Notes to Accounts of Machino Plastics Ltd.
Mar 31, 2019
1. General information of the company-
Machino Plastic Limited is a public limited company incorporated as on 02nd April, 1986 under the erstwhile Companies Act, 1956 in India, having its registered office at Plot No 3, Maruti Joint Venture Complex, Gurgaon, Haryana - 122015. The company is a joint venture of Maruti Suzuki India Ltd and Suzuki Motor Corporation, Japan for the manufacture of injection moulded automotive i.e. bumpers, instrument panels, grills etc as original equipment and for spare parts market primarily for Maruti Suzuki India Limited. The company also manufactures various automotive components for others manufacturers.
Note Rights, preference and restrictions attached to equity shares
1.1 The Company has one class of equity share having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held with a right to receive per share dividend declared by the company
In the event of liquidation of the company, the holders of equity share shall be entitled to receive all of the remaining assets of the company, after distribution of all preferential amounts, if any. Such amount will be in the proportion to the number of equity shares held by stockholders.
Notes
Secured term loans from banks & others
a. Term loans are secured by way of pari passu first charge on company''s fixed assets excluding tools & dies, both present & future and second charge on current assets
b. The term loan taken from Yes Bank is Rs 70,833,333 (Previous year Rs 120,833,333) which carries interest of 9.80% per annum
c. The term loan taken from Yes Bank is Rs 139,090,909 (Previous year Rs 170,000,000) which carries interest of 9.85% per annum
d. The term loan taken from Kotak Mahindra Bank Limited is Rs 76,964,875 (Previous year Rs 98,954,839) which carries interest of 9.55% per annum
e. The term loan taken from HDFC Bank Limited is Rs 76,388,889 (Previous year Rs 93,055,556) which carries interest of 9.65% per annum
f. The term loan taken from Yes Bank is Rs 74,988,559 (Previous year Nil) which carries interest of 9.95% per annum
g. The term loan taken from Yes Bank is Rs 55,000,000 (Previous year Nil) which carries interest of 10.25% per annum
h. The term loan taken from TATA Capital Financial Services Limited is Rs. 83,336,000 (Previous year Rs 100,000,000) which carries interest of 10.75% per annum
i. The term loan taken from TATA Capital Financial Services Limited is Rs. 9,204,449 (Previous year Rs 23,011,997) which carries interest of 10.80% per annum
Notes Nature of securities
The cash credit facilities are secured by way of pari passu first charge on entire current assets of the Company including stocks of raw material, goods in transit and book debts along with second pari passu charge on entire fixed assets of the Company is excluding moulds and dies, Gurgaon and Manesar Plants.
* Cash credit facilities outstanding from Allahabad Bank is Rs. 9,145,752 (Previous year Rs. 1,034,473) carry interest of 12.20% computed on the daily basis on the actual amount utilized, and are repayable on demand.
* Cash credit facilities outstanding from Axis Bank Limited is Rs. 220,171,358 (Previous year Rs. 27,620,927) carry interest of 9.80% computed on the daily basis on the actual amount utilized, and are repayable on demand.
* Cash credit facilities outstanding from Kotak Mahindra Bank Limited is Rs. 44,699,614 (Previous year Nil) carry interest of 9.25% computed on the daily basis on the actual amount utilized, and are repayable on demand.
* Cash credit facilities outstanding from Yes Bank Limited is Rs. 233,271,771 (Previous year Rs 368,916,429) carry interest of 9.95% computed on the daily basis on the actual amount utilized, and are repayable on demand.
* Cash credit facilities outstanding from HDFC Bank Limited is Rs 2,862,366 (Previous year Nil) carry interest of 9.75% computed on the daily basis on the actual amount utilized, and are repayable on demand.
* Working capital demand loan outstanding from Yes Bank Limited is Rs 50,000,000 (Previous year Nil) carry interest of 9.35% computed on the daily basis on the actual amount utilized, and are repayable on demand.
Note:
The Government of India has implemented Goods and Services Tax (âGSTâ) from 01st July, 2017 replacing Excise Duty, Service Tax and various other indirect taxes. Until 30 June 2017, ''Sale of products'' includes the amount of excise duty recovered on sales amounting to Rs 119,309,351. The Company collects GST on behalf of the Government and is not included in ''Sale of products'', and therefore revenue from ''Sale of products'' for the year ended 31 March 2019 is not comparable with that of the previous year. ''Sale of products'' net of excise duty for the year ended 31 March 2018 is Rs 3,059,432,465.
2. contingent liabilities and commitments (to the extent not provided for):
(i) Contingent liabilities not provided for
a) Demand under the Central Excise Act of Rs. 58,211,882 (Previous year Rs. 111,535,494)
b) Demand under the Sales Tax Act of Rs. 621,691 (Previous year Rs. 621,691).
c) Bill discounted of Rs. Nil (Previous year Rs. 16,707,311)
(ii) Commitments
Estimated amount of contracts, remaining to be executed on capital account (net of advances) Rs. 20,393,000 (Previous year Rs. 121,827,656).
3. (i) Contribution to defined benefit plan
The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with âLife insurance corporationâ in the form of a qualifying insurance policy.
4. Other income includes interest income Rs. 331,776 (Previous year Rs. 310,934), tax deducted thereon is Nil (Previous year Rs. 393), Profit on sale of fixed assets Rs. 660,387 (Previous year Rs. 2,103,700), Sundry creditors written off Rs. 2,177,183 (Previous year Rs. 661), Duty draw back received Rs 315,447 (Previous year Rs. 246,570), Reversal of impairment of assets Rs 1,469,504 (Previous year Nil).
5. Investment in equity share are measured at fair value through other comprehensive income as per ind AS 109.
The company had made Investment of Face Value of Rs.12,500,000 in equity shares of Caparo Maruti Limited. The investee company has disputed the shareholding of the Company. The company has filed a petition to Hon''ble Company Law Board, who gave company an option to sell shares to majority shareholders after valuation to make an exit. The Company filed an appeal in the Hon''ble Delhi High Court which dismissing company''s appeal upheld Company Law Board order thereafter SLPs were preferred against the orders of the Hon''ble High Court of Delhi before the Hon''ble Supreme Court of India by both the parties. The Hon''ble Supreme Court of India vide its order dated 29th March 2016 dismissed both SLPs. However, it states that the order of dismissal is subject to the result of such case(s) as may be pending between the paties in respect of cancellation of the shares held by the petitioner. The matter is still sub-judice.
In the current circumstances, the company is unable to ascertain the fair value of investment in equity share in Caparo Maruti Limited as it is not practicably feasible to do so. Consequently, no fair value adjustment has been made in the books of accounts and these equity instruments have been carrying forward at cost as at Balance sheet date
6. The company is exclusively engaged in the business of manufacturing plastic moulded parts for automotive, appliances and industrial application and allied products, which is considered as the only reportable segment referred to in statement on Ind AS-108 âOperating Segmentsâ. The geographical segmentation is not relevant, as there is insignificant export.
7. Information as required by ind AS 24âRelated Parties Disclosuresâ as follows:
List of related parties:
a. Associate companies
Maruti Suzuki India Limited
Suzuki Motor Corporation, Japan
b. Enterprises under common control
Suzuki Motor Gujarat Private Limited
Suzuki Motorcycle India Private Limited
c. Enterprises over which key management personnel
And their close members are able to exercise significant influence
Machino Motors Private Limited
Machino Techno Sales Limited
Machino Transport Private Limited
Machino Finance Private Limited
Machino Media Private Limited
Machino Auto Comp Tooling Private Limited
Machino Polymers Limited
Rajiv Exports Industries Private Limited
Grandmaastters Mold Limited
Pranaa Plastics Limited
d. Key management personnel & their close members
Mr M.D. Jindal - Chairman Emeritus (Expired on 13th January 2019)
Mr Sanjiivv Jindall - Chairman cum Managing Director & Son of Chairman Emeritus
Machino Plastics Limited
Notes to the financial statements for the year ended 31 March 2019
(All amount in Rupees, unless otherwise stated)
Ms Kamla Jindal - Spouse of Chairman Emeritus (Expired on 21st November 2018)
Ms Sarita Jindal - Spouse of Managing Director cum Chairman
Mr Aditya Jindal - Executive Director & Son of Chairman cum Managing Director
Mr Surya Kant Agrawal - General Manager cum Company Secretary
The Company manages its capital to ensure that the company will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance.
