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Notes to Accounts of Linc Pen & Plastics Ltd.

Mar 31, 2015

A. Terms & rights attached to equity shares

The Company has only one class of equity shares having a par value of H10 per share. Each holder of equity shares is entitled to one vote per share. The holders of Equity Shares are entitled to receive dividends as declared from time to time. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 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.

a. General Reserve is primarily created to comply with the requirements of sec. 123 of the Companies Act, 2013. This is the free reserve and can be utilised for any general purpose viz. issue of bonus shares, payment of dividend, buyback of shares etc.

b. During the year ended 31st March 2015, dividend Rs.2.50 per equity share was recognised as distribution to equity shareholders. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.The total dividend appropriation for the year ended March 31, 2015 amounted to Rs.443.57 lacs including corporate dividend tax of Rs.73.92 lacs.

c. During the year ended 31st March, 2014, dividend Rs.2 per equity share was recognised as distribution to equity sharholders. The total dividend appropriation for the year ended March 31, 2014 amounted to H345.98 lacs including corporate dividend tax of Rs.50.26 lacs.

2 Short-term borrowings

a. Loans from Bank is secured by hypothecation of Plant & Machinery, Moulds & Current Assets of the Company and first charge by way of Equitable Mortgage of Immoveable Properties and other Fixed Assets of the Company and also guaranteed by Managing Director, Whole Time Director and associate concern of the Company. The loan from banks is repayable on demand and carries interest @ 10% to 13%.

b. Details of Borrowings guaranteed by two of its Directors and others:

Mr. Deepak Jalan & Mr. Aloke Jalan: Rs.5125 Lacs (Previous Year Rs.5225 Lacs); Linc Writing Aids Pvt. Ltd. Rs.3775 Lacs (Previous Year Rs.3775 Lacs).

c. Foreign Currency loan from bank carried interest @ 6 mths. LIBOR plus 3.00%.

3 Other Disclosures

1 Contingent liabilities and commitments (to the extent not provided for)

(Rs. in Lacs)

As on As on Particulars 31st March, 2015 31st March, 2014

a) Contingent Liabilities:

Claims against the Company not acknowledged as debts:

Income Tax demands under appeal 444.88 524.57

Income Tax Paid against demands 209.25 194.23

The amounts shown in (a) above represent the best possible estimates arrived at on the basis of available information.

The uncertainties and timing of the cash flows are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be estimated accurately.

In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the grounds that there are fair chances of successful outcome of appeals.

The Company does not expect any reimbursements in respect of the above contingent liabilities.

b) Commitments:

i) Estimated amount of Contracts remaining to be 412.68 187.87 executed on Capital Account and not provided for

ii) Advance paid against above 388.14 257.73

2. The amount due to Micro and Small Enterprises as defined in the "The Micro, Small and Medium Enterprises Development Act, 2006" has been determined to the extent such parties have been identified on the basis of information available with the Company.

4. Segment Reporting

The business of the company falls under a single segment i.e. "Writing Instruments and Stationeries" therefore the disclosure requirements as per Accounting Standard 17 "Segment Reporting" are not applicable to the Company.

5. Employee Benefits :

As per Accounting Standard - 15, the disclosure of Employee Benefits as defined in the Accounting Standard are as follows:

a) Defined Contribution Plan :

Employee benefits in the form of Provident Fund and Employee State Insurance Scheme are considered as defined contribution plan and the contributions are made in accordance with the relevant statute and are recognized as an expense when employees have rendered service entitling them to the contributions. The contribution to defined contribution plan, recognized as expense for the year is as under:

b) Post employment and other long-term employee benefits in the form of gratuity and leave encashment are considered as defined benefit obligation. The present value of obligation is determined based on actuarial valuation using projected unit credit method as at the Balance Sheet date. The amount of defined benefits recognized in the Balance Sheet represents the present value of the obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of plan assets.

VI. Basis used to determine the Expected Rate of Return on Plan Assets:

The basis used to determine overall expected rate of return on plan assets is based on the current portfolio of assets, investment strategy and market scenario. In order to protect the capital and optimize returns within acceptable risk parameters, the plan assets are well diversified.

VII. Basis of estimates of rate of escalation in salary

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 LIC.

XI Other Disclosures

1. The Gratuity and Provident Fund Expenses have been recognized under "Contribution to providen and other funds" and Leave Encashment under "Salaries & wages" under Note no. 24.

