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Notes to Accounts of Hindustan Hardy Spicer Ltd.

Mar 31, 2015

1) Terms and rights attached to Equity Share.

The company has only one class of Equity share having a Par Value of Rs.10/- each. Each holder of equity share is entitled for one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to approval by the share holders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holder 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.

2) From State Bank of India

I) Term loan of Rs. 1.00 Crore from State Bank of India was sanctioned on 16/04/14 for a period of 5 years. Current EMI per month is Rs. 1.67 Lacs.

Note : Secured against Registered Mortgage on Factory land & building situated at C12, M.I.D.C., Ambad, Nashik-422010

a) Estimated amounts of contracts remaining to be executed on capital account but not provided Rs. 61.25 (Previous year Rs. 3.17).

b) For Income Tax (Disputed at various higher authorities) Rs. 64.45 (Previous year-64.45)

3) The company is in process of compiling the data of suppliers which are covered under the "Micro, Small & Medium Enterprises Development Act, 2006". Hence the details pertaining to that are not disclosed separately. However, Out of the total Trade payables Rs. 507.93 lacs ( Previous Year Rs. 490.54 lacs ) are due to Small Scale Industrial Units. No amount is outstanding for more than 30 days with SSI Units. Information regarding small scale industrial undertakings has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors.

The Company has single scheme for payment of gratuity to all eligible employees calculated at 15 days of last drawn Salary, depending upon tenure of service for each year of completed service, subject to minimum service of five years, payable at the time of separation upon superannuation or on exit otherwise.

(i) In respect of Defined contribution schemes-

a) The Company contributes 12% of Salary for all eligible employees towards Provident Fund managed by the Central Government.

b) The Company also contributes a certain percentage of Salary for all eligible employees in managerial cadre towards Superannuation Funds managed by approved trusts or by Life Insurance Corporation of India.

4) Segment Information:

a) Primary Segment:

The Company is exclusively engaged in the business of designing and manufacturing of propeller Shafts and other accessories required for automotive, industrial and other applications. These in the context of Accounting Standard 17 on Segment Reporting issued by the Institute of Chartered Accountants of India, are considered to constitute one single primary segment.

5) Consequent to enactment of Companies Act,2013(the Act) and its applicability for accounting periods commencing from 01-04-2014, the company has recalculated the remaining useful life of Fixed Assets in accordance with provisions to Schedule II to the Act. In case of Fixed Assets which have completed their useful life in terms of Schedule II of the Act the carrying value (net of residual value)of such assets as on 1st April 1st, 2014 has been adjusted to Retained Earnings and in case of other fixed assets the carrying value (net of residual value) is being depreciated as per straight line method over the re-calculated remaining useful life. The depreciation expenses charged for the year ended 31st March, 2015 is higher by Rs.157.93 lacs, had the company continued with the previously prescribed depreciation rates as per Schedule XIV of the companies act, 1956.

6) Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2014

1. Previous years figures have been regrouped wherever necessary to conform with current year''s classification.

2) Contingent Liabilities & Commitments not Provided For :

a) Estimated amounts of contracts remaining to be executed on capital account but not provided Rs. 3.17 Lacs ( Previous year Rs. 3.13 Lacs )

b) For Income Tax (Disputed at various higher authorities) Rs. 64.45 Lacs ( Previous year - NIL )

3) The company is in process of compiling the data of suppliers which are covered under the

"Micro, Small & Medium Enterprises Development Act, 2006". Hence the details pertaining to that are not disclosed separately. However, Out of the total Trade payables Rs. 490.54 lacs ( Previous Year Rs. 588.49 lacs ) are due to Small Scale Industrial Units. No amount is outstanding for more than 30 days with SSI Units . Information regarding small scale industrial undertakings has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors.

