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Notes to Accounts of Hercules Hoists Ltd.

Mar 31, 2015

Note No 1.: Terms/rights attached to equity shares

(A) 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. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(B) 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 No 1.3: Aggregate number of bonus shares issued and sub-division of shares during the period of five years immediately preceding the reporting date :

In the Financial Year 2012-13, 16,000,000 Equity Shares of Re.1 each were alloted as fully paid-up Bonus Shares.

Note No. 2 :

The company has not received information from vendors regarding their status under the Micro,Small and Medium Enterprises Development Act,2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid / payable under this Act,have not been given.

Note No. 3 :

The Board of Directors have recommended a final dividend of Rs 1.50 (Previous Year Rs 1.50) per share on par value of equity share of Rs 1 each for the financial year 2014-15. The amount of dividend shall be Rs.57,771,648 including Dividend Distribution Tax Rs.9,771,648 (Previous Year dividend Rs. 56,157,600 Including Dividend Distribution Tax Rs. 8,157,600)

Note No. 4 :

The company can utilise balances only towards settlement of the unpaid dividend.

Note No. 5 :

Margin money deposits amounting to Rs. 56,708,340 (Previous Year Rs. 13,049,289) are lying with bank against Bank Guarantees.

6. a) CONTIGENT LIABILITIES :

Particulars As at As at 31.03.2015 31.03.2014

Disputed Income Tax Liability 7,346,416 127,211,592

Disputed Excise Duty & Service Tax Liability 10,418,204 22,124,338

Indemnity Bonds issued under Export Promotion 507,554 507,554 Capital Goods (EPCG) Scheme

Claims against the company not acknowledged as debts 732,470 732,470

Disputed Sales Tax Liabilities 340,429,507 29,075,125

359,434,151 179,651,079

b) COMMITMENTS :

Particulars As at As at 31.03.2015 31.03.2014

Estimated Amounts of Contract remaining to be executed on Capital account and not 155,750 383,890 provided for

155,750 383,890

7. Note :

1. The company gives Warranties at the time of Sales of Main Products to the customers. Under the terms of Contract of Sales, the company undertakes to make good by replacement or repairs, Manufacturing defects that arise within 1-2 years from the date of sales. A provision has been recognised for the expected Warranty claims on products sold based on past experience.

2. The Company has taken Orders with Liquidated Damages Clause. A provision has been made for the expected liability wherein the delivery is made beyond the delivery date and attracted the liquidated damages clause in the contract.

3. The company gives incentives to its management staff based on their performance.

8. Balance of Debtors includes Rs. 86,226,974 (Previous Year Rs. 62,487,231) which are overdue for which no provision has been made in the accounts as the Management is hopeful of recovery.

9. Unauthorised price increases of about Rs 2 crores may have been given to certain identified suppliers during earlier years. The services of the concerned employees have been terminated. Part payments to the concerned suppliers have been held back and purchases have been accounted for at invoiced values. Pending investigation and establishment of the excess price paid, the impact if any on the Statement of Profit and Loss and consequential impact on the Reserves & Liabilities could not be ascertained. Further few suppliers have filed windingup petition against the company for non payment of dues.

10. Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any.

11. The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current presentation as per the schedule III.


Mar 31, 2014

1 RELATED PARTY DISCLOSURE

a) Details of nature of relationship

S.No. Related Parties Nature of Relationship

(i) Bajaj Electricals Limited Shri Shekhar Bajaj is Chairman & Managing Director

(ii) Bajaj Finserv Ltd. Relative of Shri Shekhar Bajaj, Shri Madhur Bajaj (Brother) is Director

(iii) Hind Lamps Limited Shri Shekhar Bajaj is Chairman

(iv) Hind Musafir Agency Ltd. Shri Shekhar Bajaj is Chairman

(v) Hindustan Housing Co. Ltd. Shri Shekhar Bajaj is Member

(vi) Baroda Industries Pvt. Ltd. Relatives of Shri Shekhar Bajaj, Smt. Minal Bajaj (Brother''s Wife) &

Shri Niraj Bajaj (Brother) are Directors

(vii) Bajaj Allianz General Insurance Co. Ltd. Relative of Shri Shekhar Bajaj, Shri Niraj Bajaj (Brother) is Director

(viii) Bajaj International Pvt. Ltd. Shri Shekhar Bajaj is Chairman

(ix) Shri Shekhar Bajaj Chairman (Key Management Personnel)

(x) Bajaj Finance Limited Relative of Shri Shekhar Bajaj, Shri Madhur Bajaj (Brother) is Director

(xi) Shri H.A. Nevatia Whole Time Director (Key Management Personnel)

(xii) Shri Prakash Subramaniam President & CEO (Key Management Personnel w.e.f. 01/04/2013 &

Joint President from 01/01/2013 till 31/03/2013)

(xiii) Shri M. S. Saigal President & CEO (Key Management Personnel until 31/03/2013)

2 Balance of Debtors includes Rs. 62,487,231/- (previous year Rs. 26,922,959/- ) which are overdue for which no provision has been made in the accounts as the Management is hopeful of recovery.

