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Notes to Accounts of Automobile Corporation Of Goa Ltd.

Mar 31, 2015

1 CORPORATE INFORMATION:

Automobile Corporation of Goa Limited was incorporated on September 1, 1980 as a Public Limited Company under the Companies Act, 1956. The Company was jointly promoted by EDC Limited (a Government of Goa undertaking) and Tata Motors Limited

The Company is engaged in manufacture of pressed parts, components, sub-assemblies for various range of automobiles and manufacture of Bus bodies and component parts thereof.

2 Terms and rights attached i Equity Shares

Each holder of equity shares is entitled to one vote per share. 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.

3 Estimated amount of contracts remaining to be executed on Capital Account and not provided for 4,172,161 91,608,721

4 The Company is involved in the following appellate, judicial and arbitration proceeding matters arising in the course of conduct of the Company's businesses. In few of the proceedings in respect of matters under litigation are in early stages, and in other cases, the claims are indeterminate.

5 Contingent liability in respect of:

Claims against the Company not acknowledged as debt: i Disputed demands of excise authorities

- Pending before the Commissioner of Central Excise (Appeals). 1,939,003 1,984,533

- Pending before High Court of Bombay, at Goa. 78,769 78,769

- Pending before CESTAT. 90,234,960 51,059,446

- Pending filling of appeal before CESTAT 18,044 -

ii. Penalty proposed to be levied by the Securities and Exchange Board of India (SEBI) for 175,000 175,000 alleged violation of regulation 6 and 8 of SEBI (Substantial acquisition of shares and takeovers) Regulations 1997 (pending before the Adjudicating Officer) notice dated 21.07.2004

iii Income Tax Department has gone into Appeal in the Supreme Court against the order of the High 3,732,969 3,732,969 Court dismissing their Review Application in the matter of Depreciation not claimed by the Company in assessment year 1990-91. The Company has filed a counter affidavit with Supreme Court against the appeal.

iv Award passed by the Industrial Tribunal and Labour Court, Panaji Goa in favour of ACGL Workers Nil 2,808,872 Union, upholding their demand for increase in VDA (in line with the Central Government notification applicable to Public Sector Undertaking for the period from 1989 to 2006). The Company had filed a writ petition with the High Court against the award.

Parties agreed to out of Court settlement and the High Court of Bombay at Goa passed Order on 21.11.2014 disposing the petition in the said matter.

v Demand from the Water Resource Department towards usage of ground water from 10 wells/bore wells 7,685,622 Nil registered with the said departments for the period from August 2008 to November 2013.

vi Disputed claim by a serviceprovider. 3,296,055 Nil

The management believes that, the aforesaid claims made are untenable and is contesting them. As of the reporting date, the management is unable to determine the ultimate outcome of these matters. However, in the event the revenue authorities succeed with enforcement of their assessments, the Company may be required to pay some or all of the asserted claims and the consequential interest and penalties, which would reduce net income and could have a material adverse effect on net income in the respective reported period.

6 The Company has not remitted any amount in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittances, if any, in foreign currencies on account of dividend have been made by non- resident shareholders.

7 The remuneration proposed to Mr V Krishnamurthi (erstwhile Managing Director ) for the period 1st April, 2014 to 6th December, 2014 is in excess of the limits specified in Schedule V of the Companies Act, 2013 and hence is subject to approval of the Central Government under section 197 of the Act. The Company has made an application to the Central Government on 15th April, 2015.

8 During the year, pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from 1st April, 2014 ,the Company changed its method of depreciation for certain categories of fixed assets from written down value (WDV) method to straight line method (SLM). The Company has also revised the estimated useful lives of some of its assets to align the useful lives with the technical advise obtained during the year.

9 a.) For the change in method of depreciation from WDV to SLM:

Depreciation has been recomputed from the date of capitalisation of such assets at SLM rates. Consequent to this there is a write back of depreciation of Rs.45,997,496/- relating to previous years, accounted in the Statement of Profit and Loss for the year.