The capital structure of the Company consists of net debt (borrowings as detailed in notes 16 and 19 offset by cash and bank balances) and total equity of the company. The company is not subject to any externally imposed capital requirements.
The Company''s risk management committee reviews the capital structure of the Company on a semi-annual basis. As part of this review, the committee considers the cost of capital and the risks associated with each class of capital. The Company monitors capital on the basis of following gearing ratio, which is net debt divided by total equity plus debt.
The Company''s Corporate Treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the company through internal risk reports which analyses exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.
The Corporate Treasury function reports quarterly to the company''s risk management committee, an Independent body that monitors risks and policies implemented to mitigate risk exposures.
Market Risk
The company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.
a) Foreign currency risk management
The company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters
The carrying amounts of the company''s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows.
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The company is exposed to interest rate risk because company borrows funds at both fixed and floating interest rates. The risk is managed by the company by maintaining an appropriate mix between fixed and variable rate borrowings.
Interest rate sensitivity analysis
The sensitivity analyses below have been determined based on the exposure to interest rates at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rates.
(i) The exposure of group borrowings to interest rate changes at the end of reporting period are as follows:
(ii) As at the end of reporting period, the company had the following variable rate borrowings:
c) credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The company only transacts with entities that are rated the equivalent of investment grade and above. This information is supplied by independent rating agencies where available and, if not available, the company uses other publicly available financial information and its own trading records to rate its major customers. The company''s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the risk management committee annually.
d) Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the company''s short-term, medium-term and long-term funding and liquidity management requirements. The company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
Liquidity and interest risk tables
The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the company can be required to pay.
The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period.
The contractual maturity is based on the earliest date on which the company may be required to pay.
8. Fair value of measurement
Fair value of the company''s financial assets and financial liabilities that are measured at fair value on a recurring basis.
9. The group offsets a financial asset and a financial liability when it currently has a legally enforceable right to set off the recognized amounts and the group intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Mar 31, 2018
1. General Information of the company:-
Machino Plastic Limited is a public limited company incorporated as on 02nd April, 1986 under the erstwhile Companies Act, 1956 in India, having its registered office at Plot No 3, Maruti Joint Venture Complex, Gurgaon, Haryana - 122015. The company is a joint venture of Maruti Suzuki India Ltd and Suzuki Motor Corporation, Japan for the manufacture of injection moulded automotive parts i.e. bumpers, instrument panels, grills etc as original equipment and for spare parts market primarily for Maruti Suzuki India Limited. The company also manufactures various automotive components for others manufacturers.
Note Rights, preference and restrictions attached to equity shares
The Company has one class of equity share having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held with a right to receive per share dividend declared by the company
In the event of liquidation of the company, the holders of equity share shall be entitled to receive all of the remaining assets of the company, after distribution of all preferential amounts, if any. Such amount will be in the proportion to the number of equity shares held by stockholders.
Secured term loans from banks & others
a. Term loans are secured by way of pari passu first charge on companyâs fixed assets excluding tools & dies, both present & future and second charge on current assets
b. The term loan taken from Yes Bank is Rs 120,833,333 (Previous year Rs 170,833,333) which carries interest of 9.00% per annum
c. The term loan taken from Yes Bank is Rs 170,000,000 (Previous year Rs 170,000,000) which carries interest of 9.10% per annum
d. The term loan taken from Kotak Mahindra Bank Limited is Rs 98,954,839 (Previous year Rs 109,949,821) which carries interest of 9.15% per annum
e. The term loan taken from HDFC Bank Limited is Rs 93,055,556 (Previous year Rs 100,000,000) which carries interest of 9.85% per annum
f. The term loan taken from TATA Capital Financial Services Limited is Rs. 100,000,000 (Previous year Rs 100,000,000) which carries interest of 10.25% per annum
g. The term loan taken from TATA Capital Financial Services Limited is Rs. 23,011,997 (Previous year Rs 39,678,797 ) which carries interest of 11.50% per annum
h. Repayment schedule
Nature of securities
The cash credit facilities are secured by way of pari passu first charge on entire current assets of the Company including stocks of raw material, goods in transit and book debts along with a second pari passu charge on entire fixed assets of the Company is excluding moulds and dies, Gurgaon and Manesar Plants.
* Cash credit facilities outstanding from Allahabad Bank is Rs. 1,034,473 (Previous year Rs. 7,379,485) carry interest of 12.20% computed on the daily basis on the actual amount utilized, and are repayable on demand.
* Cash credit facilities outstanding from Axis Bank Limited is Rs. 27,620,927 (Previous year Rs. 268,092,956) carry interest of 9.30% computed on the daily basis on the actual amount utilized, and are repayable on demand.
* Cash credit facilities outstanding from Kotak Mahindra Bank Limited is Nil (Previous year Rs 10,882,541) carry interest of 10.30% computed on the daily basis on the actual amount utilized, and are repayable on demand.
* Cash credit facilities outstanding from Yes Bank Limited is Rs. 368,916,429 (Previous year Rs 140,066,457) carry interest of 9.45% computed on the daily basis on the actual amount utilized, and are repayable on demand.
* Cash credit facilities outstanding from HDFC Bank Limited is Nil (Previous year Rs 70,822) carry interest of 9.75% computed on the daily basis on the actual amount utilized, and are repayable on demand.
Note:
a) According to the requirement of IND AS, revenue for the year ended 31 March 2017 were reported inclusive of excise duty. The Government of India has implemented Goods and Service Tax (âGSTâ) from 01st July, 2017 replacing Excise Duty, Service Tax and various other indirect taxes. Accordingly, as per IND AS 18, the revenue for the year ended 31 March 2018, is reported net of GST and inclusive of excise duty pertaining to Aprilâ 2017 to Juneâ 2017.
b) Excise duty collected from customers included in sale of products to Rs 119,309,351 (previous year Rs 419,423,932)
2. contingent liabilities and commitments (to the extent not provided for):
(i) Contingent liabilities not provided for
a) Demand under the Central Excise Act of Rs. 111,535,494 (Previous year Rs. 111,535,494)
b) Demand under the Sales Tax Act of Rs. 621,691 (Previous year Rs. 621,691).
c) Bill discounted of Rs. 16,707,311 (Previous year Rs. 7,152,049)
(ii) Guarantees
In respect of bank guarantees: Nil (Previous year Rs.5,434,322)
(iii) Commitments
Estimated amount of contracts, remaining to be executed on capital account (net of advances) Rs. 121,827,656 (Previous year Rs. 9,424,527).
3. (i) Contribution to defined benefit plan
The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with âLife Insurance corporationâ in the form of a qualifying insurance policy.
4. Other income includes interest incomeRs. 310,934 (Previous year Rs. 216,369), tax deducted thereon is Rs. 393 (Previous year Rs. 7,795), Profit on sale of fixed assets Rs. 2,103,700 (Previous year Rs. 1,922,125), Sundry creditors written off Rs. 661 (Previous year Rs. 6,054), Duty draw back received Rs 246,570 (Previous year Rs. 177,706), Exchange fluctuation gain Nil (Previous year gain Rs 754,275).
5. Investment in equity share are measured at fair value through other comprehensive income as per Ind AS 109.
The company had made Investment of Face Value of Rs.12,500,000 in equity shares of Caparo Maruti Limited. The investee company has disputed the shareholding of the Company. The company has filed a petition to Honâble Company Law Board, who gave company an option to sell shares to majority shareholders after valuation to make an exit. The Company filed an appeal in the Honâble Delhi High Court which dismissing companyâs appeal upheld Company Law Board order thereafter SLPs were preferred against the orders of the Honâble High Court of Delhi before the Honâble Supreme Court of India by both the parties. The Honâble Supreme Court of India vide its order dated 29th March 2016 dismissed both SLPs. However, it states that the order of dismissal is subject to the result of such case(s) as may be pending between the paties in respect of cancellation of the shares held by the petitioner. The matter is still sub-judice.
