Mar 31, 2018
Note: 1 CORPORATE INFORMATION
Maan Aluminium Limited (the âCompanyâ) is a public limited Company domiciled in India with its registered office located at Building No. 4/5, 1st Floor, Asaf Ali Road, New Delhi-110002. The Company is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The Company is engaged in the business of manufacturing & trading of aluminium profiles and other related activities.
Note: 2 BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES
2.1 BASIS OF PREPARATION AND PRESENTATION
i) Compliance with Indian Accounting Standards (Ind AS):
These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the âInd ASâ) as notified by Ministry of Corporate Affairs pursuant to section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.
ii) First-time adoption:
In accordance with Ind AS 101 on First time adoption of Ind AS, the Company has prepared its first Ind AS financial statements which include:
Three Balance sheets namely, the opening Balance sheet as at April 1, 2016 (the transition date) by recognising all assets and liabilities whose recognition is required by Ind AS, not recognising assets or liabilities which are not permitted by Ind AS, by reclassifying assets and liabilities from previous GAAP as required by Ind AS, and applying Ind AS in measurement of recognised assets and liabilities; and Balance sheets as at March 31, 2018 and 2017; and Two statements each of profit and loss; cash flows and changes in equity for the years ended March 31, 2018 and 2017 together with related notes.
iii) Basis of measurement
These financial statements are prepared under the historical cost convention except for the following assets and liabilities which have been measured at fair value:
- Certain financial assets and liabilities (including derivative instruments) measured at fair value (refer accounting policy regarding financial instruments),
- Defined benefit plans - plan assets measured at fair value
iv) Measurement of fair values
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Normally at initial recognition, the transaction price is the best evidence of fair value.
However, when the company determines that transaction price does not represent the fair value, it uses inter-alia valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All financial assets and financial liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy. This categorisation is based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability
Financial assets and financial liabilities that are recognised at fair value on a recurring basis, the company determines whether transfers have occurred between levels in the hierarchy by re- assessing categorisation at the end of each reporting period.
v) Classification of Assets and Liabilities into Current/Non-Current:
The Company has ascertained its operating cycle as twelve months for the purpose of Current/ Non-Current classification of its Assets and Liabilities.
For the purpose of Balance Sheet, an asset is classified as current if:
(i) It is expected to be realised, or is intended to be sold or consumed, in the normal operating cycle; or
(ii) It is held primarily for the purpose of trading; or
(iii) It is expected to realise the asset within twelve months after the reporting period; or
(iv) The asset is a cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
All other assets are classified as non-current.
Similarly, a liability is classified as current if:
(i) It is expected to be settled in the normal operating cycle; or
(ii) It is held primarily for the purpose of trading; or
(iii) It is due to be settled within twelve months after the reporting period; or
(iv) The Company does not have an unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could result in its settlement by the issue of equity instruments at the option of the counterparty does not affect this classification.
All other liabilities are classified as non-current.
(b) Rights, preferences and 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. In event of liquidation of the Company, the holders of equity shares would 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.
(c) The Company has issued 33,80,304 bonus equity shares during the financial year 2017-18 and no other shares has been issued during the last five financial years.
Notes:
1) Secured Tem Loan - Vehicle loan from Daimler Financial Service India Pvt. Ltd. Secured by hypothecation of respective vehicle which is payable in 36 Monthly installments of Rs. 64,297/- each commenced from October, 2016 for the principal and interest amount. This loan carrying 9.75 % rate of interest p.a.
2) Unsecured Loan represent loan from Director of the company carrying rate of interest 9 % p.a. payable on monthly basis.
Notes :
1. Cash Credit, Buyers Credit facilities and Purchase Bill Discounting Facility
(a). Primary Security: - Hypothecation of entire stocks of Raw Material, Finished Goods, Stock-in-Process, Stores & Spares, Packing Materials including goods at port / in transit / under shipment and eligible book debts and all other current assets.
(b). Collateral Security-]
(ii) Equitable Mortgage on Land & Building situated at Aluminium Complex, Plot No. 67 & 75 Sector-I, Pithampur, Dhar (M.P.)
(i) Hypothecation on companyâs Fixed Assets excluding Land and Building.