The depreciation expense in the Statement of Profit and Loss for the year is lower by Rs. 4,873,692/- consequent to the change in the method of depreciation from WDV to SLM

b.) For the change in the useful lives of assets:

The Company has fully depreciated the carrying value of assets, net of residual value, where the remaining useful lives of the assets were determined to be nil on 1st April, 2014. The depreciation charge of Rs. 2,338,573/- has been adjusted in the Statement of Profit and Loss for the year.

The depreciation expense in the Statement of Profit and Loss for the year is higher by Rs. 5,582,430/- consequent to the change in the useful lives of certain fixed assets.

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

The Plan assets are managed by the Gratuity Trust formed by the company. The Management of funds is entrusted with Life Insurance Corporation of India . The details of investments made by them are not available.

B The disclosure as required under AS-15 regarding the Company's defined contribution plans is as follows :

I Contributions are made to recognized provident Fund trust established by the Company & Family Pension Fund which covers eligible employees of the company. Employees and the Company make monthly contributions at a specified percentage of the covered employees salary (currently 12% of the employee's salary). The contribution as specified under the law are paid to the provident fund trust. Contribution towards Pension fund is paid to the Regional Provident fund commissioner at specified percentage of the covered employee's salary on the monthly basis. Amount recognised as expense in respect of these defined contribution plans, aggregate to Rs.14,961,380/- (Previous year Rs.13,959,290/-)

II The Company has a Superannuation plan (defined contribution plan). The company maintains separate irrevocable trust for employees covered and entitled to benefits. The company has obtained insurance policy with Life Insurance Corporation of India. The company contributes 15% eligible employees salary to the trust every year. Amount recognised as expense in respect of this defined contribution plans, aggregate to Rs. 18,696,013/- (Previous year Rs.17,719,899 /-)

11 Related Party Disclosures

a) Name of related parties and nature of relationship:

Name of the party Relationship

Ashiyana Autobodies Associate (upto 5th December, 2014) Private Limited

Tata Motors Limited Enterprise exercising significant influence

Mr. V. Krishnamurthi Key Management Personnel (Upto 6th December, 2014)

Mr. O. V. Ajay Key Management Personnel (From 16th December, 2014)

12 Segment Information

(a) Segment information for primary segment reporting (by business segment)

The Company has two business segments:-

i) Pressing Division - Manufacturing of pressed parts, components, sub-assemblies and assemblies for various range of automobiles.

ii) Bus body Building Division - Manufacturing of Bus bodies and component parts for Bus bodies.

(b) Inter-segment Transfer Pricing - Inter-segment transfers are made at transfer price.

(c) Common Expenses -Common Expenses are allocated to different segments on reasonable basis as considered appropriate.

13 The Company does not have any long - term contract including derivative contract for which provision would be required for material foreseeable losses.

14 Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current years classification/disclosures.


Mar 31, 2014

1) Contingent liability in respect of:

Claims against the Company not acknowledged as debt:

i Disputed demands of excise authorities

- Pending before the Commissioner of Central Excise (Appeals) . 1,984,533 2,025,407

-Pending before High Court of Bombay, at Goa. 78,769 2,882,439

- Pending before CESTAT. 51,059,446 50,978,042

The Company is confident of defending the above demands and expects no liability on this count.

ii. Penalty proposed to be levied by the Securities and Exchange Board of India (SEBI) for 175,000 175,000 alleged violation of regulation 6 and 8 of SEBI (Substantial acquisition of shares and takeovers) Regulations 1997 (pending before the Adjudicating Officer) notice dated 21.07.2004.

The Company is confident of defending the above demands and expects no liability on this count.

iii Income Tax Department has gone into Appeal in the Supreme Court against the order of 3,732,969 - the High Court dismissing their Review Application in the matter of Depreciation not claimed by the Company in assessment year 1990-91. The Company has filed a counter affidavit with Supreme Court against the appeal. The Company is confident of defending the above demands and expects no liability on this count.

iv Award passed by the Industrial Tribunal and Labor Court, Panaji Goa in favor of ACGL 2,808,872 Workers Union, upholding their demand for increase in VDA (in line with the Central Government notification applicable to Public Sector Undertaking for the period from 1989 to 2006). The Company has filed a writ petition with the High Court against the award.

