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Notes to Accounts of Acrow India Ltd.

Mar 31, 2015

1. Share capital

Terms Rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees.

The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders 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 no. of equity shares held by the shareholder.

2. EMPLOYEE BENEFITS

i) Short Term Employee Benefits.

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits.

Benefits such as salaries, wages, short terms compensated absences, etc., and the expected cost of bonus, ex-gratia are recognised in the period in which the employee renders the related service.

ii) Long Term Employee Benefits

The disclosures as per the revised AS-15 are as under:

A. Brief description of the Plans

Gratuity: The Company has a defined benefit gratuity plan, every employee who has completed five years or more of service gets a gratuity on death or resignation or retirement at 15 days [last drawn salary] for each completed year of service.

The scheme is funded with an insurance company in the form of a qualifying insurance policy.

Leave Wages: The leave wages are payable to all eligible employees at the rate of daily salary for each day of accumulated leave on death or on resignation or upon retirement on attending superannuation age.

C. Defined Benefit Plan:

The employees'' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan.

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

3. Contingent Liability and commitments

a) Guarantee given by Bank on behalf of the Company - Nil {Previous Year Rs Nil }, against which the company has given counter guarantee.

b) Demands made by the Income Tax Department towards Wealth Tax - Rs. 15.43 Lacs {Previous Year Rs 15.43 Lacs),against which the Company has preferred appeals.

c) Demands made by Employees State Insurance Corporation Rs 5.08 Lacs (Previous Year Rs 5.08 Lacs) against which Company has preferred appeals

d) Demands made by Service Tax Department Rs 0.98 Lacs (Previous Year Rs Nil) against which Company has preferred appeals

4. The Company''s business comprises entriely of manufacture and sale of engineering goods, which is confined to the terriotorial, limits of the country, where the risks and returns are largely similar.

As such, the Company has only one business segment and only one georgraphical segment.

5. Related Party disclosure

Associated Companies

The Ravalgaon Sugar Farm Ltd

Carina Finvest Ltd


Mar 31, 2014

Terms Rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees.

The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders 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 shareholder.

1.1 Repayable in annual installments from financial year 2012-13 to financial year 2020-21.

The total amount outstanding from Sicom is Rs. 135.84 lacs, out of which Rs. 22.54 is repayable from April-2014 to March-2015. Balance amount is re-payable within 5 years from the date of completion of the assessment of the relevant year.

2.1 Working Capital borrowings from the banks are secured by way of hypothecation of company''s current assets both present and future, and by way of equitable mortgage of company''s immovable properties.

3.1 There is no amount due and outstanding to be credited to the Investor Education and Protection Fund.

4.1 Includes Security deposit of Rs. Nil Lacs (Previous Year Rs. 15.00 Lacs) given to companies in which directors are interested against lease of premises.

EMPLOYEE BENEFITS

i) Short Term Employee Benefits.

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages, short terms compensated absences, etc., and the expected cost of bonus, ex-gratia are recognised in the period in which the employee renders the related service.

ii) Long Term Employee Benefits

The disclosures as per the revised AS-15 are as under: r

A. Brief description of the Plans

Gratuity : The Company has a defined benefit gratuity plan, every employee who has completed five years or more of service gets a gratuity on death or resignation or retirement at 15 days [last drawn salary] for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

Leave Wages: The leave wages are payable to all eligible employees at the rate of daily salary for each day of accumulated leave on death or on resignation or upon retirement on attending superannuation age.

C. Defined Benefit Plan:

The employees'' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

5. Contingent Liability and Commitment

a) Guarantee given by Bank on behalf of the Company - Nil {Previous Year Rs. 2.76 lacs}, against which the Company has given counter guarantee.

b) Demands made by the Income Tax Department towards Wealth Tax - Rs.15.43 lacs (Previous Year Rs. 15.43 lacs), against which the Company has preferred appeals.

c) Demands made by Employees State Insurance Corporation Rs. 5.08 lacs (Previous Year Rs. 5.08 lacs) against which the Company has preferred appeals.

6 The Company''s business comprises entirely of manufacture and sale of engineering goods, which is confined to the territorial limits of the country, where the risks and returns are largely similar. As such, the Company has only one business segment and only one geographical segment.

7 The Company is re-evaluating its existing business model considering the nature of industry. Accordingly, there is no impact on going concern assumption.


Mar 31, 2013

1 Contingent Liability and Commitment

a) Guarantee given by Bank on behalf of the Company – Rs. 2.76 lacs (Previous Year Rs. 12.25 lacs), against which the Company has given counter guarantee.

b) Demands made by the Income Tax Department towards Wealth Tax – Rs.15.43 lacs (Previous Year Rs. 15.43 lacs), against which the Company has preferred appeals.

c) Demands made by Employees State Insurance Corporation Rs. 5.08 lacs (Previous Year Rs. 5.08 lacs) against which the Company has preferred appeals.

