Home  »  Company  »  I P Rings Ltd.  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of I P Rings Ltd.

Mar 31, 2014

Rs in Lakhs 2014 2013 1. The factory land at C-15/3 Maraimalai Nagar for expansion activities was in Lakhs) acquired from Chennai Metropolitan Development Authority (CMDA), under Lease-Cum-Sale Agreement for a total consi- deration of Rs. 13.23 Lakhs. The title for the land will be transferred by CMDA, after completion of one year of commencement of commercial production and completion of 8 years of lease period. Discussions are in progress with CMDA regarding the compliance of the conditions for transfer of land to the company.

2. Contingent liability exists in respect of

(a) Bills Discounted 461.60 527.44

(b) Outstanding Letters of Credit 237.87 45.75

(c) Bank Guarantees 1.00 1.00

(d) Income Tax / Sales Tax matters under appeal 579.58 279.60 (Amounts remitted against the disputed tax upto March 2014 - Rs.106.57 lakhs and included in advance tax under the schedule Loans and Advances -Schedule 12)

(e) The Company had imported Plant and Machinery (Capital Goods) in the earlier years at concessional rate of duty under the Export Promotion Capital Goods Scheme. The Export Obligation to be met in this regard by the Company / Group Company, as per the Scheme before 2014-15 amounts to Rs. 2712.91 Lakhs. The Company / Group Company has met obligation to the extent of Rs.1767.76 lakhs by March 2014.

The Company has to meet the export obligation to the extent of Rs 945.15 lakhs by August 2014. The EPCG Regulation provides for seeking extension of obligation period. However, in case of non-fulfillment of export obligation, unless the period is extended, liability to pay the proportionate duty saved along with interest will arise.

(f) Claims due from custom authorities 32.49 8.28

3. Estimated value of contracts on Capital Account not provided for (net of advances) 292.63 202.06

4. Figures for the previous year have been regrouped / reclassified wherever necessary to make them comparable with current year figures.

5. Figures are rounded off to the nearest Rupee.

6. Employee Benefits under Accounting Standard - 15 (Revised)

Defined Contribution Plan

Contribution to Defined Contribution Plan, are charged off for the year as under

Employer''s Contribution to Provident Fund - Rs. 46,79,399

Employer''s Contribution to Superannuation Fund - Rs.16,71,088

Employer''s Contribution to Employees State Insurance - Rs.10,67,911

Defined Benefit Plan

Gratuity

The Company operates gratuity plan through Life Insurance Corporation of India. Every employee is entitled to the benefit equivalent to fifteen days salary last drawn for each completed year of service depending on the date of joining, subject to a maximum of Rs.10,00,000/-, except in the case of Managing Director and Whole Time Director where there is no maximum limit. The benefit vests after five years of continuous service. The present value of obligation is determined based on actuarial valuation.

Leave Salary Encashment

Eligible employees can carry forward and encash leave on superannuation or death or permanent disablement subject to a maximum accumulation of 120 days except in the case of Managing Director where there is no limit to maximum accumulation. The present value of obligation is determined based on actuarial valuation.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

7. Segment Reporting under Accounting Standard - 17

The Company operates in a single primary business segment namely, manufacture of Auto Component - Piston Rings, Toolings, Differential Gears, Pole Wheel and other Transmission Components. Hence no separate disclosure is required.

8. Related Party Disclosures under Accounting Standard - 18

Names of Related Parties and description of relationship:

Holding Company : Amalgamations Private Ltd.,

Subsidiaries : NIL

Fellow Subsidiaries :

Simpson & Company Ltd., Addison & Company Ltd., Amco Batteries Ltd., George Oakes Ltd., India Pistons Ltd., IP Pins & Liners Ltd., Shardlow India Ltd., Simpson & General Finance Company Ltd., Sri Rama Vilas Service Ltd., Tractors & Farm Equipment Ltd., TAFE International Traktor Ve Tarim Ekipmani Sanayi Ve Ticaret Ltd., Sirketi TAFE Access Ltd., Southern Tree Farms Ltd., TAFE USA Inc, T.Stanes & Company Ltd., Stanes Motors (South India) Ltd., Stanes Agencies Ltd., Wheel & Precision Forgings India Ltd., Associated Printers (Madras) Pvt Ltd., Associated Publishers (Madras) Pvt Ltd., Higginbothams Pvt Ltd., The Madras Advertising Company Pvt Ltd., Speed-A-Way Pvt Ltd., Bimetal Bearings Ltd., Amalgamations Repco Ltd., Stanes Amalgamated Estates Ltd., Stanes Motor Parts Ltd., Wallace Cartwright & Company Ltd., London, W.J.Groom & Company Ltd., London, L.M.Van Moppes Diamond Tools India Pvt Ltd., BBL Daido Pvt Ltd., TAL Precision Parts Ltd., TAFE Reach Ltd., TAFE Motors & Tractors Limited, Alpump Limited, IPL Engine Components Pvt Ltd., Tafe Tractors Changshu Company Limited, China