(iii) FDR of Rs. 55 lakhs in the name of M/s Maan Aluminium Limited
(iv) Equitable Mortgage on plot situated at 21, Block K-4 Near PCR Lines Model Town, New Delhi as a collateral security which is in the name of a relative of promoter directors.
(c). Personal guarantee of three promoter directors of the Company
2. Channel finance facility
Channel finance facility from Axis Bank Limited in current financial year is guaranteed by personal guarantee of three promoter directors of the Company.
Note 3.1
Sales Tax comprises demand of Rs. 310803/- and Rs. 283040/- under Central Sales Tax Act, 1956 pending with M.P. High Court pertaining to the assessment years 2001-02 and 2002-03 respectively, sales tax demand of Rs. 185019 under Central Sales Tax Act 1956 pending with Sales Tax Appellate Tribunal, Indore pertaining to the assessment years 2010-11, sales tax comprises demand of Rs. 1137545, Rs. 1130647 under Central Sales Tax Act, 1956 pending with Sales Tax Appellate Tribunal, Indore pertaining to asessment year 2011 -12 & 2012-13, Rs. 21,24,800, 9,98,886 and 13,96,096 under Central Sales Tax Act, 1956 pending with Additional Commissioner of commercial tax (A), Indore pertaining to assessment year 2013-14, 2014-15 and 2015-16 respectively,
Note 3.2
Excise Duty comprises of demand of Rs. 89,34,657/- under Central Excise Act, 1944 pending with appelate tribunal delhi pertaintaing to year 2009-10,10-11,11-12 and 12-13 and Rs. 8451/- pending with CESAT, New Delhi pertaining to year 2002-03.
Note 3.3
Income tax comprises of demands under Income Tax Act, 1961 of Rs. 5213815 pending with Commissioner of income tax (Appeal) -13, Ahemdabad pertaing to assessment year 2015-16 and Rs. 704110 pending with Commissioner of income tax (Appeal) VI, New Delhi pertaining to the assessment year 2012-13.
Note 3.4
The management of the company is of opinion that demands as mentioned in note 32.1 to 32.3 are likely to be either deleted or substantially reduced and accordingly no provision is considered necessary.
Note 4 As per Indian Accounting Standard 19 âEmployee benefitsâ, the disclosures as defined in the Accounting Standard are given below :
Employee benefit plans
Defined contribution plans
The Company makes Provident Fund and Employees State Insurance Scheme contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 34,76,764/- (Year ended 31 March, 2017 Rs. 31,59,137/-) for Provident Fund contributions and Rs. 14,07,163/- (Year ended 31 March, 2017 Rs. 10,75,012/-) for Employees State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.
Defined benefit plans
The employeesâ gratuity fund scheme managed by a Trust (Life Insurance Corporation of India) is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity. Below is details of actuarial valuation associated with the captioned Plans in terms of Indian Accounting Standard (Ind AS) 19
Note 4.1 : Sensitivity Analysis: Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase rate. Effect of change in mortality rate is negligible. Please note that the sensitivity analysis presented below may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated. The results of sensitivity analysis are given below
Note 5 Financial risk management objectives and policies
The risk management policies of the Company are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Companyâs activities.The Management has overall responsibility for the establishment and oversight of the Companyâs risk management framework. In performing its operating, investing and financing activities, the Company is exposed to the Credit risk, Liquidity risk and Market risk.
a) Credit risk
Credit risk is the risk of financial loss to the company if a customer or counter-party fails to meet its contractual obligations.
Trade Receivables
Credit risk refers to the risk of default on its obligations by a counterparty to the Company resulting in a financial loss to the Company. The Company is exposed to credit risk from trade receivables. Credit risk from trade receivables is managed through the Companyâs policies, procedures and controls relating to customer credit risk management by establishing credit limits, credit approvals and monitoring creditworthiness of the customers to which the Company extends credit in the normal course of business. Outstanding customer receivables are regularly monitored. The Companyâs export sales are backed by letters of credit. The Company has no concentration of credit risk as the customer base is widely distributed.
Other financial assets
The company maintains exposure to cash equivalents. The company has set counter-parties limits based on multiple factors including financial positions, credit ratings, etc.
