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Notes to Accounts of Kalyani Forge Ltd.

Mar 31, 2017

1. The Board of Directors has recommended dividend for the current year of Rs. 3/-per equity share (Nominal value Rs.10/-per equity share)subject to approval of members at the ensuing Annual General Meeting of the Company.

2. Expenditure on Corporate Social Responsibility activities :

3. Gross amount required to be spent by the Company during the year is Rs.4,14,380/-.

4. During the year 2015-16 we made payment of Rs.5,00,000/- to ‘Prashanti ‘an association for Cancer Care for general public. The institute is situated flat no. 1-2, Kapilvastu, Senapati Bapat Road, Next to Ratna Hospital, Pune - 411016. We are monitoring the activities carried out by this Prashanti Cancer Care Mission.

Also we are in process of finding other activities eligible as the CSR activities and will spend balance amount during the year 2017-18.

5. Previous Year’s figures have been regrouped wherever necessary to make them comparable with those of the current year.


Mar 31, 2016

1. The Company has imported capital goods under the Export Promotion Capital Goods Scheme of the Govt. of India at concessional rate of duty against an undertaking to fulfill export obligation (in respect of non redeemed EPCG Licenses) aggregates USD 9.51 Millions (Equivalent to Rs.63,11,36,252 at 1 USD=Rs.66.33) over a period of Eight years from issue of license, while maintaining average exports as given in the respective Licenses. Non fulfillment of the balance obligations, in the due manner entails options/rights to the Government to confiscate Capital Goods imported under the said Licenses and other penalties under the above referred scheme. The company has submitted the application for redemption of the same.

2. a) Guarantees given by the Company’s Bankers on behalf of the Company, against sanctioned guarantee limits aggregating to Rs.3,00,00,000 (Previous year Rs.3,00,00,000) for contracts undertaken by the Company and other matters are secured by extension of charge by way of joint hypothecation of stock in trade, stores and spares etc.,book debts subject to prior charge in their favour. Amount outstanding as on 31st March, 2016 is Rs. 3,07,82,132/- (Previous year Rs. 1,85,28,856).

b) Other non-fund based facilities have been sanctioned amounting to Rs. 13,40,00,000/- with a charge of hypothecation on stock, book debts and other current assets on pari-passu among the consortium members and second charge over fixed assets of company. Amount outstanding as on 31st March 2016 is Rs.6,67,82,132/- (Previous year - Rs.3,79,84,374/-).

3. (a) The Company has a single Product, viz : “Forgings”. Consequently, there are no Reportable Segments of the Company as per the Accounting Standard (AS-17) “Segment Reporting” prescribed by Companies (Accounting Standards) Amendment Rules, 2006.

(b) Disclosures of transactions with Related Parties as required by Accounting Standard - 18 “Related Party Disclosures” is given below.

Related parties as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by the Key Managerial Personnel, information available with the company and taken on record by the Board.

4. The Company has sent balance confirmation letters to Sundry Debtors, Creditors and Other Parties and the balances are under reconciliation in those cases where confirmations were received. Pending final reconciliation, the balances in respect of Debtors, Creditors and third parties are as per books of account only. Adjustments having an impact of revenue nature, if any, will be made in the year in which the same are confirmed/reconciled.

5. Pursuant to the provisions of the Investor Education and Protection Fund (Uploading of information regarding unpaid and unclaimed amounts lying with companies) Rules 2012, the Company is required to file the necessary form and upload the details of unpaid and unclaimed amounts lying with the company as on the date of last AGM (i.e.5 th Sept.2015) with the MCA .

The company has kept the required amount ready for depositing with MCA. The required form could not be filled as the same is under revision by MCA ( Ministry of Corporate Affairs) and the new forms are not available on MCA site. The amount in this fund is Rs. 94,127/- relates to F.Y. 2007-08.

6. The Board of Directors has recommended dividend for the current year of Rs. 2 per equity share (Nominal value Rs. 10/- per equity share) subject to approval of members at the ensuing Annual General Meeting of the Company.

7. Expenditure on Corporate Social Responsibility activities :

a. Gross amount required to be spent by the Company during the year is Rs.11,93,533.

b. During the year 2015-16 we made payment of Rs.5,00,001/- to Savali an association for mentally retarded children and engaged in socio-economic promotion of cerebral palsy children.The institute is situated plot no.13,S.No.78, left bhusari colony Kothurd, Pune.

We are monitoring the activities carried out by this Savali Institution.

Also we are in process of finding other activities eligible as the CSR activities and will spend balance amount during the year 2016-17.

8. The company is in process of refining valuation of Inventory in term of stages of Production and application of standard costs at each stage through SAP system.

The company believes that there will be no material impact of the same and difference if any arising there from will be accounted on its determination.

9. Previous Year’s figures have been regrouped wherever necessary to make them comparable with those of the current year.


Mar 31, 2015

1. Terms/Rights attached to the equity shares

The Company has only one class of equity shares having par value of Rs. 10/- each. Each equity holder is entitled to one vote per share and have a right to receive dividend as recommended by Board of Directors subject to the necessary approval from the shareholders.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Shares held by holding/ultimate holding Company and/or their subsidiaries/associates

NIL

5 Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date:

NIL

Terms of Repayment

1. Term Loan of Rs.120,000,000 is availed from State Bank of India, IFB, Pune at the rate of interest of 4.50% above base rate.Balance outstanding as on 31 March 2015 is Rs. 22,500,000/- (P.Y. Rs. 52,500,001/-). Out of these, amount treated as current maturities of long term debts as on 31 March 2015 is Rs. 22,500,000/- (P.Y. Rs. 30,000,000/-) . In addition to this, Interest accrued and due on borrowings is Rs 2,72,062/-.This loan is to be repaid in fourty eight instalments starting from Dec 2011.