Associates : NIL

Key Management Personnel (Whole Time Directors) :

Mr. A. Venkataramani, Dr. N. Gowrishankar (upto May 2013)

Relatives of Key Management Personnel :

Mr. N. Venkataramani, Mrs. Sita Venkataramani, Mr. Gautam Venkataramani

This disclosure is being made pursuant to the requirement of the guidelines published by the Department of Scientific and Industrial Research (Ministry of Science & Technology) with regard to the approval of Research and Development expenditure U/s.35 (2AB) of the Income Tax Act, 1961.


Mar 31, 2013

1 Contingent liability exists in respect of

(a) Bills Discounted 527.44 871.83

(b) Outstanding Letters of Credit 45.75 98.03

(c) Bank Guarantees 1.00 2.71

(d) Income Tax / Sales Tax matters under appeal 279.60 279.60

(Amounts remitted against the disputed tax upto March 2013 - Rs.106.57 lakhs and included in advance tax under the schedule Loans and Advances Schedule 12)

(e) The Company had imported Plant and Machinery (Capital Goods) in the earlier years at concessional rate of duty under the Export Promotion.

Capital Goods Scheme. The Export Obligation to be met in this regard by the Company / Group Company, as per the Scheme before 2014-15 amounts to Rs. 2712.91 Lakhs. The Company / Group Company has met obligation to the extent of Rs..1767.37 lakhs by March 2013. The Company has to meet the export obligation to the extent of Rs..945.54 lakhs by August 2014. The EPCG Regulation provides for seeking extension of obligation period. However, in case of non-ful filaments of export obligation, unless the period is extended, liability to pay the proportionate duty saved along with interest will arise.

2. Estimated value of contracts on Capital Account not provided for (net of advances) 202.06 704.85

3. Figures for the previous year have been regrouped / reclassified wherever necessary to make them comparable with current year figures.

*This includes 39,32,294 nos. (27,47,369 for 2011-12) of piston rings for the purpose of making into sets and piston pins 8,70,746 nos. purchased from outside.

The said amount of Rs.1,32,70,819/- is in excess of the limits of overall Managerial Remuneration U/s.198(1) of the Companies Act, 1956. This payment is subject to the approval of the Shareholders and the Central Government. The approval for the years 2010-11 & 2011-12 are awaited from the Central Govt.

The Company operates gratuity plan through Life Insurance Corporation of India. Every employee is entitled to the benefit equivalent to fifteen days salary last drawn for each completed year of service depending on the date of joining, subject to a maximum of Rs.10,00,000/-, except in the case of Managing Director and Whole Time Director where there is no maximum limit. The benefit vests after five years of continuous service. The present value of obligation is determined based on actuarial valuation.

Leave Salary Encashment

Eligible employees can carry forward and encase leave on superannuation or death or permanent disablement subject to a maximum accumulation of 120 days except in the case of Managing Director where there is no limit to maximum accumulation. The present value of obligation is determined based on actuarial valuation.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

4. Segment Reporting under Accounting Standard -17 The Company operates in a single primary business segment namely, manufacture of Auto Component - Piston Rings, Differential Gears, Pole Wheel and other Transmission Components. Hence no separate disclosure is required. This disclosure is being made pursuant to the requirement of the guidelines published by the Department of Scientific and Industrial Research (Ministry of Science & Technology) with regard to the approval of Research and Development expenditure U/s.35 (2AB) of the Income Tax Act, 1961.


Mar 31, 2012

1. NOTES ON ACCOUNTS 2012 2011

(Rs. in Lakhs)

1. The factory land at C-15/3 Maraimalai Nagar for expansion activities was acquired from C.M.D.A., under Lease-Cum-Sale Agreement for a total consideration of Rs 13.23 Lakhs. The title for the land will be transferred by C.M.D.A., after completion of one year of commencement of commercial production and completion of 8 years of lease period. Discussions are in progress with CMDA regarding the compliance of the conditions for transfer of land to the company.

