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Notes to Accounts of Delta Magnets Ltd.

Mar 31, 2015

1.SHARE CAPITAL

a. Terms/Rights attached to Equity Shares:

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

2. DEFERRED TAX

In accordance with Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has accounted for Deferred Tax during the year.

3. Provision for Doubtful Debts:

The Company periodically evaluate all customers dues, the need for provision is amended based on various factors including collectability of specific dues, risk, perceptions of the industry in which customer operate, general economy factors.

4. NOTES TO THE FINANCIAL STATEMENTS:

A. Contingent Liabilities

(Excluding interest and penalty on the respective amount if any arrived upon the final outcome)

i. Disputed (net) demands for Income Tax pending with various Appellate authorities Rs. 2,329.86 ('000) ((Previous year Rs. 2,347.73 ('000)).

ii. Sales Tax Liability (on account of pending 'C' forms) Rs. 4,256.23 ('000) (Previous year Rs. 3,948.03 ('000))

iii. TDS Liability (on account various discrepancies) Rs. 597.55 ('000) (Previous year Rs. Nil ('000))

B. Capital Commitments

Estimated amounts of Capital Commitments - Rs. 7,476.89 ('000) ((Previous year Rs. 271.50 ('000)).

C. Various Debit and Credit balances are subject to confirmations/reconciliation and consequent adjustments, if any. The Company is of the view that reconciliation(s), if any, arising out of final settlement of accounts with these parties is not likely to have any material impact on the accounts. The Current Assets, Loan & Advances are stated in the Balance Sheet at the amounts which are at least realizable in ordinary course of business.

D. As required by Accounting Standard - AS 18 'Related Party Disclosure' issued by The Institute of Chartered Accountants of India, are as follows:

List of Related Parties with whom transactions have taken place during the year:

(i) Subsidiaries:

* MMG India Private Limited (MMG - I)

* MagDev Limited (MagDev UK)

(ii) Key Management Personnel:

* Dr. Ram H. Shroff - Managing Director

* Mr. Abhilash Sunny (AS) - CFO (From 31st, January 2015)

(iii) Individuals or their relative owning directly or indirectly interest in the voting power that gives them significant Influence:

* Mr. Jaydev Mody (JM) - Chairman

* Mrs. Zia Mody (ZM) - Wife of Chairman

* Ms. Anjali Mody (AM) - Daughter of Chairman

* Mrs. Urvi Piramal (UP) - Sister of Chairman

* Dr. Ram H. Shroff - Executive Vice Chairman & Managing Director

(iv) Enterprises over which Key Management Personnel/Individual or their Relatives mentioned in (ii) or (iii) above exercise Significant Influence:

* AZB and Partners (AZB)

* Freedom Registry Limited (FRL)

* Aarti Managements Private Limited (AAMPL)

* Aditi Managements Private Limited (ADMPL)

* Anjoss Trading Company Private Limited (ATCPL)

* Delta Corp Limited (DCL)

* SSI Trading Private Limited (SSI)

* AAA Holding Trust (AAAHT)

* Skarma (SK)

E. Employee Benefits

Disclosure required under Accounting Standard - 15 (Revised 2005) for "Employee Benefits" are as under:

i. The Company has recognized the expected liability arising out of the compensated absence and Gratuity as at 31st March, 2015 based on actuarial valuation carried out using the Projected Unit Credit Method.

ii. The below disclosure have been obtained from independent actuary. The other disclosures are made in accordance with AS - 15 (Revised) pertaining to the Defined Benefit Plan is as given below :

F. The Company is engaged in the business of Magnets which is being the only business of the Company and hence disclosure of segment-wise information is not applicable under Accounting Standard 17 - 'Segmental Reporting' issued by the Institute of Chartered Accountants of India.

a. Lease Rentals are charged on the basis of agreed terms.

b. Additional amount of applicable taxes will be paid on these rentals as per the applicable rates existing at the time of receipts and payments.

G. The Company has adopted estimated useful life of tangible fixed assets as stipulated by Schedule II to the Companies Act, 2013. On account of such change carried out, the depreciation for the current year is lower by Rs. 4.96 Lacs.

H. The Previous year's figures have been reworked, regrouped, rearranged, recasted and reclassified wherever necessary to conform to the current year's classifications.


Mar 31, 2014

1. Terms/Rights attached to Equity Shares:

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

Note: *Aryanish Finance and Investments Private Limited, Bayside Property Developers Private Limited and Delta Real Estate Consultancy Private Limited are holding Equity Shares in the capacity of trustees for Aarti J Mody Trust, Aditi J Mody Trust and Anjali J Mody Trust, respectively.