2. Term Loan of Rs. 150,020,860/- is availed from State Bank of India, IFB, Pune out of the total sanction limit at the rate of interest of 3% above base rate. Balance outstanding as on 31 March 2015 is Rs. 63,840,000/- (P.Y. Rs. 98,304,000/-). Out of these, amount treated as current maturities of long term debts as on 31 March 2015 is Rs. 34,464,000/-(P.Y. Rs.34,464,000/-). In addition to this, Interest accrued and due on borrowings is Rs 9,84,988 /-. This loan is to be repaid in fifty three instalments starting from October 2012.

3. Term Loan of Rs. 111,718,988/- is availed from Indian Overseas Bank, Karve Road, Branch, Pune out of the total sanction limit at the rate of interest of 2.0% above base rate. Balance outstanding as on 31 March 2015 is Rs 76,517,996 /- (P.Y.Rs 97,517,995/-). Out of this, amount treated as current maturities of long term debts as on 31st March 2015 is 35,00,000 (P.Y. Rs.28,800,000/-). In addition to this, Interest accrued and due on borrowings is Rs 16,83,128 /-. This loan is to be repaid in fourty eight instalments starting from Oct 2013.

4. Sales Tax Deferral Liability under package scheme of incentive 1988 and 1993 as on 31st March 2015 is of Rs. 5,93,44,965 /- (P.Y.Rs 7,03,75,030/-). Out of these, amount treated as current maturities of long term debts as on 31st March 2015 is Rs. 1,32,38,483 /- (P.Y. Rs. 1,10,30,063/-). This liability for 1988 Scheme is to be repaid within one year and for 1993 Scheme is to be repaid within 5 years.

Nature of security

3. For the above Rupee Term Loans, the company has created the first pari passu charge together (both the banks) by way of hypothecation on assets to be acquired out of bank finance as primary security and first pari passu charge by way of hypothecation on the existing fixed assets including land and building situated at Sanaswadi and Koregaon Bhima, Pune as a collateral security.

4. Company's fund and non fund based working capital facilities of Rs. 564,000,000 are secured by first charge by way of hypothecation on pari passu basis with existing working capital lenders (State Bank of India, IFB, Pune (Lead Bank), Bank of Maharashtra, Pune and IDBI Bank, Pune) over the company's entire current assets including stocks, WIP, receivables and finished goods and also the second charge on the whole of the fixed assets of the Company on pari passu basis with consortium working capital lenders.

5. The packing credit foreign currency loan is availed from Bank of Maharashtra and State Bank of India, Pune at the rate of Interest of Fixed Margin over USD London inter bank offer rate i.e. LIBOR.

6 Contingent Liability not provided for in respect of

As at 31st As at 31st March, 2015 March, 2014 Rs. Rs.

i. Bills discounting 11,37,097 79,91,140

ii. Claims against the Company, not acknowledged as debts 62,38,000 1,85,34,665

iii Disputed Income Tax demand, matter under appeal 2,21,71,980 2,14,28,890

iv Disputed Excise demand, matter under appeal 76,28,035 76,28,035

v In respect of export obligation under EPCG 27,79,713 47,53,704

vi In respect of Bank Guarantee 1,04,61,176 1,28,86,267

7. The Company has imported capital goods under the Export Promotion Capital Goods Scheme of the Govt. of India at concessional rate of duty against an undertaking to fulfil export obligation (in respect of non redeemed EPCG Licenses) aggregates USD 10.42 Millions (Equivalent to Rs.648845524 at 1 USD=Rs.62.22) over a period of Eight years from issue of license, while maintaining average exports as given in the respective Licenses. Non fulfilment of the balance obligations, in the due manner entails options/rights to the Government to confiscate Capital Goods imported under the said Licenses and other penalties under the above referred scheme. The company has submitted the application for redemption of the same.

8. a) Guarantees given by the Company's Bankers on behalf of the Company, against sanctioned guarantee limits aggregating to Rs. 30,000,000 (Previous year Rs. 30,000,000) for contracts undertaken by the Company and other matters are secured by extension of charge by way of joint hypothecation of stock in trade, stores and spares etc.,book debts subject to prior charge in their favour. Amount outstanding as on 31st March, 2015 is Rs. 18,528,856/- (Previous year Rs. 23,765,464).

b) Other non-fund based facilities have been sanctioned amounting to Rs. 13,40,00,000/- with a charge of hypothecation on stock, book debts and other current assets on pari-passu among the consortium members and second charge over fixed assets of company. Amount outstanding as on 31st March 2015 is Rs. 3,79,84,374/- (Previous year - Rs. 34,840,773/-).

9. Disclosure pursuant to Accounting Standard (AS 15) - Revised 2005 "Employee Benefits" prescribed by Companies (Accounting Standards) Amendment Rules, 2006

10. (a) The Company has a single Product, viz : "Forgings". Consequently, there are no Reportable Segments of the Company as per the Accounting Standard (AS-17) "Segment Reporting" prescribed by Companies (Accounting Standards ) Amendment Rules, 2006.