In the current circumstances, the company is unable to ascertain the fair value of investment in equity share in Caparo Maruti Limited as it is not practicably feasible to do so. Consequently, no fair value adjustment has been made in the books of accounts and these equity instruments have been carry forward at cost as at Balance sheet date
6. The company is exclusively engaged in the business of manufacturing plastic moulded parts for automotive, appliances and industrial application and allied products, which is considered as the only reportable segment referred to in statement on Ind AS-108 âOperating Segmentsâ. The geographical segmentation is not relevant, as there is insignificant export.
7. Information as required by Ind AS 24âRelated Parties Disclosuresâ as follows:
List of related parties:
a. Associate companies
Maruti Suzuki India Limited Suzuki Motor Corporation, Japan
b. Enterprises under common control
Suzuki Motor Gujarat Private Limited Suzuki Motorcycle India Private Limited
c. Enterprises over which key management personnel
And their close members are able to exercise significant influence
Machino Motors Private Limited Machino Techno Sales Limited Machino Transport Private Limited Machino Finance Private Limited Machino Media Private Limited Machino Auto Comp Tooling Private Limited Machino Polymers Limited Rajiv Exports Industries Private Limited Grandmaastters Mold Limited Pranaa Plastics Limited
d. Key management personnel & their close members
Mr M.D. Jindal - Chairman Emeritus
Mr Sanjiivv Jindall - Chairman cum Managing Director & Son of Chairman Emeritus
Ms Kamla Jindal - Spouse of Chairman Emeritus
Ms Sarita Jindal - Spouse of Managing Director cum Chairman
Mr Aditya Jindal - Executive Director & Son of Chairman cum Managing Director
Mr Surya Kant Agrawal - General Manager cum Company Secretary
8. capital Management
The Company manages its capital to ensure that the company will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance.
The capital structure of the Company consists of net debt (borrowings as detailed in notes 16 and 19 offset by cash and bank balances) and total equity of the company. The company is not subject to any externally imposed capital requirements.
The Companyâs risk management committee reviews the capital structure of the Company on a semi-annual basis. As part of this review, the committee considers the cost of capital and the risks associated with each class of capital.The Company monitors capital on the basis of following gearing ratio, which is net debt divided by total equity plus debt.
9. Financial risk management:-
The Companyâs Corporate Treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the company through internal risk reports which analyses exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.
The Corporate Treasury function reports quarterly to the companyâs risk management committee, an Independent body that monitors risks and policies implemented to mitigate risk exposures.
Market Risk
The companyâs activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.
a) Foreign currency risk management
The company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters
The carrying amounts of the companyâs foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows.
b) Interest rate risk management
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The company is exposed to interest rate risk because company borrows funds at both fixed and floating interest rates. The risk is managed by the company by maintaining an appropriate mix between fixed and variable rate borrowings.
Interest rate sensitivity analysis
The sensitivity analyses below have been determined based on the exposure to interest rates at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents managementâs assessment of the reasonably possible change in interest rates.
(i) The exposure of group borrowings to interest rate changes at the end of reporting period are as follows:
(ii) As at the end of reporting period, the company had the following variable rate borrowings:
(iii) Sensitivity
Profit/loss is sensitive to higher/lower interest expense from borrowings as a result of changes in interest rates.
c) credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The company only transacts with entities that are rated the equivalent of investment grade and above. This information is supplied by independent rating agencies where available and, if not available, the company uses other publicly available financial information and its own trading records to rate its major customers. The companyâs exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the risk management committee annually.
d) Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the companyâs short-term, medium-term and long-term funding and liquidity management requirements. The company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
Liquidity and interest risk tables
The following tables detail the Companyâs remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the company can be required to pay.
The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period.
The contractual maturity is based on the earliest date on which the company may be required to pay.
10. The group offsets a financial asset and a financial liability when it currently has a legally enforceable right to set off the recognized amounts and the group intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
The following table provides quantitative information about offsetting of financial assets and financial liabilities:
Mar 31, 2017
1. General Information of the company:-
Machino Plastic Limited is a public limited company incorporated as on 02nd April, 1986 under the erstwhile Companies Act, 1956 in India, having its registered office at Plot No 3, Maruti Joint Venture Complex, Gurgaon, Haryana - 122015. The company is a joint venture of Maruti Suzuki India Ltd and Suzuki Motor Corporation, Japan for the manufacture of injection moulded automotive parts as original equipment and for spare parts market primarily for Maruti Suzuki India Limited. The company also manufactures various automotive components for others manufacturers.
2. Significant Accounting Policies
a) Basis of preparation:-
The Company has adopted accounting policies that comply with Indian Accounting standards (INDAS or Ind AS) notified by Ministry of Corporate Affairs vide notification dated 16 February 2015 under section 133 of the Companies Act 2013. Accounting policies have been applied consistently to all periods presented in these financial statements. The financial statements referred hereinafter have been prepared in accordance with the requirements and instructions of Schedule III to the Companies Act 2013, amended from time to time applicable to companies to whom Ind AS applies read with the Ind AS.
The opening financial statements have been prepared in accordance with âIndian Accounting Standard 101 (First time Adoption of Indian Accounting Standards). The opening financial statements comprise Balance Sheet, Statement of Change in equity and its related notes.
The adopted accounting policies comply with each Ind-AS effective at the end of its first Ind-AS reporting period i.e.31st March 2017 except as specified in paragraphs 13-19 and Appendices B-D of Ind AS 101. In the opening financial statements:
(i) All assets and liabilities have been recognised as required by Ind AS.
(ii) All assets and liabilities have been derecognized which are not permitted by Ind AS.
(iii) All assets, liabilities or components of equity have been reclassified in accordance with Ind AS.
(iv) All assets and liabilities have been measured in accordance with Ind AS.
The accounting policies used by the Company in its opening financial statement may differ from those previously used in accordance with Indian Generally Accepted Accounting Principles (GAAP) or the previous GAAP The resulting adjustments, which arose for events and transactions before the date of transition to Ind AS, have been directly recognized in retained earnings at the date of transition to Ind-AS i.e. April 1,2015 (or, if appropriate, another category of equity) at the date of transition to Ind ASs.
The company estimates in accordance with Ind ASs at the date of transition to Ind ASs are consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.
The company has explained how the transition from previous GAAP to Ind ASs has affected its reported Balance sheet and Statement of Profit & loss. Accordingly, The Companyâs first Ind AS financial statements includes:
(a) Reconciliations of its equity reported in accordance with previous GAAP to its equity in accordance with Ind ASs for both of the following dates:
(i) the date of transition to Ind ASs; and
(ii) the end of the latest period presented in the companyâs most recent annual financial statements in accordance with previous GAAP
(b) Reconciliation to its total comprehensive income in accordance with Ind ASs for the latest period in the Companyâs most recent annual financial statements. The starting point for that reconciliation being the profit or loss under previous GAAP
The Companyâs first Ind AS financial statements includes three Balance Sheetâs, two Statements of profit and loss, and two Statements of changes in equity and two cash flow and related notes.
The Companyâs first financial statements have been prepared in accordance with the Ind AS prescribed. The preparation of the Companyâs first financial statements in conformity with Ind AS requires the Company to exercise its judgement in the process of applying the accounting policies. It also requires the use of accounting estimates and assumptions that effect the reported amounts of assets and liabilities at the date of the financial statements. These estimates and assumptions are assessed on an ongoing basis and are based on experience and relevant factors, including expectations of future events that are believed to be reasonable under the circumstances and presented under the historical cost convention on accrual basis of accounting.
b) Use of Estimates:-
The preparation of financial statements require estimates and assumptions to be made that affect the reported amount of asset and liabilities on the date of the financial statements and the reported amount of the revenue and the expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.