2. DEFERRED TAX

In accordance with Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has accounted for Deferred Tax during the year.

3. Provision for Doubtful Debts:

The Company periodically evaluate all customers dues, the need for provision is amended based on various factors including collectability of specific dues, risk, perceptions of the industry in which customer operate, general economy factors.

4. A. Contingent Liabilities

(Excluding interest and penalty on the respective amount if any arrived upon the final outcome)

i. Disputed (net) demands for Income Tax pending with various Appellate authorities Rs. 2,347.73(''000) (Previous year Rs. 2,347.73 (''000)).

ii. Disputed (net) demands for Sales Tax (CST) - Nil (Previous year Rs. 60.42(''000)).

iii. Sales Tax Liability (On account of pending ''C'' forms) Rs. 3,948.03(''000) (Previous year Rs. 2,051.87(''000))

B. Capital Commitments

Estimated amounts of Capital Commitments- Rs. 271.50 (''000) (Previous year Rs. 271.50 (''000)).

C. Various Debit and Credit balances are subject to confirmations/reconciliation and consequent adjustments, if any. The Company is of the view that reconciliation(s), if any, arising out of final settlement of accounts with these parties is not likely to have any material impact on the accounts. The Current Assets, Loan & Advances are stated in the Balance Sheet at the amounts which are at least realizable in ordinary course of business.

C. Employee Benefits

Disclosure required under Accounting Standard - 15 (Revised 2005) for "Employee Benefits" are as under:

i. The Company has recognized the expected liability arising out of the compensated absence and Gratuity as at 31st March, 2014 based on actuarial valuation carried out using the Project Credit Method.

D. The Company is engaged manufacture of hard ferrite magnet, which as per Accounting Standard 17, is considered the only reportable segment. The geographical segment is not relevant as there are no exports.

E. The Ministry of Corporate Affairs, Government of India, vide General Circular No.2 and 3 dated 8th February 2011 and 23st February 2011 respectively has granted a general exemption from compliance with Section 212 of the Companies Act, 1956. Necessary information relating to subsidiaries has been included in the Consolidated Financial Statements.

F. The previous year''s figures have been reworked, regrouped, rearranged, recasted and reclassified wherever necessary to conform to the current year''s classifications.


Mar 31, 2013

A. contingent liabilities

(Excluding interest and penalty on the respective amount if any arrived upon the fnal outcome)

i. Disputed (net) demands for Income tax pending with various Appellate authorities Rs. 2,347.73 (''000) ((Previous year Rs. 2,329.86(''000)).

ii. Disputed service tax demand Rs. Nil ((Previous years Rs. 2,826.10(''000)).

iii. Disputed (net) demands for Sales Tax (CST) - Rs.60.42 (''000) ((Previous year Rs. Nil (''000)).

b. The Company is engaged manufacture of hard ferrite magnet, which as per Accounting Standard 17, is considered the only reportable segment. The geographical segment is not relevant as there are no exports.

c. related party disclosures :

As required by Accounting Standard – AS 18 ''Related Party Disclosure'' issued by The Institute of Chartered Accountants of India, are as follows:

List of Related Parties with whom transactions have taken place during the year:

(i) Subsidiaries:

- MMG India Pvt. Ltd. (MMG I)

- MagDev Ltd. (MagDev UK) (ii) Key Management Personnel:

- Capt. R Barick - Whole-Time Director (Up to 30th Sept, 2012) (iii) Individual owning directly or indirectly interest in the voting power that gives him signifcant Infuence:

- Mr. Jaydev Mody (JM) - Chairman

- Mrs. Zia Mody (ZM) - Wife of Chairman

- Mrs. Urvi Piramal (UP) - Sister of Chairman

- Dr. Ram H. Shroff - Executive Vice Chairman & Managing Director

(iv) Enterprises over which Key Management Personnel/Individual or their Relatives mentioned in (a) Or (b) above exercise Signifcant Infuence:

- AZB and Partners (AZB)

- Freedom Registry Limited (FRL)

- Aarti Managements Pvt. Ltd (AAMPL)

- Aditi Managements Pvt. Ltd.(ADMPL)

- Anjoss Trading Co (ATC)

- Delta Corp Limited (DCL)

- SSI Trading Private Limited (SSI)

d. Employee Benefts

Disclosure required under Accounting Standard -15 (Revised 2005) for "Employee Benefts" are as under:

i. The Company has recognized the expected liability arising out of the compensated absence and Gratuity as at 31st March, 2013 based on actuarial valuation carried out using the Project Credit Method.

ii. The below disclosure have been obtained from independent actuary. The other disclosures are made in accordance with AS - 15 (Revised) pertaining to the Defned Beneft Plan is as given below :

e. The Ministry of Corporate Affairs, Government of India, vide General Circular No.2 and 3 dated 8th February 2011 and 23st February 2011 respectively has granted a general exemption from compliance with Section 212 of the Companies Act, 1956. Necessary information relating to subsidiaries has been included in the Consolidated Financial Statements.

f. The previous year''s fgures have been reworked, regrouped, rearranged, recasted and reclassifed wherever necessary to conform to the current year''s classifcations.