2. Experience adjustment arising on Plan Liabilities and Plan Assets for the previous four annua period is not available and therefore, not disclosed.

6. Disclosure under clause 32 of the Listing Agreement:

There are no transactions which are required to be disclosed under Clause 32 of the Listing Agreement with the Stock Exchanges where the Equity Shares of the Company are listed.

7. Figures in brackets represent figures for the previous year.The previous year's figures have been reworked,regrouped,rearranged and reclassified wherever necessary as required by Schedule III of the Companies Act, 2013. Amounts and other disclosures for the preceeding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

This is the Balance Sheet referred to in our report of even date.


Mar 31, 2014

1. The amount due to Micro and Small Enterprises as defined in the "The Micro, Small and Medium Enterprises Development Act, 2006" has been determined to the extent such parties have been identified on the basis of information available with the Company.

2. Segment Reporting

The business of the Company falls under a single segment i.e. "Writing Instruments and Stationeries" therefore the disclosure requirements as per Accounting Standard 17 "Segment Reporting" are not applicable to the Company.

b) Post employment and other long-term employee benefits in the form of gratuity and leave encashment are considered as defined benefit obligation. The present value of obligation is determined based on actuarial valuation using projected unit credit method as at the Balance Sheet date. The amount of defined benefits recognized in the Balance Sheet represents the present value of the obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of plan assets.

VI. Basis used to determine the Expected Rate of Return on Plan Assets:

The basis used to determine overall expected rate of return on plan assets is based on the current portfolio of assets, investment strategy and market scenario. In order to protect the capital and optimize returns within acceptable risk parameters, the plan assets are well diversified.

VII. Basis of estimates of rate of escalation in salary

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 LIC.

3. a. Disclosure under clause 32 of the Listing Agreement:

There are no transactions which are required to be disclosed under Clause 32 of the Listing Agreement with the Stock Exchanges where the Equity Shares of the Company are listed.

b. The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary as required by Revised Schedule VI. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

4. Figures in brackets represents figures for the previous years.


Mar 31, 2013

Note 1 SEGMENT REPORTING

The business of the company falls under a single segment i.e. "Writing Instruments and Stationeries" therefore the disclosure requirements as per Accounting Standard 17 "Segment Reporting" are not applicable to the Company.

Note 2 DISCLOSURE UNDER CLAUSE 32 OF THE LISTING AGREEMENT:

There are no transactions which are required to be disclosed under Clause 32 of the Listing Agreement with the Stock Exchanges where the Equity Shares of the Company are listed.

Note 3

The previous years figures have been reworked, regrouped, rearranged and reclassified wherever necessary as required by Revised Schedule VI. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

Note 4

Figures in brackets represents figures for the previous years.


Mar 31, 2012

A. Terms & rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The holders of equity shares are entitled to receive dividends as declared from time to time. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 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.

b. The company has issued an aggregate of 47.86 lacs (previous year 47.86 lacs upto 31.3.11) fully paid up equity shares of par value Rs. 10/- each without payment being received in cash in the last 5 years immediately preceeding the balance sheet date.

a. General Reserve is primarly created to comply with the requirements of sec. 205(2A) of the Companies Act, 1956. This is the free reserve and can be utilised for any general purpose viz. issue of bonus shares, payment of dividend, buyback of shares etc.

b. During the year ended 31st March, 2012, dividend Re. 1/- per equity share was recognised as distribution to equity shareholders. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.The total dividend appropriation for the year ended March 31, 2012 amounted to Rs. 148.61 lacs including corporate dividend tax of Rs. 20.74 lacs.

c. During the year ended 31st March, 2011, dividend Rs.1.80/- per equity share was recognised as distribution to equity sharholders. The total dividend appropriation for the year ended March 31, 2011 amounted to Rs.268.37 lacs including corporate dividend tax of Rs.38.22 lacs.

a. Nature of securities :

i. Rupee term loan from banks carries interest @ 13.75 % p.a. & Foreign Currency loan from bank carries interest @ 06 mths. LIBOR plus 5.25%.

ii. Indian Rupee / Foreign Currency Loan from bank is secured by way of hypothecation of Plant and Machinery, Moulds and Current Assets of the company and by way of first charge on Immovable Properties and Other Fixed Assets of the company and is also guaranteed by the Mangaing Director, Whole Time Director and associate concern of the company.

iii. Vehicle loan from others carries interest @ 10% p.a. and is secured by way of hypothecation of car of the Company

* Working capital loan from bank is secured by way of hypothecation of Plant and Machinery, Moulds and Current Assets of the company and by way of first charge on Immovable Properties and Other Fixed Assets of the Company and is also guaranteed by the Mangaing Director, Whole Time Director and associate concern of the Company.

