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అకౌంట్స్ గమనికలుHindustan Hardy Ltd.
e. Provisions and Contingencies :
A provision is recognized for a present obligation as a result of past events if it is probable
that an outflow of resources will be required to settle the obligation and in respect of
which a reliable estimate can be made. Provisions (excluding retirement benefits) are not
discounted to its present value and are determined based on best estimate of the amount
required to settle the obligation at the Balance Sheet date.
A contingent liability is not recognized - but is only disclosed, unless the possibility of an
outflow of resources is remote.
f. Foreign Currency Conversion :
The Companyâs financial statements are presented in Indian National Rupee (INR) which
is also its functional currency.
Foreign currency transactions are recorded at the rates of exchange prevailing on the
date of transaction or at the rates that closely approximate the rate at the date of the
transaction.
Exchange differences arising on the settlement of monetary items or on reporting
Companyâs monetary items at rates different from those at which they were initially
recorded during the year, or reported in previous financial statements, are recognized as
income or expenses in the year in which they arise.
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At the Balance-Sheet date, all foreign currency balances are reported using the
Closing Exchange Rate.
i. Revenue is recognized to the extent it is probable that the economic benefits will flow
to the Company and the revenue can be reliably measured, regardless of when the
payment is being made.
ii. The specific recognition criteria described below must also be met before revenue is
recognised.
Revenue is recognized when the significant risks and rewards of ownership of the
goods have passed to the buyer / customer.
GST is collected on behalf of the Government and no economic benefit
flows to the entity and does not result in an increase in equity, consequently revenue
is presented net of GST.
Revenue disclosed are net of GST, discounts and sales returns, as applicable.
Revenue from services is recognized (net of GST, as applicable) pro-rata over the
period of the contract as and when services are rendered.
v. Duty Drawback / MEIS / RoDTEP - Export Incentives :
The export incentives are accounted for on realization basis as there is uncertainty
about the actual amount to be realized after due compliances of all the conditions.
Interest income is recognized on a time proportion basis that reflects the effective yield
on the asset.
h. Retirement and other employee benefits :i. Defined Contribution Plan :
Employee benefits in the form of contribution to Provident Fund managed by
Government Authorities, Employees State Insurance Corporation and Labour Welfare
Fund are considered as defined contribution plan and the same is charged to the
Statement of Profit and Loss for the year in which the employee renders the related
service.
Retirement benefit in the form of Gratuity, is considered as defined benefit obligation
and is provided for on the basis of actuarial valuation as at the date of Balance
Sheet. Re-measurement, comprising of Actuarial gain / loss, if any, is immediately
recognized in Other Comprehensive Income (OCI) under retained earnings. The
same is not reclassified to Statement of Profit and Loss. Prior year comparisons are
treated accordingly.
The company has taken a Group Gratuity-cum-Life Assurance Scheme Policy from
Life Insurance Corporation of India for future payment of gratuity to retiring employees.
The balance lying with LIC of India in this policy is compared with the
liability as calculated in actuarial valuation report. Any shortfall in the same is
recognized as liability and any surplus is shown as asset.
Provision for Leave Encashment is made on actual basis on the assumption that the
same would be payable at the end of the accounting period if all the employees were
to terminate their services.
The company also contributes certain percentage of salary for all eligible employees
in managerial cadre towards Superannuation Fund managed by approved trust / Life
Insurance Corporation of India.
Borrowing cost directly attributable to acquisition and construction of assets that
necessarily takes substantial period of time to get ready for its intended use or sale
are capitalized as part of the cost of such assets up to the date when such assets are
ready for intended use or sale. All other borrowing costs are expensed in the period
in which they occur. Borrowing costs consist of interest and other costs that an entity
incurs in connection with the borrowing of funds.
Tax expense comprises of current income tax and deferred income tax and includes
any adjustments related to past periods in current and / or deferred tax adjustments
that may become necessary due to certain developments or reviews during the
relevant period.
