Home  »  Company  »  Hind. Composites  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Hindustan Composites Ltd.

Mar 31, 2015

1. Rights attached to equity shares:

The Company has only one class of equity shares having a par value of Rs. 10 each. Each holder of equity shares is entitled to one vote per share. In the event of liquidation, the equity shareholders are entitled to receive the remaining assets of the Company after payments to secured and unsecured creditors, in proportion to their shareholding. Company has not issued any aggregate No. and class of share as fully paid-up pursuant to contract(s) whitout payment being received in cash, bonus shares for the period of 5 years immediately preceding the Balance Sheet date.

2.(a) The Company's pending litigations comprise mainly claims related to property disputes, proceedings pending with Tax and other Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not reasonably expect the outcome of these proceedings to have a material impact on its financial statements.(Also Refer Note 26(b)).

(b) Contingent Liabilities not provided for in respect of :

* Disputed Sales Tax matters Rs.1,347,738 (net of provisions of Rs. 6,45,000); Previous Year Rs. 648,875 (net of provisions of Rs. 6,45,000).

* Disputed Income Tax matters Rs.10,54,323 (Previous Year Rs.10,35,491).

* Disputed labour matter related to ex-workmen - amount unascertainable.

* Disputed Claims Rs.32,868,420 (net of provisions of Rs. 13,088,090) Previous Year Rs. 13,498,734 (net of provision of Rs. 6,457,776).

3. Commitments:

(a) Estimated amount of contracts remaining to be executed and not provided for (net of advance, unsecured considered good), on capital account are Rs.264,699,369 (net of advance of Rs. 63,718,332);Previous Year Rs.17,681,198 (net of advance of Rs. 19,135,683)

(b) In respect of long term investment made with private equity fund, the Company is further committed to invest Rs. 364,100,000 (Previous Year Rs.240,300,000)

4. Secured Loans:

(a) Interest Rate on Working capital loans is Base Rate plus 2.75% per annum (Previous Year Base Rate plus 2.75% per annum) and limit utilised Rs. 34,895,055 (Previous Year Rs.13,845,437) are secured by hypothecation of stocks and debtors and charge on immovable properties of Bhandara unit.

(b) Non fund based limit utilised Rs. 13,845,437 (Previous Year Rs. 24,444,291) are secured by lien over fixed maturity plan (FMP) valued of Rs. 20,000,000 (Previous Year Rs. 40,000,000).

(c) Vehicle loans (repayable over a period of 1 to 4 years) are secured by way of hypothecation of vehicles purchase their against and carry Interest in the range of 9.80 % to 10.75% (Previous Year 9.80 % to 10.75%).

Unsecured Loans:

Interest free Sales tax Loans is repayable within 12 years.

5. (a) In the opinion of the Board, assets other than fixed assets and non-current investment have a value on realization in the

ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for depreciation and other known liabilities is adequate and not in excess of what is required.

(b) The accounts of Trade receivable and payable and Loans and Advances are subject to formal confirmations / reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year's financial statements due to the same.

6. Provision for current tax includes Rs. 4,00,000 (Rs. 5,30,000) in respect of wealth tax.

7. Disclosures as required by Accounting Standard-18,on"Related Party Disclosure" are given below:

(i) Group Companies/Associates / Joint Venture with whom transactions have been entered during the year in the ordinary course of the business:

Rasoi Ltd.

J L Morison (India) Ltd.

Pallawi Resources Ltd..

Pallawi Trading & Mfg. Co. Ltd.

Look Link Finance Ltd.

Noble Trading Co. Ltd.

Lotus Udyog Ltd.

Surdas Trading & Mfg. Co. Ltd.

Goodpoint Advisory Services and Investments Ltd.

Axon Trading & Mfg. Co. Ltd.

Silver Trading & Services Ltd.

Rasoi Express Pvt. Ltd.

Compo Advics (India) Pvt. Ltd. (Joint Venture)

(ii) Key Management Personnel (KMP):

Mr. Raghu Mody, Executive Chairman Mr. Varunn Mody, Executive Director Mr. P. K. Choudhary, Managing Director

(iii) Relatives of Key Managerial Personnel :

Mrs. Sumitra Devi Mody (Wife of Mr. Raghu Mody, Executive Chairman) Mrs. Shashi Mody (Mother of Mr. Varunn Mody, Executive Director) Mrs. Sakshi Mody (Wife of Mr. Varunn Mody, Executive Director)

8. Pursuant to enactment of the Companies Act, 2013 (the Act), the Company has , effective 1st April, 2014, reviewed and revised the estimated useful life of certain fixed assets, in accordance with the Schedule II of the Act. Accordingly, the Company has given impact of Rs. 4,101,094 (net of deferred tax of Rs. 1,393,962) on account of assets whose useful life already exhausted on 1st April, 2014 to Statement of Profit & Loss. If the Company had continued with the previously assessed useful lives, charge for depreciation for the year would have been higher by Rs. 9,565,192.

