Mar 31, 2023
The Group has only one class of equity shares having a par value of? U- Each holder of equity shares is entitled to one vote per share. The Group declares and pays dividend if any, in Indian rupees.The dividend proposed if any, by the Board of Directors is subject to the approval of the shareholders in the ensuingAnnual General Meeting.
In the event of liquidation of the company of Group, the holders of equity shares will be entitled to receive any of the 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.
Security and Salient Terms:
(a) The Car Loan of? 244.09 lakhs (Previous Year ? Nil lakhs) is secured by hypothecation of the car.
Interest is payable @ 8.00% p.a. and is repayable in eighty four monthly instalments starting from February, 2023 and ending in January, 2030.
The Car Loan of? 25.00 lakhs (Previous Year ? Nil lakhs) is secured by hypothecation of the car.
Interest is payable @ 8.95% p.a. and is repayable in Sixty monthly instalments starting from April, 2023 and ending in March, 2028.
(b) Sales Tax deferred payment loan of? 74.58 lakhs (Previous Year ? 76.01 lakhs) is interest free and payable in instalments starting from April 2017.
Security and SalientTerms:
(a) Rupee loans of ?2222.38 lakhs (Previous Year ? Nil lakhs) exclusive charge by way of hypothecation on entire stock of Finished goods, Raw material, Stock in trade and Book debts of the Company, present and future. Exclusive charge by way of Hypothecation of Plant & Machinery of the Company. Corporate Guarantee of Asian Distributors Private Limited to the extent of market value of collateral proposed to mortgage.
(b) Rupee loans of ? 675.00 Lakhs (Previous Year ? Nil Lakhs) fresh additional working capital term loan under BGECL 1.0 extension scheme 100% guaranteed by NCGTC. Principal to be repaid in 36 monthly installment of? 18.75 Lakhs each plus interest commencing after 24 months from the date of first disbursement.
(c) Rupee loans of ? Nil lakhs (Previous Year ? 1390.37 lakhs) first charge by way of hypothecation of companyâs entire paid up stock and trade receivables, present and future on pari pasu basis with other working capital bankers and second pari pasu charge over the land along with construcion thereon and all machineries situated at B-l 5/4, Ml DC, Aurangabad - 431 133 of the Group Company to be shared with other working capital bankers.
(d) Rupee loans of ? Nil lakhs (Previous Year ? 752.78 lakhs) first charge by way of hypothecation of companyâs entire current assets on pari pasu basis with other working capital bankers and second pari pasu charge over the entire fixed assets of the Group Company to be shared with other working capital bankers.
(e) The rates of interest for rupee loan ranges from 9.70% p.a. to I 2% p.a.
Note 32: Balances of Sundry Creditors, Debtors, Loans and Advances and Other current assets are subject to confirmation.
Note 33: Employee Benefits:
(A) Defined Contribution Plans:
(B) Defined Benefit Plans :
I. (a) Contribution to Gratuity:
Provision for Gratuity has been made in the accounts based on an actuarial valuation carried out at the close of the year.The Company has funding arrangement with Birla Sun Life and Life Insurance Corporation of India, except forTools Division, in which case it is held under Indian Tool Employee Gratuity Fund, and the liability is discharged to the employees in the year of retirement / cessation of employment.
II. Leave Encashment:
The leave encashment provision for the year ended 31st March, 2023, based on actuarial valuation carried out using projected unit credit method amounting to ? 53.30 Lakhs (PreviousYear ? 7.98 Lakhs) has been recognized in statement of profit and loss.
The fair value of other current financial assets, cash and cash equivalents, trade receivables, trade payables, shortterm borrowings and other financial liabilities approximate the carrying amounts because of the short term nature of these financial instruments.
The amortised cost using effective interest rate (ElR) of non current financial assets consisting of security and term deposits are not significantly different from the carrying amount.
Financial assets that are neither past due nor impaired includes cash and cash equivalents, security deposits, term deposits and other financial assets.
The impact of fair value on non current borrowings, non current security deposits and non current term deposits are not significant and therefore the impact of fair value is not considered for above disclosure.
Note 37: Fair value hierarchy:
The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
*Level I - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
'' Level 2 - Inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
*Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
No financial assets/liabilities have been valued using level I fair value measurements.
The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis:
The carrying amounts of borrowings, trade payables, other financial liabilities and other current liabilities are considered to approximate their fair values due to their short term nature.They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including own and counterparty credit risk.
The Company is exposed to various financial risks.These risks are categorized into market risk, credit risk and liquidity risk. The Companyâs risk management is coordinated by the Board of Directors and focuses on securing long term and short term cash flows. The Company does not engage in trading of financial assets for speculative purposes.
(A) Market risk:
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk such as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings and derivative financial instruments.
(i) Interest rate risk:
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.The Company exposure to the risk of changes in market interest rates relates primarily to the Companyâs long-term debt obligations with floating interest rates.
(ii) Foreign currency risk:
The Company is exposed to foreign currency risk arising mainly on borrowing, export of finished goods and import of raw material. Foreign currency exposures are managed within approved policy parameters utilising forward contracts.
(B) Credit risk:
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk arises principally from the statutory deposits with regulatory agencies and also arises from cash held with banks and financial institutions.The maximum exposure to credit risk is equal to the carrying value of the financial assets.The objective of managing counterparty credit risk is to prevent losses in financial assets.The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.
The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining sufficient balances in bank accounts required to meet a monthâs operational costs.The Management reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts.The Company does not foresee any credit risks on deposits with regulatory authorities.
(C) Liquidity risk:
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.
Note 39: Capital management:
For the purpose of the Companyâs capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders.The primary objective of the Companyâs capital management is to maximize the shareholder value and to ensure the Companyâs ability to continue as a going concern.
The Company monitors gearing ratio i.e. total debt in proportion to its overall financing structure, i.e. equity and debt. Total debt mainly comprises of borrowings from banks, financial institutions and Unsecured Loans.The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.
Note 40: Corporate social responsibility:
(A) Gross amount spend by the Company towards Corporate Social Responsibility is ? Nil Lakhs (PreviousYear ? Nil Lakhs).
(B) No expenditure has been paid to a related party, in relation to CSR expenditure as per Ind-AS 24, Related Party Disclosures.
Note 41: Previous year figures have been regrouped/ reclassified to confirm presentation as per Ind AS as required by Schedule III of theAct.
Mar 31, 2018
30. Contingent liabilities:
(a) Estimated amount of contracts remaining to be executed (net of advances), not provided for:
(` in Lakhs)
Particulars |
31st March, 2018 |
31st March, 2017 |
1st April 2016 |
Capital Commitments: Tangible Assets |
- |
18.76 |
359.29 |
(b) Contingent liabilities not provided for in respect of: (` in Lakhs)
Particulars |
31st March, 2018 |
31st March, 2017 |
1st April 2016 |
(i) Amount of duty saved under EPCG Scheme against export obligations (ii) Sales Tax Demands in Appeals (iii) Income Tax Demands in Appeals (iv) Excise and Service Tax Demands in Appeals (v) Claim on account of PF not acknowledged as debts (vi) Bank Guarantees / Letters of Credit (vii) Corporate Guarantee to Banks for a loan taken by group Company (viii) Claims against Company not acknowledged as debts |
397.10 - 0.75 - 4.01 20.06 25030.00 79.82 |
481.14 0.41 0.75 - 4.01 20.06 25030.00 59.10 |
481.14 269.50 83.99 75.32 4.01 20.06 25030.00 67.54 |
(c) The Company is a party to various legal proceedings in the normal course of business and does not expect the outcome of the proceedings to have any adverse effect on its financial conditions, results of operations or cash flows.
