Mar 31, 2019
1. SEGMENT INFORMATION
The Company operates in a single primary business segment namely, manufacture of Auto Component - Piston Rings, Differential Gears, Pole Wheel and other Transmission Components.
Out of the above said revenue three customers represent more than 10% of the gross revenue and in total contribute 49.96% of the gross revenue.
2. Shares issued in preceding 5years
On 12.01.17, the Company invited its shareholders to subscribe to a rights issue of 56,33,718 equity shares at an issue price of INR 88.75 per share, with such shares to be issued to rank paripassu for dividends after 16.02.17. The issue was fully subscribed.
3. Rights, preferences and restrictions in respect of equity shares issued by the Company.
The equity shareholders are entitled to receive dividend as and when declared, a right to vote in proportion of holding etc. and their rights, preferences and restrictions are governed by I in terms of their issue and the provisions of the Companies Act, 2013.
* Refer Statement of Changes in equity for additions I deletions in each reserve.
(A) General reserve is created from time to time by transferring profits from retained earnings and can be utilised for the purposes such as payment of dividends.
(B) Securities Premium Reserve represents premium received on equity shares issued which can be utilised only in accordance with the provisions of the Companies Act, 2013 for specified purposes.
(C) Retained Earnings is generally available for distribution of dividend subject to the provisions of the Companies Act, 2013.
Security details
(a) The term loans are availed for purchase of assets relating to Capital Projects and are secured by hypothecation of specific assets purchased out of the said loan.
(b) The loans availed for purchase of Vehicles are secured by hypothecation of vehicles purchased out of the said loan
(c) Loan taken from other parties for working capital are secured by hypothecation of specific asset.
(d) Interest on above loans are charged at MCLR spread
4. Changes in accounting policy - on account of adoption of IND AS 115
The Company applied Ind AS 115 for the first time by using the modified retrospective method of adoption with the date of initial application of April 1,2018. Under this method, the group recognised the cumulative effect of initially applying Ind AS 115 as an adjustment to the opening balance of retained earnings as at April 1,2018. Comparative prior period has not been adjusted. The Company has applied the revenue standard only to contracts that are not completed as at the date of initial application. The impact on account of applying the erstwhile Ind AS 18 Revenue instead of Ind AS 115 Revenue from Contracts with customers on the financial results of the Company for the year ended March 31,2019 and other adjustments as at March 31,2019 on adoption of Ind AS 115 is Nil.
Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases, and unutilized business loss and depreciation carry-forwards and tax credits. Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which the deductible temporary differences, unused tax losses, depreciation carry-forwards and unused tax credits could be utilized.
Defined Benefit Plan Gratuity:
The Company operates gratuity plan through approved gratuity fund with Life Insurance Corporation of India. Every employee is entitled to the benefit in accordance with the payment of Gratuity Act, 1972, as applicable from time to time, except in the case of Managing Director where there is no maximum limit. 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.
These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.
Investment risk : The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to the market yields on government bonds denominated in Indian Rupees. If the actual return on plan asset is below this rate, it will create a plan deficit.
Interest risk : A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase in the return on the planâs debt investments.
Longevity risk : The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.
Salary risk : The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.
The treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.
Market risk
Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result from a change in the price of a financial instrument. The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.
The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise.
Foreign currency sensitivity analysis:
Movement in the functional currencies of the various operations of the Company against major foreign currencies may impact the Company''s revenues from its operations. Any weakening of the functional currency may impact the Company''s cost of imports and cost of borrowings and consequently may increase the cost of financing the Company''s capital expenditures.
The following table details the Company''s sensitivity movement in the foreign currencies. The foreign exchange rate sensitivity is calculated for each currency by aggregation of the net foreign exchange rate exposure of a currency and a simultaneous parallel foreign exchange rates shift in the foreign exchange rates of each currency by 2%. 2% represents management''s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 2% change in foreign currency rates.
In management''s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.
The company is exposed to interest rate risk pertaining to funds borrowed at both fixed and floating interest rates. The risk is managed by the company by maintaining an appropriate mix between fixed and floating rate borrowings.
Interest rate sensitivity analysis
The sensitivity analyses below have been determined based on the exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 25 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rates.
If interest rates had been 25 basis points higher/lower and all other variables were held constant, the Company''s profit for the year ended March 31,2019 would decrease/increase by Rs. 21.27 lakhs (March 31,2018: decrease/increase by Rs..16.77 lakhs). This is mainly attributable to the Company''s exposure to interest rates on its variable rate borrowings.
Equity price risk
Equity price risk is related to the change in market reference price of the investments in equity securities. Fair and nominal value of shares are same since entire nominal value will be payable on sale back of shares as per the agreement and the shares are not held for trading purpose Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company''s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties.
Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable.
The Company does not have significant credit risk exposure
The company sells predominantly to local and export customers which are on credit basis. The average credit period is 30 days to 60 days. The Company did not have credit risk exposure in the past 3 years and there were no bad debt during the mentioned period but the Company makes an allowance for doubtful debts on a case to case basis.