The Company is confident of defending the above demands and expects no liability on this count.

2) The disclosures under the Micro, Small and Medium Enterprises Development Act, 2006 have been made on the basis of confirmations received from suppliers regarding their status under the said act;

3) The Company has not remitted any amount in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittances, if any, in foreign currencies on account of dividend have been made by non- resident shareholders.

4) The excise duty related to the difference between the opening and closing stock of finished goods is disclosed on the face of the statement of Profit and Loss as "Excise Duty".

5) In the financial year ending 31st March 2007,the company issued 1,481,913 equity shares of Rs. 10 each on Rights basis at a premium of Rs.465/- per share aggregating Rs. 703,908,675/-. The objects of the issue were to substantially increase capacity, upgrade and modernise the Bus Body building facilities and shift the existing presses from the main Sheet Metal Pressing unit (at Honda, Goa) to a location in or around Pune. The Rights issue closed for subscription on 20th April,2007 and shares were allotted on 19th May,2007. The pressing unit was relocated to Jejuri (Pune). Further, at the AGM held on 8th August, 2009, the members have approved utilisation of the unspent amount as on the date of AGM for other purposes such as funding incremental working capital needs, new business opportunities, in-organic growth and to invest in group companies. Accordingly, the Company has drawn plans to deploy the unutilised proceeds.

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

The Plan assets are managed by the Gratuity Trust formed by the company. The Management of funds is entrusted with Life Insurance Corporation of India . The details of investments made by them are not available.

B The disclosure as required under AS-15 regarding the Company''s defined contribution plans is as follows:

I Contributions are made to recognized provident Fund trust established by the Company & Family Pension Fund which covers eligible employees of the company. Employees and the Company make monthly contributions at a specified percentage of the covered employees salary (currently 12% of the employee''s salary). The contribution as specified under the law are paid to the provident fund trust. Contribution towards Pension fund is paid to the Regional Provident fund commissioner at specified percentage of the covered employee''s salary on the monthly basis. Amount recognised as expense in respect of these defined contribution plans, aggregate to Rs. 13,959,290/- (PreviousyearRs.13,370,162/-)

II The Company has a Superannuation plan (defined contribution plan). The company maintains separate irrevocable trust for employees covered and entitled to benefits. The company has obtained insurance policy with Life Insurance Corporation of India. The company contributes 15% eligible employees salary to the trust every year. Amount recognised as expense in respect of this defined contribution plans, aggregate to Rs. 17,719,899/-(PreviousyearRs.16,986,181/-).

6)Seament Information

(a) Segment information for primary segment reporting (by business segment) The Company has two business segments:-

i) Pressing Division - Manufacturing of pressed parts, components, sub-assemblies and assemblies for various range of automobiles. ii) Bus body Building Division - Manufacturing of Bus bodies and component parts for Bus bodies.

(b) Inter-segment Transfer Pricing - Inter-segment transfers are made at transfer price.

(c) Common Expenses -Common Expenses are allocated to different segments on reasonable basis as considered appropriate.

7) Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current years classification/ disclosures.


Mar 31, 2013

Note: 1 (A)

CORPORATE INFORMATION:

Automobile Corporation of Goa Limited was incorporated on September 1, 1980 as a Public Limited Company under the Companies Act, 1956. The Company was jointly promoted by EDC Limited (a Government of Goa undertaking) and Tata Motors Limited.

The Company is engaged in manufacture of pressed parts, components, sub-assemblies for various range of automobiles and manufacture of Bus bodies and component parts thereof.

2) Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 41,117,987 /- (Previous Year Rs. 47,680,736/-)

3) Contingent liability in respect of:

i Disputed demands of excise authorities Rs. 55,885,888/- (Previous Year Rs. 55,896,687/-)

- Pending before the Commissioner of Central Excise (Appeals) Rs. 2,025,407/-, (Previous Year Rs. 2,009,206/-)

- Pending before High Court of Bombay, at Goa Rs. 2,882,439/-, (Previous Year Rs. 2,882,439/-)

- Pending before CESTAT Rs. 50,978,042/-, (Previous Year Rs.. 50,978,042/-)

The Company is confident of defending the above demands and expects no liability on this count.

ii. Claims against the Company not acknowledged as debt Rs. 175,000/- (Previous Year Rs. 175,000/-)

- Penalty proposed to be levied by the Securities and Exchange Board of India (SEBI) Rs. 175,000/- (Previous Year Rs. 175,000/-) for alleged violation of regulation 6 and 8 of SEBI (Substantial acquisition of shares and takeovers) Regulations 1997 (pending before the Adjudicating Officer) notice dated 21.07.2004.

The Company is confident of defending the above demand and expects no liability on this count.

4) Operating Lease Rentals:

The company has taken certain sheds and residential premises on cancellable operating lease basis. Amount of lease rentals charged to the statement of Profit and loss in respect of such cancelable operating leases are Rs. 929,028/- (Previous year Rs. 1,702,589/-).

5) The Company has not remitted any amount in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittances, if any, in foreign currencies on account of dividend have been made by non- resident shareholders.

6) The Company has exported bus bodies and component parts thereof of the sales value (Gross) of Rs. 1,276,988,762/- (Previous year Rs. 1,358,952,157/-) through a merchant exporter.

7) The excise duty related to the difference between the opening and closing stock of finished goods is disclosed on the face of the statement of Profit and Loss as "Excise Duty".

8) In the financial year ending 31st March 2007, the Company issued 1,481,913 equity shares of Rs. 10 each on Rights basis at a premium of Rs. 465/- per share aggregating Rs. 703,908,675/-. The objects of the issue were to substantially increase capacity, upgrade and modernise the Bus Body building facilities and shift the existing presses from the main Sheet Metal Pressing unit (at Honda, Goa) to a location in or around Pune. The Rights issue closed for subscription on 20th April,2007 and shares were allotted on 19th May, 2007. The pressing unit was relocated to Jejuri (Pune). Further, at the AGM held on 8th August, 2009, the members have approved utilisation of the unspent amount as on the date of AGM for other purposes such as funding incremental working capital needs, new business opportunities, in-organic growth and to invest in group companies. Accordingly, the Company has drawn plans to deploy the unutilise proceeds.

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

The Plan assets are managed by the Gratuity Trust formed by the company. The Management of funds is entrusted with Life Insurance Corporation of India . The details of investments made by them are not available.

B The disclosure as required under AS-15 regarding the Company''s defined contribution plans is as follows :

I Contributions are made to recognized provident Fund trust established by the Company & Family Pension Fund which covers eligible employees of the company. Employees and the Company make monthly contributions at a specified percentage of the covered employees salary (currently 12% of the employee''s salary). The contribution as specified under the law are paid to the provident fund trust. Contribution towards Pension fund is paid to the Regional Provident fund commissioner at specified percentage of the covered employee''s salary on the monthly basis. Amount recognised as expense in respect of these defined contribution plans, aggregate to Rs. 13,370,162 /- (Previous year Rs. 11,430,955/-)

II The Company has a Superannuation plan (defined contribution plan). The company maintains separate irrevocable trust for employees covered and entitled to benefits. The company has obtained insurance policy with Life Insurance Corporation of India. The company contributes 15% eligible employees salary to the trust every year. Amount recognised as expense in respect of this defined contribution plans, aggregate to Rs. 16,986,181/- (Previous year Rs.14,484,839/-).