2 The Company''s'' business comprises entirely of manufacture and sale of engineering goods, which is con fined to the territorial limits of the country, where the risks and returns are largely similar.

As such, the Company has only one business segment and only one geographical segment.


Mar 31, 2012

Terms Rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders 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 no. of equity shares held by the shareholder.

1.1 There is no amount due and outstanding to be credited to the Investor Education and Protection Fund.

i) Short Term Employee Benefits.

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages, short terms compensated absences, etc., and the expected cost of bonus, ex-gratia are recognised in the period in which the employee renders the related service.

ii) Long Term Employee Benefits

The disclosures as per the revised AS-15 are as under:

A. Brief description of the Plans

Gratuity : The Company has a defined benefit gratuity plan, every employee who has completed five years or more of service gets a gratuity on death or resignation or retirement at 15 days[last drawn salary] for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

Leave Wages: The leave wages are payable to all eligible employees at the rate of daily salary for each day of accumulated leave on death or on resignation or upon retirement on attending superannuation age.

B. Defined Contribution Plan:

Contribution to Defined Contribution Plan, recognized are charged off for the year are as under:

C. Defined Benefit Plan:

The employees' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

2. contingent Liability ana commitment

a) Guarantee given by Bank on behalf of the Company - Rs. 12.25 lacs (Previous Year Rs. 4.81 lacs), against which the Company has given counter guarantee.

b) Demands made by the Income Tax Department towards Income Tax and Wealth Tax - Rs. 18.10 lacs (Previous Year Rs. 18.10 lacs), against which the Company has preferred appeals.

c) Demands made by Employees State Insurance Corporation Rs. 5.08 lacs (Previous Year Rs. 5.08 lacs) against which the Company has preferred appeals.

3 The Company's business comprises entirely of manufacture and sale of engineering goods, which is confined to the territorial limits of the country, where the risks and returns are largely similar. As such, the Company has only one business segment and only one geographical segment.

4 Pursuant to the Accounting Standard (AS29) - Provisions, Contingent Liabilities and Contingent Assets, the disclosure relating to provisions made in accounts for the year ended 31st March 2012 is as Follows.


Mar 31, 2010

1. Contingent Liability on account of:

a) Guarantee given by Bank on behalf of the Company -Rs. 19.03 lacs (Previous Year Rs. 6.21 lacs), against which the Company has given counter guarantee.

b) Demands made by the Income Tax Department - Rs.18.10 lacs (Previous Year Rs. 18.10 lacs), against which the Company has preferred appeals.

c) Demands made by Employees State Insurance Corporation Rs. 5.08 lacs (Previous Year Rs. 5.08 lacs) against which the Company has preferred appeals.

2. Under the package scheme of Incentive 1993, the company has been permitted to defer the Sales Tax liability pertaining to the period from 01.04.2001 to 30.11.05 by the way of interest free Sales Tax loan. The repayment of the same would commence at the expiry of the 10th year i.e. w.e.f. April. 2011 in five equal annual installments.

3. The Companys business comprises entirely of manufacture and sale of engineering goods, which is confined to the territorial limits of the country, where the risks and returns are largely similar. As such. the Company has only one business segment and only one geographical segment.

4. Related Party disclosure:

Associate Companies

- The Ravalgaon Sugar Farm Ltd

- Carnia Finvest Ltd

- Lanica Financial Services Pvt Ltd.

NOTES:

i. Figures in bracket indicate corresponding information in respect of the previous year. ii. The Company manufactures as many as 50 General items of Machinery used in Sugar and Confectionery Industries for which Licensed / Installed Capacity requirements are not applicable.

5. The disclosure required under AS - 15 "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below:

A. General description:

Gratuity ;

The Company has a defined benefit gratuity plan, every employee who has completed five years or more of service gets a gratuity on death or resignation or retirement at 15 days [last drawn salary] for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy- Leave Wages ;

The leave wages are payable to all eligible employees at the rate of daily salary for each day of accumulated leave on death or on resignation or upon retirement on attending superannuation age.

C. Defined Benefit Plan:

The employees gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other factors including supply and demand in the employment market. The above information is certified by the actuary.

16. Pursuant to the Accounting Standard ( AS 29) - Provisions, Contingent Liabilities and Contingent Assets , the disclosure relating to provisions made in accounts for the year ended 31s1 March, 2010 is as Follows ;

Liability for Warranties

Particulars Amount (Rs. In Lacs )

Opeining Balance 2.28

Additions

Utilisation 0.21

Reversals

Closing Balance 2.07

17. Previous Years figures have been regrouped, wherever necessary, to make them comparable with the figures for the Current Year.