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Notes to Accounts of Atul Auto Ltd.

Mar 31, 2016

A. Terms/Rights attached to Equity Shares

The company has only one class of equity shares having a per share value of Rs, 5/- per share. Each holder of equity shares is entitled to one vote per share.

The company declares and pays dividend in Indian Rupees. Interim Dividend declared by the Board of Directors and paid by the company during the year is Rs, 2.75/- per equity share of Rs, 5 each. Final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuring General Meeting of Rs, 2.5/- Per Share. During the year ended 31 March, 2016 the amount of per share dividend recognized as distributed to equity shareholders was Rs, 5.25/- per equity share of Rs, 5/- each. (31 March 2015 : Rs, 5 per equity share of Rs, 5 each).

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 shareholders.

Details of dues to Micro, small and Medium Enterprises as per MSMED Act, 2006

The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. The amount of principal and interest outstanding as at 31st March, 2016 is given below:

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

(a) Provision for Warranties

A provision is recognized for expected warranty claims for last 24 months based on past experience of the level of repairs and returns. It is expected that significant portion of these costs will be incurred in the next financial year. Assumption used to calculate the provision for warranties were based on current sales levels and current information available about returns based on the warranty period for all products sold. The table given below gives information about movements in warranty provisions.

Provision for After Sales Service is made on the basis of estimation of balance of unutilized service coupon proportionate to the balance of free service period.

Excise duty on sales amounting to Rs, 64,54,01,041/- (31 March 2015: Rs, 45,02,05,120/-) has been reduced from sales in statement of Profit and loss and excise duty on increase/decrease in stock amounting to (49,04,750/-) (31 March 2015: (21,50,543/-) has been considered as (income)/expense in note 25 of financial statements.

1. OPERATING LEASE - COMPANY AS A LEASEE

The company has entered into commercial leases on Office building. These leases have an average life of between one and three years with no renewal option included in the contracts. There are no restrictions placed upon the company by entering into these leases.


Mar 31, 2015

1 Comparative figures have been regrouped wherever necessary.

2 The cash flow statement has been prepared under the indirect method as set out in the Accounting Standard - 3 on Cash Flow Statement

3 Cash and Bank Balance as per Note 15 includes Rs. 34,89,530/- (previous year Rs. 31,97,973/-) which are not available for use by the company as they represent corresponding unpaid dividend liabilities

1 NATURE OF OPERATIONS

ATUL ATUL LIMITED (the company) is a public company domiciled in India, incorporated on 18-06-1986. Its shares are listed on two stock exchanges in India - BSE Limited and National Stock Exchange of India Limited (NSE). The Company is engaged in manufacturing and selling of reputed brand of Auto Rickshaw. the Company caters both domestic and international market. The Company is also engaged in the generation of Electricity with wind Turbine Generator at Village Gandhavi, Gujarat.

2 BASIS OF PREPARATION

The financial statements have been prepared to comply in all material respects with the standards specified under Section 133 of the Companies Act, 2013 ("Act"), read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Act. The financial statements have been prepared under historical cost convention on an accrual basis except in case of assets for which provision for impairment is made. The accounting policies have been consistently applied by the Company and except for the changes in accounting policy discussed below, are consistent with those used in the previous year.

c Terms/Rights attached to Equity Shares

The company has only one class of equity shares having a value of Rs. 5 per Share (previous year Rs.10/- per share). Each holder of equity shares is entitled to one vote per share.

The company declares and pays dividend in Indian Rupees. Interim Dividend declared by the Board of Directors and paid by the company during the year is Rs.2.5/- per equity share of Rs. 5 each. Final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuring General Meeting of Rs. 2.5 per Share. During the year ended March 31, 2015 the amount of per share dividend recognized as distributed to equity shareholders was Rs. 5/- per equity share of Rs.5/- each. (March 31, 2014 : Rs.7.5 per equity share of Rs.10 each).

