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Notes to Accounts of Lumax Auto Technologies Ltd.

Mar 31, 2015

1 Corporate information

Lumax Auto Technologies Limited is a Public Limited Company located in India. The Company is engaged in dealing & manufacturing of automotive components. The Shares of the Company are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

2 Basis of preparation

The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention, The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

3 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 holder is entitled to one vote per share. The company declares and pays dividend in Indian rupees. 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.

4 Gratuity and other post -employement benefit plans :

The Company operates defined plans, viz., gratuity for its employees. Under the gratuity plan, every employee who has completed atleast five years of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service. The scheme is funded with an insurance company in the form of qualifying insurance policy.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the respective plans.

5 Operating lease: Company as lessee

The Company has entered into commercial leases for office premises and warehouses. There are no contingent rents in the lease agreements. The lease terms is for 1-5 years and are renewable at the mutual agreements of both the parties. There are no restrictions imposed by lease arrangements. There are no sublease and all the leases are non-cancellable in nature. The rent expense under these agreements is Rs.24,474,205 (Previous year : Rs. 16,176,478).

6 Depreciation

(a) . Till 31st March, 2014, depreciation was being provided on straight line method as per the rates prescribed in Schedule XIV of the Companies Act, 1956. The Schedule XIV has been replaced by Schedule II of the Companies Act, 2013 and the depreciation has been charged on straight line method on the basis of useful lives of the assets in the manner as prescribed in Schedule II of Companies Act, 2013.

(b) Till 31st March, 2014, the assets for a value not exceeding Rs. 5000/- were written off in the year of purchase as per Schedule XIV of the Companies Act, 1956. Schedule II of the Companies Act, 2013 does not recognize such practice. The depreciation on assets for a value not exceeding Rs. 5000/- has been provided on the basis of their useful lives in the manner as prescribed in the Schedule II of the Companies Act, 2013.

7 Contingent Liabilities (Amount in Rs.)

Particulars Year Year Ended Ended March 31, March 31, 2015 2015 In respect of A.Y. 2010 - 11, the assessing officer has added to the income of the Company notional amount of disallowance under Rule 14A of the Income tax act,1961 amounting to Rs. 435,192 against which demand 118,000 118,000 raised for amountingRs 118,000. The Company has preferred an appeal with CIT (A).

In respect of A.Y. 2012 - 13, the assessing officer has added to the income of the under Rule 14A of the Income tax act, Company notional amount of disallowance 1961 amounting to Rs. 1,134,302 against which demand raised for amounting Rs 384,670. 384,670 - The Company has preferred an appeal with CIT (A).

Deputy commissioner (Central Excise) 36,27,098 - has disallowed CENVAT credit amounting Rs.3,627,098 paid on nickel plating to job worker relating to the period from 2008-09 to 2013-14.The Company had filed the appeal with Commissioner (Appeals) and personal heraing is pending before the Commissioner (Appeals) in respect of the period from 2008 -09 to November 2013. Deputy commissioner (Central Excise) 10,42,425 - had raised a demand in respect of 6 % reversal of exempted services relating to the period from October 2008 to July 2013.The Company had filed the (Appeals).appeal with Commissioner (Appeals) and personal heraing is pending before the Commissioner

The Company on the basis of current status of the cases and advice obtained from legal counsel is confident that there would not be any probable outflow of resources in these matters.

8 Related Party Disclosure

(A) Subsidiary companies

Lumax DK Auto Industries Limited (LDK)

Lumax Mannoh Allied Technologies Private Limited

(B) Key Management Personnel D.K. Jain (Chairman)

Anmol Jain (Managing Director)

(C) Relative Of Key Management Personnel

Deepak Jain (Son Of Mr. D.K. Jain ,Brother of Mr. Anmol Jain)

Mrs. Shivani Jain ( Wife of Mr. Anmol Jain )

Mrs. Usha Jain (Wife of Mr.D.K.Jain & Mother of Mr. Anmol Jain)

(D) Enterprises Owned or Significantly Influenced by Key Management Personnel Lumax Industries Limited

Lumax Finance Private Limited Lumax Ancillary Limited Mahavir Udyog D. K. Jain & Sons ( HUF)

Bharat Enterprises D. K. Jain Family Trust Lumax Tours & Travels Limited Vardhman Agencies Private Limited Lumax Charitable Foundation

(E) Joint Venture

Lumax Cornaglia Auto Technologies Private Limited (LCAT)

Lumax Gill-Austem Auto Technologies Private Limited (LGAT)

9 Segment information Business segment

The Company had identified its primary business segment as dealing & manufacturing of "Automotive components".