9. Previous years' figures have been regrouped/reclassified whenever necessary to conform to current years' classification. Figures in brackets pertain to previous year.


Mar 31, 2014

1. Contingent Liabilities not provided for in respect of :

(a) Certain Sales Tax matters, mainly on account of pending concession forms (excluding interest) Rs. 648,875 (Previous Year Rs. 1,584,766)

(b) Disputed Income Tax matters Rs. 10,35,491/- (Previous Year Rs. 452,259)

(c) Disputed labour matter related to ex-workmen amount unascertainable.

(d) Disputed Claims Rs.13,961,019 (Previous Year Rs. Nil).

2. Commitments:

(a) Estimated amount of contract remaining to be executed and not provided for (net of advance, unsecured considered good), on capital account are Rs.17,681,198/- (net of advance of Rs..19,135,683);Previous Year Rs. 1,663,541 (net of advance of Rs. 10,726,459)

(b) In respect of long term investment made with private equity fund, the Company is further committed to invest Rs. 2403 lacs (Rs. 1041 lacs)

3. Secured Loans:

(a) Interest Rate on Working capital loans is Base Rate plus 2.75% per annum (Previous Year Base Rate plus 2.75% per annum) and non fund based limit utilised Rs. 58,816,947 (Previous Year Rs. 42,862,700) are secured by hypothecation of stocks and debtors and charge on immovable properties of Bhandara unit.

(b) Vehicle loans (repayable over a period of 1 to 4 years) are secured by way of hypothecation of vehicles purchase their against and carry Interest in the range of 9.80 % to 10.75% (Previous Year 9.80 % to 10.75%).

Unsecured Loans:

Interest free Sales tax Loans is repayable within 12 years.

4. (a) In the opinion of the Board, assets other than fxed assets and non-current investment have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for depreciation and other known liabilities is adequate and not in excess of what is required.

(b) The accounts of Trade receivable and payable and Loans and Advances are subject to formal confirmations / reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year''s financial statements due to the same.

5. Provision for current tax includes Rs. 5,30,000/- (Rs. 2,00,000/-) in respect of wealth tax.

6. Research and Development Expenditure

7. Disclosures as required by Accounting Standard-18,on"Related Party Disclosure" are given below:

(i) Associates / Joint Venture with whom transactions have been entered during the year in the ordinary course of the business:

Rasoi Ltd.

J L Morison (India) Ltd.

Pallawi Resources Ltd.

Pallawi Trading & Mfg. Co. Ltd.

Look Link Finance Ltd.

Noble Trading Co. Ltd.

Lotus Udyog Ltd.

Surdas Trading & Mfg. Co. Ltd.

Goodpoint Advisory Services and Investments Ltd.

Axon Trading & Mfg. Co. Ltd.

Silver Trading & Services Ltd.

Rasoi Express Pvt. Ltd.

Compo Advics (India) Pvt. Ltd. (Joint Venture)

(ii) Key Management Personnel:

Mr. Raghu Mody, Executive Chairman

Mr. Varunn Mody , Executive Director

Mr. P. K. Choudhary, Managing Director

Mr. Ramchandra Rao, Joint Managing Director (upto 1st July, 2013)

(iii) Relatives of Key Managerial Personnel :

Mrs. Sumitra Devi Mody (Wife of Mr Raghu Mody, Executive Chairman)

Mrs. Shashi Mody (Mother of Mr. Varunn Mody, Executive Director)

8. Previous year''s figures have been regrouped/reclassified whenever necessary to conform to current year''s classification. Figures in brackets pertain to previous years.


Mar 31, 2013

1. Contingent Liabilities not provided for in respect of :

(a) Certain Sales Tax matters, mainly on account of pending concession forms (excluding interest) Rs.1,584,766 (Rs. 1,641,654)

(b) Disputed Income Tax matters Rs.452,259 (Rs.400,113)

(c) Disputed labour matter related to ex-workmen amount unascertainable.

2. Commitments:

(a) Estimated amount of contract remaining to be executed and not provided for (net of advance, unsecured considered good), on capital account are Rs. 1,663,541 (net of advance Rs.10,726,459 ); Previous Year Rs. 2,361,610 (net of advance Rs. 38,383,390).