(b) Disclosures of transactions with Related Parties as required by Accounting Standard - 18 "Related Party Disclosures" is given below.

Related parties as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by the Key Managerial Personnel, information available with the company and taken on record by the Board.

11. The Company has sent balance confirmation letters to Sundry Debtors, Creditors and Other Parties and the balances are under reconciliation in those cases where confirmations were received. Pending final reconciliation, the balances in respect of Debtors,Creditors and third parties are as per books of account only. Adjustments having an impact of revenue nature, if any, will be made in the year in which the same are confirmed/reconciled.

12. Expenditure on Corporate Social Responsibility activities :

a. Gross amount required to be spent by the Company during the year is Rs. 27,23,076.

b. "As the CSR provision was newly introduced after finalizing the accounts for the year 2013-14, we made efforts to find the projects for the CSR activity. We have found two such projects and the work has commenced. However, till 31stMarch, 2015, we did not make any payment and hence no expenditure has been recorded during the year 2014-15.

The two projects involved are:

1. The construction of toilets for girls in some schools in Pune district.

2. The technical skills training and aid project for girls and boys in Pune district The expenditure will get recorded in the year 2015-16."

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


Mar 31, 2014

1 Terms/Rights attached to the equity shares

The Company has only one class of equity shares having par value of Rs. 10/- each. Each equity holder is entitled to one vote per share and have a right to receive dividend as recommended by Board of Directors subject to the necessary approval from the shareholders.

The Board of Directors has recommended a dividend of 25% (Rs. 2.50/- per share) for the financial year.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2 Shares held by holding/ultimate holding Company and/or their subsidiaries/associates

NIL

3 Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date:

NIL

4.Terms of Repayment

1. Term Loan of Rs.12,00,00,000 is availed from State Bank of India, IFB, Pune at the rate of interest of 4.50% above base rate. Balance outstanding as on 31st March 2014 is Rs. 5,25,00,001/- (P. Y Rs. 8,25,00,000/-). Out of these, amount treated as current maturities of long term debts as on 31st March 2014 is Rs. 3,00,00,000/- (P. Y Rs. 3,00,00,000/-) This loan is to be repaid in five years starting from November, 2011.

2. Term Loan of Rs. 15,00,20,860/- is availed from State Bank of India, IFB, Pune out of the total sanction limit at the rate of interest of 3% above base rate. Balance outstanding as on 31st March 2014 is Rs. 9,83,04,000/- (P.Y. Rs. 13,27,68,000/-). Out of these, amount treated as current maturities of long term debts as on 31st March, 2014 is Rs. 3,44,64,000/-(P. Y Rs.3,44,64,000/-). This loan is to be repaid in five years starting from October, 2012.

3. Term Loan of Rs. 11,17,18,988/- is availed from Indian Overseas Bank, Karve Road Branch, Pune out of the total sanction limit at the rate of interest of 2.0% above base rate. Balance outstanding as on 31st March 2014 is Rs. 9,75,17,995/- (P. Y Rs 11,17,18,988/-). Out of this, amount treated as current maturities of long term debts as on 31st March 2014 is Rs. 2,88,00,000 (P. Y Rs.1,39,64,875/-). This loan is to be repaid in five years starting from October, 2013.

4. Sales Tax Deferral Liability under package scheme of incentive 1988 and 1993 as on 31st March 2014 is of Rs. 70,375,030/- (P. Y Rs. 7,98,59,061/-). Out of these, amount treated as current maturities of long term debts as on 31st March 2014 is Rs. 1,10,30,063/- (P. Y Rs. 94,84,031/-). This liability for 1988 Scheme is to be repaid within two years and for 1993 Scheme is to be repaid within six years.

5.Nature of security

1. For the above Rupee Term Loans, the company has created the first pari passu charge together (both the banks) by way of hypothecation on assets to be acquired out of bank finance as primary security and first pari passu charge by way of hypothecation on the existing fixed assets including land and building situated at Sanaswadi and Koregaon Bhima, Pune as a collateral security.

As required by Accounting Standard (AS 22) "Taxes on Income" prescribed by Companies (Accounting Standards) Amendment Rules, 2006, the Company has recognised deferred taxes, which result from timing differences between book profits and tax profits for the period, the details of which are as under.

2. Company''s fund and non-fund based working capital facilities of Rs. 73,40,00,000 are secured by first charge by way of hypothecation on pari passu basis with existing working capital lenders [State Bank of India, IFB, Pune (Lead Bank), Bank of Maharashtra, Pune and IDBI Bank,Pune] over the company''s entire current assets including stocks, WIP, receivables and finished goods and also the second charge on the whole of the fixed assets of the Company on pari passu basis with consortium working capital lenders.

3. Short term loan of Rs. 4,80,00,000/- was availed from IDBI Pune for 90 days of the total sanctioned limit at the rate of interest of 2.25% above base rate. Balance outstanding as on 31st March 2014 is Nil (P.Y. Rs.4,80,00,000/-).

4. The packing credit foreign currency loan is availed from Bank of Maharashtra and State Bank of India, Pune at the rate of Interest of 3.25% (the Margin) over fixed USD London Inter-bank Offer Rate i.e. LIBOR.

