Home  »  Company  »  Elgi Rubber Co.  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Elgi Rubber Company Ltd.

Mar 31, 2015

I. Overseas subsidiaries

Securities offered in connection with Standby Letter of Credit extended by ING Vysya Bank Limited and Export-Import Bank of India, in favour of the respective banks, which have granted credit facilities to the following Subsidiary Companies

Facilities offered

1. for the credit facilities granted by ING Bank NV, Filial De Sao Paulo, Brasil to Borrachas e Equipamentos Elgi Ltda, Brasil.

2. for the credit facilities granted by ING Bank NV, Amsterdam to Rubber Resources B.V., The Netherlands.

3. for the credit facilities granted by Export-Import Bank of India, London to Pincott International Pty Limited, Australia.

4. for the credit facilities granted by Export-Import Bank of India, London to Elgi Rubber Company LLC, USA. Securities offered By deposit of title deeds and equitable mortgage of immovable property located at Trichy Road, Coimbatore and Kurichi,Coimbatore, in favour of ING Vysya Bank Limited, Coimbatore ranking pari-passu with Export Import Bank of India, Mumbai

The facilities relating to the standby letter of credit extended by ING Vysya Bank Ltd is further secured by marking of lien by the bank on the fixed deposits (grouped under margin money deposits) held with them amounting to Rs.188.54 million, which includes margin money towards the facilities granted to Elgi Rubber Company B.V., The Netherlands amounting to EUR 0.50 million, Rubber Resources B.V.,

The Netherlands and Borrachas e Equipamentos Elgi Ltda, Brasil.

Securities offered in connection with standby letter of credit extended by State Bank of India, based on which credit facilities to the following subsidiary Company

For the credit facilities granted by State Bank of India, Antwerp to Rubber Resources B.V., The Netherlands.

Secured by exclusive first charge over the entire current assets of the company, equitable mortgage over Company's landed property and factory building located at Annur and Kurichi, Coimbatore

The facilities relating to the standby letter of credit extended by State Bank of India is further secured by marking of lien by the bank on the fixed deposits (grouped under margin money deposits) held with them amounting to Rs.36.90 million, towards the facilities granted to Rubber Resources B.V., The Netherlands for a sum of EUR 3.00 million.

1. Employee benefits

The details required under AS 15 - Employee Benefits are as follows

The Employees' Gratuity fund scheme managed by the Life Insurance Corporation of India is a defined benefit plan. The present value of the obligation is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employees benefit entitlement and measures each unit separately to build up the final obligation. The obligation for Compensated absence is recognised in the same manner as gratuity.

The funds in respect of gratuity have been invested in the LIC Group Gratuity Cash Accumulation Plan and in respect of compensated abseno have been invested in the LIC Group leave encashment plan, administered by the Life Insurance Corporation of India.

2. Segment reporting

The Company is engaged primarily in one segment of providing solutions to the rubber industry and hence the segment reporting is not applicable

3. During the year the Company has capitalised interest paid on term loans amounting to Rs.741,734 along with the immovable property which is being constructed. Consequently interest amount shown in the notes is net off such expenditure capitalised.

4. Corporate Social Responsibility: As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The CSR expenditure for the year ended March 31, 2015 is contributed to a few trusts towards activities which are specified in schedule VII of the Companies Act, 2013.

5. In the opinion of board of directors, current assets, loans and advances, have atleast the value as stated in the balance sheet, if realised in the ordinary course of the business.

6. Income tax assessment has been completed upto the accounting year ended 31st March 2012.

7. No intangible / tangible asset has been generated during the year out of the research and development activity.

2.46 Pursuant to Accounting Standard (AS 28) - impairment of assets, the Company assessed its fixed assets for impairment as at March 31, 2015 and concluded that there has been no significant impaired fixed asset that needs to be recognised in the books of account.

2.47 Non current investments

a. Number of units of investment in mutual funds are rounded off to the nearest whole number.

b. All investments are fully paid up, unless otherwise stated.

c. Details of Investments


Mar 31, 2014

The Company has only one class of shares referred to as equity shares having a par value of Re.1/-. Each holder of equity shares is entitled to one vote per share held.

The company declares and pays dividend in Indian Rupees. The dividend recommended by the board of directors is subject to the approval of the shareholders in the ensuing annual general meeting.

The board of directors, in their meeting held on 19th May 2014, recommended a final dividend of Re. 0.37 per share. The recommendation is subject to the approval of the shareholders at the annual general meeting to be held. The total dividend appropriation for the year ended March 31, 2014 amounted to Rs.18,518,500/-. Dividend, if approved, is payable to the shareholders in proportion to their shareholding.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive the remaining assets of the Company. The distribution will be in proportion to the number of equity shares, held by the shareholders.

Note

Neither shares are reserved for issue under options nor securities have been issued, which are convertible into equity / preference shares in future as on the date of balance sheet.