9) Related Party Disclosures

a) Name of related parties and nature of relationship:

Name of the party Relationship

Ashiyana Autobodies Private Limited Associate

Tata Motors Limited Enterprise exercising significant influence

Mr. V. Krishnamurthi Key Management Personnel

Mr Ananth Prabhu Key Management Personnel (up to 24th August, 2011)

10) Segment Information

(a) Segment information for primary segment reporting (by business segment) The Company has two business segments:- i) Pressing Division - Manufacturing of pressed parts, components, sub-assemblies for various range of automobiles ii) Bus body Building Division - Manufacturing of Bus bodies and component parts for Bus bodies.

(b) Inter-segment Transfer Pricing - Inter-segment transfers are made at transfer price.

(c) Common Expenses - Common Expenses are allocated to different segments on reasonable basis as considered appropriate.

11) Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current years classification/disclosures.


Mar 31, 2012

CORPORATE INFORMATION:

Automobile Corporation of Goa Limited was incorporated on September 1, 1980 as a Public Limited Company under the Companies Act, 1956. The Company was jointly promoted by EDC Limited (a Government of Goa undertaking) and Tata Motors Limited.

The Company is engaged in manufacture of pressed parts, components, sub-assemblies for various range of automobiles and manufacture of Bus bodies and component parts thereof.

1) Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs.47,680,736/- (Previous year Rs.43,730,826/-)

2) Contingent liability in respect of:

i Disputed demands of excise authorities Rs. 55,869,687/- (Previous year Rs.55,896,851/-)

- Pending before the Commissioner of Central Excise (Appeals) Rs.2,009,206/-, (Previous Year Rs. 1,939,003/-)

- Pending before High Court of Bombay, at Goa Rs.2,882,439/-, (Previous Year Rs.2,882,439/-)

- Pending before CESTAT Rs.50,978,042/-, (Previous Year Rs.51,050,265/-)

- Pending filing appeal with CESTAT Rs. Nil/- (Previous year Rs.25,144/-).

The Company is confident of defending the above demands and expects no liability on this count.

ii. Claims against the Company not acknowledged as debts Rs.175,000/- (Previous year Rs. 3,410,000/-)

- Claim raised by a customer Rs. Nil /- (Previous Year Rs. 3,235,000/-) towards disputed penal charges for delay in meeting delivery deadlines.

- Penalty proposed to be levied by the Securities and Exchange Board of India (SEBI) Rs. 175,000/- (Previous Year Rs.175,000/-) for alleged violation of regulation 6 and 8 of SEBI (Substantial acquisition of shares and takeovers) Regulations 1997 (pending before the Adjudicating Officer) notice dated 21.07.2004.

The Company is confident of defending the above demands and expects no liability on these counts.

iii Appeal by the Income Tax Department against the order of Income Tax Appellate Tribunal (ITAT) amount shown in Appeal Rs.37,329,969/- (Previous year Rs.37,329,969/-)

- The Income Tax Department had gone in appeal against the Order of the ITAT in respect of depreciation not claimed by the Company in Assessment Year 1990-91, the income tax liability on which is stated to be computed by the department at Rs. 3,732,996 which, due to a typographical error, had been shown as Rs. 37,329,969/- in the appeal.

The High Court of Bombay at Goa has dismissed the appeal of the Income Tax Department on 25th August 2010. The Income Tax Department has moved a review application which has now been dismissed by the High Court.

iv Disputed demand of Rs. Nil/- (Previous year Rs.1,000,000/-) as and by way of damages, for alleged breach of agreement to sell the Bungalow situated at Panaji, Goa.

3) The disclosures under the Micro, Small and Medium Enterprises Development Act, 2006 have been made on the basis of confirmations received from suppliers regarding their status under the said act;

4) Operating Lease Rentals:

The company has taken certain sheds and residential premises on cancellable operating lease basis. Amount of lease rentals charged to the statement of Profit and loss in respect of such cancellable operating leases are Rs 1,702,598/- (Previous year Rs.2,555,099/).

5) Earnings per share

Earnings per share (EPS) is calculated by dividing the profit attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year as under:-

6) The Company has not remitted any amount in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittances, if any, in foreign currencies on account of dividend have been made by non- resident shareholders.