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 shareholders.

As per records of the company, including its register of shareholders/members and other declaration received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

e Disclosure of Aggregate number and class of shares allotted as fully paid up by way of bonus shares during the period of five years immediately preceding the reporting date

Details of dues to Micro, small and Medium Enterprises as per the MSMED Act, 2006

The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. The amount of principal and interest outstanding as at 31st March, is given below:

(C) PROVISION FOR GRATUITY

The company has a defined benefit gratuity plan. Every employee who has completed five years or more service gets a gratuity on departure at 15 days salary (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.

The following table summaries the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the respective plans.

The major categories of plan assets as a percentage of the fair value of total plan assets are as follows

Investments with Insurer 100% 100%

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

The principal assumptions used in determining gratuity benefit obligations for the company's plan are shown below:

Discount rate 8.00% 8.00%

Expected rate of return on assets 9.15% 9.15%

The estimates of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand of the employment market.

Amounts for the current and previous periods are as follows

(D) PROVISION FOR WARRANTIES

A provision is recognized for expected warranty claims for last 24 months based on past experience of the level of repairs and returns. It is expected that significant portion of these costs will be incurred in the next financial year. Assumption used to calculate the provision for warranties were based on current sales levels and current information available about returns based on the warranty period for all products sold. The table given below gives information about movements in warranty provisions.

During the year one equity share of Rs.10 each is subdivided into two equity shares of Rs.5 each by passing special resolution in AGM dated August 12, 2014. Hence no. of equity share for the current year and previous year is taken after sub-division of shares.

3 CONTINGENT LIABILITIES NOT ACKNOWLEDGED AS DEBT

2014-15 2013-14

a CST 202,531 202,531

b Sales Tax 2,538,334 1,183,791

c Excise Duty 3,588,481 1,784,610

d Service Tax 6,435,246 474,336

e Income Tax 14,720,590 16,789,223

f Case Pending before Consumer Forum 3,454,375 1,733,875

g Case filed by investor for non allotment of right issue shares 1,346,259 1,346,259

h Case filed by the Supplier in the Court - 111,179,796

TOTAL CONTINGENT LIABILITIES 32,285,816 134,694,421


Mar 31, 2014

1 NATURE OF OPERATIONS

Atul Auto Limited, incorporated on 18-06-1986 is a manufacturer of Three Wheeler Auto Rickshaw (Passenger / Loading) and its spare parts. It produces Auto Rickshaw under Atul Shakti, Atul Gem, Atul Smart & Atul Gemini brand names. The Company is also engaged in the generation of Electricity with Wind Turbine Generator at Village Gandhavi, Gujarat.

2 BASIS OF PREPARATION

The financial statements have been prepared to comply in all material respects with the standards notifed under the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under historical cost convention on an accrual basis except in case of assets for which provision for impairment is made. The accounting policies have been consistently applied by the Company and except for the changes in accounting policy discussed more fully below, are consistent with those used in the previous year.

C. Terms/Rights attached to Equity Shares

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

The company declares and pays dividend in Indian Rupees. Interim Dividend declared by the Board of Directors and paid by the company during the year is Rs. 4/- per share. Final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing General Meeting of Rs. 3.5 Per Share. During the year ended 31 March, 2014 the amount of per share dividend recognized as distributed to equity shareholders was Rs. 7.5/- (31 March 2013 : Rs. 6).

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 shareholders.

As per records of the company, including its register of shareholders/members and other declaration received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

E. Disclosure of Aggregate number and class of shares allotted as fully paid up by way of bonus shares

B. PROVISION FOR GRATUITY

The company has a defined benefit gratuity plan. Every employee who has completed five years or more service gets a gratuity on departure at 15 days salary (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.