(b) In respect of long term investment made with private equity fund, the Company is further committed to invest Rs. 1041 lacs (Rs.890 lacs).

3. Secured Loans:

(a) Working capital loans (Interest @ base rate plus 2.75% per annum) and non fund based limit utilised Rs. 42,862,700 (Rs. 48,529,216) are secured by hypothecation of stocks and debtors and charge on immovable properties of Bhandara unit.

(b) Vehicle loans (repayable over a period of 1 to 4 years) are secured by way of hypothecation of vehicles purchase their against and carry Interest in the range of 9.80 % to 10.75%.

Unsecured Loans:

Interest free Sales tax Loans is repayable within 12 years.

4. (a) In the opinion of the Board, assets other than fixed assets and non-current investment have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for depreciation and other known liabilities is adequate and not in excess of what is required.

(b) The accounts of Trade receivable and payable and Loans and Advances are subject to formal confirmations / reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year''s financial statements due to the same.

5. The amount of exchange difference (net) credited to profit and loss account is Rs. 1,648,712 (Rs.1,427,385).

6. Provision for current tax includes Rs.2,00,000 (Rs.2,00,000) in respect of wealth tax.

7. Research and Development Expenditure

8. Disclosures as required by Accounting Standard-18,on"Related Party Disclosure" are given below:

(i) Associates with whom transactions have been entered during the year in the ordinary course of the business: Rasoi Ltd.

J. L. Morison (India) Ltd.

Pallawi Resources Ltd..

Pallawi Trading & Mfg. Co. Ltd.

Look Link Finance Ltd.

Noble Trading Co. Ltd.

Lotus Udyog Ltd.

Surdas Trading & Mfg. Co. Ltd.

Goodpoint Advisory Services and Investments Ltd.

Axon Trading & Mfg. Co. Ltd.

Silver Trading & Services Ltd.

Rasoi Express Pvt. Ltd.

(ii) Key Management Personnel:

Mr. Raghu Mody, Chairman

Mr. Varunn Mody, Executive Director

Mr. P. K. Choudhary, Managing Director

Mr. Ramchandra Rao, Joint Managing Director (w.e.f. 16th May, 2012)

(iii) Relatives of Key Managerial Personnel :

Mrs. Sumitra Devi Mody (Wife of Mr Raghu Mody, Chairman)

Mrs. Shashi Mody (Mother of Mr. Varunn Mody, Executive Director)

Mrs. Sakshi Mody (Wife of Mr. Varunn Mody, Executive Director)

9. The company is in process of making necessary applications to the Central Government for seeking waiver from excess managerial remuneration paid over and above the limit prescribed in Schedule XIII of Companies Act, 1956 amounting to Rs. 4,894,040.

10. Previous years'' figures have been regrouped/reclassified whenever necessary to conform to current years'' classification. Figures in brackets pertain to previous year.


Mar 31, 2012

1. Contingent Liabilities not provided for in respect of:

(a) Certain Sales Tax matters, mainly on account of pending concession forms (excluding interest) Rs.16,41,654 (Rs. 902,199)

(b) Disputed Income Tax matters Rs.400,113 (Rs.982,094)

(c) Disputed labour matter related to ex-workmen amount unascertainable.

2. Commitments:

(a) Estimated amount of contract remaining to be executed and not provided for (net of advance, unsecured considered good), on capital account are Rs. 2,361,610 (net of advance Rs. 38,383,390);Previous Year Rs. 11,699,390 (net of advance Rs. 187,805,100).

(b) In respect of long term investment made with private equity fund the Company is further committed to invest Rs.890 lacs (Rs.705 lacs)

3. Secured Loans:

(a) Working capital loans (Interest @ Base Rate plus 2.5% per annum) and non fund based limit utilised Rs. 48,529,216, (Rs. 33,794,937) are secured by hypothecation of stocks and debtors and charge on immovable properties of Bhandara unit.

(b) Vehicle loans (repayable over a period of 1 to 4 years) are secured by way of hypothecation of vehicles purchase are carriage Interest in the range of 9.80 % to 10.75%.

Unsecured Loans:

Interest free Sales tax Loans is repayable within 12 years.

4. (a) In the opinion of the Board, assets other than fixed assets and non-current investment have a valu on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

(b) The accounts of Trade receivable and payable and Loans and Advances are subject to formal confirmations / reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year's financial statements due to the same.

5. The amount of exchange difference (net) credited to profit and loss account is Rs. 1,427,385/- (Rs.756,162/-)

6. Segment Reporting:

Primary Business Segment: Comprises Purchase / Trading of Composites Product and Investment activities . These segments are the basis for management control and hence form the basis for reporting.