Current tax is the amount of tax payable on the taxable income for the year as
determined in accordance with the applicable tax rates and the provisions of the
Income Tax Act, 1961.
Current income tax assets and liabilities are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates used to compute the
amount are those that are enacted or substantively enacted, at the reporting date.
Current income tax relating to items recognized outside profit or loss are recognized
in correlation to the underlying transaction either in OCI or directly in equity.
Management periodically evaluates positions taken in the tax returns with respect
to situations in which applicable tax regulations are subject to interpretation and
establishes provisions where appropriate.
Deferred tax is recognized on temporary differences between the carrying amounts of
assets and liabilities in the financial statements and the corresponding tax bases used
in the computation of taxable profit. Deferred tax liabilities are generally recognized
for all taxable temporary differences. Deferred tax assets are generally recognized for
all deductible temporary differences to the extent that it is probable that taxable profits
will be available against which those deductible temporary differences can be utilized.
Such deferred tax assets and liabilities are not recognized if the temporary difference
arises from the initial recognition of
assets and liabilities in a transaction that affects neither the taxable profit nor the
accounting profit.
The carrying amount of deferred tax assets / liabilities are reviewed at each Balance
Sheet date. The Company writes-down the carrying amount of a deferred tax asset
to the extent that it is no longer probable that sufficient future taxable income will be
available against which deferred tax asset can be realized. Any such write-down is
reversed to the extent that it becomes reasonably certain that sufficient future taxable
income will be available.
Deferred tax liabilities and assets are measured at the tax rates that are expected to
apply in the period in which the liability is settled or the assets realized, based on tax
rates (and tax laws) that have been enacted or substantively enacted by the end of the
reporting period.
The determination of whether an arrangement is (or contains) a lease is based on the
substance of the arrangement at the inception of the lease. The arrangement is, or
contains, a lease if fulfillment of the arrangement is dependent on the use of a specific
asset or assets and the arrangement conveys a right to use the asset or assets, even
if that right is not explicitly specified in an arrangement.
Company as a lessee:
Leases where the lessor effectively retains substantially all the risks and benefits of
ownership of the leased item, are classified as operating leases. Operating lease
payments are recognized as an expense in the Statement of Profit and Loss on a
straight-line basis over the lease term unless the payments are structured to increase
in line with expected general inflation to compensate for the lessorâs expected
inflationary cost increases.
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l. Segment Reporting :
Operating segment is reported in a manner consistent with the internal reporting
provided to chief operating decision makers.
The Board of Directors of the company has appointed Management Team which has
been identified as being the chief operating decision maker , consists of Managing
Director , Chief Operating Officer (COO), Chief Finance Officer (CFO), Production
Manager and Sales & Marketing Manager. They assess the financial performance and
position of the Company and make strategic decisions.
Basic earnings per share is calculated by dividing the net profit or loss for the period
from continuing operations attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the
period from continuing operations attributable to equity shareholders is divided by the
weighted average number of equity shares outstanding during the period - adjusted for
the effects of all dilutive potential equity shares.
n. Classification of Current/Non-Current Assets and Liabilities :
All assets and liabilities are presented as Current or Non-Current as per the Companyâs
normal operating cycle and other criteria set out in Schedule III of the Companies Act,
2013. Based on the nature of products and the time between the acquisition of assets
for processing and their realization, the Company has ascertained its operating cycle
as 12 months for the purpose of Current / Non-current classification of assets and
liabilities.
o. Significant estimates and assumptions :
The preparation of the Companyâs financial statements requires management to make
judgments, estimates and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, and the accompanying disclosures, and the disclosure
of contingent liabilities. Uncertainty about these assumptions and estimates could result
in outcomes that require a material adjustment to the carrying amount of assets or
liabilities affected in future periods. Estimates and judgments are continually evaluated
and are based on historical experience and other factors, including expectations of
future events that are believed to be reasonable under the circumstances.
p. Classification of Legal matters and Tax litigations :
The litigations and claims to which the Company is exposed are assessed by
management with assistance and support of external specialized lawyers. Disclosures
related to such provisions, as well as contingent liabilities, also require judgment and
estimations if any.