6 Contingent Liability not provided for in respect of :

As at 31st As at 31st March, 2014 March, 2013 Rs. Rs.

i. Bills discounting 79,91,140 1,17,62,517

ii. Claims against the Company, not 1,85,34,665 60,30,000 acknowledged as debts

iii Disputed Income Tax demand, 2,14,28,890 1,21,70,773 matter under appeal

iv Disputed Excise demand, 76,28,035 76,28,035 matter under appeal

v In respect of export obligation 47,53,704 92,70,959 under EPCG

vi In respect of Bank Guarantee 1,28,86,267 -

7 The Company has imported capital goods under the Export Promotion Capital Goods Scheme of the Govt. of India at concessional rate of duty against an undertaking to fulfil export obligation (in respect of non redeemed EPCG Licenses) aggregates USD 13.30 Milions (Equivalent to Rs.789,151,013 at 1 USD = Rs. 59.31) over a period of eight years from issue of license, while maintaining average exports as given in the respective Licenses. Non fulfilment of the balance obligations, in the due manner entails options/rights to the Government to confiscate Capital Goods imported under the said Licenses and other penalties under the above reffered scheme. The company has submitted the application for redemption of the same.

8 a) Guarantees given by the Company''s Bankers on behalf of the Company, against sanctioned guarantee limits aggregating to Rs. 30,000,000 (Previous year Rs.30,000,000) for contracts undertaken by the Company and other matters are secured by extension of charge by way of joint hypothecation of stock in trade, stores and spares etc.,book debts subject to prior charge in their favour. Amount outstanding as on 31st March, 2014 is Rs. 23,765,464/- (Previous year Rs. 24,048,390).

b) Other non-fund based facilities have been sanctioned amounting to Rs. 14,40,00,000/- with a charge of hypothecation on stock, book debts and other current assets on pari-passu among the consortium members and second charge over fixed assets of company. Amount outstanding as on 31st March, 2014 is Rs. 3,48,40,773/- (Previous year - Rs. 2,13,07,438/-).

9 Disclosure pursuant to Accounting Standard (AS 15) - Revised 2005 "Employee Benefits" prescribed by Companies (Accounting Standards) Amendment Rules, 2006

10. Total Expenditure on Research & Development (including allocable overheads) during the year is Rs. 11,97,970/- (Previous year Rs.3,760,502/-)

11. (a) The Company has a single Product, viz : "Forgings". Consequently, there are no Reportable Segments of the Company as per the Accounting Standard (AS-17) "Segment Reporting" prescribed by Companies (Accounting Standards ) Amendment Rules, 2006.

(b) Disclosures of transactions with Related Parties as required by Accounting Standard - 18 "Related Party Disclosures" is given below.

Related parties as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by the Key Managerial Personnel, information available with the company and taken on record by the Board.

12. The Company has sent balance confirmation letters to Sundry Debtors, Creditors and Other Parties and the balances are under reconciliation in those cases where confirmations were received. Pending final reconciliation, the balances in respect of Debtors,Creditors and third parties are as per books of account only. Adjustments having an impact of revenue nature, if any, will be made in the year in which the same are confirmed/reconciled.

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


Mar 31, 2013

1 Terms/Rights attached to the equity shares

The Company has only one class of equity shares having par value of Rs. 10/- each. Each equity holder is entitled to one vote per share and have a right to receive dividend as recommended by Board of Directors subject to the necessary approval from the shareholders.

The Board of Directors has recommended a dividend of 25% (Rs. 2.50/- per share) for the financial year.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2 Shares held by holding/ultimate holding Company and/or their subsidiaries/associates

NIL

Terms of Repayment

1. Term Loan of Rs.12,00,00,000 is availed from State Bank of India, IFB, Pune at the rate of interest of 4.50% above base rate.Balance outstanding as on 31 March 2013 is Rs. 8,25,00,000/- (P.Y. Rs.11,25,00,000/-). Out of these, amount treated as current maturities of long term debts as on 31 March 2013 is Rs.3,00,00,000/- (P.Y.Rs.3,00,00,000/-) This loan is to be repaid in five years starting from November 2011.

2. Term Loan of Rs. 15,00,20,860/- is availed from State Bank of India, IFB, Pune out of the total sanction limit at the rate of interest of 3% above base rate. Balance outstanding as on 31 March 2013 is Rs.13,27,68,000/ - (P.Y. Rs. 7,17,66,505/-). Out of these, amount treated as current maturities of long term debts as on 31 March 2013 is Rs. 3,44,64,000/-(P.Y. Rs.3,72,00,000/-). This loan is to be repaid in five years starting from October 2012.

3. Term Loan of Rs. 11,17,18,988/- is availed from Indian Overseas Bank, Karve Road, Branch, Pune out of the total sanction limit at the rate of interest of 2.25% above base rate. Balance outstanding as on 31 March 2013 is Rs. 11,17,18,988/- (P.Y.Rs 3,51,41,373/-). Out of this, amount treated as current maturities of long term debts as on 31st March 2013 is Rs. 1,39,64,875/-(P.Y. NIL). This loan is to be repaid in five years starting from October 2013.

