1. Share Capital:
I. Share Capital:
a) Before amalgamation 211000 Equity shares of Rs.100 each consists of
initial subscription to memorandum and subsequent allotments to the
b) 497900 Equity shares of Rs.100 each issued on 03.08.2007 pursuant to
High Court Order dated 09.07.2007 approving the scheme of amalgamation
of Dr. S.K.S. Eye Care Centre Private Limited with Lotus Eye Care
c) 345233 Equity shares of Rs.100 each were allotted as bonus shares on
28.08.2007 by capitalization of general reserve.
d) The face value of equity shares was split from Rs.s.100 per share to
Rs.10 per share on 03.09.2007. Due to this the total number of shares
consists of 10541330 shares of the each.
e) 255000 Equity shares of Rs.10 each were allotted to M/s.Bennett and
Coleman Company Limited on 22.01.2008 on preferential allotment with a
premium of Rs.40 per share.
f) 10000000 equity shares of Rs. 10 each allotted on 03.07.2008 through
Initial Public Offer (IPO) with a premium of Rs.28 per share.
II). Securities Premium Account:
The premium collected on above issue of equity shares amounting to Rs.
2800 Lakhs and also of the preferential allotment of Rs. 102 Lakhs has
been credited to Securities Premium Account during the financial year
a). Out of Public Issue, Refund amounting to Rs. 0.26 Lacs has been kept
in a separate bank account (Axis Bank Ltd, Coimbatore).
b). Advance paid out of Public issue for purchase of land at Salem
project and Tirupur Project was returned by the both parties amounting
to f. 535 Lacs and the same was utilized for the centers opened at
Mettupalayam, salem - II and Cochin, which were not envisaged in the
c). Funds deployed includes equipment cost f. 187.60 lacs not envisaged
in offer document.
2) Rs. 21.93 Lacs kept in the form of FD in Indusind Bank Coimbatore,
against Bankguarantee to Bombay stock exchange.
3) Figures have been rounded off to the nearest rupee and previous
year''s figures have been regrouped wherever necessary.
4) Provision for all liabilities including depreciation is neither
inadequate nor more than what is necessary .
5) a) The company has not given any guarantee on behalf of the
directors or other officers
b) i) a) Amounts due at the end of the year from Private companies in
which one of the directors is a director is Rs. Nil (Previous year Rs.
b) Amounts due at the end of the year from the trust in which one of
the directors is a trustee is Rs. -Nil (Previous year Rs. Nil)
ii) Maximum amount due from Dr.S.K.Sundaramoorthy at any time during
the year is Rs. Nil
iii) Maximum amount due from Lotus Vision Research Trust at any time
during the year Rs. Nil.
6) No dividend is recommended for the financial year 2010-11
7) Remuneration paid to Managing / Whole time Director during the year
Remuneration Rs. 18.00 Lacs
House Rent Rs. 2.24 Lacs
8) The company has initiated the process of obtaining confirmation from
suppliers who have registered themselves under the Micro, Small and
Medium Enterprises Act, 2006. Since the relevant information is not
readily available, no disclosures have been made in these financial
statements. Based on the information available with the company and in
the considered view of the management and relied upon by the auditors,
impact of interest, if that may be payable under the provisions of the
act is not expected to be material.
9) Due to certain practical difficulties relating to this specific
industry and items are largely small value, quantitative particulars in
respect of operations and inventories have not been furnished as per
the requirement of schedule VI to the Companies Act, 1956.
10) Security particulars of secured loans:
The term loans/working capital limits availed from the Indian Overseas
Bank, HDFC Bank Ltd. and Citicorp Finance Ltd are primarily Secured by:
a. Charge on the immovable properties of the company situated at
770/12, Avinashi Road, Civil Aerodrome Post, Coimbatore -14 and 155B,
East Periasamy Road, Near Chinthamani, R.S.Puram, Coimbatore - 641 002.
b. Charge on the movable fixed assets including medical equipments has
been assigned to respective bankers who funded the particular movable
c. The working capital facility availed from the Indian Overseas Bank
is primarily secured by hypothecation of Stocks and Book debts.
d. The loan availed from the Indian Overseas Bank is collaterally
secured by the land at SF No.89/1A to 89/1F at Pattanam Village
belonging to Dr.S.K.Sundaramoorthy.
e. The Term loans and Working capital facility availed from the Indian
Overseas Bank are further guaranteed by the personal guarantees of the
Chairman and Managing Director and other Promoter directors of the
11) There is no contingent liability as on 31.03.2011
12) During the year there is no impairment of assets as certified by
13) Disclosure regarding lease transactions:
i. Lease rent paid to Dr.S.K.Sundaramoorthy for leasing medical
equipments to the company Rs.19.92 Lacs ii. Lease rent paid to Lotus
Vision Research Trust for leasing medical equipments to the company
14) Segment Reporting:
Based on the guiding principles given in accounting standard on the
Segment Reporting (AS 17) issued by the ICAI, there is only one
Reportable segment namely Eye Care and related activities. As the
Company''s business activity is interrelated, the disclosure requirement
of AS-17 in this regard does not arise.
15) Specific debts identified as irrecoverable and doubtful are written
off during the year Rs. 11.12 lacs classified as miscellaneous expenses.
16) Insurance claim receivable accounted during the previous year
2009-2010 amounting to Rs.13.50.lacs has not been admitted by the
insurance company. Hence the said amount has been charged to Profit and
Loss account during the financial year 2010-11
17) Related party disclosure:
List of related parties as identified by the management are as under
(I). Names of related parties and description of relationship
a. Key Management Personnel : 1. Dr.S.K.Sundaramoorthy
: 2. Ms.Sangeetha Sundaramoorthy
b. Other related parties : Lotus Vision Research Trust
22) Employees Benefits - The Company has provided for employee benefits
as per Accounting Standard 15 in respect of defined benefit plan
Description of the company''s defined benefit plan: The Company operates
a defined benefit plan for payment of post employment benefits in the
form of gratuity. Benefits under the plan are based on pay and years of
service and are vested on completion of five years of service as
provided in the Payment of Gratuity Act, 1972. The terms of the benefit
are common for all the employees of the company.
18) Leave encashment benefits have been provided as per the rules of
the company and on actuarial Valuation. No separate fund has been
created. Amount charged to Profit and Loss Account during the year is
Rs. 3.47 Lacs.
19) Amount of contribution to Employees Provident Fund during the year
is Rs.7.21 Lacs. (Previous year Rs.1.97 lacs)
20) The company has not entered into any derivative transactions during
the year under report.
21) Confirmation of balance are yet to be obtained from few parties.
22) The caution deposit collected from the employees and doctors who
are in service amounting to Rs. 29.25 Lakhs is remaining to be deposited
with scheduled bank / post office as required under section 417 of the
Companies Act, 1956.