All estimates mentioned above are further detailed in the corresponding disclosures.
b) Rights, preferences and restrictions attached to equity shares .
The Company is having only one class of equity shares having par value of Rs. 10 each. Each holder of equity
share is entitled to one vote per share. In the event of liquidation of the company, the holders of the equity
shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts in
proportion to their shareholding.
29 Employee benefits:
a) Defined Contribution Plans
i) The company contributes certain percentage of salary & wages for all eligible employees toward providend
fund managed by the Central Government.
ii) The company also contributes certain percentage of salary for all eligible employees in managerial cadre
towards Superannuation Fund managed by approved trust / Life Insurance Corporation of India.
b) Defined Benefit Plan -Gratuity as per actuarial valuation As At -31-03-2026
"The company has defined benefit gratuity plan. Every employee who has completed five years ( One Year
w.e.f.25-11-2025) or more of service gets a gratuity on departure, at 15 days salary (on last drawn basic
salary) for each completed year of service. Other non funded plan include death & disability benefit. The
following tables summarise the components of net benefit / expense recognised in the statement of profit
and loss and amounts recognised in the balance sheet:
42. As per information given, the company does not have relationship with any company which have been
struck-off from the register of Registrar of Companies.(ROC).
43. The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial
year.
44. The Company has complied with requirements of number of Layers prescribed under clause (87) of
section 2 of the Act read with Companies ( Restrictions on No of layers ) Rules, 2017.
45. The Balances of Creditors and Debtors appearing in the balance sheet are subject to balance
confirmation / reconciliation at the year end. The management is in the process of obtaining the
respective confirmations in due course. However, it is informed that the reconciliation is not expected to
result in any material adjustment in stated balances.
46. Figures of the previous year have been regrouped / rearranged wherever necessary to conform to the
current year''s presentation.
b) Rights, preferences and restrictions attached to equity shares.
The Company is having only one class of equity shares having par value of Rs. 10 each. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts in proportion to their shareholding.
B. Other Terms & Conditions of Loans -
a. Working Capital Loans from Axis Bank are secured by hypothecation of stock and debtors. It includes pre-shipment and post-shipment credit against export orders in foreign currency.
b. Terms Loans against Plant & Machinery , Working Capital Term Loan and Working Capital Loans from Axis Bank are against mortgage of factory land and building situated at Plot No. C-12 , MIDC , Ambad ,Nashik . Further these loans are secured by entire current assets and movable fixed assets of the company present and future.
c. Vehicle Terms Loans are against security of respective vehicles.
29. Employee benefits: a) Defined Contributions Plans
i) The company contributes certain percentage of salary & wages for all eligible employees toward providend fund managed by the Central Government.
The company also contributes certain percentage of salary for all eligible employees
ii) in managerial cadre towards Superannuation Fund managed by approved trust / Life Insurance Corporation of India.
Defined Benefit Plans - As per actuarial valuation As At -31-03-2025
The company has defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure, at 15 days salary (on last drawn basic salary) for each completed year of service. Other non funded plan include death & disability benefit. The following tables summarise the components of net benefit / expense recognised in the statement of profit and loss and amounts recognised in the balance sheet:
The Company is exclusively engaged in the business of designing and manufacturing of Propeller Shafts and other accessories required for automotive, industrial , agricultural and other applications which in the context of Indian Accounting Standard (Ind AS- 108) on "Operating Segments", is considered as a single operating segment.
i) As employee wise break-up of contribution to gratuity fund is not ascertainable, the same has not been included in the above figures.
ii) It is informed that the Chairman and Director, Mr. S. C. Saran has been paid professional fees of Rs. 36.00 lakhs plus taxes for the year ended 31st March 2025 and Rs. 36.00 Lakhs plus taxes for the year ended 31st March 2024 for the Technical Expertise and Services provided by him as a Consultant under section 188 read with section 177(4) of the Companies Act, 2013.
iii) Directors sitting fees paid during the year Rs.1.19 Lakhs ( Rs. 1.16 Lakhs for the year ended 31-03-2024 ).