7) The Company has exported bus bodies and component parts thereof of the sales value (Gross) of Rs.1,358,952,157/- (Previous year Rs.2,368,508,913/-) through a merchant exporter.

8) The excise duty related to the difference between the opening and closing stock of finished goods is disclosed on the face of the statement of Profit and loss as "Excise Duty".

9) In the financial year ending 31st March 2007, the Company issued 1,481,913 equity shares of Rs. 10 each on Rights basis at a premium of Rs.465/- per share aggregating Rs. 703,908,675/-. The objects of the issue were to substantially increase capacity, upgrade and modernise the Bus Body building facilities and shift the existing presses from the main Sheet Metal Pressing unit (at Honda,Goa) to a location in or around Pune. The Rights issue closed for subscription on 20th April,2007 and shares were allotted on 19th May, 2007. The pressing unit has been relocated to Jejuri (Pune) during the current year. Further, at the AGM held on 8th August, 2009, the members have approved utilisation of the unspent amount as on the date of AGM for other purposes such as funding incremental working capital needs, new business opportunities, in-organic growth and to invest in group companies. Accordingly, the Company has drawn plans to deploy the unutilise proceeds.

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

B The disclosure as required under AS-15 regarding the Company's defined contribution plans is as follows :

I Contributions are made to recognized provident Fund trust established by the Company & Family Pension Fund which covers eligible employees of the company. Employees and the Company make monthly contributions at a specified percentage of the covered employees salary (currently 12% of the employee's salary). The contribution as specified under the law are paid to the provident fund trust. Contribution towards Pension fund is paid to the Regional Provident fund commissioner at specified percentage of the covered employee's salary on the monthly basis. Amount recognised as expense in respect of these defined contribution plans, aggregate to Rs. 11,430,955/- (Previous year Rs. 9,952,733/-)

II The Company has a Superannuation plan (defined contribution plan). The company maintains separate irrevocable trust for employees covered and entitled to benefits. The company has obtained insurance policy with Life Insurance Corporation of India. The company contributes 15% eligible employees salary to the trust every year. Amount recognised as expense in respect of this defined contribution plans, aggregate to Rs. 14,484,839/- (Previous year Rs.12,375,107/-).

10) Segment Information

(a) Segment information for primary segment reporting (by business segment)

The Company has two business segments:-

i) Pressing Division - Manufacturing of pressed parts, components, sub-assemblies and assemblies for various range of automobiles.

ii) Bus body Building Division - Manufacturing of Bus bodies and component parts for Bus bodies.

11) The Revised Schedule VI has become effective from April 1, 2011 for the preparation of financial statements. This has 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, 2011

1. Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 43,730,826/- (Previous Year Rs. 12,578,721/-)

2. Contingent liability in respect of :

i. Disputed demands of excise authorities Rs. 55,896,851/- (Previous Year Rs. 6,185,062/-)

- Pending before the Commissioner of Central Excise (Appeals) Rs. 1,939,003/- (Previous Year Rs. 1,939,003/-)

- Pending before High Court of Bombay, at Goa Rs. 2,882,439/- (Previous Year 2,882,439/-)

- Pending before CESTAT Rs. 51,050,265/- (Previous Year Rs.1,066,076/-)

- Pending filling appeal with CESTAT Rs. 25,144/- (Previous Year Rs. 297,544/-) The Company is confident of defending the above demands.

ii. Claims against the Company not acknowledged as debts Rs. 3,410,000/- (Previous year Rs. 3,410,000/-)

- Claim raised by a customer Rs. 3,235,000/- (Previous Year Rs. 3,235,000/-) towards disputed penal charges for delay in meeting delivery deadlines.

- Penalty proposed to be levied by the Securities and Exchange Board of India (SEBI) Rs. 175,000/- (Previous Year 175,000/-) for alleged violation of regulation 6 and 8 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 1997 (pending before the Adjudicating Officer) notice dated 21.07.2004.