2 Contingent liability exists in respect of

(a) Bills Discounted 871.83 1,128.37

(b) Outstanding Letters of Credit 98.03 191.86

(c) Bank Guarantees 2.71 2.71

(d) Income Tax / Sales Tax matters under appeal 279.56 236.40 (Amounts remitted against the disputed tax upto March 2012 - Rs106.57 lakhs and included in advance tax under the schedule Loans and Advances - Schedule 8)

(e) The Company had imported Plant and Machinery (Capital Goods) in the earlier years at concessional rate of duty under the Export Promotion Capital Goods Scheme. The Export Obligation to be met in this regard by the Company / Group Company, as per the Scheme before 2014-15 amounts to Rs 2712.91 Lakhs. The Company / Group Company has met obligation to the extent of Rs1237.74 lakhs by March 2012.

The company had obtained extension for fullfillment of obligation to the extent of Rs 265.81 lakhs to be met by March 2014.

The Company has to meet the export obligation to the extent of Rs 1069.28 lakhs by August 2012. and the balance Rs.140 lakhs before August 2014. The EPCG Regulation provides for seeking extension of obligation period. However, in case of non-fulfillment of export obligation, unless the period is extended, liability to pay the proportionate duty saved along with interest will arise.

3.Estimated value of contracts on Capital Account not provided for (net of advances ) 704.85 967.86

4.Figures for the previous year have been regrouped / reclassified wherever necessary to make them comparable with current year figures.

5. Figures are rounded off to the nearest Rupee.

6. Employee Benefits under Accounting Standard - 15 (Revised)

Defined Contribution Plan

Contribution to Defined Contribution Plan, are charged off for the year as under

Employer's Contribution to Provident Fund - Rs 38,73,560

Employer's Contribution to Superannuation Fund - Rs 8,11,164

Employer's Contribution to Employees State Insurance - Rs 18,36,112

Defined Benefit Plan

Gratuity

The Company operates gratuity plan through Life Insurance Corporation of India. Every employee is entitled to the benefit equivalent to fifteen days salary last drawn for each completed year of service depending on the date of joining, subject to a maximum of Rs 10,00,000/-, except in the case of Managing Director and Whole Time Director where there is no maximum limit. The benefit vests after five years of continuous service. The present value of obligation is determined based on actuarial valuation.

Leave Salary Encashment

Eligible employees can carry forward and encash leave on superannuation or death or permanent disablement subject to a maximum accumulation of 120 days except in the case of Managing Director where there is no limit to maximum accumulation. The present value of obligation is determined based on actuarial valuation.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

7. Segment Reporting under Accounting Standard - 17

The Company operates in a single primary business segment namely, manufacture of Auto Components - Piston Rings, Differential Gears, Pole Wheel and other Transmission Components. Hence no separate disclosure is required.


Mar 31, 2011

1. Defined Benefit Plan / Other long term employee benefits

(a) The Companys Gratuity and Long-Term compensated absences are Defined Benefit Plans / other long term employee benefits respectively. The Companys liability towards Gratuity are determined using the Projected Unit Credit Method which recognises each period of service as giving rise to additional unit of Employee Benefit Entitlement. The Gratuity scheme is operated through Group Gratuity Scheme of LIC.

(b) The Gratuity liabilities are provided based on Actuarial Valuation certified by LIC. Actuarial gains and losses are charged to Profit and Loss account.

(c) Long term compensated absences are provided for based on independent Actuarial valuation. Actuarial gains and losses are charged to Profit and Loss account.

2. Short term employee benefits are recognised as an expense at the undiscounted amount in the year in which the employee render the services/vesting period of the benefit.

3. Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

4. Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

5. Product Warranty Expenses

Product Warranty expenses are accounted based on the claims received and accepted during the year and estimates in accordance with the warranty policy of the company.

6 Contingent liability exists in respect of

(a) Bills Discounted 1,128.37 306.62

(b) Outstanding Letters of Credit 191.86 99.32

(c) Bank Guarantees 2.71 2.50

(d) Income Tax / Sales Tax matters under appeal (Amounts remitted 236.40 209.24 against the disputed tax upto March11 - Rs. 96.57 lakhs and included in advance tax under the schedule Loans and Advances -Schedule 8)

(e) The Company had imported Plant and Machinery (Capital Goods) in the earlier years at concessional rate of duty under the Export Promotion Capital Goods Scheme. The Export Obligation to be met in this regard by the company / group company, as per the Scheme between 2007-08 to 2014-15 amounts to Rs. 2713.11 Lakhs. The company / group company has to meet the obligations to the extent of Rs. 1216.65 lakhs by August 2010. Toward this the Company/ Group Company had met the obligations to the extent of Rs. 1161.44 lakhs as at the Balance Sheet date. The company had also obtained extension for fulfilment of the balance of Rs. 55.21 lakhs till June 2012. The Company has to meet the export obligation to the extent of Rs. 1411.60 lakhs by August 2012 and balance
7. Sundry Creditors

(a) In terms of the Micro, Small and Medium Enterprises Development Act, 2006, the company during the year had settled the bills to the units covered by the above Act within 45 days. The bills outstanding at the Balance Sheet date are less than 45 days.