3 Unauthorised price increases of about Rs 2 crores may have been given to certain identified suppliers during earlier years. The services of the concerned employees have been terminated. Part payments to the concerned suppliers have been held back and purchases have been accounted for at invoiced values. Pending investigation and establishment of the excess price paid, the impact if any on the Statement of Profit and Loss and consequential impact on the Reserves & Liabilities could not be ascertained. Further few suppliers have filed winding up petition against the company for non payment of dues.

4 Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any.

5 The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current presentation as per the revised schedule VI.


Mar 31, 2013

1 The Company has invested in Preference Shares of Hind Lamps Limited (hereinafter referred as HL) of Rs.10,000,000/-. The accounts of HL shows negative networth, however no provision has been made for diminution in the value of investment as in the opinion of the management, the dimunition is not permanent in nature.

2 Balance of Debtors includes Rs. 26,922,659/- (previous year Rs. Rs.34,57,657/- ) which are overdue for which no provision has been made in the accounts as the Management is hopeful of recovery.

3 Unauthorised price increases of about Rs 2 crores over the last 3 years may have been given to certain identified suppliers during earlier years. The services of the concerned employees have been terminated. Part payments to the concerned suppliers have been held back and purchases have been accounted for at invoiced values. Pending investigation and establishment of the excess price paid, the impact if any on the Statement of Profit and Loss and consequential impact on the Reserves & Liabilities could not be ascertained. Further few suppliers have filed windingup petition against the company for non payment of dues.

4 Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any.

5 The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current presentation as per the revised schedule VI.


Mar 31, 2012

1 The Company has invested in Preference Shares of Hind Lamps Limited (hereinafter referred as HL) of Rs.10,000,000/-. The accounts of HL shows negative networth, however no provision has been made for diminution in the value of investment as in the opinion of the management, the dimunition is not permanent in nature.

2 Balance of Debtors includes Rs.34,57,657/- (previous year Rs. 16,49,357/-) which are outstanding since long for which no provision has been made in the accounts as Management is hopeful of recovery.

3 Unauthorised price increase of Rs. 1.98 Crores over 3 years were given by some officers of the company in collusion with certain identified vendors and those purchases were accounted at invoiced value in the respective years. Amount lying to be credit of these vendors have been held back and appropriate legal action is being taken against the perpetators. Some of the above mentioned vendors have filed winding up petition against the company for non payment of their dues which the company is contesting. Recoveries will be accounted on receipt basis.

4 Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any.

5 The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current presentation as per the revised schedule VI.


Mar 31, 2011

1. Contingent Liabilities :

2010-11 2009-10 sr. No. Particulars Rs. rs.

(a) Disputed excise Duty Liability 11,698,100 8,560,820

(b) Disputed income Tax Liability (Company in Appeal) 115,591,752 41,787,880

(c) indemnity Bonds issued under export Promotion Capital Goods (ePCG) scheme 507,554 457,256

(d) Claims against the Company not acknowledged as debts 732,470 732,470

(e) Disputed sales Tax Liability (Company in Appeal) 8,753,089 -

2. estimated amount of contract remaining to be executed on capital account and not provided for (net of advance) rs 893,550 (previous year rs.4,948,699).

3. The Company has not received information from vendors regarding their status under the Micro, small and Medium enterprises Development Act, 2006 and hence disclosures relating to amounts as at the year end together with interest paid/payable under this Act, have not been given. The same has been relied upon by the Auditors.

Defined Benefit Plan

Gratuity and Leave encashment which are defined benefits are accrued based on actuarial valuation as at balance sheet date by an independent actuary. The Company has opted for a Group Gratuity-cum-Life Assurance scheme of the Life insurance Corporation of india (LiC), and the contribution is charged to the Profit & Loss Account each year. The Company has funded the liability on account of leave benefits through LiC's Group Leave encashment Assurance scheme and the Contribution is charged to Profit and Loss Account.

4. Related party disclosure

(a) related party disclosure in accordance with Accounting standard 18 issued by the institute of Chartered Accountants of india ("iCAi")

Sr. No. Related Parties Nature of Relationship

(i) Bajaj electricals Limited shri shekhar Bajaj is Chairman & Managing Director

(ii) Bajaj Auto Limited shri shekhar Bajaj is Director

(iii) Bajaj Finserv Ltd. relative of shri shekhar Bajaj, shri Madhur Bajaj (Brother) is Director

(iv) Bajaj Holdings & investment Ltd. relative of shri shekhar Bajaj, shri Madhur Bajaj (Brother) is Director