31.(a) Utilization of proceeds of public/ right issue as on 31st March, 2018 is as under: (` in Lakhs)
Description |
Total Estimated Cost |
Deployed up to 31st March, 2018 |
Deployed up to 31st March, 2017 |
I) Aurangabad Project: Building Plant, Machinery and Electrical Equipment Miscellaneous Fixed Assets Contingencies Pre Operative Expenses II) Margin money for Working capital requirement for Aurangabad Project |
120.00 1365.50 329.36 185.00 80.00 50.00 |
120.00 1172.56 55.77 69.34 - - |
120.00 1050.44 12.97 69.34 - - |
Sub-total |
2129.86 |
1417.67 |
1252.75 |
III) Margin money for Working capital requirement for Conversion of unsecured loan into equity raised by Company for setting up the Gandhidham Project from Nirved Traders Private Limited Promoter Company IV) To meet expenses of issue |
470.14 300.00 |
470.14 276.42 |
470.14 276.42 |
Total |
2900.00 |
2164.23 |
1999.31 |
As per the Prospectus, the funds which were proposed to be deployed in the Aurangabad Project up to the period ended 30th September, 2008 was envisaged at ` 2129.86 Lakhs. However, the actual amount spent towards the above is ` 1417.67 Lakhs.
The above mentioned status of utilisation of funds raised by BMTL (formerly Dagger Frost Tools Limited) in its Right cum Follow on Issue in 2007 has been revised
/ adjusted due to the Scheme approved by Honourable High Court of Bombay for amalgamation of Birla Machining & Toolings Limited and Birla Accucast Limited
(Transferor companies) with Birla Precision Technologies Limited (Transferee Company).
As per approved scheme the pending project for of castings will be undertaken by the merged entity namely Birla Precision Technologies Limited.
In view of delay in implementation of the Aurangabad project, the amounts being utilised out of working capital and other advances, is considered being towards the designated project expenses and accounted for accordingly.
31. (b) The Company has incurred capital expenditure aggregating to ` 1417.67 Lakhs for the acquisition and construction of Plant and Machinery, Electrical Equipment and Building structure for installation of machining facilities. As there has been delay in the implementation of the machining project, the advances, made to the suppliers, accordingly have not been entirely appropriated towards the suppliers, but to the extent of the supplies. No provision for impairment is considered necessary by the management at this stage.
32. The Company has given a corporate guarantee of ` 25030 Lakhs to banks for a loan taken by a Group Company. In the legal case filed by Bank in DRT, Banks
has not claimed any relief against the Company.
33. Balances of Sundry Creditors, Debtors, Loans and Advances and Other current assets are subject to confirmation.
34. Employee Benefits:
(A) Defined Contribution Plans:
The Company has recognized the following amounts in statement of profit and loss for the year:
(` in Lakhs)
Particulars |
31st March, 2018 |
31st March, 2017 |
Contribution to Employees Provident Fund and Other Funds |
344.02 |
289.34 |
Total |
344.02 |
289.34 |
(B) Defined Benefit Plans :
I. (a) Contribution to Gratuity:
Provision for Gratuity has been made in the accounts based on an actuarial valuation carried out at the close of the year. The Company has funding arrangement with Birla Sun Life and Life Insurance Corporation of India, except for Tools Division, in which case it is held under Indian Tool Employee Gratuity Fund, and the liability is discharged to the employees in the year of retirement / cessation of employment.
36. Related party disclosures:
(A) Name of related parties and nature of relationships (as per Ind AS 24): (a) Key Management Personnel
1. Shri Vedant Birla - Chairman & Managing Director. Appointed w.e.f. 18th May, 2016.
2. Shri R. K. Sharma - Chief Financial Officer. Appointed w.e.f. 13th April, 2017.
3. Ms. Rupa Khanna - Company Secretary & Compliance Officer. Resigned w.e.f. 18th May, 2017.
4. Ms.Vandana Patil - Company Secretary & Compliance Officer. Appointed w.e.f. 29th May, 2017.
(b) Enterprises owned or significantly influenced by Key Management personnel or their relatives:
1. Birla Infrastructure & Developers Private Limited 4. Eduserve International Education LLP
2. Birla Infrastructure & Constructions Private Limited 5. Hair Station LLP
3. Edufocus International Education LLP
Note: Related party relationship is as identified by the Company and relied upon by the Auditors.
37. Fair values of financial assets and financial liabilities:
The fair value of other current financial assets, cash and cash equivalents, trade receivables, trade payables, short term borrowings and other financial liabilities approximate the carrying amounts because of the short term nature of these financial instruments.
The amortised cost using effective interest rate (EIR) of non current financial assets consisting of security and term deposits are not significantly different from
the carrying amount.
Financial assets that are neither past due nor impaired includes cash and cash equivalents, security deposits, term deposits and other financial assets.
The impact of fair value on non current borrowings, non current security deposits and non current term deposits are not significant and therefore the impact of
fair value is not considered for above disclosure.
38. Fair value hierarchy:
The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
*Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
*Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
*Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
No financial assets/liabilities have been valued using level 1 fair value measurements.
39. Financial risk management objectives and policies:
The Company is exposed to various financial risks.These risks are categorized into market risk, credit risk and liquidity risk.The Company's risk management is coordinated by the Board of Directors and focuses on securing long term and short term cash flows. The Company does not engage in trading of financial assets for speculative purposes.
(A) Market risk:
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings and derivative financial instruments.
(i) Interest rate risk:
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company exposure to the risk of changes in market interest rates relates primarily to the Companyâs long-term debt obligations with floating interest rates. (ii) Foreign currency risk:
The Company is exposed to foreign currency risk arising mainly on borrowing, export of finished goods and import of raw material. Foreign currency exposures
are managed within approved policy parameters.
(B) Credit risk:
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk arises principally from the statutory deposits with regulatory agencies and also arises from cash held with banks and financial institutions. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets.The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.
The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining sufficient balances in bank accounts required to meet a monthâs operational costs.The Management reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts.The Company does not foresee any credit risks on deposits with regulatory authorities.
(C) Liquidity risk:
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.
40. Capital management:
For the purpose of the Companyâs capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The primary objective of the Companyâs capital management is to maximize the shareholder value and to ensure the Company's ability to continue as a going concern.
The Company monitors gearing ratio i.e. total debt in proportion to its overall financing structure, i.e. equity and debt.Total debt mainly comprises of borrowings from banks, financial institutions and Unsecured Loans. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.
(` in Lakhs)
Particulars |
31st March, 2018 |
31st March, 2017 |
1st April, 2016 |
(i) Total equity (ii) Total debt (iii) Overall financing (i+ii) (iv) Gearing ratio (ii/iii) |
10294.70 2739.14 13033.84 0.21 |
9987.69 2869.09 12856.78 0.22 |
12887.82 3309.15 16196.97 0.20 |
No changes were made in the objectives, policies or processes for managing capital during the years ended 31st March 2018, 31st March 2017 and 1st April 2016.