All activities of the Company revolve around the above segment. The entire operations are governed by the same set of risks and returns. Hence it is considered as single primary business segment.

Geographical segment

The analysis of geographical segment is based on the geographical location of the customers. The Company operates primarily in India and has some presence in international markets as well. Its business is accordingly aligned geographically, catering to two markets i.e India and Outside India. The Company has considered domestic and exports markets as geographical segments and accordingly considered them for disclosure based on materiality of transactions.

10 Corporate Social Responsibility (CSR) expenditure

As per the provisions of Section 135 of the Companies Act, 2013 and Companies (Corporate Social Responsibility Policy) Rules 2014, the Company has to spend atleast 2% of average net profit of last three financial years towards CSR. Accordingly a CSR committee has been formed for carrying out the CSR activities as per Schedule VII of the Companies Act, 2013. The Company has contributed a sum of Rs. 3,140,000 towards CSR and debited the same to the statement of Profit and Loss.

11 During the year, the Company has received consideration of Rs 237,150,000 against sale of 45% shares of Lumax Mannoh Allied Technologies Private Limited (LMAT). The consideration is received in terms of Joint venture and Share purchase and Shareholder agreement dated March 4, 2014 amongst the Company, Mannoh Industrial Co. Limited, Lumax DK Auto Industries Limited and Lumax Mannoh Allied Technologies Private Limited.

12 The management has analysed that no significant warranty claim is received by the Company in earlier years against the goods manufactured by the Company and further, the seller of traded goods warrants the Company that products will be free from defects in materials and workmanship under normal use and service and agrees to replace any defective parts under the conditions of standard warranty accompanying the products. Therefore, the Company has not made any provision for warranties and claims in its books of accounts for the year ended March 31, 2015.

13 Previous year figures were audited by another firm of Chartered Accountant.

14 Previous years figures have been reclassified/re-grouped wherever necessary, to confirm to this year''s classification.


Mar 31, 2013

1 Company Information

Lumax Auto Technologies Limited is a public limited company located in India and incorporated under the Companies Act, 1956. The company is engaged in dealing & manufacturing of automotive components. The shares of the company are listed on the Bombay Stock Exchange Ltd. (BSE) and the National Stock Exchange of India Ltd. (NSE).

2.1 Disclosure of Standalone Results of Subsidiary Company:

The Ministry of Company Affairs, Government of India, vide its General Circular no. 2/2011 dated February 08, 2011, issued under section 212(8) of the Companies Act, 1956 , has exempted the company from attaching the Balance sheet and Statement of Profit and Loss of its subsidiary under section 212(1) of the Companies Act, 1956.

3.1 Balance in Deposit Accounts includes:-

a) Rs. 2,50,000/- is deposited towards guarantee in Central Excise Delhi for removal of goods without payment of excise duty under Bond ( CT-1 form) for export.

b) Rs. 50,000/- is deposited towards gurantee in Sales Tax department (Nahan Kala-amb) .

4.1 During the year an amount of Rs.97.92 Lacs paid to Mrs. Usha Jain - Managing Director of the Company, in excess of the limits specified by the relevant provisions of the Companies Act, 1956 on account of the overseas medical treatment.

The Company had got approval from the shareholders for waiver of the said excess remuneration to the Managing Director through Postal Ballot and application to the Central Government was filed by the company for approval of the said proposal. Subsequently, a letter was received from the Managing Director requesting the company to accept the refund of excess remuneration paid to her on account of her overseas medical treatment. The Board of Directors of the Company accepted the said request and decided to drop the applications filed with the Central Government for approval of the said proposal. The Company is in process to withdraw the application made to the Central Government in this respect as the amount has been refunded.

5. Related Party Disclosure

(A) Subsidiary

(i) Lumax DK Auto Industries Limited

(B) Key Management Personnel

(i) Mrs. Usha Jain ( Managing Director)

(C) Relative Of Key Management Personnel

(i) Mr. D.K. Jain (Husband of Mrs. Usha Jain)

(ii) Mr. Deepak Jain (Son of Mrs. Usha Jain)

(iii) Mr. Anmol Jain (Son of Mrs. Usha Jain)

(D) Enterprises Owned or Significantly Influenced by Key Management Personnel

(i) Lumax Industries Limited

(ii) Lumax Finance Private Limited

(iii) Lumax Ancilliary Limited

(iv) Lumax Automotive System Limited

(v) Lumax Filters Private Limited

(vi) Mahavir Udyog

(vii) D. K. Jain & Sons ( HUF)

(viii) Bharat Enterprises

(ix) D. K. Jain & Family Trust

(x) Lumax Tours & Travels Limited

(xi) Vardhman Agencies Private Limited

(E) Joint venture

(i) Lumax Cornaglia Auto Technologies Private Limited


Mar 31, 2012

1 Company Information

Lumax Auto Technologies Limited is a Public Limited company located in India and incorporated under the Companies Act, 1956. The Company is engaged in manufacturing & selling of automotive parts. The shares of the Company are listed on the Bombay Stock Exchange Ltd. (BSE) and the National Stock Exchange of India Ltd. (NSE).