(v) Hind Lamps Limited shri shekhar Bajaj is Chairman

(vi) Hind Musafir Agency Ltd. shri shekhar Bajaj is Chairman

(vii) Hindustan Housing Co. Ltd. shri shekhar Bajaj is Member

(viii) Baroda industries Ltd. relatives of shri shekhar Bajaj, smt. Minal Bajaj (Brother's Wife) & shri Niraj Bajaj (Brother) are Directors

(ix) Mukand Ltd. relative of shri shekhar Bajaj, shri Niraj Bajaj (Brother) is Director

(x) Bajaj Allianz General insurance Co. Ltd. relative of shri shekhar Bajaj, shri Niraj Bajaj (Brother) is Director

(xi) Bajaj international Pvt. Ltd. shri shekhar Bajaj is Chairman

(xii) shri shekhar Bajaj Chairman (Key Management Personnel)

(xiii) shri H.A. Nevatia Whole Time Director (Key Management Personnel)

(xiv) shri M.s. saigal President & CeO (Key Management Personnel)

5. The Company has investment in Preference shares of Hind Lamps Limited (Hereinafter referred as HL) of rs. 10,000,000/-. The accounts of HL shows negative networth, however no provisions has been made for diminution in the value of investment as in the opinion of the management, the decline is temporary in the nature.

6. Balance of Debtors includes rs.16,49,357/- (previous year rs. 30,59,227/-) which are outstanding since long for which no provision has been made in the accounts as Management is hopeful of recovery.

7. Balances of sundry Debtors, sundry Creditors and Loans & Advances are subject to confirmation and consequential adjustments, if any.

8. Previous year's figures have been regrouped/rearranged wherever necessary to make them comparable with those of the current year's.


Mar 31, 2010

1. Contingent Liabilities:

2009-10 2008-09

Sr. No. Particulars Rs. Rs.

(a) Disputed Excise Duty Liability 8,560,820 7,494,903

(c) Disputed Income Tax Liability (Company in Appeal) 41,787,880 4,860,185

(d) Bonds issued under Export Promotion Capital Goods (EPCG) Scheme 457,256 411,942

(e) Claims against the Company not acknowledged as debts 732,470 732,470

2. Estimated amount of contract remaining to be executed on capital account and not provided for (net of advance) Rs 49,48,699/- (previous year Rs.76,46,840/-)

3. The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to amounts as at the year end together with interest paid/payable under this Act, have not been given. The same has been relied upon by the Auditors.

4. Related party disclosure

(a) Related party disclosure in accordance with Accounting Standard 18 issued by the Institute of Chartered Accountants of India ("ICAI")

Sr. No. Related Parties Nature of Relationship

(i) Bajaj Electricals Limited Shri Shekhar Bajaj is Chairman & Managing Director

(ii) Bajaj Auto Limited Shri Shekhar Bajaj is Director

(iii) Bajaj Finserv Ltd. Relative of Shri Shekhar Bajaj, Shri Madhur Bajaj (Brother) is Director

(iv) Bajaj Holdings & Investment Ltd. Relative of Shri Shekhar Bajaj, Shri Madhur Bajaj (Brother) is Director

(v) Hind Lamps Limited Shri Shekhar Bajaj is Chairman

(vi) Hind Musafir Agency Ltd. Shri Shekhar Bajaj is Chairman

(vii) Hindustan Housing Co. Ltd. Shri Shekhar Bajaj is Member

(viii) Baroda Industries Ltd. Relatives of Shri Shekhar Bajaj, Smt. Minal Bajaj (Brothers Wife) & Shri Niraj Bajaj (Brother) are Directors

(ix) Mukand Ltd. Relative of Shri Shekhar Bajaj, Shri Niraj Bajaj (Brother) is Director

(x) Bajaj Allianz General Insurance Co. Ltd. Relative of Shri Shekhar Bajaj, Shri Niraj Bajaj (Brother) is Director

(xi) Bajaj International Pvt. Ltd. Shri Shekhar Bajaj is Chairman

(xii) Shri Shekhar Bajaj Chairman (Key Management Personnel)

(xiii)Shri H.A. Nevatia Whole Time Director (Key Management Personnel)

Shri M.S. Saigal President & CEO (Key Management Personnel)

5. Hitherto, the expenditure on Voluntary Retirement Scheme were being expensed out over a period of 5 years, during the year the Company has changed the policy and accordingly have expensed out entire amount in the current year in accordance with Accounting Standard 15 on Employee Benefits. Due to which the miscellaneous expenditure is understated by Rs. 31,416,254/- and profit is understated by Rs. 31,416,254/- and consequently the Reserves.

6. Balance of Debtors includes Rs.30,59,227/- which are outstanding since long for which no provision has been made in the accounts as Management is hopeful of recovery.

7. Balances of Sundry Debtors, Sundry Creditors and Loans & Advances are subject to confirmation and consequential adjustments, if any.

8. Previous years figures have been regrouped/rearranged wherever necessary to make them comparable with those of the current years.

 
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