41. Corporate social responsibility:
(A) Gross amount spend by the Company towards Corporate Social Responsibility is ` 25.05 Lakhs (Previous year ` Nil).
(B) No expenditure has been paid to a related party, in relation to CSR expenditure as per Ind-AS 24, Related Party Disclosures.
42. Previous year figures have been regrouped/ reclassified to confirm presentation as per Ind AS as required by Schedule III of the Act.
For THAKUR,VAIDYANATH AIYAR & CO. Chartered Accountants Firm Registration No.000038N |
 |
For and on behalf of Board of Directors |
C.V. Parameswar Partner Membership No. 11541 |
 |
Vedant Birla Chairman & Managing Director DIN: 03327691 |
 |  |
O. P. Jain |
Place: Mumbai Date: 28th May, 2018 |
R. K. Sharma Chief Financial Officer |
Director DIN: 02553210 |
 |  |
Vandana Patil Company Secretary |
Mar 31, 2016
1. 3,66,5I,756 Equity Shares issued, subscribed and fully paid up share capital were allotted in the last five years pursuant to the scheme of merger and amalgamation without payment being received in cash (3,66,5I,756).
The Company has only one class of equity shares having a par value of Rs. 2/- Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend if any, in Indian rupees. The dividend proposed if any, 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 any of the 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.
Security and Salient Terms:
2. Rupee Term Loan of Rs. Nil (Previous Year Rs. 40.05 lakhs) first charge by way of hypothecation of companyâs entire stocks of raw materials, semi-finished and finished goods, consumable stores and spares and such other movables including book-debts, bills whether documentary or clean, outstanding monies, receivables, both present and future, ranking pari-passu with existing bankers. Exclusive First charge by way of hypothecation of all Plant and Machinery and other movable fixed assets of the company to be funded out of the term loan from the bank.
Interest rate is linked to Banksâ Prime Lending Rate / Base Rate plus margin is repayable in twenty quarterly installments starting from June, 2010 and ending in March, 2015.
3. The Car Loan of Rs. 70.74 lakhs (Previous Year Rs. 87.10 lakhs) is secured by hypothecation of the car.
Interest is payable @ 10.51% p.a. and is repayable in sixty monthly installments starting from August, 2014 and ending in July, 2019.
4. The Car Loan of Rs. 22.93 lakhs (Previous Year Rs. 33.34 lakhs) is secured by hypothecation of the car.
Interest is payable @ 10.50% & 11.58% p.a. and is repayable in sixty and twenty four monthly installments respectively starting from July, 2012 and July, 2015 and ending in June, 2017.
5. The Car Loan of Rs. Nil (Previous Year Rs. 1.18 lakhs) is secured by hypothecation of the car.
Interest is payable @ 11.58% p.a. and is repayable in thirty six monthly installments starting from September, 2012 and ending in August, 2015.
6. Sales Tax deferred payment loan of Rs. 44.90 lakhs (Previous Year Rs. 63.95 lakhs) is interest free and payable in installments starting from May,2003 and ending in April, 2018.
Sales Tax deferred payment loan of Rs. 446.87 lakhs (Previous Year Rs. 456.23 lakhs) is interest free and installments schedule is not yet received from the department.
Security and Salient Terms:
7. Foreign currency loan of Rs. 1355.71 lakhs (Previous Year Rs. 1514.31 lakhs) first charge by way of hypothecation of companyâs entire stocks of raw materials, semi-finished and finished goods, consumable stores and spares and such other movables including book-debts, bills whether documentary or clean, outstanding monies, receivables, both present and future, ranking pari-passu with existing bankers. Exclusive First charge by way of hypothecation of all Plant and Machinery and other movable fixed assets of the company to be funded from the term loan from the Bank.
8. Rupee loan of Rs. 285.89 lakhs (Previous Year Rs. 113.11 lakhs) first charge by way of hypothecation of companyâs entire stocks of raw materials, semi-finished and finished goods, consumable stores and spares and such other movables including book-debts, bills whether documentary or clean, outstanding monies, receivables, both present and future, ranking pari-passu with existing bankers. Exclusive First charge by way of hypothecation of all Plant and Machinery and other movable fixed assets of the company to be funded from the term loan from the Bank.
9. Rupee loans of Rs. 912.03 lakhs (Previous Ysar Rs. 868.76 lakhs) first charge by way of hypothecation of companyâs entire current assets on pari pasu basis with other working capital bankers and second pari pasu charge over the entire fixed assets of the Company to be shared with other working capital bankers.
10. The rates of interest for foreign currency loan ranges from 4% p.a. to 5% p.a. and 12% p.a. to 19% p.a. for rupee loans.
11. The Company is a party to various legal proceedings in the normal course of business and does not expect the outcome of the proceedings to have any adverse effect on its financial conditions, results of operations or cash flows.
As per the Prospectus, the funds which were proposed to be deployed in the Aurangabad Project up to the period ended 30th September, 2008 was envisaged at Rs. 2I29.86 Lakhs. However, the actual amount spent towards the above is Rs. 523.20 Lakhs.
The above mentioned status of utilization of funds raised by BMTL in its Right cum Follow on Issue in 2007 has been revised / adjusted by Rs. 427.20 Lakhs paid to BAL due to the SoA approved by Honourable High Court of Bombay for amalgamation of BAL and BMTL (Transferor companies) with the Company.
As per SOA the pending project and related obligations of the transferor companies shall be implemented by the Company.
In view of delay in implementation of the Aurangabad project, the balance amount of Rs. I595.20 Lakhs has been utilized for funding the companyâs Working Capital requirements and for Inter Corporate Deposits given to group companies and others. The utilization of the said funds is not in line with the Prospectus.
12. (b) The Company has incurred capital expenditure aggregating to Rs.523.20 Lakhs for the acquisition and construction of Plant and Machinery,
Electrical Equipment and Building structure for installation of machining facilities. There has been delay in the implementation of the machining project, accordingly the advances, made to the suppliers, have not been entirely appropriated towards the supplies. No provision for impairment is considered necessary by the management at this stage.
13. The remuneration as approved by the Remuneration Committee / Board / Shareholders amounting to Rs. Nil (Previous year Rs. 71.77 Lakhs) paid / provided to the Managing Director is the remuneration within the limits of Schedule V Part II, Section II of the Companies Act, 2013, based on the effective Capital of the Company and in line with the amount allowable based on the resolution passed by the shareholders being Special Resolution.
14. The Cutting Tool Divisions of the Company situated at Plot No. 62-63, M.I.D.C., Satpur, Nashik and Plot No. B-15/3/1, M.I.D.C., Waluj, Aurangabad has received symbolic possession notice under the SARFAESI Act (Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002) on 26th June, 2014 and 27th June, 2014 respectively along with the claim for repayment of Rs. 193.18 Crores. The Aurangabad Division of the Company has also received physical possession notice under SARFAESI Act on 9th May, 2015 from the Sub-Divisional Magistrate, Taluka Vaijapur, District Aurangabad.
The Company is in the process of joining with the principal defaulter in filing a consolidated application at Debt Recovery Tribunal (DRT) Court, Pune.