3.1 Rights, preference and restrictions attached to equity shares
The Company has one class of equity share having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held with a right to receive per share dividend declared by the company
In the event of liquidation of the company, the holders of equity share shall be entitled to receive all of the remaining assets of the company, after distribution of all preferential amounts, if any. Such amount will be in the proportion to the number of equity shares held by stockholders.
3.2 Aggregate number of bonus shares issued and shares bought back during the period of five years immediately preceding the reporting date:
A) Equity shares of Rs. 10 each allotted as fully paid bonus shares by capitalisation out of capital redemption reserves.
B) Equity shares of Rs. 10 each buy back
Notes
Secured term loans from banks & others
a. Term loans are secured by way of pari passu first charge on companyâs fixed assets excluding tools & dies, both present & future and second charge on current assets
b. The term loan taken from Yes Bank is Rs 170,833,333 (Previous year Nil) which carries interest of 9.85% per annum
c. The term loan taken from Yes Bank is Rs 170,000,000 (Previous year Nil) which carries interest of 9.65% per annum
d. The term loan taken from Kotak Mahindra Bank Limited is Rs 109,949,821 (Previous year Nil) which carries interest of 9.85% per annum
e. The term loan taken from HDFC Bank Limited is Rs 100,000,000 (Previous year Nil) which carries interest of 9.85% per annum
f. The term loan taken from TATA Capital Financial Services Limited is Rs. 100,000,000 (Previous year Nil) which carries interest of 10.25% per annum
g. The term loan taken from TATA Capital Financial Services Limited is Rs. 39,678,797 (Previous year Rs. 122,222,000) which carries interest of 11.75% per annum
h. Repayment schedule
Notes
Nature of securities
The cash credit facilities are secured by way of pari passu first charge on entire current assets of the Company including stocks of raw material, goods in transit and book debts along with a pari passu charge on entire fixed assets of the Company
* Cash credit facilities outstanding from Allahabad Bank is Rs. 7,379,485 (Previous year Rs. 112,780,191) carry interest of 12.20% computed on the daily basis on the actual amount utilized, and are repayable on demand.
* Cash credit facilities outstanding from Axis Bank Limited is Rs. 268,092,956 (Previous year Rs. 103,015,954) carry interest of 9.20% computed on the daily basis on the actual amount utilized, and are repayable on demand.
* Cash credit facilities outstanding from Kotak Mahindra Bank Limited is Rs. 10,882,541 (Previous year Nil) carry interest of 10.30% computed on the daily basis on the actual amount utilized, and are repayable on demand.
* Cash credit facilities outstanding from Yes Bank Limited is Rs. 140,066,457 (Previous year Nil) carry interest of 9.25% computed on the daily basis on the actual amount utilized, and are repayable on demand.
* Cash credit facilities outstanding from HDFC Bank Limited is Rs. 70,822 (Previous year Nil) carry interest of 9.75% computed on the daily basis on the actual amount utilized, and are repayable on demand.
4. Contingent liabilities and commitments (to the extent not provided for):
(i) Contingent liabilities not provided for
a) Demand under the Central Excise Act of Rs. 111,535,494 (Previous year Rs. 111,535,494)
b) Demand under the Income Tax Act of Rs. 1,646,625 (Previous year Rs. 2,182,598)*
c) Demand under the Sales Tax Act of Rs. 621,691 (Previous year Rs. 621,691).
d) Bill discounted of Rs.7,152,049 (Previous year Rs. 14,942,719)
* The Ld CIT (A) vide order dated 27 April 2017 quashed the penalty demand order passed by Assessing Officer u/s 271(1)(c) of the Income Tax Act, 1961
(ii) Guarantees
In respect of bank guarantees: Rs.5,434,322 (Previous year Rs.5,434,322)
(iii) Commitments
Estimated amount of contracts, remaining to be executed on capital account (net of advances) Rs. 9,424,527 (Previous year Rs. 4,636,800).
5. (i) Contribution to defined benefit plan
The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with âLife Insurance corporationâ in the form of a qualifying insurance policy.
6. Other income includes interest income Rs. 216,369 (Previous year Rs. 468,592), tax deducted thereon is Rs. 7,795 (Previous year Rs. 44,529), Profit on sale of fixed assets Rs. 1,922,125 (Previous year Rs. 142,974), Sundry creditors written off Rs. 6,054 (Previous year Rs. 99,563), Duty draw back received Rs 177,706 (Previous year Rs. 106,199), Exchange fluctuation gain Rs 754,275 (Previous year loss Rs 1,590,878).
7. Investment in equity share are measured at fair value through other comprehensive income as per ind AS 109.
The company had made Investment of Face Value of Rs.12,500,000 in equity shares of Caparo Maruti Limited. The investee company has disputed the shareholding of the Company. The company has filed a petition to Honâble Company Law Board, who gave company an option to sell shares to majority shareholders after valuation to make an exit. The Company filed an appeal in the Honâble Delhi High Court which dismissing companyâs appeal upheld Company Law Board order thereafter SLPs were preferred against the orders of the Honâble High Court of Delhi before the Honâble Supreme Court of India by both the parties. The Honâble Supreme Court of India vide its order dated 29th March 2016 dismissed both SLPs. However, it states that the order of dismissal is subject to the result of such case(s) as may be pending between the paties in respect of cancellation of the shares held by the petitioner. The matter is still sub-judice.
In the current circumstances, the company is unable to ascertain the fair value of investment in equity share in Caparo Maruti Limited as it is not practicably feasible to do so. Consequently, no fair value adjustment has been made in the books of accounts and these equity instruments have been carry forward at cost as at Balance sheet date
8. The company is exclusively engaged in the business of manufacturing plastic moulded parts for automotive, appliances and industrial application and allied products, which is considered as the only reportable segment referred to in statement on Ind AS-108 âOperating Segmentsâ. The geographical segmentation is not relevant, as there is insignificant export.
9. Information as required by ind AS 24 âRelated Parties Disclosuresâ as follows:
List of related parties:
a. Associate companies
Maruti Suzuki India Limited Suzuki Motor Corporation, Japan
b. Enterprises under common control
Suzuki Motor Gujarat Private Limited
Suzuki Motorcycle India Private Limited
c. Enterprises over which key management personnel
And their close members are able to exercise significant influence
Machino Motor Private Limited Machino Techno Sales Limited Machino Transport Private Limited Machino Finance Private Limited Machino Media Private Limited Machino Auto Comp Tooling Private Limited Machino Polymers Limited Rajiv Exports Industries Private Limited Grandmaastters Mold Limited Pranaa Plastics Limited
d. Key management personnel & their close members
Mr M.D. Jindal - Chairman Emeritus
Mr Sanjiivv Jindall - Managing Director cum Chairman & Son of Chairman Emeritus
Ms Kamla Jindal - Spouse of Chairman Emeritus
Ms Sarita Jindal - Spouse of Managing Director cum Chairman
Mr Aditya Jindal - Executive Director & Son of Managing Director cum Chairman
Mr Suryakant Agrawal - General Manager cum Company Secretary
10. Capital Management
The Company manages its capital to ensure that the company will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance.
The capital structure of the Company consists of net debt (borrowings as detailed in notes 16 and 19 offset by cash and bank balances) and total equity of the company. The company is not subject to any externally imposed capital requirements.
The Companyâs risk management committee reviews the capital structure of the Company on a semiannual basis. As part of this review, the committee considers the cost of capital and the risks associated with each class of capital. The Company monitors capital on the basis of following gearing ratio, which is net debt divided by total equity plus debt.
11. Financial risk management:-
The Companyâs Corporate Treasury function provides services to the business, co-ordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the company through internal risk reports which analyses exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.
The Corporate Treasury function reports quarterly to the companyâs risk management committee, an Independent body that monitors risks and policies implemented to mitigate risk exposures.
Market Risk
The companyâs activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.
a) Foreign currency risk management
The company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters
The carrying amounts of the companyâs foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows.
b) Interest rate risk management
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The company is exposed to interest rate risk because company borrows funds at floating interest rates.