4) Deferred Tax

The Company has accounted for Deferred Tax in accordance with Accounting Standard- 22 " Accounting for Taxes on Income " issued by the Institute of Charterd Accountants of India. The Deferred Tax during the year for Timing difference is accounted using tax rates that have been enacted, the net difference arising thereon is debited to the Profit & Loss Account. The break up of net deferred tax Liability as on 31st March 2014 is as under :

The Company has single scheme for payment of gratuity to all eligible employees calculated at 15 days of last drawn Salary, depending upon tenure of service for each year of completed service, subject to minimum service of five years, payable at the time of separation upon superannuation or on exit otherwise.

(ii) In respect of Defined contribution schemes -

a) The Company contributes 12% of Salary for all eligible employees towards Provident Fund managed by the Central Government.

b) The Company also contributes a certain percentage of Salary for all eligible employees in managerial cadre towards Superannuation Funds managed by approved trusts or by Life Insurance Corporation of India.

5) Segment Information :

a ) Primary Segment :

The Company is exclusively engaged in the business of designing and manufacturing of propeller Shafts and other accessories required for automotive, industrial and other applications. These in the context of Accounting Standard 17 on Segment Reporting issued by the Institute of Chartered Accountants of India, are considered to constitute one single primary segment.

6) Details of provisions and movements in each class of provisions as required by the Accounting Standard on Provisions, Contingent Liabilities and Contingent Assets

7) Directors'' Remuneration :

i) As employee wise break-up of contribution to gratuity fund is not ascertainable, the same has not been included in the above figure.

ii) Remuneration of Rs.18.00 Lacs paid to Chairman Mr. S.C.Saran is as per approval of Central Government

8) The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2013

1) Contingent Liabilities & Commitments not Provided For:

a) Estimated amounts of contracts remaining to be executed on capital account but not provided Rs. 3.13 Lacs (Previous year Rs. 114.51 Lacs)

b) For Income Tax (Disputed at various higher authorities) Rs. 43.81 Lacs (Previous year-NIL)

2) The company is in process of compiling the data of suppliers which are covered under the "Micro, Small & Medium Enterprises Development Act, 2006". Hence the details pertaining to that are not disclosed separately. However, Out of the total Trade payables Rs. 588.49 lacs (Previous Year Rs. 435.47 lacs ) are due to Small Scale Industrial Units. No amount is outstanding for more than 30 days with SSI Units. Information regarding small scale industrial undertakings has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors.

3) Deferred Tax

The Company has accounted for Deferred Tax in accordance with Accounting Standard- 22 "Accounting for Taxes on Income "issued by the Institute of Charterd Accountants of India. The Deferred Tax during the year for Timing difference is accounted using tax rates that have been enacted, the net difference arising thereon is debited to the Profit & Loss Account. The break up of net deferred tax Liability as on 31 st March 2013 is as under:

The Company has single scheme for payment of gratuity to all eligible employees calculated at 15 days of last drawn Salary, depending upon tenure of service for each year of completed service, subject to minimum service of five years, payable at the time of separation upon superannuation or on exit otherwise.

(i) In respect of Defined contribution schemes -

a) The Company contributes 12% of Salary for all eligible employees towards Provident Fund managed by the Central Government.

b) The Company also contributes a certain percentage of Salary for all eligible employees in managerial cadre towards Superannuation Funds managed by approved trusts or by Life Insurance Corporation of India.

4) Segment Information:

a) Primary Segment:

The Company is exclusively engaged in the business of designing and manufacturing of propeller Shafts and other accessories required for automotive, industrial and other applications. These in the context of Accounting Standard 17 on Segment Reporting issued by the Institute of Chartered Accountants of India, are considered to constitute one single primary segment.

b) Secondary Segment:

(Figures in brackets relate to previous year)

Two secondary segments have been identified based on geographical locations of Customers.

5) The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2012

1.1) Terms and rights attached to Equity Share.

The company has only one class of Equity share having a Par Value of Rs.10/- each. Each holder of equity share is entitled for one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to approval by the share holders in the ensuring Annual General Meeting.

In the event of liquidation of the company, the holder 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.

2.1 From State Bank of India

1) Term loan of Rs. 2.00 Crore from State Bank of India was sanctioned on 01/08/11 for a period of 5 years. Current EMI per month is Rs. 4.70 Lacs.