15. Balances of Sundry Creditors and Debtors are subject to confirmation.
16. Defined Benefit Plans :
17. Contribution to Gratuity:
Provision for Gratuity has been made in the accounts based on an actuarial valuation carried out at the close of the year. The Company has funding arrangement with Birla Sun Life and Life Insurance Corporation of India, except for Tools Division, in which case it is held under Indian Tool Employee Gratuity Fund, and the liability is discharged to the employees in the year of retirement / cessation of employment.
18. Leave Encashment:
The leave encashment provision for the year ended 3Ist March, 20I6, based on actuarial valuation carried out using projected unit credit method amounting to Rs. 39.88 Lakhs (Previous Year Rs. 84.34 Lakhs) has been recognized in statement of profit and loss.
Based on technical review, the Company has identified two reporting segments namely:
19. Tools and Precision Components
20. Casting and Machining, as reporting segments under AS-17.
21. Related party disclosures:
22. Name of related parties and nature of relationships:
23. Key Management Personnel
24. Shri M. S. Arora (Managing Director) till 15th December, 2014.
25. Shri Vedant Birla - Chairman & Managing Director, appointed w.e.f. 18th May, 2016.
26. Shri Shamraj Gilbile - Whole Time Director, appointed w.e.f. 4th December, 2015 and resigned w.e.f. 28th June, 2016.
27. Shri Mukunda Mankar - Chief Financial Officer.
28. Ms. Rupa Khanna - Company Secretary & Compliance Officer.
29. Corresponding previous year figures have been regrouped / recast and reclassified wherever necessary to make them comparable.
Mar 31, 2015
As per the Prospectus, the funds which were proposed to be deployed in
the Aurangabad Project upto the period ended 30th September, 2008 was
envisaged at Rs. 2129.86 lakhs. However, the actual amount spent
towards the above is Rs. 523.20 lakhs.
The above mentioned status of utilisation of funds raised by BMTL in
its Right cum Follow on Issue in 2007 has been revised/adjusted by Rs.
427.20 lakhs paid to BAL due to the SoA approved by Honourable High
Court of Bombay for amalgamation of BAL and BMTL (Transferor companies)
with the Company.
As per SoA the pending project and related obligations of the
transferor companies shall be implemented by the Company.
In view of delay in implementation of the Aurangabad project, the
balance amount of Rs. 1595.20 Lakhs has been utilized for funding the
company's Working Capital requirements and for Inter Corporate Deposits
given to group companies and others. The utilization of the said funds
is not in line with the Prospectus.
1. (a) The Company has incurred capital expenditure aggregating to
Rs. 523.20 lakhs for the acquisition and construction of Plant and
Machinery, Electrical Equipment and Building structure for installation
of machining facilities. There has been delay in the implementation of
the machining project, accordingly the advances, made to the suppliers,
have not been entirely appropriated towards the supplies. No provision
for impairment is considered necessary by the management at this stage.
2. The remuneration as approved by the Remuneration Committee / Board
/ Shareholders amounting to Rs. 71.77 lakhs paid / provided to the
Managing Director is the remuneration within the limits of Schedule V,
Part II, Section II of the Companies Act, 2013, based on the Effective
Capital of the Company and in line with the amount allowable based on
the resolution passed by the Shareholders being a Special Resolution.
3. The Cutting Tool Division of the Company situated on Plot No.
B-15/3/1, M.I.D.C., Waluj, Aurangabad - 431 133 has received physical
possession notice under the SARFAESI Act (Securitization and
Reconstruction of Financial Assets and Enforcement of Security Interest
Act 2002) on 9th May 2015, from the Sub-Divisional Magistrate, Tq.
Vaijapur, Dist. Aurangabad, being a guarantor to a Group Company.
The Company has filed a stay application under SARFAESI Act before the
Debts Recovery Tribunal (DRT) Court, Aurangabad on 18th May 2015. The
Court has admitted the application which is pending for hearing.
4. Balances of Sundry Creditors and Debtors are subject to
confirmation.
II. Leave Encashment:
The leave encashment provision for the year ended 31st March, 2015,
based on actuarial valuation carried out using projected unit credit
method amounting to Rs. 84.34 lakhs (Previous Year Rs. 28.72 lakhs) has
been recognized in statement of profit and loss.
5. Corresponding previous year figures have been regrouped / recast
and reclassified wherever necessary to make them comparable.
Mar 31, 2013
1. Valuation of Finished Goods and Semi finished Goods at Tool
Division:
Till the previous year the cost of finished goods and goods under
process at the Tool Division of the Company was being determined using
the retail method, whereby the cost is computed by reducing from the
sales value of inventory the global gross margins.
As this method is not in accordance with Accounting standard -2 (AS-2)
the Company has during the current year reworked the value of finished
goods and goods under process at the Tool Division in accordance with
the AS-2.
Consequently due to reworking the impact on closing inventory of
finished goods is Rs. I,67,52,525/- (Opening stock of finished goods is Rs.
-I,28,57,536/-) and goods under process is Rs. I,66,65,346/- (Opening
goods under process is Rs. I,27,64,I76/-). The net impact on statement of
profit and loss of the year is Rs. 87,I79/-loss.
The inventory valuation is now in compliance with the requirement of
AS-2.
2. Contingent liabilities:
(a) Estimated amount of contracts remaining to be executed (net of
advances), not provided for:
(Rs. In Lakh)
Particulars 31st March, 2013 31st March, 2012
Capital Commitments:
Tangible Assets 405.06 575.67
Intangible Assets 0.00 9.49
(b) Contingent
liabilities not provided
for in respect of:
(Rs. In Lakh)
Particulars 31st March, 2013 31st March, 2012
(i) Amount of duty
saved under EPCG
Scheme against export
obligations 48I.I4 634.04
(ii) Sales Tax Demands
in Appeals 76.94 76.94
(iii) Entry Tax Demands
in Appeals II0.54 II0.54
(iv) Income Tax Demands
in Appeals 99.76 99.76
(v) Excise and Service
Tax Demands in Appeals 45.80 I5.70
(vi) Claim on account
of PF not acknowledged
as debts 4.0I 4.0I
(vii) Bank Guarantees /
Letters of Credit 698.62 632.66
(viii) Claims against
Company not acknowledged
as debts 30.6I 20.88
(c) The Company is a party to various legal proceedings in the normal
course of business and does not expect the outcome of the proceedings
to have any adverse effect on its financial conditions, results of
operations or cash flows.
3. The Scheme of Amalgamation (SoA) of Birla Accucast Limited (BAL)
and Birla Machining and Toolings Limited (BMTL) with Birla Precision
Technologies Limited ( the Company).
All assets and properties, both movable and immovable, industrial and
other licenses, all other interests, rights and powers of every kind,
etc. and all debts, liabilities, duties and obligations of BAL and BMTL
has been transferred to and vested in the Company retrospectively with
effect from Ist April, 20I0 (the appointed date). The SoA has
accordingly been given effect to in these accounts.
The amalgamation of BAL and BMTL with the Company has been accounted as
per SoA approved by the Honorable High Court of judicature at Bombay,
vide its order dated, 30th March, 20I2. Accordingly the assets,
liabilities, debts and obligations of the BAL and BMTL have been taken
over at their book values as on Ist April, 20I0 as stipulated in the
SoA. The amalgamation has resulted in transfer of assets, liabilities,
debts and obligations in accordance with the terms of the SoA at the
following summarized values:
As per the approved Scheme of Amalgamation total of 2,06,23,760 equity
shares of Rs. 2/- each were allotted on 20th July, 20I2 to the share
holders of Birla Accucast Limited and Birla Machining & Toolings
Limited in the following ratios respectively:
(a) 7 Equity shares of Rs. 2/- each of the company were issued for every
I6 Equity shares of Rs. I0/- each held in Birla Accucast Limited.