42 As per information given, the company does not have relationship with any company which have been struck-off from the register of Registrar of Companies (ROC).
43 The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
44 The Company has complied with requirements of number of layers prescribed under clause (87) of section 2 of the Act read with Companies ( Restrictions on No of layers ) Rules, 2017.
45 The Balances of Creditors and Debtors appearing in the balance sheet are subject to balance confirmation / reconciliation at the year end. The management is in the process of obtaining the respective confirmations in due course. However, it is informed that the reconciliation is not expected to result in any material adjustment in stated balances.
46 Figures of the previous year have been regrouped / rearranged wherever necessary to conform to the current year''s presentation.
See accompanying notes 1 to 46 to the financial statements.
Rights, preferences and restrictions attached to equity shares.
The Company is having only one class of equity shares having par value of Rs. 10 each. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts in proportion to their shareholding.
B. Other Terms & Conditions of Loans -
a. Working Capital Loans from Axis Bank are secured by hypothecation of stock and debtors. It includes pre-shipment and postshipment credit against export orders.
b. Terms Loans against Plant & Machinery , Working Capital Term Loan and Working Capital Loans from Axis Bank are against mortgage of factory land and building situated at Plot No. C-12 , MIDC , Ambad ,Nashik . Further these loans are secured by entire current assets and movable fixed assets of the company present and future.
c. Vehicle Terms Loans are against security of respective vehicles.
29. Employee benefits: a) Defined Contributions Plans
i) The company contributes certain percentage of salary & wages for all eligible employees toward providend fund managed by the Central Government.
The company also contributes certain percentage of salary for all eligible employees
ii) in managerial cadre towards Superannuation Fund managed by approved trust / Life Insurance Corporation of India.
Defined Benefit Plans - As per actuarial valuation As At -31-03-2024
The company has defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure, at 15 days salary (on last drawn basic salary) for each completed year of service. Other non funded plan include death & disability benefit. The following tables summarise the components of net benefit / expense recognised in the statement of profit and loss and amounts recognised in the balance sheet:
The Company is exclusively engaged in the business of designing and manufacturing of Propeller Shafts and other accessories required for automotive, industrial , agricultural and other applications which in the context of Indian Accounting Standard (Ind AS- 108) on "Operating Segments", is considered as a single operating segment.
i) As employee wise break-up of contribution to gratuity fund is not ascertainable, the same has not been included in the above figures.
ii) It is informed that the Chairman and Director, Mr. S. C. Saran has been paid professional fees of Rs. 36.00 lakhs plus taxes for the year ended 31st March 2024 and Rs. 36.00 Lakhs plus taxes for the year ended 31st March 2023 for the Technical Expertise and Services provided by him as a Consultant under section 188 read with section 177(4) of the Companies Act, 2013.
42 As per information given, the company does not have relationship with any company which have been struck-off from the register of Registrar of Companies (ROC).
43 The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
44 The Company has complied with requirements of number of layers prescribed under clause (87) of section 2 of the Act read with Companies ( Restrictions on No of layers ) Rules, 2017.
45 The Balances of Creditors and Debtors appearing in the balance sheet are subject to balance confirmation / reconciliation at the year end. The management is in the process of obtaining the respective confirmations in due course. However, it is informed that the reconciliation is not expected to result in any material adjustment in stated balances.
46 Figures of the previous year have been regrouped / rearranged wherever necessary to conform to the current year''s presentation.
