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Notes to Accounts of Haldyn Glass Ltd.

Mar 31, 2016

1. Terms and Rights attached to equity shares

(i) The Company has only one class of Equity Shares having a par value of Re 1 per share. Each holder of Equity Shares is entitled to one vote per share.

(ii) They are entitled to dividend if proposed by the Board of Directors and approved by the shareholders in the ensuing Annual General Meeting.

(iii) In the event of liquidation the equity shareholders are entitled to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to their share holding.

Nature of Security and terms of Loan

Working capital facilities/Short Term Loan/Buyers Line of Credit from Banks are secured by hypothecation of entire current assets of Company, present and future, on Pari Passu basis along with a second charge on the entire fixed assets of the Company.

Working capital loans carry interest rate ranging from 0.8% to 2% above Bank''s base rate, payable on monthly rests. Short Term Loan from Bank carry''s interest rate of 9.80% and is repayable on 18th June 2016.

Buyer''s Line of Credit from Bank carry''s interest rate of Euribor plus 90 basis points and is repayable on 22nd July 2016 and 12th August 2016.

NOTE 2

OTHER DISCLOSURES:

(a) During the year ended 31st March 2016, the Company has paid/provided Managerial Remuneration to Managing Director and Executive Chairman aggregating to Rs..246.84 lakhs in accordance with terms & conditions of managerial remuneration approved by Shareholders vide resolution on 28th September 2012. Due to inadequacy of profits, the remuneration for the current financial year 2015-16 is in excess of limits specified under Section 197 read with Schedule V of Companies Act, 2013 by Rs.. 113.90 lakhs, for which Central Government approval has been applied for by the Company.

(b) The Company has charged depreciation for the current year based on the remaining useful life of the assets as per the requirements of Schedule II of Companies Act, 2013 effective from 1st April 2014. Further, based on transitional provision provided in note 7(b) of Schedule II of Companies Act, 2013, an amount of Rs.. Nil (P.Y. Rs.. 820.44 Lakhs) has been adjusted in accumulated depreciation as shown in Note 12 and Rs.. Nil (P.Y. Rs.. 541. 58 lakhs [net of Deferred Tax]) has been adjusted in Retained Earnings as shown in Note 3.

(c) The Company had to spent an amount of Rs.. 56.09 lakhs (P.Y. Rs.. 60.81 Lakhs ) towards Corporate Social Responsibility (CSR) activities for the year ended 31st March 2016 in accordance with provisions of Section 135 of Companies Act, 2013. However the Company could spend only Rs.. Nil (P.Y. Rs.. 35.74 lakhs) towards CSR activities in the current financial year and the balance amount of Rs.. 56.09 lakhs (P.Y. Rs.. 25.07 lakhs) would be spent by the Company in subsequent years.

(d) The Company has during the current year entered into a joint venture agreement for the manufacturing of perfume and cosmetic glass bottles by making an investment of Rs.. 2,000 lakh in a jointly controlled entity. The Company’s share of each of the assets, liabilities, income, expenses, etc related to its interest in joint venture, based on the audited financial statements are:

(e) The Company operates in one reportable business segment i.e. Glass Bottles / Containers. Exports made during the years are not significant. Hence, information in accordance with Accounting Standard 17 issued by the Institute of Chartered Accountants of India on ‘Segment Reporting’ is not given.

(f) In the opinion of the management, Current Assets, Loans and Advances are of the value stated, if realized in the ordinary course of business.

(g) One of the furnaces in the plant was shut down for 135 days during the current year for relining / expansion / modernization and the normal operations of the said Furnace commenced in the middle of November 2015. Consequently the operating profit for the current year is not comparable to the corresponding previous year. The figures for previous year’s have been regrouped, reclassified and rearranged wherever necessary to make them comparable with that of current year’s figures.