(b) 2 Equity shares of Rs. 2/- each of the company were issued for every
3 Equity shares of Rs. I0/- each held in Birla Machining & Tooling
Limited.
As per SoA the debit balance of Profit and Loss account is first
adjusted against the "Amalgamation Reserve Account" and the balance
of Rs. I325.II Lakhs has been adjusted against the general reserve
created post merger of Tools Division of Zenith Birla (India) Limited.
In terms of the SoA, the Equity Shares allotted as above rank for
dividend, voting rights and in all other respects pari-passu with the
existing Equity Shares of the Company. The Income accruing and the
expenses incurred by BAL and BMTL during the period Ist April, 20I0 to
3Ist March, 20II being net surplus of Rs. 58.78 Lakhs of BAL and Net
deficit of Rs. 36.37 Lakhs of BMTL, resulting in Net Surplus of Rs. 22.4I
Lakhs has been adjusted in the statement of profit and loss. During the
period between the appointed date and the effective date (i.e. 28th
May, 20I2) BAL and BMTL carried on the existing business in "trust"
on behalf of the Company.
The title deeds for leasehold land, building, licenses, agreements,
loan documents, etc. are in the process of being transferred in the
name of the Company. Stamp duty and other levies out of the SoA, if
any, shall be accounted on determination and completion of transfer
formalities.
4. Merger scheme of Tools Division of Zenith Birla (India) Limited
with the Company in the Financial Year 2009-10.
The title deeds for leasehold land, building, residential flats,
licenses, agreements, loan documents, and some of the bank accounts and
facilities are in the process of being transferred in the name of the
Company. Stamp duty and other levies out of the Scheme of Arrangement,
if any, shall be accounted on determination and completion of transfer
formalities.
As per the Prospectus, the funds which were proposed to be deployed in
the Aurangabad Project upto the period ended 30th September, 2008 was
envisaged at Rs. 2129.86 Lakhs. However, the actual amount spent towards
the above is Rs. 523.20 Lakhs.
The above mentioned status of utilization of funds raised by BMTL in
its Right cum Follow on Issue in 2007 has been revised / adjusted by Rs.
427.20 Lakhs paid to BAL due to the SoA approved by Honorable High
Court of Bombay for amalgamation of BAL and BMTL (Transferor companies)
with the Company.
As per SoA the pending project and related obligations of the
transferor companies shall be implemented by the Company.
In view of delay in implementation of the Aurangabad project, the
balance amount of Rs. 1595.20 Lakhs has been utilized for funding the
company''s Working Capital requirements and for Inter Corporate Deposits
given to group companies and others. The utilization of the said funds
is not in line with the Prospectus.
5 (b). The Company has incurred capital expenditure aggregating to Rs.
523.20 Lakhs for the acquisition and construction of Plant and
Machinery,
Electrical Equipment and Building structure for installation of
machining facilities. There has been delay in the implementation of the
machining project, accordingly the advances, made to the suppliers,
have not been entirely appropriated towards the supplies. No provision
for impairment is considered necessary by the management at this stage.
6 . The remuneration as approved by the Remuneration Committee /
Board/ Shareholders paid/ provided to the Managing Director during the
year has been considered as the minimum remuneration, resulting in
excess of such remuneration over maximum remuneration stipulated under
Schedule XIII of the Companies Act, 1956 mounting to Rs. 55.23 lacs due
to inadequacy of profits during the year. The Company has filed an
application with the Central Government in this regards.
* The details of the Experience adjustments arising on account of plan
assets and liabilities as required by paragraph 120(n)(ii) of AS 15
(revised) on "Employee Benefits" of previous financial years are
not available in the valuation report for the financial year 2008-09,
2009-10 2010-11 and 2011-12 hence not furnished.
II. Leave Encashment:
The leave encashment provision for the year ended 31st March, 2013,
based on actuarial valuation carried out using projected unit credit
method amounting to Rs. 41.85 Lakhs (Previous Year Rs. 43.34 Lakhs) has
been recognized in statement of profit and loss.
During the year, based on technical review, the Company has identified
two reporting segments namely:
1. Tools and Precision Components
2. Casting and Machining, as reporting segments under AS-17, instead
of earlier three segments.
(Figures in brackets indicates 31st March, 2012 figures) 36. Related
party disclosures:
(A) Name of related parties and nature of relationships: a) Key
Management personnel
1. Shri Yashovardhan Birla (Non-executive Chairman)
2. Shri M.S. Arora (Managing Director)
Note: Related party relationship is as identified by the Company and
relied upon by the Auditors.
7. The figures of previous year have been regrouped / reclassified
wherever necessary to correspond to figures of current year.
Mar 31, 2012
The Company has only one class of equity shares having a par value of
Rs. 2/- each holder of equity shares is entitled to one vote per share.
The Company declares and pay dividend if any, in Indian rupees. The
dividend proposed if any, 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 any of the 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 declarations received from shareholders regarding
beneficial interest, the above shareholding represents both legal and
beneficial ownerships of shares.
1.1 2,06,23,810 Equity Shares of Rs. 2/- each fully paid up pending
allotment to the existing member of amalgamated company on the record
date to be fixed by the Board of Directors of the Company in view of
the scheme of amalgamation of Birla AccuCast Limited and Birla
Machining and Toolings Limited with the Company (Refer Note No. 29)
Security and Silent Terms:
(a) Rupee Term Loan of Rs. 474.86 Lakh (Previous Year Rs. 632.97 Lakh)
first charge by way of hypothecation of company's entire stocks of raw
materials, semi-finished and finished goods, consumable stores and
spares and such other movables including book-debts, bills whether
documentary or clean, outstanding monies, receivables, both present and
future, ranking pari-passu with existing bankers. Exclusive First
charge by way of hypothecation of all Plant and Machinery and other
movable fixed assets of the company to be funded of the term loan from
the bank.
Interest rate is linked to Banks' Prime Lending Rate / Base Rate plus
margin is repayable in twenty quarterly installments starting from June
20I0 and ending in March, 20I5.
(b) Foreign Currency Term Loan of Rs. 326.66 Lakh (Previous Year Rs.
5I3.36 Lakh) first charge created by mortgage of entire movable fixed
assets both present and future and the immovable properties situated at
Plot No. B - I5/4 , MIDC , Waluj Industrial Area , within village limit
of Kamlapur , Taluka Gangapur District, Aurangabad , Maharashtra shall
rank pari-passu charge.
Interest rate is linked to LIBOR plus margin and is repayable in
sixteen quarterly installments starting from September 2009 and ending
in June 20I3.
(c) The Car Loan of Rs. 43.69 Lakh (Previous Year Rs. 62.62 Lakh) is
secured by hypothecation of the car.
Interest is payable @ I2.I5% p.a. and is repayable in sixty monthly
installments starting from March, 2009 and ending in February 20I4.
(d) The Car Loan of Rs. 54.43 Lakh (Previous Year Rs. Nil) is secured
by hypothecation of the car.
Interest is payable @ 8.74% p.a. and is repayable in thirty six monthly
installments starting from March, 20II and ending in February 20I4.