Mar 31, 2012

(a) Terms/Rights attached to Equity Shares

The Company has only one class of Equity Shares having a par value of Rs. 10/- per share. Each holder of Equity Shares is entitled to one vote per Share.

note:

*Aryanish Finance and Investments Private Ltd, Bayside Property Developers Private Ltd and Delta Real Estate Consultancy Private Ltd are holding Equity shares in the capacity of trustees for Aarti J Mody Trust, Aditi J Mody Trust and Anjali J. Mody Trust, respectively.

A. Contingent Liabilities

i. Disputed (net) demands for Income tax pending with various Appellate authorities Rs. 2,329.86('000) ((Previous year Rs. 2,329.86('000)).

ii. Disputed excise demands Rs. Nil ((Previous year Rs. 1,556.10 ('000)).

iii. Disputed service tax demand Rs. 2,826.10('000) ((Previous year Rs. 2,826.10('000))

B. Disclosure of Sundry Creditors under Trade Payables is based on the information available with the Company regarding the status of the suppliers as defined under the "Micro, Small and Medium Enterprises Development Act, 2006". Amount overdue as on 31stMarch 2012 to Micro, Small and Medium Enterprises on account of principle amount together with interest, aggregate to Rs. 3,089.72 (Rs.000) Previous Year Nil.

C. The Company is engaged manufacture of hard ferrite magnet, which as per Accounting Standard 17 - 'Segment Reporting' issued by The Institute of Chartered Accountants of India, is considered the only reportable segment. The geographical segment is not relevant as there are no exports.

D. Acquisitions

Last year, the Company has acquired following Subsidiary Companies:

Company has acquired 7,62,500 equity shares of £ 1 each and 2,500 deferred shares of £ 1 each of MMG MagDev Ltd, (UK), for Rs. 62,983.76 ('000).

Company has acquired 1,38,65,870 equity shares of Rs. 10 each of MMG India Pvt. Ltd, for Rs. 76,810.89 ('000).

Notes:

- Loans and Advances shown above, to subsidiaries and associates fall under the category of Loans and Advances in nature of Loans where there is no repayment schedule and are re-payable on demand.

- Loan to employees as per Company's policy is not considered

ii) Investment by the loanee in the share of the Company

None of the loanees and loanees of subsidiary companies has, per se, made investments in shares of the Company.

E. As required by Accounting Standard - AS 18 'Related Party Disclosure' issued by The Institute of Chartered Accountants of India, are as follows:

List of Related Parties with whom transactions have taken place during the year:

(i) Subsidiaries

- MMG India Pvt. Ltd. (MMG I )

- MMG MagDev Ltd. (MMG UK)

(ii) Key Management Personnel

- Capt. R Barick - Whole-Time Director

(iii) Individual owning directly or indirectly interest in the voting power that gives him significant Influence:

- Mr. Jaydev Mody (JM) - Chairman

- Mrs. Zia Mody (ZM) - Wife of Chairman

- Mrs. Urvi Piramal (UP) - Sister of Chairman

(iv) Enterprises over which Key Management Personnel/Individual or their Relatives mentioned in (ii) or (iii) above exercise Significant Influence.

- AZB and Partners (AZB)

- Freedom Registry Limited (FRL)

- Aarti Managements Pvt. Ltd (AAMPL)

- Aditi Managements Pvt. Ltd.(ADMPL)

- Anjoss Trading Co (ATC)

- Delta Corp Limited (DCL)

F. In accordance with Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has accounted for Deferred Tax during the year.

Deferred Tax Asset recognized on carried forwards losses on the basis of Management's reasonable certainty that sufficient future taxable income will be available. Future, sales trend for first two months of FY 2012-13 also revealed that Company is likely to generate sizable amount of profit in future years.