4. Sales Tax Deferral Liability under package scheme of incentive 1988 and 1993 as on 31st March 2013 is of Rs.7,98,59,061/- (P.Y.Rs.8,90,66,788/-). Out of these, amount treated as current maturities of long term debts as on 31st March 2013 is Rs. 94,84,031/- (P.Y. Rs. 85,80,700/-). This liability for 1988 Scheme is to be repaid within three years and for 1993 Scheme is to be repaid within 7 years.

Nature of security

1. For the above Rupee Term Loans, the company has created the first pari passu charge together (both the banks) by way of hypothecation on assets to be acquired out of bank finance as primary security and first pari passu charge by way of hypothecation on the existing fixed assets including land and building situated at Sanaswadi and Koregaon Bhima, Pune as a collateral security.

1. Company''s fund and non fund based working capital facilities of Rs. 76,40,00,000 are secured by first charge by way of hypothecation on pari passu basis with existing working capital lenders (State Bank of India, IFB, Pune (Lead Bank), Bank of Maharashtra, Pune and IDBI Bank, Pune) over the company''s entire current assets including stocks, WIP, receivables and finished goods and also the second charge on the whole of the fixed assets of the Company on pari passu basis with consortium working capital lenders.

2. Short term loan of Rs.4,80,00,000/- is availed from IDBI Pune for 90 days of the total sanctioned limit at the rate of interest of 2.25% above base rate. Balance outstanding as on 31st March 2013 is Rs. 4,80,00,000/- (P.Y. Nil)

3. The packing credit foreign currency loan is availed from Bank of Maharashtra and State Bank of India, Pune at the rate of Interest of 3.5%(the Margin) over fixed USD London Inter-bank Offer Rate i.e. LIBOR.

3 Contingent Liability not provided for in respect of :

As at 31st As at 31st March, 2013 March, 2012 Rs. Rs.

i. Bills discounting 1,17,62,517 1,29,61,060

ii. Claims against the Company, not acknowledged as debts 60,30,000 1,32,25,000

iii Disputed Income Tax demand, matter under appeal 1,21,70,773 2,09,53,702

iv Disputed Excise demand, matter under appeal 76,28,035 72,92,845

v In respect of export obligation under EPCG 92,70,959 87,79,660

4 The Company has imported capital goods under the Export Promotion Capital Goods Scheme of the Govt. of India at concessional rate of duty against an undertaking to fulfil export obligation (in respect of non redeemed EPCG Licenses) aggregating USD 15.07 Milion (Equivalent to Rs.82,81,62,869 at 1 USD=Rs.54.95) over a period of Eight years from issue of license, while maintaining average exports as given in the respective Licenses. Non fulfilment of the balance obligations, in the due manner entails options/rights to the Government to confiscate Capital Goods imported under the said Licenses and other penalties under the above referred scheme.

5 a) Guarantees given by the Company''s Bankers on behalf of the Company, against sanctioned guarantee limits aggregating Rs.3,00,00,000 (Previous year Rs.3,00,00,000) for contracts undertaken by the Company and other matters are secured by extension of charge by way of joint hypothecation of stock in trade, stores and spares etc.,book debts subject to prior charge in their favour. Amount outstanding as on 31st March ,2013 is Rs. 2,40,48,390/- (Previous year Rs. 2,11,41,890).

b) The non-fund based facilities have been sanctioned amounting to Rs. 27,40,00,000 with a charge of hypothecation on stock, book debts and other current assets on pari-passu among the consortium members and second charge over fixed assets of company. Amount outstanding as on 31st March 2013 is Rs.4,53,55,828 (Previous year - Rs.6,78,64,161).

6 Disclosure pursuant to Accounting Standard (AS 15) - Revised 2005 "Employee Benefits" prescribed by Companies (Accounting Standards) Amendment Rules, 2006

7. Total Expenditure on Research & Development (including allocable overheads) during the year is Rs. 37,60,502/- (Previous year Rs. 65,74,000/-)

8. (a) The Company has a single Product, viz : "Forgings". Consequently, there are no Reportable

Segments of the Company as per the Accounting Standard (AS-17) "Segment Reporting" prescribed by Companies (Accounting Standards) Amendment Rules, 2006.

(b) Disclosures of transactions with Related Parties as required by Accounting Standard - 18 "Related Party Disclosures" is given below. Related parties as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by the Key Managerial Personnel, information available with the company and taken on record by the Board.

9. The Company has sent balance confirmation letters to Sundry Debtors, Creditors and Other Parties and the balances are under reconciliation in those cases where confirmations were received. Pending final reconciliation, the balances in respect of Debtors,Creditors and third parties are as per books of account only. Adjustments having an impact of revenue nature, if any, will be made in the year in which the same are confirmed/reconciled.

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


Mar 31, 2012

1 Terms/Rights attached to the equity shares

The Company has only one class of equity shares having par value of Rs. 10/- each. Each equity holder is entitled to one vote per share and have a right to receive dividend as recommended by Board of Directors subject to the necessary approval from the shareholders.

The Board of Directors has recommended a dividend of 25% (2.50/- per share) for the financial year.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2 Shares held by holding/ultimate holding Company and/or their subsidiaries/associates NIL

3 Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date: NIL

Terms of Repayment

1. Term Loan of Rs.120,000,000 is availed from State Bank of India, IFB, Pune at the rate of interest of 4.50% above base rate.Balance outstanding as on 31st March 2012 is Rs.112,500,000(P.Y. Rs.120,000,000). Out of these, amount treated as current maturities of long term debts as on 31st March 2012 is Rs.30,000,000. (P.Y.Rs.7,500,000) This loan is to be repaid in five years starting from Nov-2011. Accordingly, Rs.7,500,000 were paid comprising of five installments of Rs.1,500,000 each.

