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Notes to Accounts of Eimco Elecon (India) Ltd.

Mar 31, 2016

Terms / Rights attached to Shares

The Company has only one class of shares referred to as 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. The dividend proposed by Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March, 2015 the amount of per share dividend recognized as distribution to equity shareholders was '' 5 /-.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amount exists currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

There is no principal amount and interest overdue to Micro and Small Enterprises as at the year end. During the year, no interest has been paid to such parties. The above information has been compiled in respect of parties to the extent to which they could be identified as Micro, Small and Medium Enterprises on the basis of information available with the Company.

Note : Outflow of funds, if any, would depend upon the outcome of the dispute / contingency.

(b) Commitment:

Estimated amount of contracts remaining to be executed on Capital Account is '' 306.30 Lac (Net of advance) (P.Y. '' 121.45 Lac)

1. The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with insurance companies in the form of a qualifying insurance policy.

The following table summarizes the components of net benefit expense recognized in the Statement of Profit and loss and the funded status and amounts recognized in the Balance Sheet for the plan.

(h) The expected contributions for Defined Benefit Plan for the next financial year will be in line with FY 2015-16.

2. SEGMENT REPORTING

In terms of AS-17 on “Segment Reporting” the Company neither has more than one business segment nor more than one geographical segment requiring separate disclosure as there is no more distinguishable component or economic environment of an enterprise engaged in providing individual product or service or a group of related products or service and the same is not subjected to different risks and returns either of business or geographical segments.

3. PROVISION FOR WARRANTY

A provision of '' 143.67 Lac (P.Y '' 200.43 Lac) has been recognized for expected warranty claims at 1% on products sold during the current financial year. The warranty claims are for the period of 12 months and hence it is expected that the expenditure towards warranty will be incurred in the next financial year.

4. RELATED PARTY TRANSACTIONS

Related Party Disclosures as required by Accounting Standard (AS) 18 are given below:

A) Name of the related parties and nature of relationships :

a) Associates and Joint Ventures

(i) Elecon Engineering Company Limited (Joint Venture & Partner)

(ii) Wizard Fincap Limited (Associate)

(iii) Eimco Elecon Electricals Limited (Associate)

b) Individual having control / significant influence

(i) P. B. Patel

c) Key management Personnel

(i) M. G. Rao

(ii) N. D. Shelat

d) Enterprises over which (b) or (c) above have significant influence

(i) Elecon EPC Projects Ltd.

(ii) EMTICI Engineering Ltd.

(iii) Prayas Engineering Ltd.

(iv) Power Build Private Ltd.

(v) Narmada Travel Services Ltd.

(vi) Elecon Information Technology Ltd.

(vii) Madhubhan Prayas Resorts Ltd.

(viii) Akaaish Mechatronics Ltd.

(ix) Speciality Woodpack Pvt. Ltd.

(x) Elecon Peripherals Ltd.

(xi) Bipra Investment & Trusts Private Ltd.

(xii) Devkishan Investments Private Ltd.

(xiii) K.B.investment Private Ltd.

(xiv) Aishpra Properties Pvt. Ltd.

(xv) Akaaipra Infracon Pvt. Ltd

(xvi) BIP Buildcon Pvt. Ltd.

(xvii) Madhuban Heights Pvt. Ltd.

(xviii) MTC Buildcon Pvt. Ltd.

(xix) Akaaish Investments Pvt. Ltd

(xx) Elecon Australia Pty. Ltd.

(xxi) Elecon Africa Pty. Ltd.

(xxii) Elecon Singapore Pte. Ltd.

(xxiii) Elecon Middle East FZCO

(xxiv) Elecon Engineering (Suzhou) Co. Ltd.

(xxv) Elecon Transmission International Ltd.

(xxvi) Power Build Transmission International Ltd.

(xxvii) Elecon UK Transmission Ltd.

(xxviii) Elecon USA Transmission Ltd.

(xxix) David Brown System Sweden AB, Sweden

(xxx) AB Benzlers, Sweden

(xxxi) Benzler Technisch Buro Aandrijftechniek B.V ( The Netherlands)

(xxxii) Banzler Transmission A.S ( Denmark )

(xxxiii) Benzler Andtriebstech nik GmbH, Germany

(xxxiv) OY Benzler AB ( Finland )

(xxxv) Radicon Transmission ( Thailand ) Ltd.

(xxxvi) Radicon Transmission System ( Thailand ) Ltd.