The companyâs maximum exposure to credit risk as at 31 March 2018, 31 March 2017 and at 01 April 2016 is the carrying value of each class of financial assets.
b) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Companyâs approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companyâs reputation. It maintains adequate sources of financing from related parties at an optimised cost.
The Company maximum exposure to liquidity risk for the components of the balance sheet at 31 March 2018, 31 March 2017 and 01 April 2016 is the carrying amounts. The liquidity risk is managed on the basis of expected maturity dates of the financial liabilities. The average credit period taken to settle trade payables is about 0 to 30 days. The carrying amounts are assumed to be a reasonable approximation of fair value. The following table analysis financial liabilities by remaining contractual maturities:
c) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of three types of risks: interest rate risk, currency rate risk and price risk. Financial instruments affected by market risk includes borrowings, loans and trade receivables. The Company is exposed to Interest rate risks and Currency risks.
i) Interest rate risk
The interest rate risk exposure is mainly from changes in floating interest rates. The Management is responsible for the monitoring of the Companyâs interest rate position. Various variables are considered by the Management in structuring the Companyâs borrowings to achieve a reasonable, competitive, cost of funding. The following table analyse the breakdown of the financial assets and liabilities by type of interest rate:
ii) Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company has foreign currency trade payables and receivables and is therefore exposed to foreign exchange risk. The Company mitigates the foreign exchange risk by setting appropriate exposure limits, periodic monitoring of the exposures and by natural hedging by creating reverse position by way of import in case of having trade receivables in foreign currency and vice versa also company mitigate currency risk by derivative financial instruments like foreign exchange forward contracts. The exchange rates have been volatile in the recent years and may continue to be volatile in the future. Hence the operating results and financials of the Company may be impacted due to volatility of the rupee against foreign currencies.
Exposure to currency risk (Exposure in different currencies converted to functional currency i.e. INR) The currency profile of financial assets and financial liabilities as at March 31, 2018, March 31, 2017 and April 1, 2016 are as below:
Sensitivity analysis
A reasonably possible 5% strengthening (weakening) of the Indian Rupee against USD at 31 March 2018, 31 March 2017 and 01 April 2016 would have affected the measurement of financial instruments denominated in USD and affected profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.
Note 6 Capital management
Equity share capital and other equity are considered for the purpose of Companyâs capital management
The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure of the company is based on managementâs judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence
The management and the board of directors monitors the return on capital . The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.
Note 7 Dues to micro and small suppliers
Based on the available information with the management, the company does not owe any sum to a micro, small or medium enterprise as defined in Micro, Small and Medium Enterprises Development Act, 2006.
Note 8 Balances in Trade Receivables, Trade Payables and Short Term Loans & Advances are subject to confirmation
Note 9 Previous years figures have been re-grouped / re-classified wherever necessary to correspond with the current yearâs classification / disclosure.
Mar 31, 2017
Note 1. 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. In event of liquidation of the Company, the holders of equity shares would 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.
Note: 2. Vehicle loan from Daimler Financial Service India Pvt. Ltd. Secured by hypothecation of respective vehicle which is payable in 36 Monthly installments of Rs.64297/- each commenced from October, 2016 for the principal and interest amount.
Note 3. Details of security for the secured short-term borrowings:
4. Cash Credit and Buyers Credit facilities from Andhra Bank
(a) Primary Security: - Hypothecation of entire stocks of Raw Material, Finished Goods, Stock-in-Process, Stores & Spares, Packing Materials including goods at port / in transit / under shipment and eligible book debts, receivables and other current assets etc.
(b) Collateral Security-
(i) Hypothecation on companyâs Fixed Assets excluding Land and Building.
(ii) Equitable Mortgage on Land & Bulding situated at Aluminium Complex, Plot No. 67 & 75 Sector-I, Pithampur, Dhar (M.P.)
(c) Personal guarantee of two promoter directors of the Company
5. Purchase Bill Discounting Facility from Andhra Bank
(a)The Company has offered a property situated at Plot No. 21, Block K-4 Near PCR Lines Model Town II, New Delhi as a collateral security which is in the name of a relative of promoter directors.