The Company is confident of defending the above demands and expects no liability on these counts.

iii) Appeal by the Income Tax Dept against the order of Income Tax Appellate Tribunal (ITAT) - amount shown in the appeal Rs. 37,329,969/- (Previous Year Rs. 37,329,969/-)

- The Income Tax Department had gone in appeal against the Order of the ITAT in respect of depreciation not claimed by the Company in Assessment Year 1990-91, the income tax liability is stated to be computed at Rs. 3,732,996/- which, due to a typographical error, had been shown as Rs. 37,329,969/- in the appeal.

The High court of Bombay at Goa has dismissed the appeal of the Income Tax Department on 25th August, 2010. The Income Tax Department has moved a review application with the High Court which is pending admission.

iv) Disputed demand of Rs. 1,000,000/- (Previous Year Rs. 1,000,000/-) as and by way of damages, for alleged breach of agreement to sell the Bungalow situated at Panaji, Goa.

- Appeal pending before High Court of Bombay at Goa.

v) Bills discounted with a bank Rs. Nil (Previous Year Rs. 729,614,768/-)

5 The disclosure as required under As-15 regarding the Companys defined plans is as follows :

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

3. Operating Lease Rentals :

The company has taken certain sheds and residential premises on cancellable operating lease basis. Amount of lease rentals charged to Profit and loss account in respect of such cancellable operating leases are Rs. 2,555,099/- (Previous Period Rs. 2,024,483/-).

4 Related party Disclosures

a) Name of related parties and nature of relationship :

Name of the party Relationship

Ashiyana Autobodies Private Ltd Associates

Tata Motors Limited Enterprise exercising significant influence

Mr. N. R. Menon Key Management Personnel (up to 1st August, 2010)

Mr. V. Krishnamurthi Key Management Personnel (with effect from 18th October, 2010)

Mr. Ananth Prabhu Key Management Personnel

5 Segment Information :

(a) Segment information for primary segment reporting (by business segment) The Company has two business segments :

i) Pressing Division - Manufacturing of pressed parts, components, sub-assemblies and assemblies for various range of automobiles.

ii) Bus body Building Division - Manufacturing of Bus and component parts for Bus bodies.

(b) Inter-segment Transfer Pricing

Inter -segment transfers are made at transfer price

(c) Common Expenses

Common Expenses are allocated to different segment on reasonable basis as considered appropriate.

6 The Company has exported bus bodies and component parts thereof of the sales value (Gross) of Rs. 2,368,508,913/- (Previous year Rs. 506,997,266/-) through a merchant exporter.

7 The excise duty related to the difference between the opening and closing stock of finished goods is disclosed separately on the face of the Profit and Loss account as "Excise Duty".

8 In the financial year ending 31st March 2007, the company issued 1,481,913 equity shares of Rs. 10 each on Rights basis at a premium of Rs. 465/- per share aggregating to Rs. 703,908,675/-. The object of the issue were to substantially increase capacity, upgrade and modernise the Bus Body building facilities and shift the existing presses from the main Sheet Metal Pressing unit (at Honda, Goa) to a location in or around Pune. The Rights issue closed for subscription on 20th April, 2007 and shares were allotted on 19th May 2007. The management had then decided to shift the pressing unit to Dharwar (Karnataka) instead of Pune.

Further, at the AGM held on 8th August 2009, the members have approved utilisation of the unspent amount as on the date of AGM for other purposes such as funding incremental working capital needs, new business opportunities, in-organic growth and to invest in group companies.

9 Figures of the previous year have been regrouped wherever necessary to correspond with those of the current year.


Mar 31, 2010

1 Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs.12,578,721/- (Previous year Rs.21,873,473/-)

2 Contingent liability in respect of:

i. Disputed demands of excise authorities Rs.6,185,062/- (Previous year Rs.6,964,013/-)

-Pending before the Commissioner of Central Excise (Appeals) Rs. 1,939,003/-, (Previous Year Rs1l,939,003/-)

-Pending before High Court of Bombay, at Goa Rs. 2,882,439/-, (Previous Year Rs.2,882,439/-)

-Pending before CESTAT Rs. 1,066,076/-, (Previous Year Rs. 1,566,335/-)

-Pending filing appeal with CESTAT Rs.297,544/- (Previous year Rs.576,236/-).

