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Notes to Accounts of GKW Ltd.

Mar 31, 2015

1. Terms and Rights attached to Ordinary shares :

The Company has one class of Ordinary shares having par value of Rs. 10/- per share . Each shareholder is eligible for one vote per share held and dividend, if any, proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend .

In the event of liquidation, the Ordinary shareholders are eligible to receive the remaining assets after discharging all liabilities of the Company in proportion to their shareholding .

2. Depreciation for the year includes Rs.140.91 Lakhs being the carrying amount of the assets whose useful life has already expired as on 1st April, 2014 and the same has been adjusted against retained earnings ( Note 32 )

The above amount include assets given on operating lease as under; (Note 30)

Land - cost Rs. 20.06 lakhs (2013-14 - Rs. 20.06 Lakhs), depreciation - Nil (2013-14 - Nil ) and accummulated depreciation - Nil (2013-14 - Nil)

Buildings - cost Rs. 170.46 Lakhs (2013-14 - Rs. 103.51 lakhs), depreciation - Rs. 5.41 Lakhs (2013-14 Rs.0.39 Lakh) and accummulated depreciation - Rs. 5.80 Lakhs (2013-14 - Rs. 0.39 Lakh)

Electrical Installation and Equipment - cost Rs. 16.11 lakhs (2013-14 - Rs. 10.63 lakhs), depreciation - Rs. 1.54 lakhs (2013-14 - Rs. 0.19 lakh) and accummulated depreciation Rs. 1.73 lakhs (2013-14 - Rs. 0.19 lakh)

As at As at

31.03.15 31.03.14

3. CONTINGENT LIABILITIES AND COMMITMENTS Contingent Liabilities:

a) Excise duty under Appeal ( to the extent ascertainable ) 135.38 164.66

b) Disputed sales tax under Appeal 251.28 507.29

c) Municipal demand against Company''s premises at Andul Road Works stayed by Hon''ble High Court at Calcutta 215.81 -

d) Demand of enhancement of rental against rented premises pending disposal of matters by relevant High Court 78.14 -

e) Various labour related matters pending finalisation by appropriate authorities , amount of liability etc - - if any, is presently not ascertainable

f) Demand for shortfall in annual guaranteed minimum consumption of power pending disposal of matter by High Court 80.00 80.00

g) Other claims not acknowledged as debts (to the extent ascertainable and not provided for) 9.37 21.14

Future cash outflows in respect of above contingent liabilities is dependant upon the outcome of judgements / decisions.

Commitments:

a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net off advances ) 121.24 5.44

4. Defined Benefit Scheme :

The employees'' gratuity fund scheme /Pension Fund scheme is a defined benefit plan managed by a Trust/LIC . The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit , which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

5. RELATED PARTY DISCLOSURES AS PER ACCOUNTING STANDARD 18

()i) Related Party disclosures

(a) Where control exists:

Matrix Commercial Private Limited - Holding Company

GKW (Overseas Trading ) Limited - Subsidiary Company

Mr K K Bangur - Individual having control over the Company through the voting power in the Holding Company.

(b) Key Management Personnel

Mr J. D. Curravala - Managing Director

Mr G Srinivasan - Whole time Director

(c) Others with whom transactions have taken place during the year

Graphite India Limited - Enterprise over which Mr K K Bangur is able to exercise significant control

6. "Lease" as per Accounting Standard - 19

All the lease agreements entered into by the Company have a termination clause for cancelling the lease agreement by serving notice on either of the parties

7. Depreciation for the year has been calculated based on the useful life of assets as prescribed under Part C of Schedule II of the Companies Act, 2013 made effective from 1st April, 2014 . Accordingly, net book value of the Fixed assets existing as on date has been depreciated over the remaining useful life of the asset computed as aforesaid. Consequently, charge on account depreciation is lower and profit for the year is higher by Rs. 56 Lakhs.

Further, Rs. 95.19 Lakhs (net of deferred tax of Rs. 45.72 Lakhs) being the carrying amount of the assets whose useful life has already expired as on 1st April, 2014 has been adjusted against opening balance of retained earnings during the year.

