Notes to Accounts of Coimbatore Lakshmi Investment & Finance Co. Ltd.

Mar 31, 2013

1 The operations of Bangalore branch of the Company were suspended from 31.08.1999 and the assets were put up for sale. An employee of the Company who was in-charge of the Bangalore Branch, has not rendered accounts to the company in respect of the disposal of the assets at the Branch, The company has Initiated legal action against the employee. As the matter is pending before the Court and Quantum of sale realization particulars having not been available to the Company, the same has not been considered in the accounts. In view of the uncertainty of realization, on determination of the matter by the Court, the transaction would be appropriately recognized in the accounts.

2 Contingent Liabilities and Commitments (To The Extent Not Provided For):

Particulars As at As at 31-03-2013 31-03-2012 Rs. in crores Rs.in crores

(A) Contingent Liabilities

(a) Claims against the company not acknowledged as debts 3.90 3.90

Total 3.90 3.90

3 Borrowing Cost:

The amount of borrowing cost capitalised during the year is Rs. Nil.

4 Expenditure & Earnings in Foreign Currency:

Expenditure & Earnings in Foreign Currency during the year is Nil.

5 The balance in Bank accounts, aggregating to a Net Debit balance of RS. 1,14,561/- are subject to reconciliation, Due to non-receipt and belated receipt of statements of account, the same have not been reconciled. - ¦

6 Certain subsidiary records maintained by the Company are subject to reconciliation.

7 In the opinion of the Board, all current assets, loans and advances have a value on realization in the ordinary course of business at least egual to the amount at which they are stated.

8 The Prudential Norms prescribed for the Non Banking Financial Companies by the Reserve Bank of India in respect of classification of Assets, Income recognition and provisioning have been complied with, Provisioning for Non Performing Assets have been made considering the receivables as unsecured as the market / realizable value of the assets covered under the Hire Purchase/ Lease transactions were not available. -

9 In respect of certain Hire Purchase transactions, shares have been obtained by the Company as security. The proceeds out of sale of these shares have been adjusted against the dues from the respective parties.

10 Loans and advances include an amount of Rs.31.52 lacs in respect of which the company has initiated proceedings against the persons who are accountable for such transactions. The proceedings initiated by the Company against the persons who are accountable for such transactions is in progress. Hence the unadjusted amount as of the closing date is continued to be shown as recoverable advance during the year for which necessary provisions for doubtful recovery has already been made in the accounts.

11 The balance in certain parties accounts and bank accounts are subject to confirmation and reconciliation.

12 The registration granted by Reserve Bank of India Expired on 31.03.2004 and the same has not been considered for renewal.

13 In the opinion of the Company, the fall in value of long term investments is temporary and hence no provision for diminution in value has been made,

14 Disclosure in respect of segment reporting are not applicable to the company as the company does not have more than one repbrtable segment.

15 During the year the company has not taken or given any asset on lease.

16 Taking into consideration the prudence and non availability of convincing evidence to show that there would be sufficient future income, against which deferred tax asset can be realized, recognition of deferred tax asset / liability as required by the accounting standard for accounting of taxes on income has not been considered in the accounts,

17 The previous year figures have been reclassified/regrouped/rearranged to conform with the current year classification.

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Mar 31, 2012

Note - 1 : Share Capital

a) Terms/Right attached to Equity Shares

The company has only one class of equity shares having a par value of Rs. 10/- per share. Each share- holder of equity shares is entitled to one vote per share.

b) Terms of conversion/Redemption of Preference Shares

The Company had issued preference shares on 09.03.1998 aggregating Rs. 80.35 lacs. The Shares are required to be redeemed in three instalments. As the preference shares can be redeemed only out of profits or fresh issue, the redemption was not done.

1. The operations of Bangalore branch of the Company were suspended from 31.08.1999 and the assets were put up for sale. An employee of the Company who was in-charge of the Bangalore Branch, has not rendered accounts to the company in respect of the disposal of the assets at the Branch. The company has initiated legal action against the employee. As the matter is pending before the Court and Quantum of sale realization particulars having not been available to the Company, the same has not been considered in the accounts. In view of the uncertainty of realization, on determination of the matter by the Court, the transaction would be appropriately recognized in the accounts.