(b) The Company has offered Personal guarantee of two promoter directors of the Company
(c) Documents for creation of charge are yet to be created
6. Channel finance facility
Two promoter directors of the Company have given their personal guarantee for Channel finance facility from Aditya Birla Finance Limited.
Note 7 : Sales Tax comprises demand of Rs.310803/- and Rs.283040/- under Central Sales Tax Act, 1956 pending with M.P. High Court pertaining to the assessment years 2001-02 and 2002-03 respectively, sales tax demand of Rs.185019 under Central Sales Tax Act 1956 pending with Sales Tax Appellate Tribunal, Indore pertaining to the assessment years 2010-11, sales tax comprises demand of Rs.1137545, Rs.1130647 under Central Sales Tax Act, 1956 pending with Sales Tax Appellate Tribunal, Indore pertaining to assessment year 2011 -12 & 2012-13 and Rs. 21,24,800 under Central Sales Tax Act, 1956 pending with Additional Commissioner of commercial tax (A), Indore pertaining to assessment year 2013-14, and Rs.9,98,886 under Central Sales Tax Act, 1956 pending with Additional Commissioner of commercial tax (A), Indore pertaining to assessment year 2014-15
Note 8 : Excise Duty comprises of demand of Rs.89,34,657/- under Central Excise Act, 1944 pending with appelate tribunal delhi pertaining to year 2009-10,10-11,11-12 and 12-13 and Rs.8451/- pending with CESAT, New Delhi pertaining to year 2002-03.
Note 9 : Income tax comprises of demands under Income Tax Act, 1961 of Rs.5213815 pending with Commissioner of income tax (Appeal)-13, Ahemdabad pertaining to assessment year 2015-16 and Rs.704110 pending with Commissioner of income tax (Appeal) VI, New Delhi pertaining to the assessment year 2012-13.
Note 10 : The management of the company is of opinion that demands as mentioned in note 26.1.1 to 26.1.3 are likely to be either deleted or substantially reduced and accordingly no provision is considered necessary.
Note 11 : As per Accounting Standard 15 âEmployee benefits", the disclosures as defined in the Accounting Standard are given below :
Employee benefit plans
Defined contribution plans
The Company makes Provident Fund and Employees State Insurance Scheme contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs.31,59,137/- (Year ended 31 March, 2016 Rs.26,14,888/-) for Provident Fund contributions and Rs.10,75,012/- (Year ended 31 March, 2016 Rs.10,08,270) for Employees State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.
Defined benefit plans
The employeesâ gratuity fund scheme managed by a Trust (Life Insurance Corporation of India) is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.
The following table sets out the funded status of the defined benefit schemes and the amount recognized in the financial statements:
Note 12. The discount rate is based on the prevailing market yields of Government of India securities as at the Balance Sheet date for the estimated term of the obligations.
Note 13. The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.
Note 14.
Based on the available information with the management, the company does not owe any sum to a micro, small or medium enterprise as defined in Micro, Small and Medium Enterprises Development Act, 2006.
Note 15.
The current assets, loans and advances are stated at the value, which in the opinion of the board, are realizable in the ordinary course of the business, current liabilities and provisions are stated at the value payable in the ordinary course of the business.
Note 16.
Balances of trade receivables, loans and advances and trade payables are subject to confirmation/reconciliation and subsequent adjustment, if any.
Note 17.
Previous yearâs figures have been regrouped/reclassified wherever necessary to correspond with the current yearâs classification/disclosure.
Mar 31, 2015
Note 1. 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. In event of liquidation of the Company, the holders of
equity shares would 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.
Note 2: During the year, the Company has adopted estimated useful
life of fixed assets as stipulated by Schedule II to the Companies Act,
2013. Accordingly, depreciation of Rs. 97.27 lacs (net of deferred tax
of Rs. 43.49 lacs) on account of assets whose useful life is already
exhausted on April 01, 2014 has been adjusted against General Reserve.
Note 3 : Sales Tax comprises demand of Rs. 310803/- and Rs.
