not been provided for : 2012-13 2011-12
Rs. in Lakhs
a) 1) Reimbursement of expenses received on rectification of 10.83 10.83
roof leakage restricted to Rs.5.04 Lakhs by the High Court
of Madras under appeal before the Supreme Court.
2) Claim for damages against the Company contested 10.00 10.00
before the Fast Track Court V, Chennai.
b) Bonds executed in favour of The Asst. Commissioner of Nil 98.65
Central Excise for duty free import of capital goods
and excise duty exemption for procurement of raw
materials and components for 100% EOU (Unit 2).
c) Bank guarantee furnished under (b) above Nil 4.89
d) Bonds executed in favour of Deputy Commissioner of Nil 8.00
Central Excise for import of components at Concessional
rate of duty for manufacture of weaving machines
e) Export obligation as supporting manufacturer for machinery Nil 356.92
imported by associate company under EPCG scheme and leased
to the company to be fulfilled before 4th December, 2014.
f) Service Tax on Appeals
Disputed Tax dues are under Appeal before 10.21 10.67
the concerned Appellate Authorities.
The Company is advised that the matters are likely
to be disposed off in favour of the Company.
12. Segment Report for the year ended 31st March, 2013
Primary Business Weaving Machinery Other Engineering Total
Capital Expenditure 26.24 55.18 0.77 0.02 27.01 55.20
Depreciation 13.22 14.33 21.60 22.21 34.82 36.54
Secondary-Geographical
Segment
31.03.2013 31.03.2012
Revenue from external customers
by location of customers
Domestic Segment 586.73 484.76
Export Segment 211.96 386.08
798.69 870.84
Less : Inter-division revenue - -
Net Income from Sales / Services 798.69 870.84
Notes :The Company has two main business segments ie (a) Weaving Machinery Comprising of looms
accessories & spares and (b) Other Engineering Services Comprising of accessories & spares
of Knitting Machinery and parts for machine tools including Tool holders.
The Secondary geographical segment considered for disclosure are Revenue from customers
located within India (Domestic Segment) and Revenue from customers located outside India
(Export Segment).
13. Details of transactions with related parties as required under AS-18 are as below :
a. Names of related parties : Relationship
The Lakshmi Mills Company Ltd. Associate
Infocus Marketing and Services Ltd. - do -
Lakshmi Card Clothing Manufacturing Company Private Ltd. - do -
Prathista Weaving and Knitting Company Ltd. - do -
LAKSHMI AUTOMATIC LOOM WORKS LIMITED
38
b.Transaction during the year 31.03.2013 31.03.2012
Sl. No Nature of Transaction (Rs. in Lakhs)
1. Purchase of Goods - 0.63
2. Sale of Goods 2.37 0.47
3. Receiving of Services 3.02 5.21
4. Agency arrangements 2.17 1.02
5. Leasing arrangement 5.11 6.71
Amount receivable 0.21 0.19
Amount payable 165.16 269.19
14. As defined under Micro, Small and Medium Enterprises Development Act, 2006 the disclosure in
respect of the amount payable to such enterprises as at 31.03.2013 has been made in the financial
statement based on information received and available with the company. The scheme sanctioned
by the BIFR being under implementation, the liability towards interest has not been recognised.
31.03.2013 31.03.2012
(Rs. in Lakhs)a) The principal amount remaining unpaid to any supplier
as at the end of each accounting year. 4.92 10.17
b) The amount of interest paid by the buyer in terms ofSection 16 of the Micro, Small and Medium EnterprisesDevelopment Act, 2006 along with the payment made tothe supplier beyond the appointed day duringeach accounting year. Nil Nil
c) The amount of interest due and payable for the period ofdelay in making payment (which have been paid but beyondthe appointed day during the year) but without adding theinterest specified under this Act. Nil Nil
d) The amount of interest accrued and remaining unpaid at theend of each accounting year. Nil Nil
e) The amount of further interest remaining due and payableeven in the succeeding years, until such date when the duesare actually paid for the purpose of disallowance underSection 23 of the Micro, Small and MediumEnterprises Development Act, 2006. Nil Nil
39
31.03.2013 31.03.2012
(Rs. in Lakhs)
15. Earnings per share as per AS-20 :Profit as per Statement of Profit and Loss 290.06 128.18
Less : Proposed Dividend on Preference Shares
for the year ended 31.03.2012 51.00 51.00
Corporate tax on Dividend 8.67 8.27
a) Net Profit after taxes 230.39 68.91
b) No. of Equity Shares outstanding 6103988 6103988
c) EPS (Face value of Rs.10/- per Share)
Basic 3.77 1.13
Diluted 3.77 1.13
16. Figures have been rounded off in terms of decimals in thousands and previous year figures
have been regrouped/rearranged wherever necessary.