2. Contingent Liabilities and Commitments (To The Extent Not Provided For):

Particulars As at As at 31-03-2012 31-03-2011 Rs. in crores Rs. in crores

(A) Contingent Liabilities

(a) Claims against the company not acknowledged as debts 3.90 3.90

Total 3.90 3.90

3. Borrowing Cost:

The amount of borrowing cost capitalised during the year is Rs. Nil.

4. Expenditure & Earnings in Foreign Currency:

Expenditure & Earnings in Foreign Currency during the year is Nil.

5. The balance in Bank accounts, aggregating to a Net Debit balance of Rs. 1,15,750/- are subject to reconciliation, Due to non-receipt and belated receipt of statements of account, the same have not been reconciled.

6. Certain subsidiary records maintained by the Company are subject to reconciliation.

7. In the opinion of the Board, all current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

8. The Prudential Norms prescribed for the Non Banking Financial Companies by the Reserve Bank of India in respect of classification of Assets, Income recognition and provisioning have been complied with, Provisioning for Non Performing Assets have been made considering the receivables as unsecured as the market/realizable value of the assets covered under the Hire Purchase/Lease transactions were not available.

9. In respect of certain Hire Purchase transactions, shares have been obtained by the Company as security. The proceeds out of sale of these shares have been adjusted against the dues from the respective parties.

10. Loans and advances include an amount of Rs. 31.52 lacs in respect of which the company has initiated proceedings against the persons who are accountable for such transactions. The proceedings initiated by the Company against the persons who are accountable for such transactions is in progress. Hence the unadjusted amount as of the closing date is continued to be shown as recoverable advance during the year for which necessary provisions for doubtful recovery has already been made in the accounts.

11. The balance in certain parties accounts and bank accounts are subject to confirmation and reconciliation.

12. The registration granted by Reserve Bank of India Expired on 31.03.2004 and the same has not been considered for renewal.

13. In the opinion of the Company, the fall in value of long term investments is temporary and hence no provision for diminution in value has been made.

14. Disclosure in respect of segment reporting are not applicable to the company as the company does not have more than one reportable segment.

15. During the year the company has not taken or given any asset on lease.

16. Taking into consideration the prudence and non availability of convincing evidence to show that there would be sufficient future income, against which deferred tax asset can be realized, recognition of deferred tax asset/liability as required by the accounting standard for accounting of taxes on income has not been considered in the accounts.

17. Related Party Disclosure:

List of related parties with whom transactions have taken place during the year

(i) Holding Company: Nil

(ii) Subsidiaries: Nil

(iii) Others: VTX Industries Limited and Enterprises Private Limited.

18. The previous year figure have been reclassified to conform with the revised schedule VI notified under the Companies Act, 1956 applicable from the year ended 31st March, 2012.

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Mar 31, 2011

1. The operations of Bangalore branch of the Company were suspended from 31.08.1999 and the assets were put up for sale. An employee of the Company who was in-charge of the Bangalore Branch, has not rendered accounts to the company in respect of the disposal of the assets at the Branch. The company has initiated legal action against the employee. As the matter is pending before the Court and Quantum of sale realization particulars having not been available to the Company, the. same has not been considered in the accounts. In view of the uncertainty of realization, on determination of the matter oy the Court, the transaction wouia be appropriately recognized in the accounts.

2. (a) The balance in certain Bank accounts, aggregating to a Net Debit balance of Rs. 1,14,471/- are subject to reconciliation, Due to non-receipt and belated receipt of statements of account, the same have not been reconciled.

(b) Certain subsidiary records maintained by the Company are subject to reconciliation

3. In the opinion of the Board, all current assets, loans and advances have a value on realization in the ordinary course of business at least egual to the amount at which they are stated.