G. Employee Benefits

Disclosure required under Accounting Standard - 15 (revised 2005) for "employee benefits" are as under:

i. The Company has recognized the expected liability arising out of the compensated absence and Gratuity as at 31stMarch, 2012 based on actuarial valuation carried out using the Project Credit Method.

ii. The below disclosure have been obtained from independent actuary. The other disclosures are made in accordance with AS - 15 (revised) pertaining to the Defined Benefit Plan is as given below :

H. Details of dues to Micro and Small Enterprises as defined under the MSMED Act,2006. Company has sent letters to suppliers to confirm whether they are covered under Micro, Small and Medium Enterprises Development Act 2006 as well as they have file required memorandum with the prescribed authorities. Out of the letters sent to the parties, some confirmations have been received till the date of finalization of Balance Sheet. Based on the confirmation received the detail of outstanding are furnished in Note 7.

I. The Ministry of Corporate Affairs, Government of India, vide General Circular No.2 and 3 dated 8th February 2011 and 23stFebruary 2011 respectively has granted a general exemption from compliance with Section 212 of the Companies Act, 1956. Necessary information relating to subsidiaries has been included in the Consolidated Financial Statements.

J. As notified by Ministry of Corporate Affairs, Revised Schedule VI under the Companies Act, 1956 is applicable to the Financial Statements for the financial year commencing on or after 1stApril, 2011. Accordingly, the financial statements for the year ended March 31, 2012 are prepared in accordance with the Revised Schedule VI. The amounts and disclosures included in the financial statements of the previous year have been reclassified to conform to the requirements of Revised Schedule VI.


Mar 31, 2010

1. Contingent Liabilities

a. Disputed (net) demands for Income tax pending with various Appellate authorities Rs. 23.30 Lacs (Previous year Rs. 23.30 Lacs).

b. Disputed excise demands Rs. 15.56 Lacs (Previous year Rs. 15.56 Lacs).

c. Disputed service taxdemand Rs.28.26 Lacs (Previous years Rs. 28.26 Lacs)

d. Disputed demand raisedbyDGFT Rs.20Lacs (Previous yearRs20.00 Lacs)

2. Commitmentoncapital contract yettobeexecuted Rs.13.19Lacs.

3. Valueof direct Imports onC.I.F. Basis

4. Disclosure of Sundry Creditors under Current Liability is based on the information available with the Company regarding the status of the suppliers as defined under the "Micro, Small and Medium Enterprises Development Act, 2006". Amount overdue as on 31st March 2010 to Micro, Small and Medium Enterprises on account of principle amount together with interest, aggregate to Rs. Nil Previous Year Nil.

5. The Company is engaged manufacture of hard ferrite magnet, which as per Accounting Standard 17, is considered the only reportable segment. The geographical segmentisnot relevantasthere arenoexports.

6. DetailsofManagerial Remuneration (To Executive Director) :

The above figureisfrom the dateofappointment i.e 23-10-2008 of the executive director. Managerial Remuneration excludes provision for gratuity and leave encashment/availment.

7. Value of imported and indigenous Raw Material, Stores, and Spares consumed. (Figures in bracket pertain to previous year)

8. Details of licensed and installed capacity: (Figures in bracket pertain to previous year) (As certified bythe Director

Note: Licensed capacity includes the Industrial Entrepreneurs Memorandum filed with the Government and duly acknowledged under the schemeofde-licensingbythe Government.

9. As required by Accounting Standard - AS 18 ‘Related Party Disclosure issued by The Institute of Chartered Accountants of India, are as follows:

List of Related Parties with whom transactions have taken place during the year:

a) Key Management Personnel

- Capt. R Barick- Executive Director (w.e.f 23-10-2008)

b) Individual owning directly or indirectly interest in the voting powerthat gives him significant Influence:

- Mr. JaydevMody

c) Enterprises over which Key Management Personnel/Individual ortheir Relatives mentioned in

(a) Or (b) above exercise Significant Influence.

- Delta Corp Limited

- Freedom Registry Limited (Earlier Known as Amtrac Management Services Limited)

10. In accordance with Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered AccountantsofIndia, the Company has accounted for Deferred Tax during the year.

Deferred Tax Asset recognized on carried forwards losses on the basis of Managements reasonable certainty that sufficient future taxable income will be available. Future, sales trend for first two months of FY 2010-11 also revealed that Company is likely togenerate sizable amountof profit in future years.

11. Employee Benefits

Disclosure required under Accounting Standard–15(revised 2005) for "employee benefits" areasunder:

a. The Company has recognized the expected liability arising out of the compensated absence and Gratuity as at 31st March, 2010 basedonactuarial valuation carried out using the Project Credit Method.

12. On the basis of sales realization of part of the scrap material, after the Balance Sheet date, the Management on the principles of prudence, valued the entire said scrap which was hitherto not valued earlier, accordingly the inventory includes amounting valueof Rs.25.56 Lacs for the same.

13. The previous years figures have been re-grouped/re-arranged/reclass -ified/recast wherever necessary to confirm to this years classification.

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