Interest rate sensitivity analysis
The sensitivity analyses below have been determined based on the exposure to interest rates at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents managementâs assessment of the reasonably possible change in interest rates.
(i) The exposure of group borrowings to interest rate changes at the end of reporting period are as follows:
(ii) As at the end of reporting period, the company had the following variable rate borrowings:
(iii) Sensitivity
Profit/loss is sensitive to higher/lower interest expense from borrowings as a result of changes in interest rates.
c) credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The company only transacts with entities that are rated the equivalent of investment grade and above. This information is supplied by independent rating agencies where available and, if not available, the company uses other publicly available financial information and its own trading records to rate its major customers. The companyâs exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the risk management committee annually.
d) Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the companyâs short-term, medium-term and long-term funding and liquidity management requirements. The company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
Liquidity and interest risk tables
The following tables detail the Companyâs remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the company can be required to pay.
The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period.
The contractual maturity is based on the earliest date on which the company may be required to pay.
12. Fair value of measurement
Fair value of the companyâs financial assets and financial liabilities that are measured at fair value on a recurring basis.
a) The fair values of current debtors, bank balances, current creditors and current borrowings are assumed to approximate their carrying amounts due to the short-term maturities of these assets and liabilities are as follows.
13. current Tax
The income tax expense for the year can be reconciled to the accounting profit as follows:
The tax rate used for the 2016-17 and 2015-16 reconciliations above is the corporate tax rate of 21.314% & 34.608% respectively.
14. Specified bank notes (SBâNs):-
During the year, the Company had specified bank notes or other denomination note as defined in the MCA notification G.S.R. 308(E) dated 31 March 2017 on the details of Specified Bank Notes (SBN) held and transacted during the period from 08 November 2016 to 30 December 2016, the denomination wise SBNs and other notes as per the notification is given below
15. The group offsets a financial asset and a financial liability when it currently has a legally enforceable right to set off the recognized amounts and the group intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
The following table provides quantitative information about offsetting of financial assets and financial liabilities:
Mar 31, 2016
Note
1. Other income includes interest received Rs. 468,592 (Previous year Rs. 187,238), tax deducted thereon is Rs. 44,529 (Previous year Rs. 13,924), Profit on sale of fixed assets Rs. 142,974 (Previous year Nil), Sundry creditors written off Rs. 99,563 (Previous year 3,359,738), Duty draw back received Rs 106,199 (Previous year Rs. 77,009).
2. The company had made Investment of Face Value of Rs.12,500,000 in equity shares of Caparo Maruti Limited. The investee company has disputed the shareholding of the Company. The company has filed a petition to Hon''ble Company Law Board, who gave company an option to sell shares to majority shareholders after valuation to make an exit. The Company filed an appeal in the Hon''ble Delhi High Court which dismissing company''s appeal upheld Company Law Board order thereafter SLPs were preferred against the orders of the Hon''ble High Court of Delhi before the Hon''ble Supreme Court of India by both the parties. The Hon''ble Supreme Court of India vide its order dated 29th March 2016 dismissed both SLPs. However, it states that the order of dismissal is subject to the result of such case(s) as may be pending between the patties in respect of cancellation of the shares held by the petitioner. The matter is still sub-judice.
3. The company is exclusively engaged in the business of manufacturing plastic moulded parts for automotive, appliances and industrial application and allied products, which is considered as the only reportable segment referred to in statement on Accounting Standard (AS) -17 âSegmental Reportingâ. The geographical segmentation is not relevant, as there is insignificant export.
4. Information as required by Accounting Standard - (AS) - 18 âRelated Parties Disclosuresâ as follows:
List of related parties:
a) Associate companies Maruti Suzuki India Limited Suzuki Motor Corporation, Japan
b) Enterprises over which key management personnel And their relatives are able to exercise significant influence Machino Motors Private Limited Machino Techno Sales Limited Machino Transport Private Limited Machino Finance Private Limited Machino Media Private Limited Machino Auto Comp Tooling Private Limited Machino Polymers Limited Rajiv Exports Industries Private Limited Grandmaastters Mold Limited Pranaa Plastics Limited
c) Key management personnel & relatives
Mr M.D.Jindal - Chairman
Mr Sanjiivv Jindall - Managing Director cum Vice Chariman & Son of Chairman
Mrs Kamla Jindal - Spouse of Chairman
Mrs Sarita Jindal - Spouse of Managing Director
Mr Aditya Jindal - Executive Director & Son of Managing Director
Ms Simta Jindal - Daughter of Managing Director
5. The figures are adjusted to the nearest rupee and figures for previous year have been regrouped / rearranged to conform to the classification in the current year.
Mar 31, 2015
Note 1.1 Rights, preference and restrictions attached to equity shares
The Company has one class of equity share having a par value of Rs. 10
per share. Each shareholder is eligible for one vote per share held
with a right to receive per share dividend declared by the company In
the event of liquidation of the company, the holders of equity share
shall be entitled to receive all of the remaining assets of the
company, after distribution of all preferential amounts, if any. Such
amount will be in the proportion to the number of equity shares held by
stockholders.
Notes
Nature of securities
The cash credit facilities are secured by way of pari passu first
charge on entire current assets of the Company including stocks of raw
material, goods in transit and book debts along with a pari passu
charge on entire fixed assets of the Company
* Cash credit facilities outstanding from The Bank of Tokyo-Mitsubishi
UFJ, Ltd is Nil (Previous year Rs. 49,196,450/-) carry interest of
14.50% computed on the daily basis on the actual amount utilized, and
are repayable on demand.
* Cash credit facilities outstanding from Allahabad Bank is Rs.
174,061,617/- (Previous year Rs. 166,093,515/-) carry interest of
12.70% computed on the daily basis on the actual amount utilized, and
are repayable on demand.
* Cash credit facilities outstanding from Axis Bank Limited is Rs.
5,258,937/- (Previous year Rs. 59,035,560/-) carry interest of 12.50%
computed on the daily basis on the actual amount utilized, and are
repayable on demand.
2. Contingent liabilities and commitments (to the extent not provided
for):
(i) Contingent liabilities not provided for
a) Demand under the Central Excise Act of Rs. 111,535,494/- (Previous
year Rs. 111,535,494/-).
b) Demand under the Income Tax Act of Rs. 2,182,598/- (Previous year
Rs. 1,646,625/-).
c) Demand under the Sales Tax Act of Rs. 621,691/- (Previous year Rs.
621,691/-).
(ii) Guarantees
In respect of bank guarantees: Rs.1,558,000/- (Previous year Rs.
1,558,000/-)
(iii) Commitments
a) Estimated amount of contracts, remaining to be executed on capital
account (net of advances) Rs.30,306,871/- (Previous year Rs.
3,581,597/-).
b) The Hon''ble High Court of Punjab and Haryana has awarded enhanced
compensation to land looser in respect of land acquired by HSIIDC, A
Government Agency, from whom the company has purchased on 16th March
2005, four acres of land for its factory at Manesar. In turn HSIIDC has
demanded a sum of Rs.42,320,250/- in respect of land allotted to the
company. The company has paid Rs 39,360,951/- lacs (inclusive of all
interest due to delay payment) and the said enhancement have formed the
cost of free hold land at Manesar. The company has received an
additional notice from HSIIDC dated 29th August 2014 demanding
additional cost / charges in respect of Plot No 128 & 129, Sector 8,
IMT Manesar amounting to Rs 23,184,000/-. The company has paid Rs
4,753,038/- lacs (inclusive of all interest due to delay payment) in
respect of additional demand.
3. During the year ended 31st March 2009 company has revalued its land
(free hold) by Rs. 149,621,982/- substituting its historical cost of Rs
47,253,018/- by revalued amount of Rs. 196,875,000/-. The said
revaluation was done by an external valuer using comparable method.
4. (i) Contribution to defined benefit plan
The company has a defined benefit gratuity plan, Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The scheme is funded with "Life Insurance Corporation" in the form
of a qualifying insurance policy.