2.1 Rights, preferences & restrictions attached to 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 company declares dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

3.1 Disclosure of Standalone Results of Subsidiary Company:

The Ministry of Company Affairs, Government of India, vide its General Circular no. 2/2011 dated 8th February, 2011, issued under section 212(8) of the Companies Act, 1956, has exempted the company from attaching the Balance Sheet and Statement of Profit and Loss of its Subsidiary under section 212(1) of the Companies Act, 1956,

3.2 Interest in Joint Venture Companies

Pursuant to Accounting Standard 27 on Financial Reporting of Interests in Joint Ventures, the relevant information relating to the Joint Venture Company, is as given below:

Raw Materials and components, Stores & Spares (Including Packing Materials), Traded Goods (Including Moulds & Dies) -

Valued at lower of Landed cost (net of taxation credits, if any) and Net Realizable value*, after making provision for obsolescence wherever necessary.

Cost comprises of cost of Purchase & other costs incurred in bringing them to their respective present location and condition and is determined on First-in-First-Out (FIFO) basis.

Work-in-Progress, Finished Goods -

Valued at lower of cost and Net Realizable value*, after making provision for obsolescence wherever necessary.

Cost of Work-in-progress & Finished Goods includes Direct Material, Labour and proportion of manufacturing overheads

Scrap-

At Net Realizable Value*.

4.1 Balance in Deposit Accounts includes:-

a) Rs. 2,50,000/- is deposited towards guarantee with Central Excise Delhi for removal of Goods without payment of Excise Duty under Bond ( CT-1 form) for Export.

b) Rs.. 50,000/- is deposited towards guarantee with Sales Tax department (Nahan Kaleamb) .

5. Statement showing the use of proceeds from Preferential allotment of Shares:

During the Year ended March 31, 2011, the Company had issued 20,00,000 equity shares of Rs. 10/- each on preferential basis at a premium of Rs. 109.10 per share. The net proceeds of the issue have been utilized for the objects of the issue as detailed below:

6. Gratuity and Other Post-employment Benefit Plans :

Liability for employee benefits has been determined by an actuary, in conformity with the principles set out in the accounting Standard 15 (revised ) which are as hereunder :

7. Contingent Liabilities (Rs. in Lacs)

Particulars Year Ended Year Ended March 31, 2012 March 31, 2011

Income Tax demand : For Assessment Year 2007-08, Company has filed an appeal with CIT Appeal), Further, CIT (Appeal) has passed an order in favour of company, and have inst ructed Assessing officer to review some of the matters contested by the company, for which assessing officer has not issued any demand to the company Nil Nil

Corporate Guarantee given to Bank against Loans taken by Subsidiary

Company Lumax DK Auto Industries Limited. Nil 22.85

8. Related Party Disclosure :

(A) Subsidiary

(a) Lumax DK Auto Industries Ltd.

(B) Key Management Personnel

(a) Mr. D.K. Jain ( Husband Of Mrs. Usha Jain & Father Of Mr. Anmol Jain)

(b) Mrs. Usha Jain ( Wife Of Mr. D.K. Jain & Mother Of Mr. Anmol Jain)

(c) Mr. Anmol Jain ( Son Of Mr. D.K. Jain & Mrs. Usha Jain)

(C) Relative Of Key Management Personnel

(a) Mr. Deepak Jain ( Son Of Mr. D.K. Jain & Mrs. Usha Jain, Brother of Mr. Anmol Jain)

(b) Mrs. Shivani Jain ( Wife Of Mr. Anmol Jain)

(D) Enterprises Owned or Significantly Influenced by Key Management Personnel

(a) Lumax Industries Ltd.

(b) Lumax Finance Pvt. Ltd.

(c) Lumax Anciliary Ltd. ( Formerly Deepak Auto Ltd.)

(d) Lumax Automotive System Ltd.

(e) Lumax Filter Limited

(f) Mahavir Udyog

(g) D. K. Jain & Sons ( HUF)

(h) Lumax International Pvt. Ltd.

(i) Bharat Enterprises

(j) D. K. Jain & Family Trust

(k) Lumax Tours & Travels Ltd.

(l) Vardhman Agencies Pvt. Ltd.