The company has only one class of Equity share having a Par Value of Rs.10/- each. Each holder of equity share is entitled for one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to approval by the share holders in the ensuing Annual General Meeting.
In the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
2) From State Bank of India
I) Term loan of Rs. 1.00 Crore from State Bank of India was sanctioned on 16/04/14 for a period of 5 years. Current EMI per month is Rs. 1.67 Lacs.
Note : Secured against Registered Mortgage on Factory land & building situated at C12, M.I.D.C., Ambad, Nashik-422010
a) Estimated amounts of contracts remaining to be executed on capital account but not provided Rs. 61.25 (Previous year Rs. 3.17).
b) For Income Tax (Disputed at various higher authorities) Rs. 64.45 (Previous year-64.45)
3) The company is in process of compiling the data of suppliers which are covered under the "Micro, Small & Medium Enterprises Development Act, 2006". Hence the details pertaining to that are not disclosed separately. However, Out of the total Trade payables Rs. 507.93 lacs ( Previous Year Rs. 490.54 lacs ) are due to Small Scale Industrial Units. No amount is outstanding for more than 30 days with SSI Units. Information regarding small scale industrial undertakings has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors.
The Company has single scheme for payment of gratuity to all eligible employees calculated at 15 days of last drawn Salary, depending upon tenure of service for each year of completed service, subject to minimum service of five years, payable at the time of separation upon superannuation or on exit otherwise.
(i) In respect of Defined contribution schemes-
a) The Company contributes 12% of Salary for all eligible employees towards Provident Fund managed by the Central Government.
b) The Company also contributes a certain percentage of Salary for all eligible employees in managerial cadre towards Superannuation Funds managed by approved trusts or by Life Insurance Corporation of India.
4) Segment Information:
a) Primary Segment:
The Company is exclusively engaged in the business of designing and manufacturing of propeller Shafts and other accessories required for automotive, industrial and other applications. These in the context of Accounting Standard 17 on Segment Reporting issued by the Institute of Chartered Accountants of India, are considered to constitute one single primary segment.
5) Consequent to enactment of Companies Act,2013(the Act) and its applicability for accounting periods commencing from 01-04-2014, the company has recalculated the remaining useful life of Fixed Assets in accordance with provisions to Schedule II to the Act. In case of Fixed Assets which have completed their useful life in terms of Schedule II of the Act the carrying value (net of residual value)of such assets as on 1st April 1st, 2014 has been adjusted to Retained Earnings and in case of other fixed assets the carrying value (net of residual value) is being depreciated as per straight line method over the re-calculated remaining useful life. The depreciation expenses charged for the year ended 31st March, 2015 is higher by Rs.157.93 lacs, had the company continued with the previously prescribed depreciation rates as per Schedule XIV of the companies act, 1956.
6) Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.
2) Contingent Liabilities & Commitments not Provided For :
a) Estimated amounts of contracts remaining to be executed on capital account but not provided Rs. 3.17 Lacs ( Previous year Rs. 3.13 Lacs )
b) For Income Tax (Disputed at various higher authorities) Rs. 64.45 Lacs ( Previous year - NIL )
3) The company is in process of compiling the data of suppliers which are covered under the
"Micro, Small & Medium Enterprises Development Act, 2006". Hence the details pertaining to that are not disclosed separately. However, Out of the total Trade payables Rs. 490.54 lacs ( Previous Year Rs. 588.49 lacs ) are due to Small Scale Industrial Units. No amount is outstanding for more than 30 days with SSI Units . Information regarding small scale industrial undertakings has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors.
4) Deferred Tax
The Company has accounted for Deferred Tax in accordance with Accounting Standard- 22 " Accounting for Taxes on Income " issued by the Institute of Charterd Accountants of India. The Deferred Tax during the year for Timing difference is accounted using tax rates that have been enacted, the net difference arising thereon is debited to the Profit & Loss Account. The break up of net deferred tax Liability as on 31st March 2014 is as under :
The Company has single scheme for payment of gratuity to all eligible employees calculated at 15 days of last drawn Salary, depending upon tenure of service for each year of completed service, subject to minimum service of five years, payable at the time of separation upon superannuation or on exit otherwise.