(Rs. in lacs)

As at 31 March, 2012 2011

Note 1.1 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

a) Contingent liabilities:

Claims against the Company not acknowledged as debts:

Income Tax demands under appeal 524.57 621.52

Income Tax paid against demands 115.00 50.00

The amounts shown in (a) above represent the best possible estimates

arrived at on the basis of available information. The uncertainties and timing of the cash flows are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be estimated accurately.

In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the grounds that there are fair chances of successful outcome of appeals.

Note 1.2

The amount due to Micro and Small Enterprises as defined in the 'The Micro, Small and Medium Enterprises Development Act, 2006' has been determined to the extent such parties have been identified on the basis of information available with the Company.

Note 1.3 SEGMENT REPORTING

The business of the Company falls under a single segment i.e. 'Writing Instruments and Stationeries' therefore the disclosure requirements as per Accounting Standard 17 'Segment Reporting' are not applicable to the Company.

III) No amount has been written back/written off during the year in respect of due to/from related parties.

IV) The amount due from related parties are good and hence no provision for doubtful debts in respect of dues from such related parties is required.

V) The transactions with related parties have been entered at an amount, which are not materially different from that on normal commercial terms.

VI) Figures in brackets pertain to previous year.

Note 1.4 EMPLOYEE BENEFITS

As per Accounting Standard-15, the disclosures of Employee Benefits as defined in the Accounting Standard are as follows:

a) Defined contribution plan:

Employee benefits in the form of Provident Fund and Employee State Insurance Scheme are considered as defined contribution plan and the contributions are made in accordance with the relevant statute and are recognised as an expense when employees have rendered service entitling them to the contributions. The contribution to defined contribution plan, recognised as expense for the year is as under:

b) Post employment and other long-term employee benefits in the form of gratuity and leave- encashment are considered as defined benefit obligation. The present value of obligation is determined based on actuarial valuation using projected unit credit method as at the Balance Sheet date. The amount of defined benefits recognised in the Balance Sheet represents the present value of the obligation as adjusted for unrecognised past service cost, and as reduced by the fair value of plan assets.

Any asset resulting from this calculation is limited to the discounted value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan. The amount recognised in the Profit and Loss account for the year ended 31st March, 2012 in respect of Employees Benefit Schemes based on actuarial reports as on 31st March, 2012 is as follows:

VI. Basis used to determine the Expected Rate of Return on Plan Assets:

The basis used to determine overall expected rate of return on plan assets is based on the current portfolio of assets, investment strategy and market scenario. In order to protect the capital and optimise returns within acceptable risk parameters, the plan assets are well diversified.

VII. Basis of estimates of rate of escalation in salary

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 bv LIC.

IX Other disclosures

1. The Gratuity and Provident Fund expenses have been recognised under 'Contribution to provident and other funds' and Leave Encashment under 'Salaries and wages' under Note no. 2.23.

2. Experience adjustment arising on plan liabilities and plan assets for the previous four annual period is not available and therefore, not disclosed.

Note 1.5 DISCLOSURE UNDER CLAUSE 32 OF THE LISTING AGREEMENT:

There are no transactions which are required to be disclosed under Clause 32 of the Listing Agreement with the stock exchanges where the equity shares of the Company are listed.

Note 1.6

Sundry debtors includes Rs. nil (Previous Year Rs. 7.58 lacs) under litigation.

Note 1.7

The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary as required by Revised Schedule VI. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

Note 1.8 FIGURES IN BRACKETS REPRESENTS FIGURES FOR THE PREVIOUS YEARS.


Mar 31, 2010

(Amount in Rupees)

2010 2009

1 i) Contingent Liabilities Not Provided For:

a) Bank Guarantees issued in favour of the President of India and others* 6,023,850 20,368,043

*Fixed Deposit lodged as Margin Money against the above 1,585,372 2,530,064

b) Income Tax demands under appeal 21,880,079 Nil

c) Bills Discounted from Bank 2,122,099 98,506



2 The amount due to Micro and Small Enterprises as defined in the "The Micro, Small and Medium Enterprises Development Act, 2006" has been determined to the extent such parties have been identified on the basis of information available with the Company.