2) Term loan of Rs.1.80 Crore from State Bank of India was sanctioned on 27/09/2008 for a period of 6 years. Current EMI per month is Rs. 4.15 Lacs.

Note : Secured against Registered Mortgage on Factory land & building situated at C12,MIDC, Ambad, Nashik-422010

2.2 From ICICI Bank

1) Term loan for car of Rs. 7.00 Lacs from ICICI Bank was sanctioned on 15/05/2011for a period of 3 years. Current EMI per month is Rs. 0.23 Lacs

3) Contingent Liabilities & commitments Not Provided For :

a) Estimated amounts of contracts remaining to be executed on capital account but not provided Rs.114.51Lacs ( Previous year Rs.- 5.10 Lacs )

b) For Income Tax (Disputed at various higher authorities)

Rs. Nil ( Previous year12.69 Lacs)

The item "Spare Parts" in paragraph 4D (ii) of Schedule VI of the Companies Act,1956 is interpreted to mean components used in the manufacture of finished products or sold as such and not spare parts used for repairs and maintenance of machinery.

4) The company is in process of compiling the data of suppliers which are covered under the Micro, Small & Medium Enterprises Development Act, 2006". Hence the details pertaining to that are not disclosed seperately. However, Out of the total Trade payables Rs.435.47 lacs ( Previous Year Rs.293.74 lacs) are due to Small Scale Industrial Units. No amount is outstanding for more than 30 days with SSI Units. Information regarding small scale Industrial undertakings has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors.

5) Deferred Tax

The Company has accounted for Deferred Tax in accordance with Accounting Standard- 22 " Accounting for Taxes on Income " issued by the Institute of Charterd Accountants of India. The Deferred Tax during the year for Timing difference is accounted using tax rates that have been enacted, the net difference arising thereon is debited to the Profit & Loss Account. The break up of net deferred tax Liability as on 31st March 2012 is as under :

The Company has single scheme for payment of gratuity to all eligible employees calculated at 15 days of last drawn Salary, depending upon tenure of service for each year of completed service, subject to minimum service of five years, payable at the time of seperation upon superannuation or on exit otherwise.

(ii) In respect of Defined contribution schemes -

a) The Company contributes 12% of Salary for all eligible employees towards Provident Fund managed by the Central Government.

b) The Company also contributes a certain percentage of Salary for all eligibe employees in managerial cadre towards Superannuation Funds managed by approved trusts or by Life Insurance Corporation of India.

6) Segment Information :

a ) Primary Segment :

The Company is exclusively engaged in the business of designing and manufacturing of propeller Shafts and other accessories required for automotive, industrial and other applications. These in the context of Accounting Standard 17 on Segment Reporting issued by the Institute of Chartered Accountants of India, are considered to constitute one single primary segment.

Note

i) As employee wise break-up of contribution to gratuity fund is not ascertainable, the same has not been included in the above figure.

ii) Remuneration of Rs.18.00 Lacs paid to Chairman Mr. S.C.Saran is as per approval of Central Government.

7) The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2011

1) Contingent Liabilities Not Provided For :

a) Estimated amounts of contracts remaining to be executed on capital account but not provided Rs.5.10 Lacs( Previous year- Rs.1.90)

b) For Income Tax (Disputed at various higher authorities) Rs. 12.69 Lacs

2) Computation of Profit for the year ended 31 March, 2011 Under Section 349/350 of the Companies Act, 1956 read with section 198 of the Act:

As there is inadequate profit as per section 198 of the companies Act, 1956 , no commission is payable to the director.

Note:

i) As employee wise break-up of contribution to gratuity fund is not ascertainable, the same has not been included in the above figure. ii) Remuneration of Rs.18.00 Lacs paid to Chairman Mr. S.C.Saran is as per the approval of Central Government.