5. Other income includes interest received Rs. 187,238/- (Previous
year Rs. 1,137,545/-), tax deducted thereon is Rs. 13,924/- (Previous
year Rs. 74,251/-), Profit on sale of fixed assets Nil (Previous year
1,177,946/- ), Sundry creditors written off Rs. 3,359,738/- (Previous
year Nil), Duty draw back received Rs 77,009/- (Previous year Nil).
6. The company had made Investment of Face Value of Rs.12,500,000/- in
equity shares of Caparo Maruti Limited. The investee company has
disputed the shareholding of the Company. The company has filed a
petition to Hon''ble Company Law Board, who gave company an option to
sell shares to majority shareholders after valuation to make an exit.
The Company filed an appeal in the Hon''ble Delhi High Court which
dismissing company''s appeal upheld Company Law Board order thereafter
SLPs were preferred against the orders of the Hon''ble High Court of
Delhi before the Hon''ble Supreme Court of India by both the parties.
The matter is still sub-judice.
7. During the year the company has determined the estimated useful
life of its fixed assets based on the technical evaluation as permitted
under the provision of Schedule II of Companies Act, 2013 and has
provided depreciation accordingly w.e.f. 01st April 2014. This has
resulted into depreciation for the year ended 31st March 2015 being
higher by Rs 6,096,217/-.
8. The company is exclusively engaged in the business of manufacturing
plastic moulded parts for automotive, appliances and industrial
application and allied products, which is considered as the only
reportable segment referred to in statement on Accounting Standard (AS)
-17 "Segmental Reporting". The geographical segmentation is not
relevant, as there is insignificant export.
9. Information as required by Accounting Standard - (AS) - 18
"Related Parties Disclosures" as follows:
List of related parties:
a) Associate companies
Maruti Suzuki India Limited Suzuki Motor Corporation, Japan
b) Enterprises over which key management personnel
And their relatives are able to exercise significant influence
Machino Motors Private Limited Machino Techno Sales Limited Machino
Transport Private Limited Machino Finance Private Limited Machino Media
Private Limited Machino Auto Comp Tooling Private Limited Machino
Polymers Limited Rajiv Exports Industries Private Limited
Grandmaastters Mold Limited Pranaa Plastics Limited
c) Key management personnel & relatives
Mr M.D.Jindal - Chairman
Mr Sanjiivv Jindall - Managing Director cum Vice Chariman & Son of
Chairman
Mrs Kamla Jindal - Spouse of Chairman
Mrs Sarita Jindal - Spouse of Managing Director
Mr Aditya Jindal - Executive Director & Son of Managing Director
Ms Simta Jindal - Daughter of Managing Director
10. The figures are adjusted to the nearest rupee and figures for
previous year have been regrouped / rearranged to conform to the
classification in the current year.
Mar 31, 2014
Note 1.1 Rights, preference and restrictions attached to equity shares
The Company has one class of equity share having a par value of Rs. 10
per share. Each shareholder is eligible for one vote per share held
with a right to receive per share dividend declared by the company
In the event of liquidation of the company, the holders of equity share
shall be entitled to receive all of the remaining assets of the
company, after distribution of all preferential amounts, if any. Such
amount will be in the proportion to the number of equity shares held by
stockholders.
2. Contingent liabilities and commitments (to the extent not provided
for):
(i) Contingent liabilities not provided for
a) Demand under the Central Excise Act of Rs. 111,535,494/- (Previous
year Rs. 111,535,494/-).
b) Demand under the Income Tax Act of Rs. 1,646,435/- (Previous year
Rs. 13,079,410/-).
c) Demand under the Sales Tax Act of Rs.621,691/- (Previous year Nil).
(ii) Guarantees
In respect of bank guarantees: Rs.1,558,000/- (Previous year Rs.
1,500,000/-)
(iii) Commitments
Estimated amount of contracts, remaining to be executed on capital
account (net of advances) Rs.3,581,597/- (Previous year Rs.
17,975,216/-).
3. During the year ended 31st March 2009 company has revalued its
land (free hold) by rupees Rs. 149,621,982/-) substituting its
historical cost of Rs 47,253,018/- by revalued amount of Rs.
196,875,000/-. The said revaluation was done by an external valuer
using comparable method.
4. (i) Contribution to defined benefit plan
The company has a defined benefit gratuity plan, Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The scheme is funded with "Life Insurance Corporation" in the form
of a qualifying insurance policy.
5. Other income includes interest received Rs. 1,137,545/- (previous
year Rs. 976,405/-), tax deducted thereon is Rs. 74,251/- (previous
year Rs. 97,652/-), Profit on sale of fixed assets Rs.1,177,946/-
(Previous year 44,199/-), Gain from Foreign Fluctuation Rs. 35,871/-
(Previous year Nil), Discount received Rs. Nil (Previous year
Rs.6,596,161/-).
6. The company had made Investment of Face Value of Rs.12,500,000/-
in equity shares of Caparo Maruti Limited. The investee company has
disputed the shareholding of the Company. The company has filed a
petition to Hon''ble Company Law Board, who gave company an option to
sell shares to majority shareholders after valuation to make an exit.
The Company filed an appeal in the Hon''ble Delhi High Court which
dismissing company''s appeal upheld Company Law Board order thereafter
SLPs were preferred against the orders of the Hon''ble High Court of
Delhi before the Hon''ble Supreme Court of India by both the parties.
The matter is still sub-judice.
7. The Hon''ble High Court of Punjab and Haryana has awarded enhanced
compensation to land looser in respect of land acquired by HSIIDC, A
Government Agency, from whom the company has purchased on 16th March
2005, four acres of land for its factory at Manesar. In turn HSIIDC has
demanded a sum of Rs.42,320,250/- in respect of land allotted to the
company. IMT Manesar Association has filed petition in the Hon''ble High
Court of Punjab and Haryana challenging the demand of behalf of
industries at Manesar. The Hon''ble High Court has directed allottees,
to deposit 60% of demanded amount, pending final judgement. The
company has paid Rs. 29,838,112/- including interest and the said
enhancement has formed the cost of free hold land at Manesar.
8. The company is exclusively engaged in the business of
manufacturing plastic moulded parts for automotive, appliances and
industrial application and allied products, which is considered as the
only reportable segment referred to in statement on Accounting Standard
(AS) -17 "Segmental Reporting". The geographical segmentation is
not relevant, as there is insignificant export.
9. Information as required by Accounting Standard - (AS) - 18
"Related Parties Disclosures" as follows:
List of related parties:
a. Associate companies
Maruti Suzuki India Limited Suzuki Motor Corporation, Japan
b) Enterprises over which key management personnel
And their relatives are able to exercise significant influence
Machino Motors Private Limited Machino Techno Sales Limited Machino
Transport Private Limited Machino Finance Private Limited Machino Media
Private Limited Machino Auto Comp Limited Machino Auto Comp Tooling
Private Limited Machino Polymers Limited Rajiv Exports Industries
Private Limited Grandmaastters Mold Limited Pranaa Plastics Limited
c. Key management personnel & relatives
Mr M.D.Jindal - Chairman
Mr Sanjiivv Jindall - Managing Director cum Vice Chairman & Son of
Chairman
Mrs Kamla Jindal - Spouse of Chairman
Mrs Sarita Jindal - Spouse of Managing Director
Mr Aditya Jindal - Executive Director & Son of Managing Director
Ms Simta Jindal - Daughter of Managing Director
10. The figures are adjusted to the nearest rupee and figures for
previous year have been regrouped / rearranged to confirm to the
classification in the current year.
Mar 31, 2013
1. Contingent liabilities and commitments (to the extent not provided
for): (i) Contingent liabilities not provided for
a) Demand under the central excise act of Rs. 111,535,494/- (Previous
year Rs. 139,256,442/-).
b) Demand under the income tax act of Rs. 13,079,410/- (Previous year
Rs. Nil). (ii) Guarantees
a) In respect of bank guarantees : Rs.1,500,000/- (Previous year Rs.