The following table summaries the components of net benefit expense recognized in the Profit and loss account and the funded status and amounts recognized in the balance sheet for the respective plans.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

D. PROVISION FOR WARRANTIES

A provision is recognized for expected warranty claims for ATUL SHAKTI & ATUL SMART sold for last 6 months and for ATUL GEM & ATUL GEMINI sold for last 24 months based on past experience of the level of repairs and returns. It is expected that significant portion of these costs will be incurred in the next financial year. Assumption used to calculate the provision for warranties were based on current sales levels and current information available about returns based on the warranty period for all products sold. The table given below gives information about movements in warranty provisions.

Details of dues to Micro, small and Medium Enterprises as per MSMED Act, 2006

The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. The amount of principal and interest outstanding as at 31.03.14 is given below:

34 RELATED PARTY DISCLOSURE

(a) Associate Company Khushbu Auto Finance Limited

Key Management Personnel

Chandra Jayantilal Jagjivan Chairman & Managing Director

Patel Mahendra Jamnadas Wholetime Director & CFO

Chandra Niraj Jayantilal Wholetime Director

Enterprises owned or significantly influenced by key personal management or their relatives

Atul Auto Agency

Atul Auto Industries

Atul Automotives

Atul Motors Pvt. Ltd.

Atul Petroleum

Khushbu Auto Private Limited

New Chandra Motor Cycle Agency

New Chandra Motor Cycle House


Mar 31, 2013

1 Nature of Operations

Atul Auto Limited, incorporated on 18-06-1986 is a manufacturer of Three Wheeler Auto Rickshaw (Passenger /Loading) and its spare parts. It produces Auto Rickshaw under Atul Shakti &Atul Gem brand names. The Company is also engaged in the generation of Electricity with wind Turbine Generator at Village Gandhavi, Gujarat.

2 Basis of Preparation

The financial statements have been prepared to comply in all material respects with the standards notified under The Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under historical cost convention on an accrual basis except in case of assets for which provision for impairment is made. The accounting policies have been consistently applied by the Company and except for the changes in accounting policy discussed more fully below, are consistent with those used in the previous year.


Mar 31, 2012

1 Nature of Operations

Atul Auto Limited, incorporated on 18-06-1986 is a manufacturer of Three Wheeler Auto Rickshaw (Passenger /Loading) and its spare parts. It produces Auto Rickshaw under Atul Shakti, Atul Smart & Atul Gem brand names. The Company is also engaged in the generation of Electricity with wind Turbine Generator at Village Soda Mada, Rajasthan and at Village Gandhavi, Gujarat.

2 Basis of Preparation

The financial statements have been prepared to comply in all material respects with the standards notified under The Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under historical cost convention on an accrual basis except in case of assets for which provision for impairment is made. The accounting policies have been consistently applied by the Company and except for the changes in accounting policy discussed more fully below, are consistent with those used in the previous year.

a Terms/Rights attached to Equity Shares

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

The company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing General Meeting. During the year ended 31 March, 2012 the amount of per share dividend recognized as distributed to equity shareholders was Rs.5 (31 March 2011 : Rs.4)

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 shareholders.

(a) Term Loan from IDBI was secured by equitable mortgage of immovable properties and hypothecation of plant and machinery etc and personal guarantee of some of the directors of the company . The term loan was repayable within 24 months by 8 quarterly installment of Rs.75,00,000/- each. During the year the company has repaid the term loan out of fund received from Right Issue and internal accrual.

(b) Provision for Gratuity

The company has a defined benefit gratuity plan. Every employee who has completed five years or more service gets a gratuity on departure at 15 days salary (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.

The following table summaries the components of net benefit expense recognized in the profit and loss account and the funded status and amounts recognized in the balance sheet for the respective plans.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. There has been significant change in expected rate of return on assets due to the improved stock market scenario.