(ii) In respect of Defined contribution schemes -
a) The Company contributes 12% of Salary for all eligible employees towards Provident Fund managed by the Central Government.
b) The Company also contributes a certain percentage of Salary for all eligible employees in managerial cadre towards Superannuation Funds managed by approved trusts or by Life Insurance Corporation of India.
5) Segment Information :
a ) Primary Segment :
The Company is exclusively engaged in the business of designing and manufacturing of propeller Shafts and other accessories required for automotive, industrial and other applications. These in the context of Accounting Standard 17 on Segment Reporting issued by the Institute of Chartered Accountants of India, are considered to constitute one single primary segment.
6) Details of provisions and movements in each class of provisions as required by the Accounting Standard on Provisions, Contingent Liabilities and Contingent Assets
7) Directors'' Remuneration :
i) As employee wise break-up of contribution to gratuity fund is not ascertainable, the same has not been included in the above figure.
ii) Remuneration of Rs.18.00 Lacs paid to Chairman Mr. S.C.Saran is as per approval of Central Government
8) The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.
a) Estimated amounts of contracts remaining to be executed on capital account but not provided Rs. 3.13 Lacs (Previous year Rs. 114.51 Lacs)
b) For Income Tax (Disputed at various higher authorities) Rs. 43.81 Lacs (Previous year-NIL)
2) The company is in process of compiling the data of suppliers which are covered under the "Micro, Small & Medium Enterprises Development Act, 2006". Hence the details pertaining to that are not disclosed separately. However, Out of the total Trade payables Rs. 588.49 lacs (Previous Year Rs. 435.47 lacs ) are due to Small Scale Industrial Units. No amount is outstanding for more than 30 days with SSI Units. Information regarding small scale industrial undertakings has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors.
3) Deferred Tax
The Company has accounted for Deferred Tax in accordance with Accounting Standard- 22 "Accounting for Taxes on Income "issued by the Institute of Charterd Accountants of India. The Deferred Tax during the year for Timing difference is accounted using tax rates that have been enacted, the net difference arising thereon is debited to the Profit & Loss Account. The break up of net deferred tax Liability as on 31 st March 2013 is as under:
The Company has single scheme for payment of gratuity to all eligible employees calculated at 15 days of last drawn Salary, depending upon tenure of service for each year of completed service, subject to minimum service of five years, payable at the time of separation upon superannuation or on exit otherwise.
(i) In respect of Defined contribution schemes -
a) The Company contributes 12% of Salary for all eligible employees towards Provident Fund managed by the Central Government.
b) The Company also contributes a certain percentage of Salary for all eligible employees in managerial cadre towards Superannuation Funds managed by approved trusts or by Life Insurance Corporation of India.
4) Segment Information:
a) Primary Segment:
The Company is exclusively engaged in the business of designing and manufacturing of propeller Shafts and other accessories required for automotive, industrial and other applications. These in the context of Accounting Standard 17 on Segment Reporting issued by the Institute of Chartered Accountants of India, are considered to constitute one single primary segment.
b) Secondary Segment:
(Figures in brackets relate to previous year)
Two secondary segments have been identified based on geographical locations of Customers.
5) The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.
The company has only one class of Equity share having a Par Value of Rs.10/- each. Each holder of equity share is entitled for one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to approval by the share holders in the ensuring Annual General Meeting.
In the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
2.1 From State Bank of India
1) Term loan of Rs. 2.00 Crore from State Bank of India was sanctioned on 01/08/11 for a period of 5 years. Current EMI per month is Rs. 4.70 Lacs.
2) Term loan of Rs.1.80 Crore from State Bank of India was sanctioned on 27/09/2008 for a period of 6 years. Current EMI per month is Rs. 4.15 Lacs.