(E) Joint Venture

(a) Lumax Cornaglia Auto Technologies Pvt. Ltd.


Mar 31, 2011

1. Contingent Liabilities not provided for

(Amount Rs. in Lacs)

Sr. No. Particulars 2010-11 2009-10

a) Income Tax demand : For Assessment Year 2007-08, Company has filed an appeal with CIT (Appeal), Further, CIT (Appeal) has passed an order in favour of company, and have instructed Assessing officer to review some of the matters contested by the company, for which assessing officer has not issued any demand to the company Nil 152.62

b) Corporate Guarantee given to Bank against Loans taken by Subsidiary Company Lumax DK Auto Industries Limited. 22.85 222.97

Based on the favourable decisions in similar cases/legal opinions taken by the Company, the company believes that it has good cases in respect of the items listed under (a) above and hence no provision there against is considered necessary.

2. Details in respect of Opening Stock, Production, Turnover & Closing Stock of Finished Goods: As Per Annexure-A (Certified by Management).

3. Details in respect of consumption of Raw Materials and Consumables and others: As per Annexure-B (Certified by Management).

4. In terms of Paragraph-3 Part-II of Schedule VI of the Companies Act 1956, quantity wise disclosure have been restricted to those items/ articles which individually account for 10% or more of the total Sales, Consumption as the case may be and the same is disclosed to the extent available and considered as compiled and certified by the management.

5. Gratuity and Other Post-Employment Benefit Plans:

Provision for Gratuity is made in the books and take into effect the application of changes vide Gazette Notification No.15/2010, as the effective date of changes were notified by the Central Government during Current Year.

6. Related Party Disclosures:

The information about transactions with the related parties is attached herewith - As per Annexure "C".

7. Balance confirmation letters have not been obtained from some of the parties.

8. Previous year's figures have been regrouped or rearranged wherever necessary to make them comparable with the current year's figures.

Related Party Disclosure:

(A) Subsidiary

(a) Lumax DK Auto Industries Ltd.

(B) Key Management Personnel:

(a) Mr. D. K. Jain (Husband of Mrs. Usha Jain & Father of Mr. Anmol Jain)

(b) Mrs. Usha Jain (Wife of Mr. D.K. Jain & Mother of Mr. Anmol Jain)

(c) Mr. Anmol Jain (Son of Mr. D.K. Jain & Mrs. Usha Jain)

(C) Relatives of Key Management Personnel :

(a) Mr. Deepak Jain (Son of Mr. D.K. Jain & Mrs. Usha Jain, Brother of Mr. Anmol Jain)

(b) Mr. S.C. Jain (now deceased) (Father of Mr. D.K. Jain & Grandfather of Mr. Anmol Jain and Deepak Jain)

(c) Mrs. Shivani Jain (Wife of Mr. Anmol Jain)

(D) Enterprises Owned or Significantly Influenced by Key Management Personnel :

(a) Lumax Industries Ltd.

(b) Lumax Finance Pvt. Ltd. (formely Sheela Finance Pvt. Ltd.)

(c) Deepak Auto Ltd.

(d) Lumax Automotive Systems Ltd.

(e) Lumax Filter Pvt. Ltd.

(f) Mahavir Udyog

(g) Lumax Investment and Finance Pvt. Ltd. (Merged with Sheela Finance Pvt. Ltd.) (h) Lumax International Pvt. Ltd.

(i) Bharat Enterprises

(j) S L Lumax Ltd.

(k) Lumax Tours & Travels Ltd.

(l) Vardhman Agencies Pvt. Ltd.

(E) Joint Venture

(a) Lumax Cornaglia Auto Technologies Pvt. Ltd.


Mar 31, 2010

1 a. Capital Commitment Net of Advance Rs. 22.28 Lacs (Previous year 382.72 Lacs)

2. Details in respect of Opening Stock, Turnover & Closing Stock of Finished Goods (Including Traded Goods) : As Per Annexure-A (Certified by Management).

3. Details in respect of consumption of Raw Materials, Consumables and purchase of traded goods : As per Annexure-B (Certified by Management).

4. In terms of Paragraph-3 Part-II of Schedule VI of the Companies Act 1956, quantity wise disclosure have been restricted to those items/articles which individually account for 10% or more of the total Sales, Consumption as the case may be and the same is disclosed to the extent available and considered as compiled and certified by the management.

5. Sundry Creditors as defined under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) have been identified to the extent of information available with the company . This has been relied upon by the auditors. Sundry Creditors include following amounts due to MSMED parties:

6. Balance confirmation letters have not been obtained from some of the parties.

7. Previous years figures have been regrouped or rearranged wherever necessary to make them comparable with the current years figures.

 
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