(xxxvii) Radicon Transmission (Australia) Pty. Ltd.

5. Corporate Social Responsibility (CSR) :

As per Section 135 of the Companies Act, 2013, a CSR Committee has been formed by the company. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation and rural development projects. The funds were primarily allocated to a corpus and utilized throughout the year on these activities which are specified in Schedule VII of the Companies Act, 2013.: Rs.52.34 Lac.

6. Details of Corporate Guarantees given by the Company covered u/s 186 (4) of the Companies Act, 2013.

7. In view of reclassification certain figures of current year are not strictly comparable with those of previous year.


Mar 31, 2015

1. COMPANY OVERVIEW

Eimco Elecon (India) Limited (the Company) is situated at Vallabh Vidyanagar, Gujarat - 388120. The Company was incorporated in 1974 and is engaged in the business of Manufacturing of Equipments for Mining and Construction sector.

2. Terms / Rights attached to Shares

The Company has only one class of shares referred to as equity shares having at 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. The dividend proposed by Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March, 2014 the amount of per share dividend recognised as distribution to equity shareholders was Rs. 4/-.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amount exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

3. CONTINGENT LIABILITY AND COMMITMENT

(a) Contingent Liabilities not provided for: (Rs. in lacs) As at 31st March 2015 2014

Guarantee given by the Company on behalf 2,773.77 3,037.50

Elecon Engineering Co. Ltd.

Income tax demand disputed by the Company 112.78 179.01

Sales Tax Demand Disputed by the Company 53.73 22.38

Excise & Service tax Demand Disputed by the Company 1,006.89 584.77

Note : Outflow of funds, if any, would depend upon the outcome of the dispute / contingency.

(b) Commitment:

Estimated amount of contracts remaining to be executed on Capital Account is Rs. 121.45 Lacs (Net of advance) (P.Y. Rs. 509.73 Lacs)

4. SEGMENT REPORTING

In terms of AS-17 on "Segment Reporting" the Company neither has more than one business segment nor more than one geographical segment requiring separate disclosure as there is no more distinguishable component or economic environment of an enterprise engaged in providing individual product or service or a group of related products or service and the same is not subjected to different risks and returns either of business or geographical segments.

5. PROVISION FOR WARRANTY

A provision of Rs. 200.43 lacs (P.Y Rs. 193.35 lacs) has been recognized for expected warranty claims at 1% on products sold during the current financial year. The warranty claims are for the period of 12 months and hence it is expected that the expenditure towards warranty will be incurred in the next financial year.

6. Corporate Social Responsibility (CSR) :

As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the company. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation and rural development projects. The funds were primarily allocated to a corpus and utilized through out the year on these activities which are specified in Schedule VII of the Companies Act, 2013 : Rs. 43.23 Lacs.

7. In view of reclassification certain figures of current year are not strictly comparable with those of previous year.


Mar 31, 2014

1. COMPANY OVERVIEW

Eimco Elecon (India) Ltd. is in business of Manufacturing of Equipments for Mining and Construction sector. The Company was incorporated in 1974 and it is situated at Vallabh Vidyanagar, Gujarat - 388 120.

2.1 CONTINGENT LIABILITY AND COMMITMENT

(a) Contingent Liabilities not provided for: (Rs. in lacs)

As at 31st March 2014 2013

Guarantees issued by Banks 1457.58 1961.55

Guarantee given by the company on behalf of third party 3037.50 -

Income tax demands disputed by the Company 179.01 185.38

Sales tax demand disputed by the Company 22.38 57.86

Excise & Service tax demand disputed by the Company 584.77 842.46

24.2 The Company has a Defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with insurance companies in the form of a qualifying insurance policy.

2.2 PROVISION FOR WARRANTY

A provision of Rs. 193.35 Lacs (P.Y Rs. 170.00 Lacs) has been recognized for expected warranty claims at 1% on products sold during the current financial year. The warranty claims are for the period of 12 months and hence it is expected that the expenditure towards warranty will be incurred in the next financial year.