Mar 31, 2015

NOTE 1

LIST OF RELATED PARTIES & RELATIONSHIPS

Information in accordance with Accounting Standard 18 on 'Related Parties Disclosures'

NOTE 2

OTHER DISCLOSURES:

[a] During the year, the Company has paid donation to Bharatiya Janata Party Rs. Nil [Previous year Rs. 10 Lacs]

[b] The Company has charged depreciation for the current year based on the remaining useful life of the assets as per the requirements of Schedule II of Companies Act, 2013 effective from April 01, 2014. Further, based on transitional provision provided in note 7[b] of Schedule II of Companies Act, 2013, an amount of Rs. 820.44 Lakhs has been adjusted in accumulated depreciation as shown in Note 11 and Rs. 541. 58 lakhs [net of Deferred Tax] has been adjusted in Retained Earnings as shown in Note 3.

[c] The Company had to spent an amount of Rs. 60.81 Lakhs towards Corporate Social Responsibility [CSR] activities for the year ended March 31, 2015 in accordance with provisions of Section 135 of Companies Act, 2013. However the Company could spend only Rs. 35.74 lakhs towards CSR activities in the current financial year and the balance amount of Rs. 25.07 lakhs would be spent by the Company in subsequent years.

[d] The Company operates in one reportable business segment i.e. Glass Bottles / Containers. Exports made during the years are not significant. Hence, information in accordance with Accounting Standard 17 issued by the Institute of Chartered Accountants of India on 'Segment Reporting' is not given.

[e] In the opinion of the management, Current Assets, Loans and Advances are of the value stated, if realised in the ordinary course of business.

[f] The previous year's figures have been regrouped, reclassified and rearranged wherever necessary to make them comparable with that of current year's figures.


Mar 31, 2014

NOTE 1

Contingent Liabilities (as certified by management and to the extent available from the records)

[Rs. Lakhs]

Particulars Year Ended March 31,2014 Year Ended March 31,2013

Estimated amount of Contracts remaining to be Executed on Capital Account 74.17 --

Letter of Credit Outstanding 461.50 163.63

Sales Tax Demand # 446.86 437.95

Commitment under Export Promotion Capital Goods (EPCG) Scheme 262.65 377.25

Demand for Income Tax appealed by the Company # 295.33 469.85

Claims against company not acknowledged as debts * -- --

Labour Law Cases/ Other Court Cases $ -- --

# Excluding penalty and other levies the quantum of which is presently not determinable.

* The Company had in earlier year filed complaint against its ex-employees for purported misappropriation within the Company. These employees have leveled counter charges/complaint against the management of the Company with various authorities. The Company has suitably replied to those clarifications sought for. The management of the Company does not perceive that any financial/other adjustment is required to be made in the books of accounts of the Company arising out of the said matter.

$ Amount not quantifiable/determinable

Note: Future cash out flows, if any, in respect of matter stated above is dependent upon the outcome of judgement / decisions etc.

NOTE 2

OTHER DISCLOSURES:

[a] During the year, Company has paid donation to political party i.e. Bhartiya Janta Party of Rs. 10 Lacs [Previous year Rs. Nil]

[b] The Company operates in one reportable business segment i.e. Glass Bottles / Containers. Exports made during the years are not significant. Hence, information in accordance with Accounting Standard 17 on ''Segment Reporting'' is not given.

[c] In the opinion of the management, Current Assets, Loans and Advances are of the value stated, if realised in the ordinary course of business.

[d] The previous year''s figures have been regrouped, reclassified and rearranged wherever necessary to make them comparable with that of current year''s figures.


Mar 31, 2013

NOTE 1

lISt of relateD PartIeS

Information in accordance with Accounting Standard 18 on ''Related Parties Disclosures''.

Enterprise owned or signifcantly infuenced by key managerial

personnel or their Relatives Haldyn Corporation Limited

Key Management Personnel and their Relatives:

– Mr. N. D. Shetty Executive Chairman

– Mr. Tarun N. Shetty Managing Director

– Mrs. Vinita R. Ajila Director

– Mr. Rohan Y. Ajila Director

– Mrs. S. N. Shetty Relative

NOTE 2

other DIScloSUreS:

[a] During the year, Company has not paid donation to any political party [donation paid to Bhartiya Janta Party in previous year is Rs. 3 Lakhs]

[b] The Company operates in one reportable business segment i.e. Glass Bottles / Containers. Exports made during the years are very insignifcant. Hence, information in accordance with Accounting Standard 17 on ''Segment Reporting'' is not given.

