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Notes to Accounts of Magna Electrocastings Ltd.

Mar 31, 2015

1. Contingent Liabilities :

The Income Tax Department has raised demand for Rs.4,32,198/- for the year 2007-08 and a demand for Rs.20,65,720/- for the the Assessment year 2008-09. The Company has gone on appeal disputing of the above demands. No Provision has been made in the books of account as the Company is confident of getting a verdict in its favour on the basis of legal advice.

2. Depreciation :

Consequent upon the change in the method of providing depreciation in accordance with Schedule II to the Companies Act, 2013, the depreciation charge for the year is lower by Rs.253.97 Lakhs when compared to the amount arrived at on the same basis as in earlier years.

3. The Company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its fixed assets. This has not revealed any impairment during the year.

4. Related party disclosures:

A. Names of the related parties and Descriptions of relationship

1. Key management personnel Sri. N. Krishna Samaraj, Managing Director

2. Relatives of Key Management personnel Smt. N.Muthulakshmi - Mother

3. Other related parties 1. Samrajyaa and Company

2. Magna Digitech India Private Limited

3. Elgi Equipments Ltd.

5. Pursuant to Sec.135 of the Companies Act, 2013, the Company's CSR Committee has formulated a policy for undertaking CSR activities by the Company. The prescribed CSR Expenditure @ 2% of the average net profits of the Company for the last three financial years is Rs.11.96 Lakhs, as against the Company has incurred an expenditure of Rs.12.56 Lakhs during the year.

6. The Company has not entered into any foreign exchange derivative transactions.

7. Figures for the previous year have been reclassified / regrouped wherever necessary.


Mar 31, 2014

1. Contingent Liabilities :

For the Assessement year 2007-08, the Income Tax Department has raised demand for Rs.4,32,198/- and a penalty of Rs.4,03,920/-. For the Assessment year 2008-09 the department has also raised a demand for Rs.20,65,720/-. For the Assessment year 2009-10 the department has raised a demand of Rs.68,48,860/- . The Company has gone on appeal in respect of the above demands. No Provision has been made in the books of accounts as the Company is confident of getting a favorable verdict in its favour.

2. The Company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its fixed assets. This has not revealed any impairment during the year.

3. Related party disclosures:

A. Names of the related parties and Descriptions of relationship

1. Key management personnel Mr. N. Krishna Samaraj, Managing Director

2. Relatives of Key Management personnel Smt. N.Muthulakshmi - Mother

3. Other related parties 1. Samrajyaa and company

2. Magna Digitech India Pvt. Ltd.

3. Elgi Equipments Ltd.

4. Ranba Castings Ltd.

4. The Company has not entered into any foreign exchange derivative transactions.

5. Figures for the previous year have been reclassified / regrouped wherever necessary.


Mar 31, 2013

1. Basis of preparation

The financial statements of the Company have been prepared under the historical cost convention and on mercantile basis as a going concern in accordance with the applicable accounting standards notified under the Companies (Accounting Standards) and the relevant provisions of the Companies Act, 1956.

The accounting policies adopted in the preparation of the financial statements are consistent with the those of the previous year.

2. Machinery spares imported and consumed has been charged to Repairs to Machinery account.

3. Contingent Liabilities:

ii. On account of Capital Contracts to be executed Rs. 158.52 Lakhs

iii. The Income Tax Department has raised demand for Rs.4,32,198/- for the Assessment year 2007-08 and penalty of Rs.4,03,920/- for the Assessment year 2007-08. For the Assessment year 2008-09 the Department has a raised a demand for Rs.68,48,860/-. For the Assessment year 2009-10 the Department ; has raised a demand of Rs. 20,65,720/-. The Company has gone on appeal in respect of the above demands. No Provision has been made in the books of accounts as the Company is confident of getting a favorable verdict in its favour.

iv. The Cental Excise Department has adjusted a sum of Rs.8,07,267/- from the rebate claimed towards penalty I for alleged wrong availment of Cenvat credit, after our appeal before the Commissioner Appeals ; Coimbatore was rejected. The Company has disputed this and has preferred an appeal before the Central , Excise Tribunal at Chennai.

4. The Company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its fixed assets. This has not revealed any impairment during the year.

5. Related party disclosures:

A. Names of the related parties and Descriptions of relationship

1. Key management personnel Mr. N. Krishna Samaraj, Managing Director

2. Relatives of Key Management personnel Smt. N.Muthulakshmi - Mother

3. Other related parties 1. Samrajyaa and company

2. Magna Digitech India Pvt. Ltd.

3. Elgi Equipments Ltd.

4. Ranba Castings Ltd.

6. The Company as not entered into any foreign exchange derivative transactions.

7. Figures for the previous year have been reclassified / regrouped wherever necessary.


Mar 31, 2012

1.1 Corporate Information:

Magna Electro Castings Limited is a Public Limtied Company domiciled in India and incoporated under the provisions of the Companies Act, 1956. The equity shares of theCompnay are listed on the BSE and Coimbatore (no longer functional) stock exchanges. The Company is engaged in the manufacture and selling of ductile , grey and SiMo castings in the weight range of 800 grams to 500 kgs per piece. The Company also supplies machined castings. The Company caters to both the domestic as well as the export markets.

1.2 Basis of preparation

The financial statements of the Company have been prepared under the historical cost convention and on mercantile basis as a going concern in accordance with the applicable accounting standards notified under the Companies (Accounting Standards) and the relevant provisions of the Companies Act,1956.

The accounting policies adopted in the preparation of the financial statements are consistent with the those of the previous year.

2. Contingent Liabilities :

i. Bills Discounted and outstanding as on 31.03.2012 amounts to Rs.8,90,49,698/- (Prev. year Rs.6,59,39,465/-)

ii. On account of Capital Contracts to be executed Rs.474 Lakhs

iii. The Income Tax Department has raised demand for Rs.4,32,198/- for the Assessment year 2007-08 and penalty of Rs.4,03,920/- for the Assessment year 2007-08. The Department has also raised a demand for Rs.20,65,720/- for the Assessment year 2008-09 and Rs.68,48,860/- for the Assessment year 2009-10.The Company has gone on appeal in respect of the above demands. No Provision has been made in the books of accounts, as the Company is confident of getting a favorable verdict in its favour.

iv. The Central Excise Department has raised a demand for Rs.4,03,633/- towards penalty for alleged wrong availment of Cenvat Credit. The Company has gone on appeal disputing the claim of the department. No provision has been made in the books of accounts.

3. The Company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its fixed assets. This has not revealed any impairment during the year.


Mar 31, 2010

1. Interest payments includes interest on Term loan from Bank Rs.65,03,663/- (Previous year Rs. 94,22,064/-)

2. Bills Discounted and outstanding as on 31.03.2010 amounts to Rs.5,88,20,784/- (Previous year Rs.4,98,31,895/-)

3.The Company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its fixed assets. This has not revealed any impairment during the year.

4. Related party disclosures:

A. Names of the related parties and Descriptions of relationship

1. Key management personnel Mr.N. Krishna Samaraj, Managing Director

2. Relatives of Key Management personnel Mrs.N.Muthulakshmi - Mother

3. Other related parties 1. Samrajyaa and company

2. Elgi Electric and Industries Ltd

3. Elgi Equipments Ltd.

5. The Company has not entered into any foreign exchange derivative transactions.

6. The Company has not opted to exercise the option in terms of notification dt.31.03.2009 issued by the Ministry of Corporate Affairs in respect of the amendment in AS 11 and is following a consistent policy in this regard.

7. Figures for the previous year have been reclassified/regrouped wherever necessary.

 
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