-The Company is confident of defending the above demands and expects no liability on this count.

ii. Claims against the Company not acknowledged as debts Rs.3,410,000/- (Previous year Rs. 9,943,810/-)

-Claim raised by Delhi Transport Corporation Rs. Nil (Previous year Rs. 6,533,810/-) pending before the Delhi High Court. During the year, the matter was decided against the company and the liability has since been settled.

-Claim raised by a customer Rs.3,235,000 /- (Previous Year Rs. 3,235,000/-) towards disputed penal charges for delay in meeting delivery deadlines.

-Penalty proposed to be levied by the Securities and Exchange Board of India Rs. 175,000/- (Previous Year Rs.l75,000/-) for alleged violation of regulation 6 and 8 of SEBI (Substantial acquisition of shares and takeovers) Regulations 1997 (pending before the Adjudicating Officer) notice dated 21.07.2004.

-The Company is confident of defending the above demands and expects no liability on these counts.

iii. Appeal by the Income Tax Dept against the order of Income Tax Appellate Tribunal (ITAT)- amount shown in the appeal Rs.37,329,969/- (Previous year Rs. 37,329,969/-)

-The Income Tax Department has gone in appeal against the Order of the ITAT in respect of depreciation not claimed by the Company in

-Assessment Year 1990-91, the income tax liability on which is stated to be computed by the department at Rs. 3,732,996 which, due to a typographical error, has been shown as Rs. 37,329,969/- in the appeal.

-The Company is confident of defending the above demand and expects no liability on this count.

iv. Disputed demand of Rs. 1,000,000/- (Previous year Rs. 1,000,000/-) as and by way of damages, for alleged breach of agreement to sell the Bungalow situated at Panaji.Goa.

Appeal pending before High Court of Bombay at Goa

v. Bills discounted with a bank Rs.729,614,768/- (Previous year Rs.548,413,885/-)

3 Managerial remuneration under Section 198 of the Companies Act, 1956 to the Managing Director and an Executive Director:

The above remuneration excludes contribution to gratuity and leave encashment as the incremental liability has been accounted for the company as a whole.

The above remuneration is in excess of the limits specified in Schedule XIII of the Companies Act, 1956 and hence is subject to approval of Central Government under Section 198/309 of the Companies Act, 1956.The company is in the process of making the application to the Central Government.

4 Computation of net profits as per Section 349 read with Section 309(5} and Section 198 of the Companies Act, 1956.

Segment Information

(a) Segment information for primary segment reporting (by business segment)

The Company has two business segments:-

i) Pressing Division - Manufacturing of pressed parts, components, sub-assemblies and assemblies for various range of automobiles.

ii) Bus body Building Division - Manufacturing of Bus bodies and component parts for Bus bodies.

(b) Inter-segment Transfer Pricing

Inter-segment transfers are made at transfer price.

5 The company had opted for sales tax deferral scheme under the 1988 Package Scheme of incentive of Bombay Sales Tax Act, 1959 under certificate of entitlement No 412302/S/R-31B/1069 dated 4/2/2000. The total sales tax collected and deferred under the said scheme aggregated to Rs 48,428,000/-. The repayment under the scheme was due from 2010 onwards. During the previous year the Company settled the full liability by paying an amount of Rs.20,830,269/- being the NPV (Net Present Value) calculated in accordance with the provisions of the said act. The differential amount of Rs. 27,597,731/- had been accounted as income and disclosed as an "exceptional item" in the Profit and loss account.

6 Hitherto, the company was valuing the inventory of Components, Stores and Spares on FIFO Basis. During the year, the company has changed the method to weighted average. The impact of the change is not material.

7 Figures of the previous year have been regrouped wherever necessary to correspond with those of the current year.

 
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