283040/- under Central Sales Tax Act, 1956 pending with M.P. High Court
pertaining to the assessment years 2001-02 and 2002-03 respectively,
sales tax demand of Rs. 185019 under Central Sales Tax Act 1956
pending with Sales Tax Appellate Tribunal, Indore pertaining to the
assessment years 2010-11, sales tax comprises demand of Rs. 726030,
Rs. 2393361, and Rs. 5026574 under Central Sales Tax Act, 1956 pending
with Additional Commissioner of commercial tax (A), Indore pertaining
to assessment year 2004-05, 2011-12 and 2012-13 respectively and Rs.
9794 under Madhya Pradesh VAT Act, 2002 pending with Additional
Commissioner of commercial tax (A), Indore pertaining to assessment
year 2011-12.
Note 4 : Entry tax comprises of demand of Rs. 1064061/- and Rs.
220433/- under Entry Tax Act, 1976 pending with Additional Commissioner
of commercial tax (A), Indore pertaining to assessment year 2011-12 and
2012-13 respectively .
Note 5: Excise Duty comprises of demand of Rs. 6513128/- under
Central Excise Act, 1944 pending with Madhya Pradesh, High Court
pertaining to the year 2003-04 and Rs. 525123/- and Rs. 8451/-
pending with CESAT, New Delhi pertaining to years 1999-2000 and 2002-03
respectively.
Note 6 : Income tax comprises of demand of Rs. 704110/- under
Income Tax Act, 1961 pending with Commissionor of Income Tax (Appeals),
VI New Delhi pertaining to the assessment year 2012-13.
Note 7 : The management of the company is of opinion that demands
as mentioned in note 25.1.1 to 25.1.4 are likely to be either deleted
or substantially reduced and accordingly no provision is considered
necessary.
Note 8: As per Accounting Standard 15 "Employee benefits", the
disclosures as defined in the Accounting Standard are given below :
Employee benefit plans Defined contribution plans
The Company makes Provident Fund and Employees State Insurance Scheme
contributions to defined contribution plans for qualifying employees.
Under the Schemes, the Company is required to contribute a specified
percentage of the payroll costs to fund the benefits. The Company
recognised Rs. 21,56,884/- (Year ended 31 March, 2014 Rs.
20,15,044/-) for Provident Fund contributions and Rs. 9,96,582 (Year
ended 31 March, 2014 Rs. 9,21,535) for Employees State Insurance
Scheme contributions in the Statement of Profit and Loss. The
contributions payable to these plans by the Company are at rates
specified in the rules of the schemes.
Defined benefit plans
The employees' gratuity fund scheme managed by a Trust (Life Insurance
Corporation of India) is a defined benefit plan. The present value of
obligation is determined based on actuarial valuation using the
Projected Unit Credit Method, which recognises each period of service
as giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation. The
obligation for leave encashment is recognised in the same manner as
gratuity.
Note 9 : The discount rate is based on the prevailing market yields
of Government of India securities as at the Balance Sheet date for the
estimated term of the obligations.
Note 10: The estimate of future salary increases considered, takes
into account the inflation, seniority, promotion, increments and other
relevant factors.
Note 11 : Based on the available information with the management, the
company does not owe any sum to a micro, small or medium enterprise as
defined in Micro, Small and Medium Enterprises Development Act, 2006.
Note 12: The current assets, loans and advances are stated at the
value, which in the opinion of the board, are realisable in the
ordinary course of the business, current liabilities and provisions are
stated at the value payable in the ordinary course of the business.
Note 13 : Balances of trade receivables, loans and advances and trade
payables are subject to confirmation/reconciliation and subsequent
adjustment, if any.
Note 14: Previous year's figures have been regrouped/reclassified
whereever necessary to correspond with the current year's
classification/disclosure.
Mar 31, 2014
CORPORATE INFORMATION
Maan Aluminium Limited (''the Company'') is engaged in the business of
manufacturing of aluminium profiles and other related activities.
Note 1.1
Some of the directors have given personal guarantee and M/s J P
Engineers has give corporate guarantee for the aforesaid cash credit,
SLC and buyers credit facilities from State Bank of India.