8. Previous years'' figures have been rearranged and regrouped wherever considered necessary .


Mar 31, 2013

1 eMpLoYee BeneFIts

a. Defned Contribution Scheme

employer''s Contribution to Provident Fund 22.86 43.19

b. Defned Beneft Scheme:

the employees'' gratuity fund scheme/Pension Fund scheme is a defned beneft plan managed by a trust/LIC. the present value of obligation is determined based on actuarial valuation using the Projected Unit Credit, which recognises each period of service as giving rise to additional unit of employee beneft entitlement and measures each unit separately to build up the fnal obligation. the obligation for leave encashment is recognised in the same manner as gratuity.

2 comparative

Previous years'' fgures have been rearranged and regrouped wherever considered necessary.


Mar 31, 2012

Rs.in Lakhs

As at As at

31.03.2012 31.03.2011

(1) CONTINGENT LIABILITIES AND COMMITMENTS :

1) Contingent Liabilities :

a) Excise duty under Appeal ( to the extent ascertainable ) 164.66 164.66

b) Disputed sales tax under Appeal 507.29 507.29

c) Claims not acknowledged as debts ( to the extent ascertainable ) 41.46 41.46

b. Defined Benefit Scheme :

The employees' gratuity fund scheme /Pension Fund scheme is a defined benefit plan managed by a Trust/LIC . The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit , which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity .

(2) GENERAL

These accounts have been prepared in line with revised Schedule VI and accordingly, previous years' figures have been rearranged and regrouped wherever considered necessary.

Notes: 1) Cash Flow Statement is prepared by the 'Indirect Method' as set out in Accounting Standard-3 on 'Cash Flow Statement' .

2) Cash and Cash equivalents presented in the statement includes Fixed Deposits with bank amounting to Rs 3192.53 lakhs ( 2010-11 - Rs 3632.70 Lakhs ) as on the Balance Sheet date.

3) Previous year's figures have been rearranged, wherever considered necessary.


Mar 31, 2010

(1) CONTINGENT LIABILITIES

As at As at 31.03.10 31.03.10

In respect of :

Income Tax under Appeal 456 456

Excise duty under Appeal (to the extent ascertainable) 20322 20322

Disputed sales Tax under Appeal 50729 50729

Claims not acknowledged as debts 4146 4146

(2) EMPLOYEE BENEFITS

Notes :

i) Assumptions relating to future salary increase, attrition, interest rate for discount and overall expected rate of return on assets have been considered in the actuarial valuation based on relevant economic factors such as inflation, market growth and other factors applicable to the period over which the obligation is expected to be settled.

ii) The gratuity payable to whole time directors is as per estimation of the management and the same has not been actuarially determined.

(3) MISCELLANEOUS INCOME

Include profit on sale of scrap Rs. 19170 (000) (2008/2009 - Rs. 9644 (000)), liabilities no longer required Rs. 2099 (000) (2008/2009 - Rs. 29554 (000)) and foreign exchange gain Rs. Nil (000) (2008/2009 - Rs. 1273 (000)).

(4) MISCELLANEOUS EXPENSES

Include cash discount Rs. Nil (000) (2008/2009 - Rs. 3855 (000)) and foreign exchange loss of Rs. Nil (000) (2008/2009 - Rs. 4346 (000)).

b) Rs. 25057 (000) (2008/2009 - Rs. 9695 (000)) received as advance against scrap and other sales.

(5) In accordance with the Accounting Standard 22 for "Taxes on Income", the Company has accounted for deferred taxation. The Company has substantial amount of brought forward business losses, capital losses and unabsorbed depreciation. However, as a matter of prudence, deferred tax assets have been recognised only to the extent of deferred tax liability.

Note : The above related party information is as identified by the management and relied upon by the Auditor.

(6) GENERAL

a) Current assets, loans and advances have value at least equal to that stated in the accounts.

b) Figures pertaining to the year ended 31st March, 2009 include figures of Powmex Steels Undertaking of the Company which was demerged pursuant to the Scheme of Arrangement w.e.f. 1st February, 2009. Hence, previous years figures are strictly not comparable. However, previous years figures have been rearranged and regrouped wherever considered necessary.





 
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