2.3 RELATED PARTY TRANSACTIONS

Related Party Disclosures as required by Accounting Standard (AS) 18 are given below:

A) Name of the related parties and nature of relationships :

a) Associates and Joint Ventures

(i) Wizard Fin Cap Ltd. (Associates)

(ii) Eimco Elecon Electricals Ltd. (Associates)

(iii) Elecon Engineering Company Ltd. (Joint Venture)

b) Individual having control / significant infuence

(i) Prayasvin B. Patel

(ii) M. G. Rao

c) Key management Personnel

(i) M. G. Rao

d) Enterprises over which (b) or (c) above have significant infuence

(i) EMTICI Engineering Limited

(ii) Prayas Engineering Limited

(iii) Power Build Limited

(iv) Elecon EPC Projects Limited

(v) Elecon Information Technology Limited

(vi) Madhubhan Prayas Resorts Limited

(vii) Akkaish Mechatronics Limited

(viii) Speciality Woodpack Pvt. Limited

(ix) Elecon Peripherals Limited

(x) Bipra Investment & Trusts Private Limited

(xi) Devkishan Investments Private Limited

(xii) K.B.investment Private Limited

(xiii) Eleccon Australia Pty. Limited

(xiv) Elecon Africa Pty. Limited

(xv) Elecon Singapore Pte. Limited

(xvi) Elecon Middle East FZCO

(xvii) Elecon Engineering (Suzhou) Co. Limited

(xviii) Elecon Transmission International Limited

(xix) Power Build Transmission International Limited

(xx) Elecon UK Transmission Limited

(xxi) Elecon USA Transmission Limited

(xxii) David Brown System Sweden AB, Sweden

(xxiii) AB Benzlers , Sweden

(xxiv) Benzler Technisch Buro Aandrijftechniek B.V. (The Netherland)

(xxv) Banzler Transmission A.S. (Denmark)

(xxvi) Benzler Andtriebstech nik GmbH, Germany

(xxvii) OY Benzler AB (Finland)

(xxviii) Radicon Transmission (Thailand) Limited

(xxix) Radicon Transmission System (Thailand) Limited

(xxx) Radicon Transmission (Australia) Pty. Limited

e) Collaborators

(i) Sandvik AB, Sweden

(ii) Tamrock Great Britain Holdings Limited, U.K.

2.4 In view of reclassifcation certain fgures of current year are not strictly comparable with those of previous year.


Mar 31, 2013

1. COMPANY OVERVIEW

Eimco Elecon (India) Ltd. is in business of Manufacturing of Equipments for Mining and Construction sector. The Company was incorporated in 1974 and situated at Vallabh Vidyanagar, Gujarat - 388 120.

2.1 CONTINGENT LIABILITY AND COMMITMENT

(a) Contingent Liabilities not provided for:

(Rs. in lacs) As at 31st March 2013 2012

Guarantees Issued By Banks 1961.55 1978.38

LC opened but goods yet to be received 497.90 366.76

Income tax demand disputed by the Company 185.38 262.17

Sales Tax Demand Disputed by the Company 57.86 27.42

Excise & Service tax Demand Disputed by the Company 842.46 1468.47

(b) Commitment:

Estimated amount of contracts remaining to be executed on Capital Account is Rs. 202.73 Lacs (P.Y. Rs. 668.88 Lacs)

2.2 The Company has a defned beneft gratuity plan. Every employee who has completed fve years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with insurance companies in the form of a qualifying insurance policy.

2.3 SEGMENT REPORTING

In terms of AS-17 on "Segment Reporting” the Company neither has more than one business segment nor more than one geographical segment requiring separate disclosure as there is no more distinguishable component or economic environment of an enterprise engaged in providing individual product or service or a group of related products or service and the same is not subjected to different risks and returns either of business or geographical segments.

2.4 PROVISION FOR WARRANTY

A provision of Rs. 170.00 Lacs (P.Y. Rs. 176.50 Lacs) has been recognized for expected warranty claims at 1% on products sold during the current fnancial year. The warranty claims are for the period of 12 months and hence it is expected that the expenditure towards warranty will be incurred in the next fnancial year.