Note : Secured against Registered Mortgage on Factory land & building situated at C12,MIDC, Ambad, Nashik-422010
2.2 From ICICI Bank
1) Term loan for car of Rs. 7.00 Lacs from ICICI Bank was sanctioned on 15/05/2011for a period of 3 years. Current EMI per month is Rs. 0.23 Lacs
3) Contingent Liabilities & commitments Not Provided For :
a) Estimated amounts of contracts remaining to be executed on capital account but not provided Rs.114.51Lacs ( Previous year Rs.- 5.10 Lacs )
b) For Income Tax (Disputed at various higher authorities)
Rs. Nil ( Previous year12.69 Lacs)
The item "Spare Parts" in paragraph 4D (ii) of Schedule VI of the Companies Act,1956 is interpreted to mean components used in the manufacture of finished products or sold as such and not spare parts used for repairs and maintenance of machinery.
4) The company is in process of compiling the data of suppliers which are covered under the Micro, Small & Medium Enterprises Development Act, 2006". Hence the details pertaining to that are not disclosed seperately. However, Out of the total Trade payables Rs.435.47 lacs ( Previous Year Rs.293.74 lacs) are due to Small Scale Industrial Units. No amount is outstanding for more than 30 days with SSI Units. Information regarding small scale Industrial undertakings has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors.
5) Deferred Tax
The Company has accounted for Deferred Tax in accordance with Accounting Standard- 22 " Accounting for Taxes on Income " issued by the Institute of Charterd Accountants of India. The Deferred Tax during the year for Timing difference is accounted using tax rates that have been enacted, the net difference arising thereon is debited to the Profit & Loss Account. The break up of net deferred tax Liability as on 31st March 2012 is as under :
The Company has single scheme for payment of gratuity to all eligible employees calculated at 15 days of last drawn Salary, depending upon tenure of service for each year of completed service, subject to minimum service of five years, payable at the time of seperation upon superannuation or on exit otherwise.
(ii) In respect of Defined contribution schemes -
a) The Company contributes 12% of Salary for all eligible employees towards Provident Fund managed by the Central Government.
b) The Company also contributes a certain percentage of Salary for all eligibe employees in managerial cadre towards Superannuation Funds managed by approved trusts or by Life Insurance Corporation of India.
6) Segment Information :
a ) Primary Segment :
The Company is exclusively engaged in the business of designing and manufacturing of propeller Shafts and other accessories required for automotive, industrial and other applications. These in the context of Accounting Standard 17 on Segment Reporting issued by the Institute of Chartered Accountants of India, are considered to constitute one single primary segment.
Note
i) As employee wise break-up of contribution to gratuity fund is not ascertainable, the same has not been included in the above figure.
ii) Remuneration of Rs.18.00 Lacs paid to Chairman Mr. S.C.Saran is as per approval of Central Government.
7) The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.
a) Estimated amounts of contracts remaining to be executed on capital account but not provided Rs.5.10 Lacs( Previous year- Rs.1.90)
b) For Income Tax (Disputed at various higher authorities) Rs. 12.69 Lacs
2) Computation of Profit for the year ended 31 March, 2011 Under Section 349/350 of the Companies Act, 1956 read with section 198 of the Act:
As there is inadequate profit as per section 198 of the companies Act, 1956 , no commission is payable to the director.
Note:
i) As employee wise break-up of contribution to gratuity fund is not ascertainable, the same has not been included in the above figure. ii) Remuneration of Rs.18.00 Lacs paid to Chairman Mr. S.C.Saran is as per the approval of Central Government.
3) The company is in process of compiling the data of suppliers which are covered under the Micro, Small & Medium Enterprises Development Act, 2006. Hence the details pertaining to that are not disclosed seperately. However, Out of the total Sundry Creditors,Rs.293.74 lacs (Previous Year Rs. 188.74 lacs) are due to Small Scale Industrial Units. No amount is outstanding for more than 30 days with SSI Units. Information regarding small scale industrial undertakings has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors.