3) The company is in process of compiling the data of suppliers which are covered under the Micro, Small & Medium Enterprises Development Act, 2006. Hence the details pertaining to that are not disclosed seperately. However, Out of the total Sundry Creditors,Rs.293.74 lacs (Previous Year Rs. 188.74 lacs) are due to Small Scale Industrial Units. No amount is outstanding for more than 30 days with SSI Units. Information regarding small scale industrial undertakings has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors.

4) Deferred Tax

The Company has accounted for Deferred Tax in accordance with Accounting Standard -22 "Accounting for Taxes on Income" issued by the Institute of Charterd Accountants of India.

The Deferred Tax during the year for Timing difference is accounted using tax rates that have been enacted, the net difference arising thereon is debited to the Profit & Loss Account.

The break up of net deferred tax Liability as on 31st March 2011 is as under:

5) Gratuity

i) Disclosure as required by Accounting Standard 15 (Revised) on Employee Benefits:- In respect of gratuity, a defined benefit scheme (based on Actuarial Valuation)-

The Company has single scheme for payment of gratuity to all eligible employees calculated at 15 days of last drawn Salary, depending upon tenure of service for each year of completed service, subject to minimum service of five years, payable at the time of seperation upon superannuation or on exit otherwise.

ii) In respect of Defined contribution schemes -

a) The Company contributes 12% of Salary for all eligible employees towards Provident Fund managed by the Central Government.

b) The Company also contributes a certain percentage of Salary for all eligibe employees in managerial cadre towards Superannuation Funds managed by approved trusts or by Life Insurance Corporation of India.

6) Segment Information :

a) Primary Segment:

The Company is exclusively engaged in the business of designing and manufacturing of propeller Shafts and other accessories required for automotive,industrial and other applications.These in the context of Accounting Standard 17 on Segment Reporting issued by the Institute of Chartered Accountants of India, are considered to constitute one single primary segment.

b) Secondary Segment: (Figures in brackets relate to previous year)

Two secondary segments have been identified based on geographical locations of customers,

7) Previous years figures have been regrouped and recast wherever considered necessary.


Mar 31, 2010

1) Contingent Liabilities Not Provided For:

a) Estimated amounts of contracts remaining to be executed on capital account but not provided Rs. 1.90 Lacs (Previous year- Nil)

b) For Income Tax (Disputed at various higher authorities) Rs. 13.35 Lacs

2) Computation of Profit for the year ended 31 March, 2010 Under Section 349/350 of the Companies Act, 1956 read with section 198 of the Act:

3) The company is in process of compiling the data of suppliers which are covered under the Micro, Small & Medium Enterprises Development Act, 2006". Hence the details pertaining to that are not disclosed seperately. However, Out of the total Sundry Creditors.Rs.188.74 lacs (Previous Year Rs. 98.40 lacs) are due to Small Scale Industrial Units. No amount is outstanding for more than 30 days with SSI Units. Information regarding small scale industrial undertakings has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors.

4) Deferred Tax

The Company has accounted for Deferred Tax in accordance with Accounting Standard -22 "Accounting for Taxes on Income" issued by the Institute of Charterd Accountants of India.

The Deferred Tax during the year for Timing difference is accounted using tax rates that have been enacted, the net difference arising thereon is debited to the Profit & Loss Account.

ii) In respect of Defined contribution schemes-

a) The Company contributes 12% of Salary for all eligible employees towards Provident Fund managed by the Central Government.

b) The Company also contributes a certain percentage of Salary for all eligibe employees in managerial cadre towards Superannuation Funds managed by approved trusts or by Life Insurance Corporation of India.

c) In the past the company had estimated the total gratuity liability on actual basis by debiting to Profit & Loss account. As there is reduction in the Gratuity Liability calculated on actual basis, during the current year the same has been credited to Profit & Loss account under Schedule 17.

5) Segment Information :

a) Primary Segment:

The Company is exclusively engaged in the business of designing and manufacturing of propeller Shafts and other accessories required for automotive,industrial and other applications.These in the context of Accounting Standard on Segment Reporting issued by the Institute of Chartered Accountants of India, are considered to constitute one single primary segment.

6) Previous years figures have been regrouped and recast wherever considered necessary.

 
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