2.5 RELATED PARTY TRANSACTIONS

Related Party Disclosures as required by Accounting Standard (AS) 18 are given below:

A) Name of the related parties and nature of relationships :

a) Associates

(i) Elecon Engineering Company Limited

(ii) Elecon EPC Projects Limited

(iii) Wizard FinCap Limited

(iv) Eimco Elecon Electricals Limited

b) Individual having control/ signifcant infuence

(i) Prayasvin B. Patel (ii) M. G. Rao

c) Key management Personnel

(i) Prayasvin B. Patel (ii) M. G. Rao

d) Enterprises over which (b) or (c) above have signifcant infuence

(i) EMTICI Engineering Limited

(ii) Prayas Engineering Limited

(iii) Power Build Limited

(iv) Elecon Information Technology Limited

(v) Madhubhan Prayas Resorts Limited

(vi) Akkaish Mechatronics Limited

(vii) Speciality Woodpack Pvt. Limited

(viii) Elecon Peripherals Limited

(ix) Bipra Investment & Trusts Private Limited

(x) Devkishan Investments Private Limited

(xi) K. B. Investment Private Limited

(xii) Elecon Australia Pty. Limited

(xiii) Elecon Africa Pty. Limited

(xiv) Elecon Singapore Pte. Limited

(xv) Elecon Middle East FZCO

(xvi) Elecon Engineering (Suzhou) Co. Limited

(xvii) Elecon Transmission International Limited

(xviii) Power Build Transmission International Limited

(xix) Elecon UK Transmission Limited

(xx) Elecon USA Transmission Limited

(xxi) David Brown System Sweden AB, Sweden

(xxii) AB Benzlers, Sweden

(xxiii) Benzler Technisch Buro Aandrijftechniek B.V. (The Netherland)

(xxiv) Banzler Transmission A.S. (Denmark)

(xxv) Benzler Andtriebstech nik GmbH, Germany

(xxvi) OY Benzler AB (Finland)

(xxvii) Radicon Transmission (Thailand) Limited

(xxviii) Radicon Transmission System (Thailand) Limited

(xxix) Radicon Transmission (Australia) Pty. Limited

e) Collaborators

(i) Sandvik AB, Sweden

(ii) Tamrock Great Britain Holdings Limited, U.K.

2.6 In view of reclassifcation certain fgures of current year are not strictly comparable with those of previous year.


Mar 31, 2012

1. COMPANY OVERVIEW

Eimco Elecon (India) Ltd. is in business of Manufacturing of Equipment for Mining and Construction sector. The Company was incorporated in 1974 and it is situated at Vallabh Vidyanagar, Gujarat - 388 120.

Terms / Rights attached to Shares

The Company has only one class of shares referred to as 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 dividend in Indian rupees. The dividend proposed by Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March, 2011 the amount of per share dividend recognized as distribution to equity shareholders was Rs 4/-.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amount exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

2.1 CONTINGENT LIABILITY AND COMMITMENT

(a) Contingent Liabilities not provided for (Rs in lacs)

Particulars 2011-12 2010-11

Guarantees Issued By Banks 1978.38 1841.65

LC opened but goods yet to be received 366.76 249.19

Income tax demand disputed by the Company 262.17 179.88

Sales Tax Demand Disputed by the Company 27.42 27.42

Excise & Service tax Demand Disputed by the Company 1468.47 1367.04

(b) Commitment:

Estimated amount of contracts remaining to be executed on Capital Account is Rs 668.88 Lacs (P.Y. Rs NIL )

2.2 The Company has entered into an Agreement with Sandvik Asia Pvt. Ltd. Pune for sale of Surface Drilling Product line for a total consideration of Rs 1650 lacs. In view of the same, the company has written off inventory of Rs 751.17 Lacs pertaining to the above. The Company has shown the same as Exceptional item (Net) of Rs 898.83 lacs after adjusting the cost of inventory.

2.3 The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with insurance companies in the form of a qualifying insurance policy.

2.4 SEGMENT REPORTING

In terms of AS-17 on "Segment Reporting" the company neither has more than one business segment nor more than one geographical segment requiring separate disclosure as there is no more distinguishable component or economic environment of an enterprise engaged in providing individual product or service or a group of related products or service and the same is not subjected to different risks and returns either of business or geographical segments.

2.5 PROVISION FOR WARRANTY

A provision of Rs 176.50 Lacs (P.Y. Rs 184.44 Lacs) has been recognized for expected warranty claims at 1% on products sold during the Current financial year. The warranty claims are for the period of 12 months and hence it is expected that the expenditure towards warranty will be incurred in the next financial year.

2.6 DERIVATIVE INSTRUMENTS

(a) During the year the Company has not entered into any forward contracts to offset foreign currency risk arising from the amounts denominated in currencies other than the Indian rupees. Hence there is no outstanding as at the year end.