3 Segment Reporting

The business of the company falls under a single segment i.e, "Writing Instruments and Stationeries" therefore the disclosure requirements as per Accounting Standard 17 "Segment Reporting" are not applicable to the Company.

4 Related Party transactions:

Related party disclosure as per Accounting Standard 18 for the year ended 31st March 2010 are given below:

1} Names and description of relationship of related parties as on 31st March 2010:



Related Party Relationship

Associates :

Linc Retail Ltd Associates

Key Managerial

Personnel (KMP) :

Deepak Jalan Managing Director

Prakash Jalan Whole Time Director

Aloke Jalan Whole Time Director



1} Names and description of relationship of related parties as on 31st March 2010: (Contd...)



Related Party Relationship

Enterprises in which KMP

and their relatives have

substantial interest:

S.M. Pen & Plastics

Industries Proprietorship Concerns owned by

Radhika Writing

Instruments Sri S.M. Jalan father of M.D. and W.T.D.

Linc Marketing Services (Goa) Proprietorship Concerns owned by

Linc Engineering Smt. Bindu Jalan wife of W.T.D.

S.M. Homes

Linc Writing Aids Pvt. Ltd Substantial interest of the relatives of M.D. and W.T.D.

Relatives of KMP :

Mr. Deepak Jalan Deepak Jalan (HUF) Mr. Deepak Jalan is Karta of HUF

Mr. S.M. Jalan (Father)

Mrs. Bimla Devi Jalan (Mother)

Ms. Divya Jalan (Daughter)

Mr. Prakash Jalan Mr. S.M. Jalan (Father)

Mrs. Bimia Devi Jalan (Mother)

Mr. Aloke Jalan Aloke Jalan (HUF) Mr. Aloke Jalan is Karta of HUF

Mrs. Shobha Jalan (Wife)

Mr. S.M. Jalan (Father)

Mrs. Bimla Devi Jalan (Mother)



III) No amount has been written back / written off during the year in respect of due to / from related parties.

IV) The amount due from related parties are good and hence no provision for doubtful debts in respect of dues from such related parties is required.

V) The transactions with related parties have been entered at an amount which are not materially different from that on normal commercial terms.

VI) Figure in brackets pertain to previous year.

5 Capital Work In Progress includes Capital Advance of Rs 11,045,579/- (Rs.4,425,447/-).

6 Employee Benefits :

As per Accounting Standard - 15, the disclosure of Employee Benefits as defined in the Accounting Standard are as follows.

a) Defined Contribution Plan :

Employee benefits in the form of Provident Fund and Employee State Insurance Scheme are

b) Post employment and other long-term employee benefits in the form of gratuity is considered as defined benefit obligation. The present value of obligation is determined based on actuarial valuation using projected unit credit method as at the Balance Sheet date. The amount of defined benefits recognized in the Balance Sheet represent the present value of the obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of plan assets.

VI. Basis used to determine the Expected Rate of Return on Plan Assets:

The basis used to determine overall expected rate of return on plan assets is based on the current portfolio of assets, investment strategy and market scenario. In order to protect the capital and optimize returns within acceptable risk parameters, the plan assets are well diversified.

VII. Basis of estimates of rate of escalation in salary

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 LIC.

7. Disclosure pursuant to AS-29 on Provisions, Contingent Liabilities and Contingent Assets :

i) No provisions for Liabilities was made during the year and no provision was outstanding at the beginning and at the end of the year.

ii) The Contingent Liabilities referred to in B-2 above depends upon non discharge of export obligation/ outcome of appeal invocation of bank guarantee etc.

iii) No reimbursement is expected in respect of contingent liabilities shown in B-2 above.

8. Disclosure under clause 32 of the Listing Agreement:

There are no transitions which are required to be disclosed under Clause 32 of the Listing Agreement with the Stock Exchanges where the Equity Shares of the Company are listed.

* The companys products are non standardised and are of various shapes & sizes, hence there is no proper measure to assess and indicate the same.

Note-.

I. No specific licence is required for the manufacture of products mentioned above.

II. Production includes products manufactured on job basis.

9. I) Figures in brackets represents figures for the previous years.

II) The previous year figures have been regrouped and rearranged wherever necessary.

 
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