Note 1.1.1
Sales Tax comprises demand of Rs. 310803/- and Rs. 283040 under Central
Sales Tax Act 1956 pending with M.P. High Court pertaining to the
assessment years 2001-02 and 2002-03 respectively and Sales Tax
comprises demand of Rs. 726030 and Rs. 704013 under Central Sales Tax
Act 1956 pending with Asst. Commissioner and additional Commissioner
pertaining to the assessment years 2004-05 and 2010-11 respectively.
Note 1.1.2
Excise Duty comprises of demand of Rs. 6513128/- under Central Excise
Act, 1944 pending with Madhya Pradesh, High Court pertaining to the
year 2003-04 and Rs. 525123/- and Rs. 8451/- pending with CESAT, New
Delhi pertaining to years 1999-2000 and 2002-03 respectively.
Note 2: As per Accounting Standard 15 "Employee benefits", the
disclosures as defined in the Accounting Standard are given below :
Employee benefit plans Defined contribution plans
The Company makes Provident Fund and Employees State Insurance Scheme
contributions to defined contribution plans for qualifying employees.
Under the Schemes, the Company is required to contribute a specified
percentage of the payroll costs to fund the benefits. The Company
recognised Rs.2015044/- (Year ended 31 March, 2013 Rs.17,41,416/-) for
Provident Fund contributions and Rs.9,21,535 (Year ended 31 March, 2013
Rs.9,42,809) for Employees State Insurance Scheme contributions in the
Statement of Profit and Loss. The contributions payable to these plans
by the Company are at rates specified in the rules of the schemes.
Defined benefit plans
The employees'' gratuity fund scheme managed by a Trust (Life
Insurance Corporation of India) is a defined benefit plan. The present
value of obligation is determined based on actuarial valuation using
the Projected Unit Credit Method, which recognises each period of
service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation. The obligation for leave encashment is recognised in the
same manner as gratuity.
Note 2.1 The discount rate is based on the prevailing market yields of
Government of India securities as at the Balance Sheet date for the
estimated term of the obligations.
Note 2.2 The estimate of future salary increases considered, takes
into account the inflation, seniority, promotion, increments and other
relevant factors.
Note 3
Based on the available information with the management, the company
does not owe any sum to a micro, small or medium enterprise as defined
in Micro, Small and Medium Enterprises Development Act , 2006. Note 31
The current assets, loans and advances are stated at the value, which
in the opinion of the board, are realisable in the ordinary course of
the business, current liabilities and provisions are stated at the
value payable in the ordinary course of the business.
Note 4
Balances of trade receivables, loans and advances and trade payables
are subject to confirmation/ reconciliation and subsequent adjustment,
if any.
Note 5
Company has capitalised borrowing costs Rs. Nil (for 2012-13 - Rs.
4,572,221) during the year as part of cost of capital work in progress.
Note 6
Previous year''s figures have been regrouped/reclassified whereever
necessary to correspond with the current year''s classification/
disclosure.
Signatures to the statements of Notes to the Financial Statements.
Mar 31, 2013
NOTE 1.1
*''Insurance claims are accounted for on the basis of claims admitted /
expected to be admitted. This includes two incidences occured during
the financial year 2011-2012 when the trucks transporting the raw
material i.e. Aluminium Ingots from supplier to the company were
hijacked in the state of Orissa. These incidents occured on 31-08-2011
and on 11-01-2012 and raw material lost was of Rs. 2175356/- and Rs.
2084808/-, company has followed the prescribed procedure and lodged the
insurance claims for these losses. Although claims have still not been
settled by the insurance company, management is confident of settlement
of the same in near future and therefore no loss on this account has
been booked in the books of the company.
Note 2.1.1
Sales Tax comprises demand of Rs. 310803/-, Rs. 283040/-, Rs. 726030
under Central Sales Tax Act 1956 pending with Asst. Commissioner of
Appeal pertaining to the assessment years 2001-02, 2002-03, 2004-05
respectively.
Note 2.1.2
Excise Duty comprises of demand of Rs. 6513128/- under Central Excise
Act, 1944 pending with Madhya Pradesh, High Court pertaining to the
year 2003-04 and Rs. 525123/-, Rs. 8451/- pending with CESAT, New Delhi
pertaining to years 1999-2000 and 2002-03 resoectively.