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure is the total of the carrying amount of balances with banks, short term deposits with banks, trade receivables, margin money and other financial assets excluding equity investments.
Liquidity risk management
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.
The Company has obtained fund and non-fund based working capital lines from various banks. The Company is also working with banks for obtaining separate facility for financing of Machineries. Promoters will support by way of fund infusion on need basis.
The company had access to the following undrawn borrowing facilities at the end of reporting period:
Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are required):
The Management consider that the carrying amounts of financial assets and financial liabilities recognised in the financial statements approximate their fair values.
Mar 31, 2018
1. In accordance with the requirements of Ind AS 18, Revenue from Operations for the year ended March 31, 2018 is shown net of Goods and Service Tax (GST). However, Revenue from Operations for the previous financial year is shown inclusive of excise duty.
Foreign currency risk management:
The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise.
The carrying amounts of the Companyâs foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows:
Foreign currency sensitivity analysis:
Movement in the functional currencies of the various operations of the Company against major foreign currencies may impact the Companyâs revenues from its operations. Any weakening of the functional currency may impact the Companyâs cost of imports and cost of borrowings and consequently may increase the cost of financing the Companyâs capital expenditures.
The following table details the Companyâs sensitivity movement in the foreign currencies. The foreign exchange rate sensitivity is calculated for each currency by aggregation of the net foreign exchange rate exposure of a currency and a simultaneous parallel foreign exchange rates shift in the foreign exchange rates of each currency by 2%. 2% represents managementâs assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end fora 2% change in foreign currency rates.
In management s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.
Interest rate risk management
The Company is exposed to interest rate risk because it borrow funds at both fixed and floating interest rates.
Interest rate sensitivity analysis
The Sensitivity analyses below have been determined based on the exposure to interest rates for non-derivative instruments at the end of he reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A25 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents managementâs assessment of the reasonably possible change in interest rates.
If interest rates had been-25 basis points higher/lower and all other variables were held constant, the Companyâs profit for the year ended March 31,2018 would decrease/increase by Rs 16,77,251 (March 31,2017: decrease/increase by Rs.23,66,096) This is mainly attributable to the Companyâs exposure to interest rates on its variable rate borrowings.
Equity price risk
Equity price risk is related to the change in market reference price of the investments in equity securities. Fair and nominal value of shares are same since entire nominal value will be payable on sale back of shares as per the agreement and the shares are not held for trading purpose.
Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company.
The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The Companyâs exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties.
Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivable.
The Company does not have significant credit risk exposure.
The company sells predominantly to local and export customers which are on credit basis. The average credit period is 30 days to 60 days.
The Company did not have credit risk exposure in the past 3 years and there were no bad debt during the mentioned period but the Company makes an allowance for doubtful debts on a case to case basis.
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure is the total of the carrying amount of balances with banks, short term deposits with banks, trade receivables, margin money and other financial assets excluding equity investments.
Liquidity risk management
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to . maintain sufficient liquidity and ensure that funds are available for use as per requirements.
The Company has obtained fund and non-fund based working capital lines from various banks. The Company is also working with banks for obtaining separate facility for financing of Machineries. Promoters will support by way of fund infusion on need basis. Liquidity tables
The following tables detail the Companyâs remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay.
Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are required):
The Management consider that the carrying amounts of financial assets and financial liabilities recognised in the financial statements approximate their fair values.
Mar 31, 2017
Out of the above said revenue three customers represent more than 10% of the gross revenue and in total contribute
55.16% of the gross revenue.
1. Related Party Disclosures under Ind AS 24
Names of Related Parties and description of relationship:
Holding Company Amalgamations Private Ltd. and Simpson & Company Ltd.
Subsidiaries NIL
Fellow Subsidiaries 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., TAFE Reach Ltd., TAFE Motors & Tractors Limited, Alpump Limited, IPL Engine Components Pvt Ltd., IPL Green Power Ltd. and Tafe Tractors Changshu Company Limited, China
Associates NIL
Key Management Personnel Mr. A. Venkataramani, Mr. R. Venkataraman and Mrs. S. Priyamvatha
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.
2. Exemptions availed under Ind-AS 101, available only in the year of transitioning to Ind-AS:
Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS. Deemed cost
Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and investment property covered by Ind AS 40 Investment Properties.
Accordingly, The company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.
Mar 31, 2016
1. Figures for the previous year have been regrouped / reclassified wherever necessary to make them comparable with current year figures.
2. Figures are rounded off to the nearest Rupee.
3. Employee Benefits under Accounting Standard -15 (Revised)
Defined Contribution Plan
Contribution to Defined Contribution Plan, are charged off for the year as under
Employerâs Contribution to Provident Fund â Rs. 78,91,704
Employerâs Contribution to Superannuation Fund - Rs.13,90,190
Employerâs Contribution to Employees State Insurance - Rs.11,03,276
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 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 subject to provisions of rules and agreements on superannuation or death or permanent disablement. But however, in the case of Managing Director it is reckoned based on his service contract. 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. The company has considered geographical segment as the secondary segment, based on the location of the customers.
The company''s operating facilities are located in India.
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.
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