(e) Sales Tax deferred payment loan of Rs. 19.48 Lakh (Previous Year
Rs. 30.04 Lakh) is interest free and payable in thirteen yearly
installments starting from May 2003 and ending in May 20I5.
Sales Tax deferred payment loan of Rs. 590.45 Lakh (Previous Year Rs.
24.92 Lakh) is interest free and installments schedule is not yet
received from the department.
Security and Silent Terms:
(a) Foreign currency loan of Rs. 1537.30 Lakh (Previous Year Rs. Nil)
first charge by way of hypothecation of company's entire stocks of raw
materials, semi-finished and finished goods, consumable stores and
spares and such other movables including book-debts, bills whether
documentary or clean, outstanding monies, receivables, both present and
future, ranking pari-passu with existing bankers. Exclusive First
charge by way of hypothecation of all Plant and Machinery and other
movable fixed assets of the company to be funded of the term loan from
the Bank.
(b) Rupee loan of Rs. 75.94 Lakh (Previous Year Rs. 317.32 Lakh) first
charge by way of hypothecation of company's entire stocks of raw
materials, semi-finished and finished goods, consumable stores and
spares and such other movables including book-debts, bills whether
documentary or clean, outstanding monies, receivables, both present and
future, ranking pari-passu with existing bankers. Exclusive First
charge by way of hypothecation of all Plant and Machinery and other
movable fixed assets of the company to be funded from the term loan
from the Bank.
(c) Rupee loan of Rs. 838.18 Lakh (Previous Year Rs. 869.63 Lakh), bank
facilities are in the process of being transferred in the name of the
company. At present it is in the name of Zenith Birla (India) Limited,
from which the Tool division got demerged. On transfer necessary
security will be created .
(d) The rates of interest for foreign currency loan ranges from 7.04%
p.a. to 7.90% p.a. and 12% p.a. to 19% p.a. for rupee loans.
Disclosures relating to amounts payable as at the year end together
with interest paid/payable to Micro and Small Enterprises have been
made in the accounts, as required under the Micro, Small and Medium
Enterprises Development Act, 2006 to the extent of information
available with the Company determined on the basis of intimation
received from suppliers regarding their status and the required
disclosure are given below:
2. Contingent liabilities:
(a) Estimated amount of contracts remaining to be executed (net of
advances), not provided for: (Rs. In Lakh)
Particulars 31st March,
2012 31st March,
2011
Capital Commitments:
Tangible Assets 575.67 3I7.75
Intangible Assets 9.49 -
(b) Contingent liabilities not provided for in respect of: (Rs. In
Lakh)
Particulars 31st March,
2012 31st March,
2011
(i) Amount of duty saved under
EPCG Scheme against export
obligations 634.04 597.77
(ii) Sales Tax Demands in Appeals 76.94 1.28
(iii) Entry Tax Demands in Appeals II0.54 I0I.03
(iv) Income Tax Demands in Appeals 99.76 -
(v) Excise and Service Tax Demands
in Appeals I5.70 -
(vi) Claim on account of PF not
acknowledged as debts 4.0I 4.0I
(vii) Bank Guarantees /
Letters of Credit 632.66 89.04
(viii) Claims against Company
not acknowledged as debts 20.88 I2.00
(c) The Company is a party to various legal proceedings in the normal
course of business and does not expect the outcome of the proceedings
to have any adverse effect on his financial conditions, results of
operations or cash flows.
3. The Scheme of Amalgamation (SoA) of Birla Accucast Limited (BAL)
and Birla Machining and Toolings Limited (BMTL) with Birla Precision
Technologies Limited ( the Company).
All assets and properties, both movable and immovable, industrial and
other licenses, all other interests, rights and powers of every kind,
etc. and all debts, liabilities, duties and obligations of BAL and BMTL
has been transferred to and vested in the Company retrospectively with
effect from Ist April, 20I0 (the appointed date). The SoA has
accordingly been given effect to in these accounts.
The amalgamation of BAL and BMTL with the Company has been accounted as
per SoA approved by the Honorable High Court of judicature at Bombay,
vide its order dated, 30th March, 20I2. Accordingly the assets,
liabilities, debts and obligations of the BAL and BMTL have been taken
over at their book values as on Ist April, 20I0 as stipulated in the
SoA. The amalgamation has resulted in transfer of assets, liabilities,
debts and obligations in accordance with the terms of the SoA at the
following summarized values:
"As per SoA total of 2,06,23,8I0 equity shares of Rs. 2/- each will
be issued by Birla Precision Technologies Limited to the shareholders
of BAL and BMTL respectively in the following ratios:
(a) 7 Equity shares of Rs. 2/- each of Birla Precision Technologies
Limited will be issued for every I6 Equity shares of Rs.I0/- each held
in BAL.
(b) 2 Equity shares of Rs. 2/- each of Birla Precision Technologies
Limited will be issued for every 3 Equity shares of Rs I0/- each held
in BMTL.
As per SoA the debit balance of Profit and Loss account is first
adjusted against the "Amalgamation Reserve Account" and the balance
of Rs.I325.II Lakh has been adjusted against the general reserve
created post merger of Tools Division of Zenith Birla (India) Limited.
In terms of the SoA, the Equity Shares allotted as above rank for
dividend, voting rights and in all other respects pari-passu with the
existing Equity Shares of the Company. The Income accruing and the
expenses incurred by BAL and BMTL during the period Ist April, 20I0 to
3Ist March, 20II being net surplus of Rs.58.78 lakh of BAL and Net
deficit of Rs.36.37 lakh of BMTL, resulting in Net Surplus of Rs. 22.4I
Lakh has been adjusted in the statement of profit and loss. During the
period between the appointed date and the effective date (i.e. 28th
May, 20I2) BAL and BMTL carried on the existing business in "trust"
on behalf of the Company.
The title deeds for leasehold land, building, licenses, agreements,
loan documents, etc. are in the process of being transferred in the
name of the Company. Stamp duty and other levies out of the SoA, if
any, shall be accounted on determination and completion of transfer
formalities.
4. Merger scheme of Tool Division of Zenith Birla (India) Limited
with the Company in the Financial Year 2009-10.
The title deeds for leasehold land, building, residential flats,
licenses, agreements, loan documents, and some of the bank accounts and
facilities are in the process of being transferred in the name of the
Company. Stamp duty and other levies out of the Scheme of Arrangement,
if any, shall be accounted on determination and completion of transfer
formalities.
As per the Prospectus, the funds which were proposed to be deployed in
the Aurangabad Project upto the period ended 30th September, 2008 was
envisaged at Rs. 2129.86 Lakh. However, the actual amount spent towards
the above is Rs. 523.20 Lakh.
The above mentioned status of utilisation of funds raised by BMTL in
its Right cum Follow on Issue in 2007 has been revised / adjusted by
Rs. 427.20 Lakh paid to BAL due to the SoA approved by Honorable High
Court of Bombay for amalgamation of BAL and BMTL (Transferor companies)
with the Company.
As per SoA the pending project and related obligations of the
transferor companies shall be implemented by the Company.
In view of delay in implementation of the Aurangabad project, the
balance amount of Rs. 1595.20 Lakh has been utilized for funding the
company's Working Capital requirements and for Inter Corporate Deposits
given to group companies and others. The utilization of the said funds
is not in line with the Prospectus.