Securities offered in connection with the credit facilities availed by the Company

a. Loan against fixed deposits with State Bank of India amounting to Rs.Nil(Rs.26,500,000), with Bank of India amounting to Rs.13,500,000 (Rs.13,500,000) and with City Union Bank Limited amounting to Rs.9,000,000 (Rs.Nil) are secured by a lien and pledge of fixed deposit receipts with the State Bank of India, Bank of India and City Union Bank Limited respectively and are repayable on demand.

b. Overdraft facility against fixed deposit with HDFC Bank Ltd., is secured by a lien and pledge of fixed deposit receipts with HDFC Bank Ltd., which is repayable on demand.

c. Cash credit/ export packing credit facility availed from State Bank of India is secured by first charge over raw materials, stock in process, finished goods, receivables, and other current assets.

d. Bill discounting/letter of credit and bank guarantee facilities are secured by documents to title goods and first charge over the current assets as stipulated.

Banking facilities referred to in (c) and (d) above are further secured by first charge over the entire fixed assets of the company exclusively including equitable mortgage of land and building located at Kanjikode, Chengalpattu, Kurichi, Neelambur, Aralvaimozhi and Tirunvelveli.

1. Contingent liabilities and commitments (to the extent not provided for)

i. Claims against the company not acknowledged as debts

a. Income tax matters 667,560 2,597,600

b. Excise and Service Tax Matters 1,696,185 776,362

c. Sales tax 261,000 -

d. Stamp duty 4,368,304 4,368,304

ii. Capital commitments

a. Estimated amount of contracts remaining to be executed on capital account and not provided for 16,359,035 27,670,271

b. Uncalled liability on shares and other investments partly paid - Payable in respect of purchase of shares of Rubber Resources B.V., (RR) on achievement of milestones EUR 210,000 EUR 1,080,000

iii. Other commitments

a. The company has issued an undertaking to provide need based financial support to its following wholly owned subsidiary companies

i. Pincott International Pty Ltd., Australia AUD 577,771 AUD 577,771

USD 800,000 - ii. Borrachas e Equipamentos ELGI Ltda, Brasil BRL 9,900,000 BRL 3,900,000

iii.Elgi Rubber Company B.V., The Netherlands EUR 300,000 EUR 300,000

iv. Elgi Rubber Company LLC, USA USD 2,516,579 -

v. Rubber Resources B.V., The Netherlands EUR 2,500,000 -

b. Guarantee on account of unpaid liability on account of purchase of shares of RR as stated in column (ii) (b) above EUR 720,000 EUR 1,080,000

c. Guarantee on account of security deposits with various electricity boards, state road transport corporations and other statutory authorities 8,005,484 7,469,208

d. Letter of credit on account of import of goods USD 498,600 USD 114,580

iv. Overseas subsidiaries

Securities offered in connection with standby letter of credit extended by ING Vysya Bank Limited and Export-Import Bank of India, in favour of the respective banks, which have granted credit facilities to the following subsidiary companies

Facilities offered

1. for the credit facilities granted by ING Bank NV, Filial De Sao Paulo, Brasil to M/s Borrachas e Equipamentos Elgi Ltda, Brasil.

2. for the credit facilities granted by ING Bank NV, Amsterdam, to M/s Rubber Resources B.V., Netherlands.

3. for the credit facilities granted by Export-Import Bank of India, London to M/s Pincott International Pty., Ltd, Australia..

4. for the credit facilities granted by Export-Import Bank of India, London to M/s Elgi Rubber Company LLC, USA..

Securities offered

By deposit of title deeds and equitable mortgage of immovable property located at Trichy Road, Coimbatore and Kurichi, Coimbatore, in favour of ING Vysya Bank Ltd., Coimbatore ranking pari-passu with Export-Import Bank of India, Mumbai.

The facilities relating to the standby letter of credit extended by M/s ING Vysya Bank Ltd., is further secured by marking of lien by the bank on the fixed deposits (grouped under margin money deposits) held with them amounting to Rs.184.13 Million.

2. Employee benefits

The details required under AS 15 - Employee Benefits are as follows

The Employees'' Gratuity Fund Scheme managed by the Life Insurance Corporation of India is a defined benefit plan. The present value of the obligation is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employees benefit entitlement and measures each unit separately to build up the final obligation. The obligation for Compensated absence is recognised in the same manner as gratuity.

3. Segment reporting

The Company is engaged primarily in one segment of providing solutions to the rubber industry and hence the segment reporting is not applicable.

4. In the opinion of Board of Directors, current assets, loans and advances, have atleast the value as stated in the balance sheet, if realised in the ordinary course of the business.

5. (a) Number of units of investment in mutual funds are rounded off to the nearest whole number.

(b) All investments are fully paid up, unless otherwise stated.

6. Income tax assessment has been completed in respect of erstwhile Companies viz., Elgi Rubber Company Limited upto the accounting year ended 31st March 2011.

7. No intangible / tangible asset has been generated during the year out of the research and development activity.

8. Pursuant to Accounting Standard (AS 28) - Impairment of assets, the Company assessed its fixed assets for impairment as at March 31, 2014 and concluded that there has been no significant impaired fixed asset that needs to be recognised in the books of account.