1,000,000/-)
(iii) Commitments
a) Estimated amount of contracts, remaining to be executed on capital
account (net of advances) Rs. 17,975,216/- (Previous year Rs. Nil).
2. During the year ended 31st March 2009 company has revalued its
land (free hold) by (Rs. 149,621,982/-) substituting its historical
cost of Rs 47,253,018/- by revalued amount of Rs. 196,875,000/-. The
said revaluation was done by an external valuer using comparable
method.
3. (i) Contribution to defned beneft plan
The company has a defned beneft gratuity plan, every employee who has
completed fve years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The scheme is funded with "Life Insurance Corporation" in the form of a
qualifying insurance policy.
4. Other income includes interest received Rs. 976,405/- (Previous
year Rs. 4,668,248/-), tax deducted thereon is Rs. 97,652/- (previous
year Rs. 1,73,008/-), Proft on sale of fxed assets Rs.44,199/-
(Previous year 13,143,416/-), Gain from Foreign Fluctuation Rs. Nil
(Previous year Rs. 2,881/-), Discount received Rs.6,596,161/- (Previous
year Rs.4,233,395/-).
5. The company had made Investment of Face Value of Rs.12,500,000/-
in equity shares of Caparo Maruti Limited. The investee company has
disputed the shareholding of the Company. The company has fled a
petition to Hon''ble Company Law Board, who gave company an option to
sell shares to majority shareholders after valuation to make an exit.
The Company fled an appeal in the Hon''ble Delhi High Court which
dismissing company''s appeal upheld Company Law Board order thereafter
SLPs were preferred against the orders of the Hon''ble High Court of
Delhi before the Hon''ble Supreme Court of India by both the parties.
The matter is still sub-judice.
6. The Hon''ble High Court of Punjab and Haryana has awarded enhanced
compensation to land looser in respect of land acquired by HSIIDC, A
Government Agency, from whom the company has purchased on 16th March
2005, four acres of land for its factory at Manesar. In turn HSIIDC has
demanded a sum of Rs.42,320,250/- in respect of land allotted to the
company. IMT Manesar Association has fled petition in the Hon''ble High
Court of Punjab and Haryana challenging the demand on behalf of
industries at Manesar. The Hon''ble High Court has directed allottees,
in the hearing dated 30th April 2013, to deposit 40% of demanded
amount, pending fnal judgement. The company has not yet paid any
amount. However in case, the said enhancement is paid the same will
form of cost of free hold land at Manesar.
7. An accident occurred in Manesar Plant of the company on 21st
January 2012 causing damage to fxed assets Gross Valued at Rs.
33,202,884/- and WDV at Rs. 23,872,957/- and stock value of Rs.
2,606,334/- at cost. Company has in force an all industrial risk
insurance policy at the time of accident which has arrangement for
replacement / re-instatement of assets. Management is of the view that
fnal adjustment for impact on carrying value of assets shall be carried
out after settlement of insurance claims, since it is unascertainable
at this stage.
8. The company is exclusively engaged in the business of
manufacturing plastic moulded parts for automotive, appliances and
industrial application and allied products, which is considered as the
only reportable segment referred to in statement on Accounting Standard
(AS) -17 "Segmental Reporting". The geographical segmentation is not
relevant, as there is insignifcant export.
9. Information as required by Accounting Standard  (AS) - 18
"Related Parties Disclosures" as follows: List of related parties:
a. Associate companies
Maruti Suzuki India Limited Suzuki Motor Corporation, Japan
b. Enterprises over which key management personnel and their relatives
are able to exercise signifcant infuence
Machino Motors Pvt. Limited Grandmaastters Mold Limited Machino Techno
Sales Limited Machino Transport Private Limited Machino Finance Private
Limited Machino Autocomp Pvt Ltd Machino Polymers Limited
c. Key management personnel & relatives
Mr. M.D.Jindal - Chairman
Dr. Sanjiivv Jindall - Managing Director & Son of Chairman
Mrs. Kamla Jindal - Spouse of Chairman
Mrs. Sarita Jindal - Spouse of Managing Director
Mr. Aditya Jindal - Son of Managing Director
Miss Simta Jindal - Daughter of Managing Director
10. The fgures are adjusted to the nearest rupee and fgures for
previous year have been regrouped / rearranged to conform to the
classifcation in the current year.
Mar 31, 2012
1. Contingent liabilities not provided for:
- Demand under the central excise act of Rs. 13,92,56,442/-(Previous
year Rs. 13,92,56,442)
2. Estimated amount of contracts, remaining to be executed on capital
account (net of advances) Rs. NIL (Previous year Rs. 26,90,693/-)
3. During the year ended 31st March 2009 company has revalued its
land ( free hold) by rupees Rs. 14,96,21,982/-) substituting its
historical cost of Rs 4,72,53,018/- by revalued amount of Rs.
19,68,75,000/-. The said revaluation was done by an external valuer
using comparable method.
4. (i) Contribution to defined benefit plan
The company has a defined benefit gratuity plan, Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The scheme is funded with "Life Insurance Corporation" in the form
of a qualifying insurance policy.
* The estimates of rate of escalation in salary considered in actuarial
valuation, taken into account inflation, seniority, per motion and
other relevant factors including supply and demand in the employment
market.
(ii) Contribution to defined contribution plan
As of 31-03-2012 31-03-2011
Provident Fund 36,65,500 40,42,679
5. Other income includes interest received Rs.46,68,248/- (previous
year Rs. 47,98,305/-). tax deducted thereon is Rs. 1,73,008/- (previous
year Rs. 4,04,105/-), Profit on sale of equity shares Rs.NIL (Previous
year 9,46,98,800/-), Profit on sale of fixed assets Rs.1,31,43,416/-
(Previous year 74,19,689/-), Gain from Foreign Fluctuation Rs.2,881/-
(Previous year NIL), Discount received Rs.42,33,395/- (Previous year
NIL).
6. The company had made Investment of Face Value of Rs.1,25,00,000/-
in equity shares of Caparo Maruti Limited. The investee company has
disputed the shareholding of the Company. The company has filed a
petition to honble company law board, who gave company an option to
sell shares to majority shareholders after valuation to make an exit.
The Company filed an appeal in the Hon'ble Delhi High Court which
dismissing company's appeal upheld company law board order thereafter
SLPs were preferred against the orders of the Hon'ble High Court of
Delhi before the Hon'ble Supreme court of India by both the parties.
The matter is still sub-judice.
7. The sales / revenue have been accounted on the basis of purchase
orders issued by customers. However in respect of a customer the
discussion is going on for adjustment of prices, the agreed amount of
which is not ascertainable. The same will be accounted on
crystallization of amount.
8. An accident occurred in Manesar Plant of the company on 21st
January 2012 causing damage to fixed assets Gross Valued at Rs.
3,32,02,884/- and WDV at Rs. 2,38,72,957/- and stock value of Rs.
26,06,334/- at cost. Company has in force an all industrial risk
insurance policy at the time of accident which has arrangement for
replacement / re-instatement of assets. Thus in the opinion of the
management there is no likely hood of loss to the company, Management
is of the view that adjustment for impact on carrying value of these
assets shall be carried out in the amount after settlement of insurance
claims, since it is uncertain able at this stage.
9. The company is exclusively engaged in the business of
manufacturing plastic moulded parts for automotive, appliances and
industrial application and allied products, which is considered as the
only reportable segment referred to in statement on Accounting Standard
(AS) -17 "Segmental Reporting". The geographical segmentation is
not relevant, as there is insignificant export.