2.7 RELATED PARTY TRANSACTIONS

Related Party Disclosures as required by Accounting Standard (AS) 18 are given below: A) Name of the related parties and nature of relationships :

a) Associates and Joint Ventures

(i) Elecon Engineering Company Limited

(ii) Wizard FinCap Limited

(iii) Eimco Elecon Electricals Limited

b) Individual having control/ significant influence

(i) Mr. Prayasvin B. Patel

(ii) Mr. A. M. Deshpande

(iii) Mr. M. G. Rao

c) Key management Personnel

(i) Mr. Prayasvin B. Patel

(ii) Mr. A. M. Deshpande

(iii) Mr. M. G. Rao

d) Enterprises over which (b) or (c) above have significant influence

(i) EMTICI Engineering Limited

(ii) Prayas Engineering Limited

(iii) Power Build Limited

(iv) Narmada Travel Services Limited

(v) Elecon Information Technology Limited

(vi) Madhubhan Resorts & Spa

(vii) Akkaish Mechatronics Limited

(viii) Specialty wood pack Pvt. Limited

(ix) Elecon Peripherals Limited

(x) Bipra Investment & Trusts Private Limited

(xi) Devkishan Investments Private Limited

(xii) K. B. Investment Private Limited

(xiii) Elecon Australia Pty. Limited

(xiv) Elecon Africa Pty. Limited

(xv) Elecon Singapore Pte. Limited

(xvi) Elecon Middle East FZCO

(xvii) Elecon Engineering (Suzhou) Co. Limited

(xviii) Elecon Transmission International Limited

(xix) Power Build Transmission International Limited

(xx) Elecon UK Transmission Limited

(xxi) Elecon USA Transmission Limited

(xxii) David Brown System Sweden AB, Sweden

(xxiii) AB Benzlers, Sweden

(xxiv) Benzler Technisch Buro Aandrijftechniek B.V ( The Netherland )

(xxv) Banzler Transmission A.S ( Denmark )

(xxvi) Benzler Andtriebstech nik GmbH, Germany

(xxvii) OY Benzler AB ( Finland )

(xxviii) Radicon Transmission ( Thailand ) Limited

(xxix) Radicon Transmission System ( Thailand ) Limited

(xxx) Radicon Transmission (Australia) Pty. Limited

e) Collaborators

(i) Sandvik AB Sweden

(ii) Tamrock Great Britain Holdings Limited

2.8 In view of reclassification certain figures of current year are not strictly comparable with those of previous year.


Mar 31, 2010

(1) Estimated amount of contracts remaining to be executed on Capital Account Rs. 34 lacs

Particulars Rupees Rupees

Gurantees Issued By Banks 124,930,289 90,828,491

LC opened but goods yet to be receicved 80,749,052 47,763,394

Income tax Demand Disputed by the Company 16,713,882 23,713,135

Sales Tax Demand Disputed By the Company 20,944,190 2,742,317

Excise Demand Disputed By the Company 17,823,858 17,772,265

(2) Contingent Liabilities Not Provided For Product warranty expenses are determined based on Company’s historical experience and estimates are accrued in the year of Sale.

(3) The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each year of service. The scheme is funded with insurance company in the form of a qualifying insurance policy.

The following tables summarise the components of net benefit expense recognised in the Profit and Loss Account and the funded status and amounts recognised in the Balance Sheet for the respective plans.

4. SEGMENT REPORTING

In terms of AS-17 on " Segment Reporting " the company neither has more than one business segment nor more than one geographical segment requiring separate disclosure as there is no more distinguishable component or economic environment of an enterprise engaged in providing individual product or service or a group of related products or service and the same is not subjected to different risks and returns either of business or geographical segments.

5. PROVISION FOR WARRANTY

A provision of Rs.1,62,23,616/- ( P.Y Rs.71,85,687/- ) has been recognised for expected warranty claims at 1% on products sold during the Current financial year. The warranty claims are for the period of 12 months and hence it is expected that the expenditure towards warranty will be incurred in the next financial year.

6. The Company has not received any intimation from Suppliers regarding their status under Micro and Medium Enterrprises Development Act, 2006 and hence disclouser, if any, relating to amounts unpaid as at year end together with interest paid/payable as required under the said Act have not been given.

A Micro, Small and Medium industrial undertaking has the same meaning as assigned to it under section 3 of the Industries (Development and Regulation) Act,1951.

7. Figures of the previous year have been shown in brackets.

8. Figures of the Previous Year have been regrouped / re-arranged wherever necessary to confirm to current year’s classifications.

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