Mar 31, 2013

1.1 Employee benefits

The details required under AS 15 - Employee Benefits are as follows

The Employees'' Gratuity Fund Scheme managed by the Life Insurance Corporation of India is a defined benefit plan. The present value of the obligation is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employees benefit entitlement and measures each unit separately to build up the final obligation. The obligation for Compensated absence is recognised in the same manner as gratuity.

1.2 Segment reporting

The Company is engaged primarily in one segment of providing solutions to the rubber industry and hence the segment reporting is not applicable.

1.3 In the opinion of Board of Directors, current assets, loans and advances, have atleast the value as stated in the balance sheet, if realised in the ordinary course of the business.

1.4 (a) Number of units of investment in mutual funds are rounded off to the nearest whole number. (b) All investments are fully paid up, unless otherwise stated.

1.5 Income tax assessment has been completed in respect of erstwhile Companies viz., Elgi Rubber Company Limited and Treadsdirect Limited upto the accounting year ended 31st March 2010.

1.6 Confirmation from debtors and creditors has not been received in a few cases.

1.7 No intangible / tangible asset has been generated during the year out of the research and development activity.

1.8 Pursuant to Accounting Standard (AS 28) - Impairment of assets, the Company assessed its fixed assets for impairment as at March 31, 2013 and concluded that there has been no significant impaired fixed asset that needs to be recognised in the books of account.


Mar 31, 2012

The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation.

Previous years figures are not comparable as the previous year figures include nine months operations ending 31.12.2010 of its units located at Kovillpalayam, Puducherry and Palakkad and its retreading units located all over India, whereas the current year figures are without the operations of the said units for the whole accounting period.

The Company has only one class of shares referred to as equity shares having a par value of Re.1. Each holder of equity shares is entitled to one vote per share held.

The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the share holders in the ensuing annual general meeting.

The Board of Directors, in their meeting on 23rd May, 2012, proposed a final dividend of Re. 0.50 per share. The proposal is subject to the approval of the shareholders at the Annual General Meeting to be held. The total dividend appropriation for the year ended March 31,2012 amounted to Rs. 29,084,680 including Corporate dividend tax of Rs. 4,059,680. Dividend, if approved, is payable to the shareholders in proportion to their shareholding.

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. The distribution will be in proportion to the number of equity shares held by the shareholders.

* No shares have been allotted as fully paid up, by way of bonus shares during 5 years immediately preceding March 31, 2012.

** 49,550,000 Equity shares of Re.1/- each were allotted in accordance with the Scheme of Arrangement and Amalgamation during the year 2010-11.

a. Loan against fixed deposits with State Bank of India amounting to Rs.45,353,527( March 31,2011- Rs.Nil) are secured by lien and pledge of fixed deposit receipts with the State Bank of India and are repayable on demand.

b. Cash credit/ Export Packing credit facility availed from State Bank of India is secured by first charge over raw materials, stock in process, finished goods, receivables and other current assets.

c. Bill discounting/Letter of credit and Bank Guarantee facilities are secured by documents to title goods and first charge over the current assets as stipulated.

Banking facilities referred to in (b) and (c) above are further secured by first charge over the entire fixed assets of the company including land and building located at Kanjikode, Chenglepattu, Kurichi, Neelambur, Aralvaimozhi and Tirunvelveli.

1.1 Contingent Liabilities and Commitments (to the extent not provided for)

Claims against the Company not acknowledged as debts

a. Income tax matters 711,290 2,940,118

b. Excise and Service Tax Matters 776,362 776,362

c. Stamp duty 4,368,304 4,368,304

1.2 Employee Benefits

The details required under AS 15 - Employee Benefits as follow

The Employees' Gratuity Fund Scheme managed by the Life Insurance Corporation of India is a defined benefit plan. The present value of the obligation is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employees benefit entitlement and measures each unit separately to build up the final obligation. The obligation for compensated absence is recognised in the same manner as gratuity.

The funds have been invested in the LIC Group Gratuity (Cash Accumulation Policy), administered by the Life Insurance Corporation of

* Surplus in plan value of assets amounting to Rs. 1,078,474 over the liability has not been recognised in the Statement of Profit and Loss on a conservative basis.

1.3 Segment Reporting

The Company is engaged primarily in one segment of providing solutions to the rubber industry and hence the segment reporting is not applicable.

1.4 In the Opinion of Board of Directors, current assets, loans and advances, have atleast the value as stated in the balance sheet, if realised in the ordinary course of the business.

1.5 a. Number of units of investment in mutual funds are rounded off to the nearest whole number,

b. All investments are fully paid up, unless otherwise stated.

1.6 Income tax assessment has been completed in respect of erstwhile companies viz., Elgi Rubber Company Limited and Treadsdirect Limited upto the accounting year ended 31st March 2009.

1.7 Confirmation from debtors and creditors has not been received in a few cases.

1.8 No intangible / tangible asset has been generated during the year out of the Research and Development activity.

1.9 Pursuant to Accounting Standard (AS 28) - Impairment of assets, the Company assessed its fixed assets for impairment as at March 31, 2012 and concluded that there has been no significant impaired fixed asset that needs to be recognised in the books of account.

 
Subscribe now to get personal finance updates in your inbox!