Note 3: As per Accounting Standard 15 ÂEmployee benefitsÂ, the
disclosures as defined in the Accounting Standard are given below :
Employee benefit plans
Defined contribution plans
The Company makes Provident Fund and Employees State Insurance Scheme
contributions to defined contribution plans for qualifying employees.
Under the Schemes, the Company is required to contribute a specified
percentage of the payroll costs to fund the benefits. The Company
recognised Rs. 1741416/- (Year ended 31 March, 2012 Rs. 1665704/-) for
Provident Fund contributions and Rs. 942809 (Year ended 31 March, 2012
Rs. 777350) for Employees State Insurance Scheme contributions in the
Statement of Profit and Loss. The contributions payable to these plans
by the Company are at rates specified in the rules of the schemes.
Defined benefit plans
The employees'' gratuity fund scheme managed by a Trust (Life Insurance
Corporation of India) is a defined benefit plan. The present value of
obligation is determined based on actuarial valuation using the
Projected Unit Credit Method, which recognises each period of service
as giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation. The
obligation for leave encashment is recognised in the same manner as
gratuity.
Note 4.1 The discount rate is based on the prevailing market yields of
Government of India securities as at the Balance Sheet date for the
estimated term of the obligations.
Note 4.2 The estimate of future salary increases considered, takes
into account the inflation, seniority, promotion, increments and other
relevant factors.
Note 5
Based on the available information with the management, the company
does not owe any sum to a micro, small or medium enterprise as defined
in Micro, Small and Medium Enterprises Development Act, 2006.
Note 6
The current assets, loans and advances are stated at the value, which
in the opinion of the board, are realisable in the ordinary course of
the business, current liabilities and provisions are stated at the
value payable in the ordinary course of the business.
Note 7
Balances of sundry debtors, advances and creditors are subject to
confirmation/reconciliation and subsequent adjustment, if any.
Note 8
Company has capitalised borrowing costs Rs. 4,572,221 (for 2011-12 -
Rs. 1,472,200) during the year as part of cost of capital work in
progress.
Note 9
Previous year''s figures have been regrouped/reclassified whereever
necessary to correspond with the current year''s
classification/disclosure.
Signatures to the statements of Notes to the Financial Statements.
Mar 31, 2012
NOTE 1.1:
Raw Material Inventory includes Rs. 20186809 (as on 31-03-2011 Rs. 6226451)
goods in transit.
NOTE 1.2:-
*'Insurance claims are accounted for on the basis of claims admitted
/ expected to be admitted. This includes two incidences occured during
the year when the trucks transporting the raw material i.e. Aluminium
Ingots from supplier to the company were hijacked in the state of
Orissa. These incidents occured on 31-08-2011 and on 11-01-2012 and raw
material lost was of Rs. 2175356/- and Rs. 2084808/-, company has followed
the prescribed procedure and lodged the insurance claims for these
losses. Although claims have still not been settled by the insurance
company, management is confident of settlement of the same in near
future and therefore no loss on this account has been booked in the
books of the company.
NOTE 2.1 : Contingent liabilities and commitments (to the extent not
provided for)
(Amount in Rs.)
Particulars As at As at
31 March, 2012 31 March, 2011
Contingent liabilities
Claims against the Company not
acknowledged as debt
Sales tax 1,731,979 1,759,318
Excise duty 7,046,702 7,118,423
Labour Act 391,490 391,490
NOTE 2.1.1
Sales Tax comprises demand of Rs. 310803/-, Rs. 283040/-, Rs. 726030 and Rs.
412106/- under Central Sales Tax Act 1956 pending with Asst.
Commissionor of Appeal pertaining to the assessment years 2001-02,
2002-03, 2004-05 and 2005-06 respectively.
NOTE 2.1.2
Excise Duty comprises of demand of Rs. 6513128/- under Central Excise
Act, 1944 pending with Madhya Pradesh, High Court pertaining to the
year 2003-04 and Rs. 525123/-, Rs. 8451/- pending with CESAT, New Delhi
pertaining to years 1999-2000 and 2002-03 resoectively.