Secondary Business Segments: The Company operations are mainly based with in India accordingly there is no secondary segment.

7. Disclosures as required by Accounting Standard-18,on"Related Party Disclosure" are given below:

(i) Associates with whom transactions have been entered during the year in the ordinary course of the business: Rasoi Ltd.

J L Morison India Ltd.

Pallawi Resourcess ltd.

Paliawi Trading & Mfg. Co. Ltd.

Looklink Finance Ltd.

Noble Trading Co. Ltd.

Lotus Udyog Ltd.

Surdas Trading & Mfg. Co. Ltd.

Goodpoint Advisory Services and Investments Ltd.

Axon Trading & Mfg. Co. Ltd.

Silver Trading & Services Ltd.

(ii) Key Management Personnel:

Mr. R.N. Mody, Chairman

Mr. Varunn Mody, Executive Director

Mr. P. K. Choudhary, Managing Director

Mr. V.D. Ingle, Executive Director (Manufacturing)

Up to 25/05/2011

Mr. Vinay Sarin ,Executive Director (Marketing)

Up to 25/05/2011

(iii) Relatives of Key Managerial Personnel:

Mrs. Sumitra Devi Mody (Wife of Mr R.N .Mody, Chairman)

Mrs. Sakshi Mody

(Wife of Mr. Varunn Mody, Executive Director)

8. Previous years' figures have been regrouped/reclassified whenever necessary to conform to current years' classification. Figures in brackets pertain to previous year.


Mar 31, 2011

1. Contingent Liabilities not provided for in respect of:

(a) Certain Sales tax matters, mainly on account of pending concessional forms (excluding interest): Rs. 902,199 (Rs.1,237,750).

(b) Disputed Income Tax matters: Rs. 982,094 (Rs. 598,443 )

(c) Disputed demand of arrear wages related to ex-workmen amount unascertainable.

2. Estimated amount of contracts remaining to be executed and not provided for [Net of advances, unsecured, considered good], on capital account are Rs. 17,414,569 [(Net of advance Rs. 47,372,409), (Previous Year Rs. 65,845,278 ( Net of advances Rs. 2,34,03,812)]

3. Secured Loans:

a) Working Capital Loans and non fund based limit utilized amount Rs.33,794,937 ( Previous year Rs. 37 784,164 ) are secured by hypothecation of stocks & debtors and charge on immovable properties of Bhandara Unit.

b) Vehicle Loans are secured by way of hypothecation of motor vehicles purchased there against.

c) Rupee Term loan is secured by lien over Investment in 625 Bonds of 6.85% 22 JN 1411FCL of aggregate value Rs.63,594,358.

4. a) In the opinion of the Board, current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

b) The accounts of Sundry Debtors, Sundry Creditors and Loans and advances are, subject to confirmations/reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year's financial statements.

5. The amount of exchange difference (net) credited to the Profit and Loss Account is Rs.7,56,162 (Previous year Rs. 1,063,135).

6. During the year the company has reinstated the value of a residential premises at its original cost, which was revalued in an earlier year. It does not have any impact on the profit for the year.

7. a) During the year the Company has bought-back 577,000 Equity Shares for a total consideration of Rs. 316,050,861 . Consequently a sum of Rs.5,770,000 being an aggregate face value of bought back shares has been transferred to Capital Redemption Reserve from the General Reserve and the premium of Rs. 310,280,861 on buy back of shares has been adjusted against Securities Premium and General Reserve. Expenditure of Rs. 1,296,689 for such buy back has been disclosed as an exceptional item.

b) During the year, the company has sold entire fixed assetsof its Jalna Unit and resulted profit of Rs. 261 lacs has been shown as an exceptional item.

8. b) Provision for current tax includes Rs. 160,000 (Rs. 15,000) in respect of wealth Tax.

c) Provision for current tax is net of MAT credit for the year of Rs. NIL (Rs. 64,49,466)

9. Capacity/Production of Finished Goods:

Notes:

1. Licensed Capacity: De licensed

2. The installed capacities have been certified by the management and relied upon by the Auditors without verification, this being a technical matter.

* Including production for inter-unit use.

** Consequent to sale of Jalna unit in March.2011, the installed capcity have been shown as Nil/reduced.

10. Disclosures as required by Accounting Standard -18, on "Related Party Disclosure" are given below: List of Related Parties:(with whom the Company has entered into transaction during the year in the ordinary course of business.)

(i) Associates

Rasoi Ltd., JL Morison India Ltd., Pallawi ResourcessLtd., Rasoi Finance Ltd., Noble Trading Co. Ltd.

