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Notes to Accounts of Akar Tools Ltd.

Mar 31, 2016

a There is no movement of the shares outstanding during the financial year.

b 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 shares is entitled to one vote per share. During the year ended 31 March 2016, the amount of per share dividend proposed as distributions to equity shareholders is Rs .1.00/- (31st March 2015: Rs. 0.70/-) which is subject to 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 the assets of the company, in proportion to the number of equity shares held by the shareholders.

1. LONG TERM BORROWINGS (contd.)

a) Rupee term loan from Canara bank (Rs. 450 lacs sanctioned) Rs.211.05 lacs availed during the year (Previous year Rs. Nil) carries interest rate of BR 5.75%= 15.75% p.a.(floating), The loan is repayable after a moratorium period of 3 months from Date of Commencement of Commercial Operations in 72 monthly installments of Rs.6.25 lacs and Interest to be paid as and when due.

b) Rupee term loans from Siemens Financial Services Private Limited carries interest @ 14% to 14.5% p.a., This loan is repayable in 4 years.

c) Vehicle loans taken from Punjab National Bank Ltd carries interest @ 9.85 to 10.65% p.a., This loan is repayable in 7 years.

d) Unsecured loan received from Akar Industries Private Limited for Rs. 500 lacs carries interest @ 12% p.a., This loan is repayable at the end of 7 years.

e) Unsecured loan received from Macotax Consultant Private Limited for Rs. 250 lacs carries interest @ nil% p.a., This loan is repayable in 9 years.

f) Unsecured loan received from Avro commercial Private Limited for Rs. Nil (previous year Rs. 100 lacs), carries interest @18% p.a. Repaid during the year

g) Details of security for each type of borrowings.

(i) Rupee term loan from canara bank is secured by first pari-passu charged by way of mortgage, by deposit of title deeds in respect of immovable properties and hypothecation of the movable fixed assets of the company, both present & future except excluded assets, subject to prior charges created in favour of banks on current assets and other movables for securing working capital borrowings.

(ii) Rupee term loan from Siemens Financial Services Private Limited is secured by exclusive hypothecation over assets funded by SFSPL.

(iii) Vehicle Loans are secured by way of hypothecation of respective motor vehicles purchased.

Notes:

a Cash credits/ short term loans/ export packing credits are secured/to be secured by hypothecation of inventories, trade receivable and second charge on fixed assets secured to financial institutions except assets exclusively charged and also further secured by personal guarantees of Directors. b Cash credit/short term loans /export packing credit of Rs 40.30 crores sanctioned by Canara Bank is repayable on demand and carries interest @ base rate 5.25%= 15.25% per annum.

* Based on the information available with the Company, there are no dues outstanding in respect of Micro, Small and Medium Enterprises at the balance sheet date. No amounts were payable to such enterprises which were outstanding for more than 45 days. Further, no interest during the year has been paid or payable in respect thereof. The above disclosure 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 Auditor.

NOTE: Liabilities in respect of Retirement Benefits to employees are accounted for on actual payment basis. No provision is being made in the accounts for Liabilities on actuarial valuation as required by Accounting Standard AS15. Amount accrued as on 31.03.2016 on account of gratuity is Rs.152.02 lacs (Net ) [Previous Year Rs. 145.37 lacs (Net)] and on account of Leave Encashment is Rs.50.87 lacs. (Previous Year Rs. 44.47 lacs ).

2. RELATED PARTY DISCLOSURE

Information given in accordance with the requirements of Accounting Standard 18 - Related Party disclosures notified by Ministry of Corporate Affairs Under sub section (3C) of Section 211 of the Companies Act, 1956 read with General circular 8/2014 dated April 04, 2014, issued by the Ministry of Corporate Affairs.

3. Name of the party and relationships

SL No. Description of Relationship Name of Related parties

4. Enterprises over which Key Managerial Personnel are R.L. Steels & Energy Ltd. able to exercise significant influence Akar Alloy Pvt Ltd

Aurangabad Forgings P Ltd.

Gupta concast Ltd Santh Eknath Rolling Mills Pvt Ltd Akar Industries Pvt Ltd Akar Minerals Pvt Ltd Lavanya Investments Pvt Ltd.