NOTE 2.1.3
The Company has availed a Non funded bank guarantee limit from State
Bank of India. Total Bank Guarantee limit outstanding as on 31-03-2012
was Rs. 17285310/-
NOTE 2.2
Details on derivatives instruments and unhedged foreign currency
exposures
I. The year-end foreign currency exposures that have not been hedged by
a derivative instrument or otherwise are given below:
NOTE 3 :
As per Accounting Standard 15 "Employee benefits", the disclosures
as defined in the Accounting Standard are given below :
EMPLOYEE BENEFIT PLANS Defined contribution plans
The Company makes Provident Fund and Employees State Insurance Scheme
contributions to defined contribution plans for qualifying employees.
Under the Schemes, the Company is required to contribute a specified
percentage of the payroll costs to fund the benefits. The Company
recognised Rs. 1665704/- (Year ended 31 March, 2011 Rs. 1168651) for
Provident Fund contributions and Rs. 777350 (Year ended 31 March, 2011 Rs.
604257) for Employees State Insurance Scheme contributions in the
Statement of Profit and Loss. The contributions payable to these plans
by the Company are at rates specified in the rules of the schemes.
Defined benefit plans
The employees' gratuity fund scheme managed by a Trust (Life
Insurance Corporation of India) is a defined benefit plan. The present
value of obligation is determined based on actuarial valuation using
the Projected Unit Credit Method, which recognises each period of
service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation. The obligation for leave encashment is recognised in the
same manner as gratuity.
NOTE 3.1
The discount rate is based on the prevailing market yields of
Government of India securities as at the Balance Sheet date for the
estimated term of the obligations.
NOTE 3.2
The estimate of future salary increases considered, takes into account
the inflation, seniority, promotion, increments and other relevant
factors.
NOTE 3.3
The company has accounted for net asset of Rs. 973651/- (i.e. excess of
fair value of planned assets with LIC over present value of the
obligations) on 01-04-2011 in respect of group gratuity scheme. This
has been calculated by actuary as per the stipulations of Accouting
Standard 15 (Revised) and has been added in the opening balance of
general reserves.
NOTE 4
Based on the available information with the management, the company
does not owe any sum to a micro, small or medium enterprise as defined
in Micro, Small and Medium Enterprises Development Act, 2006.
NOTE 5
The current assets, loans and advances are stated at the value, which
in the opinion of the board, are realisable in the ordinary course of
the business, current liabilities and provisions are stated at the
value payable in the ordinary course of the business.
NOTE 6
Balances of sundry debtors, advances and creditors are subject to
confirmation/reconciliation and subsequent adjustment, if any.
NOTE 7
Company has capitalised borrowing costs Rs. 1472200 (as on 31.03.2011 - Rs.
144424) during the year as part of cost of capital work in progress.
NOTE 8
Till the year end 31 March 2011, the Company was using pre-revised
schedule VI to the Companies Act, 1956, for preparation and
presentation of its financial statements. During the year ended 31
March 2012, the revised schedule VI, notified under the Companies Act,
1956, has become applicable to the Company. The Company has accordingly
reclassified previous year figures to confirm to this year
classification.
Mar 31, 2010
1 Disclosure of Contingent Liabilities not provided for: (In Lakhs)
Claim against the Company not acknowledged as debts
Current Year Previous Year
i) Sales tax 11.35 1.72
ii) Excise Duty 95.11 85.85
iii) Guarantee / Letter of Credit Outstanding 556.52 19.66
2 Figures have been rounded of to nearest Rupees
3 The Company has debited a sum of Rs. 3,96,514/- to prior period on
account of preliminary expenses written of.
4 Balances of sundry creditors and debtors are subject to
confrmations, reconciliation and consequent adjustments, if any.
5 Previous year fgures have been regrouped/rearranged wherever
necessary to make them comparable with those of current year.
6 The amount of borrowing cost capitalized during the year Rs.18,306
/- (Previous year Rs. NIL)
7 Dues to micro, small and medium enterprises under the Micro, Small
and Medium Enterprises Development Act, 2006
None of the suppliers has responded to the communication made by the
Company, in view of which it is not feasible to give information in
respect of the amount due to supplier under the Micro, Small and Medium
Enterprises Development Act, 2006.
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