2. Term Loan of Rs. 71,766,505 is availed from State Bank of India, IFB, Pune out of the total sanction limit at the rate of interest of 3% above base rate. Balance outstanding as on 31st March 2012 is Rs.71,766,505(P.Y. Nil). Out of these, amount treated as current maturities of long term debts as on 31st March 2012 is Rs.37,200,000)(P.Y. Nil). This loan is to be repaid in five years starting from October 2012.

3. Term Loan of Rs. 35,141,373 is availed from Indian Overseas Bank, Karve Road, Branch, Pune, out of the total sanction limit at the rate of interest of 1.75% above base rate.Balance outstanding as on 31st March 2012 is Rs 35,141,373(P.Y. Nil) This loan is to be repaid in five years starting from Oct 2013.

1. Company's fund and non fund based working capital facilities of Rs. 814,000,000 are secured by first charge by way of hypothecation on pari passu basis with existing working capital lenders (State Bank of India, IFB, Pune (Lead Bank), Bank of Maharashtra,Pune and IDBI Bank,Pune) over the company's entire current assets including stocks, WIP, receivables and finished goods and also the second charge on the whole of the fixed assets of the Company on pari passu basis with consortium working capital lenders.

2. The above Packing credit foreign currency loan is availed from Bank of Maharashtra and State Bank of India, Pune at the rate of Interest of 3.5%(the Margin) over fixed USD London Inter-bank Offer Rate i.e. LIBOR.

4. Sales Tax Deferral Liability under package scheme of incentive 1979, 1988 and 1993 as on 31 March 2012 is of Rs.89,066,788 (P.Y. Rs 97,647,486). Out of these, amount treated as current maturities of long term debts as on 31st March 2012 is Rs. 8,580,700 (P.Y. Rs. 8,580,698).The balance liability for 1988 Scheme is to be repaid within four years. Accordingly, Rs 8,580,700 were paid on 26th April 2011.

Nature of security

1. For the above Rupee Term Loans, the company has created the first pari passu charge together (both the banks) by way of hypothecation on assets to be acquired out of bank finance as primary security and first pari passu charge by way of hypothecation on the existing fixed assets including land and building situated at Sanaswadi and Koregaon Bhima, Pune as a collateral security.

Contingent Liability not provided for in respect of : AS AT 31ST AS AT 31ST MARCH, 2012 MARCH, 2011 RS. RS.

i. Bills discounting 12,961,060 13,169,313

ii Claims against the Company, not acknowledged as debts 13,225,000 12,425,000

iii Disputed Income Tax demand, matter under appeal 20,953,702 10,289,869

iv Disputed Excise demand, matter under appeal 7,292,845 6,087,927

v In respect of Non fulfillment of export obligation under EPCG 8,779,660 -

4. The Company has imported capital goods under the Export Promotion Capital Goods Scheme of the Govt. of India at concessional rate of duty against an undertaking to fulfil quantified exports (after considering enhancement in Export Obligation amount and cancellations of Licences), aggregates USD 7.01 Millions (Equivalent to Rs. 353,471,390 at 1 USD = Rs.50.53) over a period of next five years from issue of license,while maintaining average exports of USD 5.07 Millions (Equivalent to Rs.256,256,752).Non fulfilment of the balance obligations, in the due manner entails options/rights to the Government to confiscate Capital Goods Imported under the said Licences and other penalties under the above reffered scheme.

5. a) Guarantees given by the Company's Bankers on behalf of the Company, against sanctioned guarantee limits aggregating to Rs.30,000,000/- (Previous year Rs.30,000,000/-) for contracts undertaken by the Company and other matters are secured by extension of charge by way of joint hypothecation of stock in trade, stores and spares etc.,book debts subject to prior charge in their favour. Amount outstanding as on 31st March ,2012 is Rs. 21,141,890- (Previous year Rs. 19,479,390/-)

b) The non-fund based facilities have been sanctioned amounting to Rs. 314,000,000/- with a charge of hypothecation on stock, book debts and other current assets on pari-passu among the consortium members and second charge over fixed assets of company. Amount outstanding as on 31st March 2012 is Rs. 67,864,161/- (Previous year -Rs. 77,103,223/-). Also outstanding amount of Letter of Credit open against Fixed Assets as on 31st March, 2012 is Rs.33,000,842/-

6. Total Expenditure on Research & Development (including allocable overheads) during the year is Rs.6,574,000/- (Previous year Rs.3,636,412/-)

7. (a) The Company has a single Product, viz : "Forgings". Consequently, there are no Reportable Segments of the Company as per the Accounting Standard (AS-17) "Segment Reporting" prescribed by Companies (Accounting Standards ) Amendment Rules, 2006.

(b) Disclosures of transactions with Related Parties as required by Accounting Standard - 18 "Related Party Disclosures" is given below. Related parties as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by the Key Managerial Personnel, information available with the company and taken on record by the Board.