[c] In the opinion of the management, Current Assets, Loans and Advances are of the value stated, if realised in the ordinary course of business.

[d] The previous year''s fgures have been regrouped, reclassifed and rearranged wherever necessary to make them comparable with that of current year''s fgures.


Mar 31, 2012

1. Terms and rights attached to equity shares

[i] The Company has only one class of Equity Shares having a par value of Rs. 1 per share. Each holder of Equity Shares is entitled to one vote per share.

[ii] They are also entitled to dividend if proposed by the Board of Directors and approved by the shareholders in the ensuing Annual General Meeting except in case of interim dividend.

[iii] In the event of liquidation the equity shareholders are entitled to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to their share holding.

Nature of Security and terms of repayment for loans

– Secured loan from banks consist of Deferred Payment Liabilities for Vehicles which are secured by hypothecation of specific moveable assets. The loans are repayable in 59 equated monthly installment of Rs. 0.07 Lakhs together with interest commencing from May 5, 2008 and carries interest rate of 11.32%.

– Secured loan from others consist of loan from TATA Capital for acquisition of Vehicles which are secured by hypothecation of moveable assets. The loans are repayable in 36 equated monthly installment of Rs. 0.19 Lakhs together with interest commencing from December 25, 2010 and carries interest rate of 9.27%.

Unsecured Loan from related party carries interest rate of 10% and 12% for Rs. 100 Lakhs and Rs. 300 Lakhs respectively and is repayable after two years.

Nature of Security and terms of loan

- Working capital facilities from Banks are secured by hypothecation of entire current assets of Company, present and future, on pari passu basis along with a second charge on the entire fixed assets of the Company.

- Working capital loans carry interest rate ranging from 3.5% to 4.5% above Bank's base rate, payable on monthly rests.

Out of the said amount, Rs. 52.68 lakhs [March 31, 2011: Rs. Nil] pertain to micro, small and medium enterprises as defined under Micro, Small, and Medium Enterprises Development Act, 2006 based on the information available with the Company. There is no interest payable to such parties as at March 31, 2012 [March 31, 2011: Rs. Nil].

LIST OF RELATED PARTIES & RELATIONSHIPS

Information in accordance with Accounting Standard 18 issued by the Institute of Chartered Accountants of India on 'Related Parties Disclosures'

Enterprise over which key managerial personnel and their relatives are having significant influence or control [Other related party]

Haldyn Corporation Limited

Key Management Personnel and their Relatives:

– Mr. N. D. Shetty Executive Chairman

– Mr. Tarun N. Shetty Managing Director

– Mrs. Vinita R. Ajila Director

– Mr. Rohan Y. Ajila Director

– Mrs. S. N. Shetty Relative

OTHERS

[a] During the year, Company has given donation to Bhartiya Janta Party of Rs. 3 Lakhs.

[b] The Company operates in one reportable business segment i.e. Glass Bottles / Containers. Exports made during the years are not significant. Hence, information in accordance with Accounting Standard 17 issued by the Institute of Chartered Accountants of India on 'Segment Reporting' is not given.

[c] Instances of purported misappropriation of the Company's funds / property by some senior employees were noticed during the year. Accordingly, the Company lodged a complaint with the police against the alleged offenders. Pursuant to the ongoing investigation by EOW, the Company expects to recover the misappropriated funds / property in due course.

[d] The Company was adopting pre-revised Schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements upto financial year 2010-11. During the year the financial statements are prepared and presented as per revised Schedule VI notified under the Companies Act 1956.

The previous year's figures have been regrouped, reclassified and rearranged wherever necessary to make them comparable with that of current year's figures.

[e] In the opinion of the management, Current Assets, Loans and Advances are of the value stated, if realised in the ordinary course of business.


Mar 31, 2011

1. The figures for the previous year ended March 31, 2010 have been regrouped / reclassified / rearranged wherever necessary.