8. Figures for the previous year have been regrouped / reclassified wherever necessary to make them comparable with current year figures.

9. Figures are rounded off to the nearest Rupee.


Mar 31, 2010

1. Contingent liability exists in respect of

(a) Bills Discounted 306.62 250.00 (b) Outstanding Letters of Credit 99.32 561.16 (c) Bank Guarantees 2.50 1.00 (d) Income Tax matters under appeal 209.24 204.21

(Amounts remitted against the disputed tax upto March 2010 - Rs.95.88 lakhs and included in advance tax under the Schedule Loans and Advances - Schedule No.8)

(e) The Company had imported Plant and Machinery (Capital Goods) in the earlier years at concessional rate of duty under the Export Promotion Capital Goods Scheme. The Export Obligation to be met in this regard by the company / group company, as per the Scheme between 2007-08 to 2014-15 amounts to Rs.2713.11 Lakhs. The company / group company has to meet the obligations to the extent of Rs.1216.65 lakhs by June 2010.Towards this the Company / Group Company had met the obligations to the extent of Rs. 1121.10 lakhs as at the Balance Sheet date. The EPCG regulation provides for seeking extension of obligation period. However, in case of non-fulfillment of export obligation, unless the period is extended, liability to pay the proportionate duty saved along with interest will arise.

2. Figures for the previous year have been regrouped / reclassified wherever necessary to make them comparable with current year figures

3. Figures are rounded off to the nearest Rupee

4. Employee Benefits under Accounting Standard -15 (Revised) Defined Contribution Plan Contribution to Defined Contribution Plan, are charged off for the year as under Employers Contribution to Provident Fund - Rs.31,11,573/- Employers Contribution to Superannuation Fund - Rs.9,57,924/- Employers Contribution to Employees State Insurance - Rs.4,14,622/-

Defined Benefit Plan

Gratuity

The Company operates gratuity plan through Life Insurance Corporation of India. Every employee is entitled to the benefit equivalent to fifteen days salary last drawn for each completed year of service depending on the date of joining, subject to a maximum of Rs.3,50,000/-, except in the case of Managing Director where there is no maximum limit. The benefit vests after five years of continuous service. The present value of obligation is determined based on actuarial valuation.

Leave Salary Encashment

Eligible employees can carry forward and encash leave on superannuation or death or permanent disablement subject to a maximum accumulation of ays except in the case of Managing Director where there is no limit to maximum accumulation. The present value of obligation is determined based on actuarial valuation.

5. Segment Reporting under Accounting Standard - 17

The Company operates in a single primary business segment namely, manufacture of Auto Component- Piston Rings, Differential Gears, Pole Wheel and other Transmission Components. Hence no separate disclosure is required.

6. Related Party Disclosures under Accounting Standard - 18

Names of Related Parties and description of relationship: Holding Company Amalgamations Private Ltd., Subsidiaries NIL Fellow Subsidiaries

Simpson & Company Ltd, Addison & Company Ltd, Addisons Paints & Chemicals Ltd, Amco Batteries Ltd, George Oakes Ltd, India Pistons Ltd, IP Pins & Liners Ltd, Shardlow India Ltd, Simpson & General Finance Company Ltd, Sri Rama Vilas Service Ltd, Tractors & Farm Equipment Ltd, TAFE International LLC, TAFE Access Ltd, Southern Tree Farms Ltd, TAFE USA Inc, T.Stanes & Company Ltd, Stanes Motors (South India) Ltd, Stanes Agencies Ltd, Wheel & Precision Forgings India Ltd, Associated Printers (Madras) Pvt Ltd, Associated Publishers (Madras) Pvt Ltd, Higginbothams Pvt Ltd, The Madras Advertising Company Pvt Ltd, Speed-A-Way Pvt Ltd, Bimetal Bearings Ltd, Amalgamations Repco Ltd, Stanes Amalgamated Estates Ltd, Stanes Motor Parts Ltd., Wallace Cartwright & Company Ltd, London, W.J.Groom & Company Ltd, London, L.M.Van Moppes Diamond Tools India Pvt Ltd. BBL Daido Pvt Ltd. TAL Precision Parts Ltd. TAFE Reach Ltd,TAFE Motors & Tractors Limited, Alpump Limited.

 
Subscribe now to get personal finance updates in your inbox!