Shatrunji Investments Pvt Ltd

5. Key Management Personnel R L Gupta - Chairman

Sunil Todi - Managing Director

Shri Pradeep Nijampurkar -Executive Diector

N K Gupta - Director

Radhamohan Garg- Chief Financial Officer Rajshree Dubey- Company Secretary

6. Relatives of Key Management Personnel Nitin Gupta

Usha Devi Gupta Shushila Devi Gupta

7. derivative instruments

a The company enters into forward contracts to offset foreign currency risks arising from the amounts denominated in currencies other than the Indian Rupee. The counter party to such forward contracts is a bank. These contracts are entered into to hedge the foreign currency risks on outstanding. Details of forward contracts outstanding as at the year end.

8. Confirmations for Loans and advances and creditors and debtors in some cases have not been received. Any adjustment in respect of these, if any, will be done by the company in the year in which the same is crystallized .

9. Investors'' Protection Fund: A sum of Rs. 0.97 lacs relating to F.Y.2007-08 is due and outstanding for transfer to the credit of the Investors'' Protection Fund as on 31.03.2016 (Previous Year Rs.NIL).

10. Sales and Purchases includes Rs. 126.09 Lacs- inter-unit sales and purchases. (Previous Year: Nil). It has no effect on the profitability of the company.)

11. Previous year''s figures have been regrouped and / or reclassified wherever necessary to conform to this year''s classification.


Mar 31, 2015

1 CORPORATE INFORMATION

The Company is in the Business Manufacturing of hand tools, auto leaf spring, parabolic springs and commerical automo- tive forgings & having its manufacturing facilities around Aurangabad, Maharashtra

NOTE 2. RELATED PARTY DISCLOSURE

Information given in accordance with the requirements of Accounting Standard 18 - Related Party disclosures notified by Min- istry of Corporate Affairs Under sub section (3C) of Section 211 of the Companies Act, 1956 read with General circular 8/2014 dated April 04, 2014, issued by the Ministry of Corporate Affairs.

NOTE 3. SEGMENT REPORTING

The Company is engaged in the business of "Hand Tools " and "Lea Spring" which, as per the Accounting Standard - 17 Segment Reporting are considered as the only reportable primary business segments.

NOTE 4. PREVIOUS YEAR FIGURES

Previous year's figures have been regrouped and reclassified where necessary to conform to thisyear's classification


Mar 31, 2014

Note 1. Corporate information

The Company is in the Business of Manufacturing of hand tools, auto leaf spring, parabolic springs and commercial automotive forgings & having its manufacturing facilities around Aurangabad, Maharashtra.

Contingent Liabilities not provided for: -

(a) Guarantees issued by Banks on behalf of the Company and outstanding as at 31/03/2014 is of Rs.106.19 Lacs (Previous Year 104.94 Lacs).

(b) Liabilities not acknowledge as debt and outstanding as at 31/03/2014 are for Income Tax Rs.42.17 lacs (Previous year Rs. 69.87 Lacs) and for Sales Tax Rs. 19.64 Lacs ( Previous year 19.64 Lacs)

(c) Foreign Bills and Inland Bills discounted and outstanding as at 31/03/2014 is Nil Lacs (Previous Year Nil).

In the opinion of the Board of Directors the Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of business.

Confirmation from certain parties for amount due to them/amount due to the company as per accounts of the company are not yet received, necessary adjustments, if any, will be made when accounts are reconciled and settled.

NOTE 2. ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS

2.1 Contingent liabilities and commitments (to the extent not provided for) (Rs. in Lacs)

Contingent liabilities As at As at 31st March, 2014 31st March, 2013

(a) Claims against the Company not acknowledged as debt Income Tax-A.Y. 2010-2011 A.Y. 2010-2011 2.07 2.07

Income Tax-A.Y. 2009-2010 A.Y. 2009-2010 NIL NIL

Income Tax-A.Y. 2008-2009 A.Y. 2008-2009 NA NA

Income Tax-A.Y. 2007-2008 A.Y. 2007-2008 1.81 1.81

Income Tax-A.Y. 2006-2007 A.Y. 2006-2007 28.42 28.42

Income Tax-A.Y. 2004-2005 A.Y. 2004-2005 4.16 4.16

Income Tax-A.Y. 2003-2004 A.Y. 2003-2004 13.65 13.65

Income Tax-A.Y. 2002-2003 A.Y. 2002-2003 3.26 3.26

Income Tax-A.Y. 2001-2002 A.Y. 2001-2002 10.72 10.72

Income Tax-A.Y. 2000-2001 A.Y. 2000-2001 5.34 5.34

Income Tax-A.Y. 1999-2000 A.Y. 1999-2000 0.44 0.44

Sales Tax A.Y. 2003-2004 19.64 19.64

(b) Guarantees @ (give details) 106.19 104.94

Note 2.2 Previous year''s figures

The Revised Schedule VI has become effective from 1st 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.