10. Information as required by Accounting Standard - (AS) - 18
"Related Parties Disclosures" as follows: List of related parties:
a. Associate companies
Maruti Suzuki India Limited
Suzuki Motor Corporation, Japan
b. Enterprises over which key management personnel and their relatives
are able to exercise significant influence
Machino Motors Pvt. Limited
Grandmaastters Mold Limited
Machino Techno Sales Limited
Machino Transport Private Limited
Machino Finance Private Limited
Machino Autocomp Pvt Ltd
Machino Polymers Limited
c. Key management personnel & relatives
Mr. M.D.Jindal - Chairman
Dr. Sanjiivv Jindall - Managing Director & Son of Chairman
Mrs. Kamla Jindal - Spouse of Chairman
Mrs. Sarita Jindal - Spouse of Managing Director
Mr. Aditya Jindal - Son of Managing Director
Miss Simta Jindal - Daughter of Managing Director
11. In compliance with the Accounting Standard (AS) 22 "Accounting
for Taxes on Income" deferred tax liability arising during the year
on account of timing differences amounting Rs. 53,10,542/- has been
recognised in the profit and loss account.
12. The figures are adjusted to the nearest rupee and figures for
previous year have been regrouped / rearranged to conform to the
classification in the current year.
Mar 31, 2011
1. Contingent liabilities not provided for:
- Demand under the central excise act of Rs. 13,92,56,442/-(Previous
year Rs. 12,36,55,534)
2. Estimated amount of contracts, remaining to be executed on capital
account (net of advances) Rs. 26,90,693/- (Previous year Rs.
1,79,71,630/-)
3. During the year ended 31st March 2009 company has revalued its land
( free hold) by rupees Rs. 14,96,21,982/-) substituting its historical
cost of Rs 4,72,53,018/- by revalued amount of Rs. 19,68,75,000/-. The
said revaluation was done by an external valuer using comparable
method.
4. (i) Contribution to defined benefit plan
The company has a defined benefit gratuity plan, Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The scheme is funded with "Life Insurance Corporation" in the form of a
qualifying insurance policy.
5. Other income includes interest received Rs. 47,98,305 (previous
year Rs. 52,89,725). tax deducted thereon is Rs. 4,04,105 (previous
year Rs. 6,64,282); Profit on sale of equity shares Rs.9,46,98,800
(Previous year 6,98,98,000); Income from Job work Nil (previous year
Rs. 1,60,956.50); Profit on sale of fixed assets Rs.74,19,689 (Previous
year 37,55,137).
6. The company had made Investment of Face Value of Rs 1,25,00,000 in
equity shares of Caparo Maruti Limited. The investee company has
disputed the shareholding of the Company. The company has filed a
petition to honble company law board, who gave company an option to
sell shares to majority shareholders after valuation to make an exit.
The Company filed an appeal in the Honble Delhi High Court which
dismissing companys appeal upheld company law board order thereafter
SLPs were preferred against the orders of the Honble High Court of
Delhi before the Honble Supreme court of India by both the parties.
The matter is still sub-judice.
7. During the year company has carried out restoration & relocation of
two injection molding machines at a cost of Rs. 3,56,14,919, which has
been capitalized.
8. The company is exclusively engaged in the business of manufacturing
plastic moulded parts for automotive, appliances and industrial
application and allied products, which is considered as the only
reportable segment referred to in statement on Accounting Standard (AS)
-17 "Segmental Reporting". The geographical segmentation is not
relevant, as there is insignificant export.
9. Information as required by Accounting Standard à (AS) - 18
"Related Parties Disclosures" as follows:
List of related parties:
a) Associate companies
Maruti Suzuki India Limited
Suzuki Motor Corporation, Japan
b) Enterprises over which key management personnel and their relatives
are able to exercise significant influence
Machino Motors Pvt. Limited
Grandmasstters Mold Limited
Machino Techno Sales Limited
Machino Transport Private Limited
Machino Finance Private Limited
Machino Autocomp Pvt Ltd
Machino Polymers Limited
c) Key management personnel & relatives
Mr. M.D.Jindal - Chairman
Dr. Sanjiivv Jindall - Managing Director & Son of Chairman
Mrs. Kamla Jindal - Spouse of Chairman
Mrs Sarita Jindal - Spouse of Managing Director
Mr Aditya Jindal - Son of Managing Director
Miss Simta Jindal - Daughter of Managing Director
10. In compliance with the Accounting Standard (AS) 22 "Accounting for
Taxes on Income" deferred tax liability arising during the year on
account of timing differences amounting Rs. 98,78,617/- has been
recognised in the profit and loss account.
11. The figures are adjusted to the nearest rupee and figures for
previous year have been regrouped / rearranged to conform to the
classification in the current year.
Mar 31, 2010
1. Contingent liabilities not provided for: Ã Demand under the Central
Excise Act, 1944 of Rs. 12,36,55,537/- (Previous year Rs. 13,92,56,442)
2. Estimated amount of contracts, remaining to be executed on capital
account (net of advances) Rs. 1,79,71,630/- (Previous year Rs.
1,37,78,758/-)
3. During the year ended 31st March, 2009 company has revalued its
land (free hold) by Rs. 14,96,21,982/- substituting its historical cost
of Rs 4,72,53,018/- by revalued amount of Rs. 19,68,75,000/-. The said
revaluation was done by an its external valuer using comparable method.
4. Contribution to defined benefit plan
The company has a defined benefit gratuity plan, Every employee who has
completed five years or more of service gets a gratuity on departure at
15 days salary (last drawn salary) for each completed year of service.
The scheme is funded with "Life Insurance Corporation" in the form of a
qualifying insurance policy.
The following tables summarize the components of net benefit expenses
recognised in the profit and loss account and the funded status and
amounts recognised in the balance sheet for the respective plan (as per
Actuarial Valuation as on 31st March,2010).
5. Other income includes interest received Rs. 52,89,725 (previous year
Rs.44,03,524); tax deducted thereon is Rs. 6,64,282 (previous year Rs.
9,23,878.01); Profit on sale of equity shares Rs.6,98,98,000 (Previous
year 5,98,79,200); Income from Job work Rs.1,60,956.50 (previous year
Rs. 19,09,207.24); discount received Rs. Nil (previous year Rs.
18,44,740).
6. The company had made investment of face value of Rs. 1,25,00,000 in
equity shares of Caparo Maruti Limited. The investee company has
disputed the shareholding of the company. The company has filed a
petition to HonÃble Company Law Board, who gave company an option to
sell shares to majority shareholders after valuation to make an exit.
The company filed an appeal in the Honble Delhi High Court which
dismissing companys appeal upheld Company Law Board order thereafter
SLP were preferred against the orders of the Honble Delhi High Court
before the Honble Supreme Court of India by both the parties. The
Honble Supreme Court of India has appointed M/s Walker Chandok & Co.
for valuation of shares of Caparo Maruti Ltd. The matter is still
sub-judice.
7. The company is exclusively engaged in the business of manufacturing
plastic moulded parts for automotive, appliances and industrial
application and allied products, which is considered as the only
reportable segment referred to in statement on Accounting Standard (AS
- 17) "Segmental Reporting". The geographical segmentation is not
relevant, as there is insignificant export.
8. Information as required by Accounting Standard - (AS - 18)
"Related Parties Disclosures" as follows:
List of related parties:
a) Associate Companies Maruti Suzuki India Limited Suzuki Motor
Corporation, Japan
b) Enterprises over which key management personnel and their relatives
are able to exercise significant influence
Machino Motors Pvt. Limited Grandmasstters Mold Limited Machino Techno
Sales Limited Machino Transport Private Limited Machino Finance Private
Limited Machino Autocomp Pvt Ltd Machino Polymers Limited
c) Key management personnel & relatives Mr. M.D.Jindal - Chairman
Dr. Sanjiivv Jindall - Managing Director & Son of Chairman
Mrs. Kamla Jindal - Spouse of Chairman
Mrs. Sarita Jindal - Spouse of Managing Director
Mr. Aditya Jindal - Son of Managing Director
Ms. Simta Jindal - Daughter of Managing Director
9. In compliance with the Accounting Standard (AS - 22) "Accounting
for Taxes on Income" deferred tax assets arising during the year on
account of timing differences amounting Rs. 1,71,59,283 has been
recognised in the profit and loss account and adjusted with deferred
tax liability.
10. The figures are adjusted to the nearest rupee and figures for
previous year have been regrouped / rearranged to conform to the
classification in the current year.
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