8 The Company has sent balance confirmation letters to Sundry Debtors, Creditors and Other Parties and the balances are under reconciliation in those cases where confirmations were received. Pending final reconciliation, the balances in respect of Debtors,Creditors and third parties are as per books of account only. Adjustments having an impact of revenue nature, if any, will be made in the year in which the same are confirmed/reconciled.

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


Mar 31, 2011

1 Contingent Liability not provided for in respect of:

As at 31st As at 31st March, 2011 March, 2010 Rs. Rs.

i. Sales Bills discounted 13,169,313 16,190,400

ii. Claims against the Company, not acknowledged as debts 12,425,000 14,662,500

iii Disputed Income Tax demand, matter under appeal 10,289,869 21,094,377

iv Disputed Excise demand, matter under appeal 6,087,927 5,201,003

2 The Company has imported capital goods under the Export Promotion Capital Goods Scheme of the Govt. of India at concessional rate of duty against an undertaking to fulfil quantified exports (after considering enhancement in Export Obligation amount and cancellations of Licences), aggregates USD 8.01 Milions (Equivalent to Rs. 353,474,391 at 1 USD = Rs.44.11) over a period of next six years, while maintaining average exports of USD 5.96 Millions (Equivalent to Rs.262,912,000). Non fulfilment of the balance obligations, in the due manner entails options/rights to the Government to confiscate Capital Goods Imported under the said Licences and other penalties under the above reffered scheme.

3 a) The Company has obtained Ruppe term loan from State Bank of India for Rs. 12 Crores and created the charge by way of hypothecation charge on assets to be acquired out of Bank finance. Repayable within 12 months is NIL.

b) Working capital loans are secured by first charge by way of hypothecation and/or pledge of the current assets, viz stocks of Raw Materials, semi finished and finished goods, stores and spares not relating to Plant & machinery (Consumables stores and spares), bills receivable, book debts and all other movables and also by mortgage and charge in favour of the banks ranking after the charges created in favour of the term lenders on immovable & movable properties (other than current assets) both present and future in a form and manner acceptable to the banks.

c) Guarantees given by the Companys Bankers on behalf of the Company, against sanctioned guarantee limits aggregating to Rs.30,000,000/- (Previous year Rs.30,000,000/-) for contracts undertaken by the Company and other matters are secured by extension of charge by way of joint hypothecation of stock in trade, stores and spares etc., book debts subject to prior charge in their favour. Amount outstanding as on 31st March, 2011 is Rs. 19,479,390- (Previous year Rs. 22,419,898/-).

d) The non-fund based facilities have been sanctioned amounting to Rs. 174,000,000/- with a charge of hypothecation on stock, book debts and other current assets on pari-passu among the consortium members and second charge over fixed assets of company. Amount outstanding as on 31st March 2011 is Rs. 77,103,223/-(Previous year-Rs. 52,144,840/-).

4 Disclosure pursuant to Accounting Standard (AS 15) - Revised 2005 "Employee Benefits" prescribed by Companies (Accounting Standards) Amendment Rules, 2006

5 Licensed & Installed Capacities, Production, Turnover and Stock of Shares and Units of Mutual Funds A. Licensed & Installed Capacity and Production:

(a) These products are exempt from Licensing rquirements under new Industrial Policy in term of Notification No. 477(E) dated 25th July, 1991

(b) Production quantity includes forging for captive consumption in production of (i) RearAxle Tube Assemblies M.T. 68 80 (ii) Finished Machined Components M.T. 775 1,491

(c) Actual production at press shop stage / Machining Stage

(*) Since the Companys Installed capacity is dependent on the product mix, which in turn is decided on the basis of the actual demand for various products from time to time, it is not feasible for the Company to give the exact installed capacity. The Company has, however, indicated the installed capacity on the basis of the years product mix as certified by the Chief Executive Officer and being technical matter, is accepted by the auditors as correct

6 Managerial Remuneration

(A) Computation of Net Profit in accordance with Section 198(1) and Section 349 of the Companies Act, 1956

7 Total Expenditure on Research & Development (including allocable overheads) during the year is Rs.3,636,412/-(Previous year Rs.2,301,808/-)

8 (a) The Company has a single Product, viz: "Forgings". Consequently, there are no Reportable Segments of the Company as per the Accounting Standard (AS-17) "Segment Reporting" prescribed by Companies (Accounting Standards) Amendment Rules, 2006.

(b) Disclosures of transactions with Related Parties as required by Accounting Standard -18 "Related Party Disclosures" is given below. Related parties as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by the Key Managerial Personnel, information available with the company and taken on record by the Board.

9 The Company has sent balance confirmation letters to Sundry Debtors, Creditors and Other Parties and the balances are under reconciliation in those cases where confirmations were received. Pending final reconciliation, the balances in respect of Debtors,Creditors and third parties are as per books of account only. Adjustments having an impact of revenue nature, if any, will be made in the year in which the same are confirmed / reconciled.

10 Capital Work in Progress includes advances for supply of capital goods aggregating Rs. 67,457,906/- (Previous year Rs. 13,748,427/-) relating to Project under implementation.

11 Information required in terms of Part IV of Schedule VI to the Companies Act, 1956, as compiled by the Company is attached.