The figures of the previous year is not given as it is related to BMTL
(Transferor Company) which is amalgamated with the Company as per SoA.
5. The Company has incurred capital expenditure aggregating to Rs.
523.20 Lakh for the acquisition and construction of Plant and
Machinery, Electrical Equipment and Building structure for installation
of machining facilities. There has been delay in the implementation of
the machining project, accordingly the advances, made to the suppliers,
have not been entirely appropriated towards the supplies. No provision
for impairment is considered necessary by the management at this stage.
(B) Defined Benefit Plans :
I. (a) Contribution to Gratuity:
Provision for Gratuity has been made in the accounts based on an
actuarial valuation carried out at the close of the year. The Company
has funding arrangement with Birla Sun Life and Life Insurance
Corporation of India, except for Tools Division, in which case it is
held under Indian Tool Employee Gratuity Fund, and the liability is
discharged to the employees in the year of retirement / cessation of
employment.
* The details of the Experience adjustments arising on account of plan
assets and liabilities as required by paragraph I20(n)(ii) of AS I5
(revised) on "Employee Benefits" of previous financial years are not
available in the valuation report for the financial year 2007-08,
2008-09, 2009-I0 and 20I0-II hence not furnished.
II. Leave Encashment:
The leave encashment provision for the year ended 3Ist March, 20I2,
based on actuarial valuation carried out using projected unit credit
method amounting to Rs. 43.34 Lakh (Previous Year Rs. 4.43 Lakh) has
been recognized in statement of profit and loss.
6. Related party disclosures:
(A) Name of related parties and nature of relationships:
a) Key Management personnel
1. Shri Yashovardhan Birla (Non-executive Chairman)
2. Shri M.S. Arora (Managing Director)
7. The figures of previous year have been regrouped / reclassified
wherever necessary to correspond to figures of current year.
8. The previous year figures are not comparable, due to the
amalgamation of Birla Accucast Limited and Birla Machining and Toolings
Limited with the Company.
Mar 31, 2011
(A) Contingent Liabilities not provided for in respect of:
2010-11 2009-10
(i) Export obligation for the amount of duty
saved under EPCG Scheme - DTA Unit 441 80
(ii) Export obligation for the amount of duty
saved under EPCG Scheme - EOU Unit
(subsumed) 153 153
(iii) Disputed Sales Tax and Entry Tax Demands 102 109
(iv) Claim on account of PF not acknowledged
as debts 4 4
(v) Bank Guarantee / Letter of Credit 89 -
(vi) Claims against Company not acknowledged
as debts 12 12
(B) The Company is a party to various legal proceedings in the normal
course of business and does not expect the outcome of the proceedings
to have any adverse effect on his financial conditions, results of
operations or cash flows.
2 The Tool Division of Zenith Birla (India) Ltd. (ZBIL) being all its
assets and properties, both movable and immovable, industrial and other
licenses, trademarks, all other interests, rights and powers of every
kind, etc. and all its debts, liabilities, duties and obligations, has
been transferred to and vested in the Company retrospectively with
effect from April 1, 2008 (the appointed date). The Scheme has
accordingly been given effect to in these accounts. The Tool Division
of ZBIL is in operation of manufacturing of HSS Cutting Tools.
The merger of the Tool Division of ZBIL with the Company has been
accounted as per Scheme of Arrangement approved by the Honorable High
Court of judicature at Mumbai, vide its order dated, January 8, 2010.
Accordingly the assets, liabilities, debts and obligations of the Tool
Division have been taken over at their book values as on April 1, 2008
as stipulated in the Scheme. The merger has resulted in transfer of
assets, liabilities, debts & obligation in accordance with the terms of
the Scheme at the following summarized values:
In terms of the Scheme, the Equity Shares allotted as above rank for
dividend, voting rights and in all other respects pari-passu with the
existing Equity Shares of the Company. The Income accruing and the
expenses incurred by Tool Division of ZBIL during the period 1st April,
2008 to 31st March, 2009 resulting in Net Surplus of Rs. 426 Lakh has
also been incorporated in these accounts which include difference
arising on account of variation in accounting policies aggregating Rs.
51 Lakh. During the period between the appointed date and the effective
date (i.e. February 11, 2010) ZBIL carried on the existing business in
"trust" on behalf of the Company. Vouchers, documents etc. for the
period are in the name of ZBIL. The title deeds for leasehold land,
building, residential flats, licenses, agreements, loan documents, etc.
are in the process of being transferred in the name of the Company.
Stamp duty and other levies out of the Scheme of Arrangement, if any,
shall be accounted on determination and completion of transfer
formalities.
3 The Board of Directors of the Company in their meeting held on 29th
April, 2011, approved the Scheme of Amalgamation of the Birla Machining
& Toolings Limited ( formerly Dagger Forst Tools Limited) and Birla
Accucast Limited (the Transferor Companies) with the Company ( the
Transferee Company ) subject to the approval of shareholders of the
Company and other regulatory authorities. The Company has received ÃNo
Objectionà letter dated 13th July, 2011 from Bombay Stock Exchange
Limited to Scheme of Amalgamation of the Birla Machining & Toolings
Limited and Birla Accucast Limited with the Company. The Company is in
the process of filing the Scheme of Amalgamation with the High Court of
Bombay. The appointed date of the Scheme of Amalgamation is 1st April,
2010 subject to approval of High Court of Bombay.
4 Employee Benefits:
(B) Defined Benefit Plans :
I (a) Contribution to Gratuity:
Provision for Gratuity has been made in the accounts based on an
actuarial valuation carried out at the close of the year. The Company
has funding arrangement with Birla Sun Life, except for Tools Division,
in which case it is held under Indian Tool Employee Gratuity Fund, and
the liability is discharged to the employees in the year of retirement
/ cessation of employment.
Details under AS-15, to the extent applicable is furnished below:
II Leave Encashment:
The leave encashment provision for the year ended 31st March, 2011,
based on actuarial valuation carried out using projected accrued
benefit method amounting to Rs. 4 Lakh (Previous year Rs. 0.32 Lakh)
has been recognized in Profit and Loss Account.
Notes:
(i) Segments have been identified in line with Accounting Standard on
Segment Reporting (AS-17) taking into account the organization
structure as well as the differential risks and returns of these
segments.
(ii) The Company has disclosed Business segment as the primary segment
and type of products in each segment:
a) Toolholder Division:- Machine Tool Accessories & Precision
Components.
b) Tool Division: - Cutting Tools.
(iii) The revenue and result figures given above are directly
identifiable to respective segments and expenditure on common services
incurred at the corporate level are not directly identifiable to
respective segments have been shown as "Other Un-allocable
Expenditure".