4. The Prudential Norms prescribed for the Non Banking Financial Companies by the Reserve Bank of India in respect of classification of Assets, Income recognition and provisioning have been complied with, Provisioning for Non Performing Assets have been made considering the receivables as unsecurea as the market / realizable value of the assets covered under the Hire Purchase / Lease transactions were not available.

5. In respect of certain Hire Purchase transactions, shares have been obtained by the Company as security. The proceeds out of sale of these shares have been adjusted against the dues from the respective parties.

6. Loans and advances include an amount of Rs.31.52 lacs in respect of which the company has initiated proceedings against the persons who are accountable for such transactions. The proceedings initiated by the Company against the persons who are accountable for such transactions is in progress. Hence the unadjusted amount as of the closing date is continued to be shown as recoverable advance during the year for which necessary provisions for doubtful recovery has already been made in the accounts.

7. The balance in certain parties accounts and certain bank accounts are subject to confirmation ana reconciliation.

8. The registration granted by Reserve Bank of India Expired on 31.03.2004 and the same has not been considered for renewal.

9. In the opinion of the Company, the fall in value of long term investments is temporary and hence no provision for diminution in value has been made.

10. Disclosure in respect of segment reporting are not applicable to the company as the company does not have more than one reportable segment.

11. During the year the company has not taken or given any asset on lease.

12, Figures for the previous year have been regrouped wherever necessary to conform to the current year's classification.

13. Figures have been rounded off to the nearest rupee.

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Mar 31, 2010

1. The operations of Bangalore branch of the Company were suspended from 31.08.1999 and the assets were put up for sale. An employee of the Company who was in-charge of the Bangalore Branch, has not rendered accounts to the company in respect of the disposal of the assets at the Branch. The company has initiated legal action against the employee. As the matter is pending before the Court and Quantum of sale realization particulars having not been available to the Company, the same has not been considered in the accounts. In view of the uncertainty of realization, on determination of the matter by the Court, the transaction would be appropriately recognized in the accounts.

2. (a) The balance in certain Bank accounts, aggregating to a Net Debit balance of Rs. 1,14,471/- are subject to reconciliation, Due to non-receipt and belated receipt of statements of account, the same have not been reconciled.

(b) Certain subsidiary records maintained by the Company are subject to reconciliation.

3. In the opinion of the Board, all current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

4. The Prudential Norms prescribed for the Non Banking Financial Companies by the Reserve Bank of India in respect of classification of Assets, Income recognition and provisioning have been complied with, Provisioning for Non Performing Assets have been made considering the receivables as unsecured as the market / realizable value of the assets covered under the Hire Purchase / Lease transactions were not available.

5. In respect of certain Hire Purchase transactions, shares have been obtained by the Company as security. The proceeds out of sale of these shares have been adjusted against the dues from the respective parties.

6. Loans and advances include an amount of Rs.31.52 lacs in respect of which the company has initiated proceedings against the persons who are accountable for such transactions. The proceedings initiated by the Company against the persons who are accountable for such transactions is in progress. Hence the unadjusted amount as of the closing date is continued to be shown as recoverable advance during the year for which necessary provisions for doubtful recovery has already been made In the accounts.

7. The balance in certain parties accounts and certain bank accounts are subject to confirmation and reconciliation.

8. The registration granted by Reserve Bank of India Expired on 31.03.2004 and the same has not been considered for renewal.

9. In the opinion of the Company, the fall in value of long term investments is temporary and hence no provision for diminution in value has been made.

10. Disclosure in respect of segment reporting are not applicable to the company as the company does not have more than one reportable segment.

11. During the year the company has not taken or given any asset on lease.

12. Taking into consideration the prudence and non availability of convincing evidence to show that there would be sufficient future income, against which deferred tax asset can be realized recognition of deferred tax asset / liability as required by the accounting standard for accounting of taxes on income has not been considered in the accounts.

13. Figures for the previous year have been regrouped wherever necessary to conform to the current years classification.

14. Figures have been rounded off to the nearest rupee.