12 Previous Years figures have been regrouped wherever necessary to make them comparable with those of the current year.


Mar 31, 2010

1 Significant Accounting Policies followed by the Company are stated in the Statement Annexed to this Schedule.

2 Contingent Liability not provided for in respect of: As at 31st As at 31st

March, 2010 March, 2009 Rs. Rs.

i. Sales Bills discounted 16,190,400 3,806,876

ii. Claims against the Company, not acknowledged as debts 14,662,500 20,350,000

iii Disputed Income Tax demand, matter under appeal 21,094,377 24,059,941

iv Disputed Excise demand, matter under appeal 5,201,003 5,097,547

3 The Company has imported capital goods under the Export Promotion Capital Goods Scheme of the Govt. of India at concessional rate of duty against an undertaking to fulfil quantified exports (after considering enhancement in Export Obligation amount and cancellations of Licences) aggregating USD 10.85 Milions (Equivalent to Rs. 496,128,768 at 1 USD = Rs.45.71) over a period of next seven years, while maintaining average exports of USD 5.7 Millions (Equivalent to Rs. 262,912,000). Non fulfilment of the balance obligations, in the due manner entails options/rights to the Government to confiscate Capital Goods Imported under the said Licences and other penalties under the above reffered scheme. _

4 a) Foreign Currency Term Loan (External Commercial Borrowing) from DBS Bank is secured by first pari pasu Equitable mortgage on the immovable Assets of the Company. It is also secured by collateral security in the form of first charge on the residual fixed assets (present and future) of the Company. The First charge is in the form of Equitable Mortgage by deposit of title deeds of the land together with construction thereon. It is also secured by second charge on the current assets of the Company. The Company has already executed modification of Equitable Mortgage with term lenders, DBS Bank. Amount repayable forfinancial year 2010-11 is Rs. 174,991,793/-

b) The rupee term loan from State Bank of India is repaid during the year and charge created for this loan has been satisfied.

c) Working capital loans are secured by first charge by way of hypothecation and/or pledge of the current assets, viz stocks of Raw Materials, semi finished and finished goods, stores and spares not relating to Plant & machinery (Consumables stores and spares ),bills receivable, book debts and all other movables and also by mortgage and charge in favour of the banks ranking after the charges created in favour of the term lenders on immovable & movable properties (other than current assets) both present and future in a form and manner acceptable to the banks.

d) Guarantees given by the Companys Bankers on behalf of the Company, against sanctioned guarantee limits aggregating to Rs.30,000,000/- (Previous year Rs.30,000,000/-) for contracts undertaken by the Company and other matters are secured by extension of charge by way of joint hypothecation of stock in trade, stores and spares etc.,book debts subject to prior charge in their favour. Amount outstanding as on 31st March ,2010 is Rs. 22,419,898/- (Previous year Rs. 22,959,398/-).

e) The non-fund based facilities have been sanctioned amounting to Rs. 164,000,000/- with a charge c hypothecation on stock, book debts and other current assets on pari-passu among the consortium members and second charge over fixed assets of company. Amount outstanding as on 31st Marcl 2010 is Rs. 52,144,840/-(Previous year-Rs. 25,862,005/-).

5 Disclosure pursuant to Accounting Standard (AS 15)- Revised 2005 "Employee Benefits" prescribed b} Companies (Accounting Standards) Amendment Rules, 2006

6 Total Expenditure on Research & Development (including allocable overheads) during the year is / Rs.2,301,808/-(Previous year Rs.2,369,047/-)

7 (a) The Company has a single Product, viz : "Forgings". Consequently, there are no Reportable Segments of the Company as per the Accounting Standard (AS-17) "Segment Reporting" prescribed by Companies (Accounting Standards) Amendment Rules, 2006.

8 The Company has sent balance confirmation letters to Sundry Debtors, Creditors and Other Parties and the balances are under reconciliation in those cases where confirmations were received. Pending final reconciliation, the balances in respect of Debtors,Creditors and third parties are as per books of account only. Adjustments having an impact of revenue nature, if any, will be made in the year in which the same are confirmed / reconciled.

9 Capital Work in Progress includes advances forsupply of capital goods aggregating Rs. 13,748,427/- (Previous year Rs.25,789,529/-) relating to Project under implementation.

10 The Accounting Standard (AS 11)" The effects of Changes in Foreign Exchange Rates " prescribed by Companies (Accounting Standards ) Rules, 2006 was amended on 31st March, 2009, vide notification dated 31st March, 2009, by the Ministry of Corporate Affairs. The said amendment offered an option to Companies to recognize Foreign Exchange gains and losses arising on translation of all long term monetary assets and liabilities acquired up to 31st March, 2009, retrospectively from accounting periods commencing after 7th December, 2006 (i.e. 1st April, 2007 for the company) up to 31st March, 2011, as capital cost of acquisition of assets where they relate to acquisition of assets. The amount so recognized as capital cost of assets is to be depreciated over the balance life of relevant assets. The Company has chosen to exercise this option in preparation of its financial statements for the year ended 31st March, 2010. Accordingly, Foreign Exchange Differences adjusted against the cost of assets / CWIP for the year ended March 31,2010 is Rs. NIL (Previous year Rs. 36,629,705).

11 Provision no longer required written back includes Rs.20,317,054/- on account of Royalty written back during the year.

12 Information required in terms of Part IV of Schedule VI to the Companies Act, 1956, as compiled by the Company is attached.

13 Previous Years figures have been regrouped wherever necessary to make them comparable with those of the current year.

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