4) Deferred Tax
The Company has accounted for Deferred Tax in accordance with Accounting Standard -22 "Accounting for Taxes on Income" issued by the Institute of Charterd Accountants of India.
The Deferred Tax during the year for Timing difference is accounted using tax rates that have been enacted, the net difference arising thereon is debited to the Profit & Loss Account.
The break up of net deferred tax Liability as on 31st March 2011 is as under:
5) Gratuity
i) Disclosure as required by Accounting Standard 15 (Revised) on Employee Benefits:- In respect of gratuity, a defined benefit scheme (based on Actuarial Valuation)-
The Company has single scheme for payment of gratuity to all eligible employees calculated at 15 days of last drawn Salary, depending upon tenure of service for each year of completed service, subject to minimum service of five years, payable at the time of seperation upon superannuation or on exit otherwise.
ii) In respect of Defined contribution schemes -
a) The Company contributes 12% of Salary for all eligible employees towards Provident Fund managed by the Central Government.
b) The Company also contributes a certain percentage of Salary for all eligibe employees in managerial cadre towards Superannuation Funds managed by approved trusts or by Life Insurance Corporation of India.
6) Segment Information :
a) Primary Segment:
The Company is exclusively engaged in the business of designing and manufacturing of propeller Shafts and other accessories required for automotive,industrial and other applications.These in the context of Accounting Standard 17 on Segment Reporting issued by the Institute of Chartered Accountants of India, are considered to constitute one single primary segment.
b) Secondary Segment: (Figures in brackets relate to previous year)
Two secondary segments have been identified based on geographical locations of customers,
7) Previous years figures have been regrouped and recast wherever considered necessary.
a) Estimated amounts of contracts remaining to be executed on capital account but not provided Rs. 1.90 Lacs (Previous year- Nil)
b) For Income Tax (Disputed at various higher authorities) Rs. 13.35 Lacs
2) Computation of Profit for the year ended 31 March, 2010 Under Section 349/350 of the Companies Act, 1956 read with section 198 of the Act:
3) The company is in process of compiling the data of suppliers which are covered under the Micro, Small & Medium Enterprises Development Act, 2006". Hence the details pertaining to that are not disclosed seperately. However, Out of the total Sundry Creditors.Rs.188.74 lacs (Previous Year Rs. 98.40 lacs) are due to Small Scale Industrial Units. No amount is outstanding for more than 30 days with SSI Units. Information regarding small scale industrial undertakings has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors.
4) Deferred Tax
The Company has accounted for Deferred Tax in accordance with Accounting Standard -22 "Accounting for Taxes on Income" issued by the Institute of Charterd Accountants of India.
The Deferred Tax during the year for Timing difference is accounted using tax rates that have been enacted, the net difference arising thereon is debited to the Profit & Loss Account.
ii) In respect of Defined contribution schemes-
a) The Company contributes 12% of Salary for all eligible employees towards Provident Fund managed by the Central Government.
b) The Company also contributes a certain percentage of Salary for all eligibe employees in managerial cadre towards Superannuation Funds managed by approved trusts or by Life Insurance Corporation of India.
c) In the past the company had estimated the total gratuity liability on actual basis by debiting to Profit & Loss account. As there is reduction in the Gratuity Liability calculated on actual basis, during the current year the same has been credited to Profit & Loss account under Schedule 17.
5) Segment Information :
a) Primary Segment:
The Company is exclusively engaged in the business of designing and manufacturing of propeller Shafts and other accessories required for automotive,industrial and other applications.These in the context of Accounting Standard on Segment Reporting issued by the Institute of Chartered Accountants of India, are considered to constitute one single primary segment.
6) Previous years figures have been regrouped and recast wherever considered necessary.
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