Directors
(Sd.) S. PATHY
Chairman
(Sd.) R. SANTHARAM
Director
(Sd.) N. JAYCHANDER
Director-in-Charge
(Sd.) A. DORAISWAMY
Secretary and
Vice President-FinanceCoimbatore
20.05.2013
As per our report of even date
For N.R. DORAISWAMI & CO
Chartered Accountants
Regn. No. 000771S
(Sd.) SUGUNA RAVICHANDRAN
Partner
Membership No. 207893
LAKSHMI AUTOMATIC LOOM WORKS LIMITED
40
CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2013
31.03.2013 31.03.2012
(Rs. in Lakhs)
A. Cash flow from operating activities
Net profit as per Statement of Profit & Loss 219.98 118.53
Add :
Depreciation and amortisation expenses 34.82 36.54
Interest 1.27 1.40
Less :
Interest Income 22.21 15.22
Profit on sale of assets 15.17 55.55
(-)1.29 (-)32.83
Operating Profit Before Working Capital Changes 218.69 85.70
Adjustments for
Decrease in Inventories 63.02 80.70
Decrease in Debtors 8.14 (-) 1.16
Increase in Other Current Assets (-) 5.94 (-) 5.01
Decrease in Loans & Advances (-) 19.45 3.73
Increase in Current Liabilities (-) 25.30 11.19
Decrease in other Non Current assets (-) 0.30 8.83
20.17 98.28
Net Cash used in operating activities (A) 238.86 183.98
B. Cash Flow from Investment Activities
Purchase of Fixed Assets (-)27.01 (-)55.20
Interest Income 22.21 15.22
Sale of Fixed Assets 15.17 55.60
Net Cash used in Investing activities (B) 10.37 15.62
C. Cash Flow from Financial Activities
Interest (-)1.27 (-)1.40
Decrease in Non Current liabilities (-)88.52 (-)122.41
Decrease in Sales Tax Deferred and interest (-)63.74 -
Dividend & Dividend tax on Preference Shares (-)59.27 -
Net Cash used in Financing activities (C) (-)212.80 (-)123.81
Net Increase in cash and cash equivalents (A+B+C) 36.43 75.79
Cash and cash equivalents as at 01.04.2012 277.19 201.40
Cash and cash equivalents as at 31.03.2013 313.62 277.19
-ve sign before the figures represent cash outflows.
Directors
(Sd.) S. PATHY
Chairman
(Sd.) R. SANTHARAM
Director
(Sd.) N. JAYCHANDER
Director-in-Charge
(Sd.) A. DORAISWAMY
Secretary and
Vice President-Finance
Coimbatore
20.05.2013
As per our report of even date
For N.R. DORAISWAMI & CO
Chartered Accountants
Regn. No. 000771S
(Sd.) SUGUNA RAVICHANDRAN
Partner
Membership No. 207893
4141
LAKSHMI AUTOMATIC LOOM WORKS LIMITEDRegistered Office :
Sathy Road, Ganapathy, Coimbatore-641006 through their Email : [email protected] are requested to keep the RTA / Company informed in writing / e-mail as and when there is
any change in your e-mail ID.
Folio No. :
Name :
E-mail ID :
Mode of dispatch : Electronic mode / Physical Mode (✓ in the box whichever is applicable)
The Annual Report and other Communications / documents will also be displayed on the Company’s
website : www.lakshmiautomatic.com
As a member of the Company, you will be entitled to be furnished, free of cost, a copy of the
Balance Sheet, and all other documents required by law to be attached thereto including the
Statement of profit and loss, Auditors Report and other communication that may be sent to you,
on receipt of a requisition from you to this effect.
Thanking you
Yours faithfully
For Lakshmi Automatic Loom Works Ltd
(Sd.) A. DoraiswamyCompany Secretary &
Vice President – FinanceCoimbatore
20.05.2013
LAKSHMI AUTOMATIC LOOM WORKS LIMITEDRegistered Office :
of ...................................................................................................................................................................
in the district of .............................................................................................................................................
being a Member/Members of Lakshmi Automatic Loom Works Limited hereby appoint
..................................................................... of ..................................................................in the district
of ............................................................... or failing him.............................................of.............................
in the district of ..............................................................................................................as my/our Proxy
in my / our absence to attend and vote for me/us and on my/our behalf at the THIRTY NINTH
ANNUAL GENERAL MEETING of the Company to be held at the Registered Office at 686, Avanashi
Road, Pappanaickenpalayam, Coimbatore - 641 037 on Monday, the 12th day of August, 2013
at 2.30 P.M. and at any adjournment thereof.
Signed by the said.........................................................................................................................
Date ............................................... 2013