2. Disclosure under Micro, Small and Medium Enterprises Development [MSMED] Act, 2006

Dues in respect of Micro, Small and Medium Enterprises, who have registered under the relevant Act and have submitted proof thereof, are being regularly met as per agreed terms. There is no outstanding principal amount at the year end [2009-2010 : NIL] and according to information and explanation given by the Management there is no liability towards interest [2009 -2010: NIL].

3. The Company operates in one reportable business segment i.e. Glass Bottles / Containers. Exports made during the year are not significant. Hence, information in accordance with Accounting Standard 17 issued by the Institute of Chartered Accountants of India on ‘Segment Reporting' is not given.

4. In accordance with the Accounting Standard [AS-28] on "Impairment of Assets" issued by the Institute of Chartered Accountants of India; the Company, during the year, carried out an exercise of identifying the assets that may have been impaired. After having assessed the carrying cost of assets and recoverable value over useful life, necessary provision has been made.

5. During the year, higher depreciation of Rs. 170.24 lakhs has been provided based on the estimated useful life of certain Plant and Machinery.

Additional information pursuant to Para 4 of Part-II of Schedule-VI of the Companies Act, 1956

6. Contingent Liabilities Rs. Lakhs

Particulars 2010 - 11 2009 - 10

Guarantees issued by Banks on behalf of the Company [Net of Margin Money] 9.11 9.11

Estimated amount of Contracts remaining to be executed on Capital Account [Net of Advances] 44.68 17.44

Letters of Credit outstanding [Net of Margin Money] 295.47 129.92

Sales Tax demands [Net of appeals / deposit] 437.95 437.95

Demand for Income Tax appealed by the company 320.59 134.53 [Based on the opinion received and various Legal judgments, no provision has been considered necessary in respect of sales Tax or Income tax.]

7. Information in accordance with Accounting Standard 18 issued by the Institute of Chartered Accountants of India on ‘Related Parties Disclosures'

List of Related Parties & Relationships

Enterprise owned or significantly influenced by key management personnel Haldyn Glass Limited

Key Management Personnel and their Relatives

Mr. N. D. Shetty Chairman & Managing Director

Mr. Tarun N. Shetty Executive Director

Mrs. Vinita R. Ajila Director

Mr. Rohan Y. Ajila Director

Mrs. S. N. Shetty Relative


Mar 31, 2010

1. The figures for the previous year ended March 31, 2010 have been regrouped, wherever necessary.

2. The Company operates in one reportable business segment i.e. Glass Bottles / Containers. Exports made during the years are not significant. Hence, information in accordance with Accounting Standard 17 issued by the Institute of Chartered Accountants of India on Segment Reporting is not given.

3. In accordance with the Accounting Standard [AS-28] on " Impairment of Assets" issued by the Institute of Chartered Accountants of India, the company during the year carried out an exercise of identifying the assets that may have been impaired. After having assessed the carrying cost of assets and recoverable value over useful life, necessary provision has been made.

4. Contingent Liabilities

Rs. In Lacs

Particulars 2009 - 10 2008 - 09

Guarantees issued by Banks on behalf of the

Company

[Net of Margin Money] 9.11 9.11

Estimated amount of Contracts remaining to be

Executed on Capital Account [Net of Advances] 17.44 17.96

Letters of Credit Outstanding [Net of

Margin Money] 129.92 33.60

Sales Tax demands [Net of appeals / deposit] 437.95 425.02

Demand for Income Tax appealed by the company

[Based on the opinion received and various

judgements, no provision has been considered

necessary in this regard.] 134.53 -

5. Information in accordance with Accounting Standard 18 issued by the Institute of Chartered Accounts of India on Related Parties Disclosures

List of Related Parties & Relationships

Enterprise owned or significantly influenced

by key Haldyn Glass Limited

management personnel

Key Management Personnel and their Relatives

Mr. N. D. Shetty Chairman & Managing

Director

Mr. Tarun N. Shetty Executive Director

Mrs. Vinita R. Ajila Director

Mr. R. Y. Ajila Director

Mrs. S. N. Shetty Relative

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