5 RELATED PARTY TRANSACTIONS :
(A) Name of Related Parties and nature of relationships:
a) Key Management personnel
1. Shri Yashovardhan Birla (Non-executive Chairman)
2. Shri M.S. Arora (Managing Director)
b) Enterprises owned or significantly influenced by Key Management
personnel or their relatives
1. Ashok Birla Apollo Hospital Pvt. Ltd.
2. Asian Distributors Pvt. Ltd.
3. Birla AccuCast Limited
4. Birla Bombay Pvt. Ltd.
5. Birla Capital & Financial Services Limited
6. Birla Edutech Limited
7. Birla Electricals Limited
8. Birla Energy Infra Limited
9. Birla Global Corporate Pvt. Ltd.
10. Birla Infrastructure Ltd.
11. Birla Integrated Textile Park Limited
12. Birla International Pvt. Ltd.
13. Birla Kerala Vaidyashala Pvt. Ltd.
14. Birla Lifestyle Private Limited
15. Birla Machining & Toolings Limited
16. Birla Pacific Medspa Limited
17. Birla Power Solutions Limited
18. Birla Research and Lifesciences Limited
19. Birla Shloka Edutech Limited
20. Birla Surya Limited
21. Birla Transasia Carpets Limited
22. Birla Urja Limited
23. Birla Viking Travels Pvt. Ltd.
24. Birla Wellness and Healthcare Private Limited
25. Godavari Corporation Pvt. Ltd.
26. Melstar Information Technologies Limited
27. Nirved Traders Pvt. Ltd.
28. Shearson Investments & Trading Co. Pvt. Ltd.
29. Zenith Birla (India) Limited
30. Birla Industries Group Charity Trust
Note: Above mentioned related parties
are identified by the Management and relied upon by the auditors.
6 In the opinion of the Board, Current Assets, Loans and Advances have
a value on realization in the ordinary course of business at least
equal to the amount at which they are stated in the Balance Sheet,
unless stated otherwise. The provision for all known liabilities is
adequate and not in excess of the amount reasonably stated.
7 Sundry Creditors in Schedule 10 include;
(a) (i) Rs.5 Lakh (Previous Year Rs. 2 Lakh) due to Micro, Small and
Medium Enterprises.
(ii) Rs. 824 Lakh (Previous Year Rs. 1,290 Lakh) due to others.
(b) Enterprises to whom the Company owes a sum, which is outstanding
for more than 45 days is Rs. Nil (Previous Year Rs. Nil) and the
interest on the same is Rs. Nil (Previous Year Rs. Nil).
(c) The disclosure in (a) and (b) above is based on the information
available with the Company regarding the status of supplier under the
Micro, Small and Medium Enterprises Development Act, 2006.
Mar 31, 2010
(Rs. In Thousands)
1 (a) Contingent Liabilities not
provided for in respect of: Current Yr. Previous Yr.
(i) Export obligation for the amount
of duty saved under
EPCG Scheme - DTA Unit 8,048 8,048
(ii) Export obligation for the amount
of duty saved under
EPCG Scheme - EOU Unit (subsumed) 15,290 15,290
(iii) Disputed Sales Tax Demands 10,920 -
(iv) Claim on account of PF not
acknowledged as debts. 401 -
(b) Estimated amount of contracts
remaining to be executed on
capital account (net of advance) - 8,608
(c) Claims against company which are prima facie untenable are not
considered for contingent liability.
(d) Various demands of workmen pending with the court and industrial
tribunal is not ascertainable.
2 The Tool Division of Zenith Birla (India) Ltd. (ZBIL) being all its
assets and properties, both movable and immovable, industrial and other
licenses, trademarks, all other interests, rights and powers of every
kind, etc. and all its debts, liabilities, duties and obligations, has
been transferred to and vested in the Company retrospectively with
effect from April 1, 2008 (the appointed date). The Scheme has
accordingly been given effect to in these accounts. The Tool Division
of ZBIL is in operation of manufacturing of HSS Cutting Tools.
The merger of the Tool Division of ZBIL with the Company has been
accounted as per Scheme of Arrangement approved by the Honorable High
Court of judicature at Mumbai, vide its order dated, January 8, 2010.
Accordingly the assets, liabilities, debts and obligations of the Tool
Division have been taken over at their book values as on April 1, 2008
as stipulated in the Scheme. The merger has resulted in transfer of
assets, liabilities, debts & obligation in accordance with the terms of
the Scheme at the following summarized values:
In terms of the Scheme, the Equity Shares allotted as above rank for
dividend, voting rights and in all other respects pari-passu with the
existing Equity Shares of the Company. The Income accruing and the
expenses incurred by Tool Division of ZBIL during the period 1st April,
2008 to 31st March 2009 resulting in Net Surplus of Rs. 42609 Thousands
has also been incorporated in these accounts which include difference
arising on account of variation in accounting policies aggregating Rs.
5052 Thousand. During the period between the appointed date and the
effective date (i.e. February 11, 2010) ZBIL carried on the existing
business in "trust" on behalf of the Company. Vouchers, documents etc.
for the period are in the name of ZBIL. The title deeds for leasehold
land, building, residential flats, licenses, agreements, loan
documents, etc. are in the process of being transferred in the name of
the Company. Stamp duty and other levies out of the Scheme of
Arrangement, if any, shall be accounted on determination and completion
of transfer formalities.
B. Name of Related Parties and nature of relationships:
a) Key Management personnel
1. Shri Yashovardhan Birla (Non-Executive Chairman)
2. Shri M.S. Arora (Managing Director)
b) Enterprises owned or significantly influenced by Key Management
personnel or their relatives
1. Ashok Birla Apollo Hospital Pvt. Ltd.
2. Asian Distributors Pvt. Ltd.
3. Birla AccuCast Limited
4. Birla Bombay Pvt. Ltd.
5. Birla Capital & Financial Services Limited
6. Birla Cotsyn (India) Limited
7. Birla Edutech Limited
8. Birla Electricals Limited
9. Birla Global Corporate Pvt. Ltd.
10. Birla Infrastructure Ltd.
11. Birla International Pvt. Ltd.
12. Birla Kerala Vaidyashala Pvt. Ltd.
13. Birla Pacific Medspa Pvt. Ltd.
14. Birla Power Solutions Limited
15. Birla Shloka Edutech Limited
16. Birla Surya Limited
17. Birla Transasia Carpets Limited
18. Birla Viking Travels Pvt. Ltd.
19. Dagger Forst Tools Limited
20. Godavari Corporation Pvt. Ltd.
21. Khopoli Investments Limited
22. Nirved Traders Pvt. Ltd.
23. Shearson Investments & Trading Co. Pvt. Ltd.
24. Zenith Birla (India) Limited
3 Advances recoverable in cash or in kind or for value to be received
includes Rs. 15705 thousands (Previous year Rs. Nil) being Inter
Corporate Loans.
4 Sundry Creditors in Schedule 10 include;
(a) (i) Rs. 210.52 Thousands (Previous Year Nil) due to Micro, Small
and Medium Enterprises. (ii) Rs. 129065.48 Thousands (Previous Year
Rs. 62333 Thousands) due to others.
(b) Enterprises to whom the Company owes a sum, which is outstanding
for more than 45 days is Rs. Nil (Previous Year Rs. Nil) and the
interest on the same is Rs. Nil (Previous Year Rs. Nil).
(c) The disclosure in (a) and (b) above is based on the information
available with the Company regarding the status of supplier under the
Micro, Small and Medium Enterprises Development Act, 2006.
5 Employee Benefits:
A. Defined Benefit Plans:
I Contribution to Gratuity:
Provision for Gratuity has been made in the accounts based on an
actuarial valuation carried out at the close of the year. The Company
has funding arrangement with Birja Sun Life, except for Tools Division,
in which case it is held under Indian Tool Employee Gratuity Fund, and
the liability is discharged to the employees in the year of retirement
cessation of employment.