Mar 31, 2013

Note 1. Corporate information

The Company is in the Business of Manufacturing of hand tools, auto leaf spring, parabolic springs and commercial automotive forgings & having its manufacturing facilities at Aurangabad, Maharashtra.

Note 2.1 Previous year''s figures

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.


Mar 31, 2012

NOTE 1. CORPORATE INFORMATION

The Company is in the Business of Manufacturing of hand tools, auto leaf spring, parabolic springs and commercial automotive forgings & Having its manufacturing facilities around Aurangabad, Maharashtra.

Contingent Liabilities not provided for: -

(a) Guarantees issued by Banks on behalf of the Company and outstanding as at 31st March, 2012 is of Rs.106.19 Lacs (Previous Year 97.94 Lacs).

(b) Liabilities not acknowledge as debt and outstanding as at 31st March, 2012 are for Income Tax Rs.37.58 lacs (Previous year Rs.37.58 Lacs) and for Sales Tax Rs.19.64 Lacs ( Previous year 23.25 Lacs )

In the opinion of the Board of Directors the Current Assets, Loans and Advances are approximately of the value stated, if realized in the ordinary course of business.

Confirmation from certain parties for amount due to them/amount due to us as per accounts of the company are not yet received, necessary adjustments, if any, will be made when accounts are reconciled and settled.

*Term Loans from Banks are secured by a first mortgage of all the Company's immovable properties, both present and future ranking paripassuinterse and first charge by way of hypothecation of all company's movable subject to prior charges created in favour of Company's bankers on inventories, book debts, and other movables for securing the borrowing for working capital requirement

2.1 Contingent liabilities and commitments (to the extent not provided for)

Contingent liabilities

(a) Claims against the Company not acknowledged as debt

Income Tax-A.Y. 2004-2005 416,295 416,295

Income Tax-A.Y. 2003-2004 1,000,000 1,000,000

Income Tax-A.Y. 2003-2004 365,451 365,451

Income Tax-A.Y. 2002-2003 326,377 326,377

Income Tax-A.Y. 2001-2002 1,071,661 1,071,661

Income Tax-A.Y. 2000-2001 533,572 533,572

Income Tax-A.Y. 1999-2000 44,149 44,149

Sales Tax 1,964,039 2,325,425

(b) Guarantees 10,619,000 9,794,000

Note 2.2 Previous year's figures

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.


Mar 31, 2010

1) Contingent Liabilities not provided for

a) Guarantees issued by banks on behalf of the Company 57.50 lacs (previous year Rs. 57.50 lacs)

2) Figures of the previous year have been re-grouped/re-arranged wherever necessary.

3) Disclosure requirement as per Accounting Standard 18(AS-18)" Related Party Disclosure" issued by the Institute of Chartered Accountants of India.

4) Key management personnel / associates

R. L. Steels & Energy Limited, Sant Eknath Rolling Mills Pvt. Ltd., Gupta Concast Ltd., Mr.R.L. Gupta, Mr.N.K.Gupta, Mr. Sunil Todi, Mr. P.M. Nijampurkar.

5) In the opinion of the Board of Directors the current assets, loans and advances are approximately of the value stated, if realised in the ordinary Course of business. Unsecured loans includes Rs. Nil (previous year Rs. 52.25 lacs) from Directors and associates.

6) Manpower expenses included Rs. 25.40 lacs (previous yearRs. 21.80 lacs) paid to Directors as remuneration.

7) The creditors for goods include Rs. 21.24 lacs (previous year Rs. 14.22 lacs) outstanding for a period exceeding 30 days towards SSI undertakings. There are four (previous year three) SSI units to which the Company owed a sum exceeding Rs. 1.00 lacs with the Company.

8) In accordance with revised guidance notes issued by Institute of Chartered Accountants of India, Excise duty payable on finished goods lying in the stock has to be included in the expenditure as well as in the valuation of such stock. However precise bifurcation between finished goods meant for export market which consist major portion of business (which is excise duty free) and finished goods meant for domestic market is not possible. Hence the excise duty is not included in the cost and stock value. This accounting treatment has no impact on profitability of the Company.

9) Confirmation from certain parties for amounts due to/from them due by/to the Company as per accounts of the Company are not yet received, necessary adjustment if any will be made when accounts are reconciled and settled.

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