(c) Provision for Warranties

A provision is recognized for expected warranty claims for ATUL SHAKTI & ATUL SMART sold for last 6 months and for ATUL GEM sold for last 8 months, based on past experience of the level of repairs and returns. It is expected that significant portion of these costs will be incurred in the next financial year. Assumption used to calculate the provision for warranties were based on current sales levels and current information available about returns based on the warranty period for all products sold. The table given below gives information about movements in warranty provisions.


Mar 31, 2011

Nature of Operations

Atul Auto Limited, incorporated on 18-06-1986 is a manufacturer of Three Wheeler Auto Rickshaw (Passenger /Loading) and its spare parts. It produces Auto Rickshaw under Atul Shakti & Atul Gem brand names. The Company is also engaged in the generation of Electricity with Wind Turbine Generator at Village Soda Mada, Rajasthan and at Village Gandhavi, Gujarat.

a Contingent Liabilities not provided for 2010-11 2009-10

Claims against the Company not acknowledged as debts

Sales Tax 202531 202531

CST 1183791 1183791

Excise Duty 2312273 102510

Income Tax 6945823 0

Case Pending before consumer forum 4114375 4791000

Case filed by the supplier in the Court 111729796 111729796

Guarantees and counter guarantees given by the company 0 594000000

TOTAL 126488589 712009628

b Gratuity and other post-employment benefit plans:

The company has a defined benefit gratuity plan. Every employee who has completed five years or more service gets a gratuity on departure at 15 days salary (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.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. There has been significant change in expected rate of return on assets due to the improved stock market scenario.

c Supplementary Statutory Information

Note: As the future liability for gratuity and leave encashment is provided on an actuarial basis for the company as whole, the amount pertaining to the directors is not ascertainable and, therefore, not included above.

Out of above Remuneration paid to Whole time director Rs. Nil (PY : Rs. 2,19,544/-) is capitalized as Product Development expenses included in Capital Work-in-Progress.

Computation of net Profit in accordance with section 349 of the Companies Act, 1956 for calculation of commission payable to directors

Company has been advised that the computation of net profits for the purpose of directors remuneration under section 349 of the Companies Act, 1956 need not be enumerated since commission have not been paid to the director Fixed monthly remuneration has been paid to the directors as per schedule XIII to the Companies Act 1956.

d Related Party disclosure as required under clause 32 of The Listing Agreement

a > Names of Related Parties

Associates Khushbu auto Finance Limited

Key Management Personnel 1. Chandra Jayantilal Jagjivan Chairman & Managing director

2. Patel Mahendra Jamnadas Wholetime director 3. Mittal Sunilkumar Wholetime director

Relatives of 1. Chandra Dharmendra Jagjivan Brother of Chairman & Managing Key Management Director Personnel Shri Chandra Jayantilal

2. Chandra Harish Jagjivan Brother of Chairman & Managing Director Shri Chandra Jayantilal

3. Chandra Mahesh Jagjivan Brother of Chairman & Managing Director Shri Chandra Jayantilal

4. Chandra Bharat Jagjivan Brother of Chairman & Managing Director Shri Chandra Jayantilal

5. Chandra Niraj Jayantilal Son of Chairman & Managing Director Shri Chandra Jayantilal Jagjivan

6. Chandra Prafulla Jayantilal Wife of Chairman & Managing Director Shri Chandra Jayantilal Jagjivan

7. Patel Ashok Jamnadas Brother of Wholetime Director Shri Mahendra Jamnadas

8. Patel Manisha Mahendra Wife of Wholetime Director Shri Mahendra Jamnadas

Enterprises owned or significantly influenced by 1. Atul Auto Agency Key Management Personnel or their relatives 2. Atul Auto Industries

3. Atul Automotives

4. Atul Motors Pvt. Ltd.

5. Atul Petroleum

6. Khushbu Auto Private Limited

7. New Chandra Motor Cycle Agency

8. New Chandra Motor Cycle House

9. Atul Automobiles

e Other Note

Previous Year Comparatives

Previous years figures have been regrouped wherever necessary to confirm to this years classification.

 
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