(ii) Key Management Personnel

Mr. R.N. Mody .Chairman

Mr. Varunn Mody, Director

Mr. P. K. Choudhary, Managing Director.

(iii) Relatives of Key Managerial Persons

Mrs. Sumitra Devi Mody (Wife of Mr R.N .Mody, Chairman)

11. In respect of properties taken/given by the Company, the lease agreements are mutually renewable /cancelable.

12. Figures of the previous year have been regrouped/rearranged/re-classified, wherever necessary to confirm to current year's presentation.

13. Figures in brackets pertains to the financial statements for the year ended 31 st March 2010. Signatures to Schedules 1 to 19 which form an integral part of the financial statements.


Mar 31, 2010

1. Contingent Liabilities not provided for in respect of:

(a) Certain Sales tax matters, mainly on account of pending concessional forms (excluding interest): Rs.1,237,750 (Rs. 1,387,750).

(b) Disputed Income Tax matters:Rs.4,032,148 (Rs.2,889,059).

2. Estimated amount of contracts remaining to be executed and not provided for [Net of advances, unsecured, considered good, on capital account of Rs.4,324,875(Rs.Nil)]Rs. 11,334,028 (Rs .Nil) and on investment account Rs. 19,078,937 (Rs.Nil) Rs. 54,511,250 (Nil)

3. Loan from Banks:

a) Working Capital Loans and non fund based limit utilized amount Rs. 37,784,164 ( Previous year Rs. 27,624,077) are secured by hypothecation of stocks & debtors and charge on immovable properties of Bhandara Unit.

b) Housing Term Loans are secured against equitable mortgage of Two residential flat and an office premises situated at Mumbai.

c) Vehicle Loans are secured by way of hypothecation of motor vehicles purchased there against.

d) Temporary overdraft is secured by lien on fixed deposit with bank.

4. a) In the opinion of the Board, current assets, loans and advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

b) The accounts of Sundry Debtors, Sundry Creditors and Loans and advances are, subject to confirmations/reconciliation and adjustments, if any. The management does not expect any material difference affecting the current years financial statements.

5. The amount of exchange difference (net) credited to the Profit and Loss Account is Rs.1,039,607 (Previous year credited Rs.1,063,135).

(c) The remuneration paid to Executive Director- Marketing and Executive Director Manufacturing for the period from 9 th August, 2009 to 31st March, 2010 aggregating to Rs. 8,65,548 each respectively is subject to the approval of the shareholders in the forthcoming Annual General Meeting.

Notes:

1. Licensed Capacity: Delicensed

2. The installed capacities have been certified by the management and relied upon by the Auditors without verification, this being a technical matter.

* Including production for inter-unit use.

Note: The information has been given in respect of such vendors to the extent they could be identified as "Micro and Small enterprises" on the basis of information available with Company.

6. Segment reporting:

The Company is in the business of manufacturing Fibre based composite materials used for Automotive, Rail and Industrial applications and all its products fall in the same segment as nature of the products, production process, methods used for distribution, the regulatory environment and the resulting risks and rewards associated with these business lines are not materially different and is, consequently, not subject to business segment reporting.

7. Disclosures as required by Accounting Standard -18, on "Related Party Disclosure" are given below:

List of Related Parties:(with whom the Company has entered into transaction during the year in the ordinary course of business.)

(i) Associates

- Rasoi Ltd., JLMorison(lndia)Ltd., Rasoi Express Pvt. Ltd., Pallawi Resources Ltd., Rasoi Finance Ltd.

(ii) Key Management Personnel

- Mr. Raghu Mody, Chairman

- Mr. Varunn Mody, Director

- Mr. P. K. Choudhary, Managing Director.

- Mr. V.D. Ingle, Executive Director (Manufacturing)

- Mr. Vinay Sarin, Executive Director (Marketing.)

(iii) Relatives of Key Managerial Persons

- Mrs. Sumitra Devi Mody (Wife of Mr Raghu Mody, Chairman) The details of Transactions are:

Notes:

i) No amount pertaining to related parties has been provided for as doubtful debts. Also, no amount has been written off/back.

ii) Details relating to investments in the above related parties have been disclosed in Schedule 6:- Investments.

iii) The related parties are as identified by the Company and relied upon by the Auditors.

8. In respect of properties taken/given by the Company, the lease agreements are mutually renewable /cancelable.

9. Figures of the previous year have been regrouped/rearranged/re- classified, wherever necessary to conform to current years presentation.

10. Figures in brackets pertains to the financial statements for the year ended 31s1 March 2009.

 
Subscribe now to get personal finance updates in your inbox!