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Accounting Policies of Menon Bearings Ltd. Company

Mar 31, 2015

1.1 Basis of Accounting:

Accounts of the Company are prepared in accordance with the Indian Generally Accepted Accounted Principles (GAAP) under the historical cost convention. Company has complied with Accounting Standards as recommended by Institute of Chartered Accountants of India, provisions of Companies Act, 2013 and guidelines issued by Securities and Exchange Board of India.

The Company has prepared the financial statements as per the format prescribed under the Schedule III of the Companies Act, 2013.

1.2 Fixed Assets:

(i) Fixed assets except leasehold land are stated at cost (net of Cenvat and MVAT wherever applicable) of acquisition. less accumulated depreciation after retaining the specified residual value as per Schedule II of the Companies Act, 2013. Cost includes all costs incurred for bringing the assets to its working condition for intended use.

(ii) The cost of leasehold land is amortised over the period of lease. Intangible assets include Computer Software, which is recorded at cost of acquisition.

1.3 Impairment of Fixed Assets:

The company has reviewed the carrying costs of fixed assets and does not expect any loss on account of impairment.

1.4 Depreciation:

Depreciation is charged on all the assets based on useful life as per part c of schedule II of the Companies Act 2013. This has resulted in reduction in Depreciation of Rs. 29.83 Lacs for the year.

1.5 Investment:

Investments are stated at cost and income thereon is credited to revenue on accrual basis.

1.6 Inventories:

Inventories are valued at cost or market price whichever is lower. The Company has valued closing stock exclusive of excise duty as per the new guidelines.

1.7 Foreign Exchange Transactions:

Foreign Currency transactions are accounted at the exchange rates ruling on the date of the transactions. At the year end all monetary assets and liabilities denominated in foreign currency are restated at the closing exchange rate. Exchange differences arising out of actual payments/realizations and from the year-end restatement referred to above are dealt with in the Profit & Loss Account.

1.8 Contingent Liabilities & Provisions:

Contingent liabilities are disclosed after careful evaluation of facts and legal aspects of the matter involved. Provisions are recognized when the company has a legal obligation and on management discretion as a result of past events for which it is probable that cash outflow may be required and reliable estimate can be made of the amount of obligation.

1.9 Sales:

Sales are recognised on despatches to customers. Sales exclude Excise Duties, VAT and CST.

1.10 Retirement Benefits:

The Company has created The Employees Group Gratuity Fund, which has taken Gratuity Cum Life Insurance Corporation of India. Base for gratuity is the premium paid on the above policy. Provision for leave encashment is made on the basis of Actuarial Valuation. Company''s contribution to Provident Fund has been charged to Profit and Loss Account.

Disclosure pursuant to Accounting Standard 15 (Revised) "Employee Benefits"

Valuation Method (Projected Unit Credit Method) Amount (In Rs.)

1 RESULTS OF VALUATION

a. PV of Past Service Benefit 1,53,92,721

b. Current Service Costs 12,74,452

c. Total Service Gratuity 4,82,32,038

d. Accured Gratuity 1,80,27,196

e. LCSA 2,92,34,621

f. LC Premium 68,757

g. Service Tax @ 12.36 % 8,499

2 RECOMMENDED CONTRIBUTION RATE

a. Fund value as on Renewal Date 1,49,35,489

b. Additional Contribution for existing fund 4,61,818

c. Current Service Costs 12,69,867

3 Total Amount payable (Rs.)

(1.f 1.g 2.b 2.c) 18,08,941

4 Less: Amount Paid 15,76,320

5 Liability appearing in Balance Sheet 2,32,621

1.11 Disclosure of Borrowing Cost Capitalised under Accounting Standard 16:

During the year Company has capitalised certain assets. Appropriate borrowing cost directly related to asset has been capitalized to respective assets including Capital Work in Process as required under AS 16.

1.12 Segment Reporting Under Accounting Standard 17:

The company operates in one business segment namely "Auto Components" Hence reporting under this standards is not applicable to the company

1.13 Related Party Disclosures As Per Accounting Standard 18:

Following are the related parties as per Accounting Standard 18:- (Amount in Rs.)

Sr. Name of Party Relation Nature of No. Transaction

1. MB Exports Shri Nitin Menon Sale / Service is a partner

2. Mani Auto Shri Nitin Menon Sale / Service Components is a partner

3. Master Aditya Son of Joint Sale of Flat Nitin Menon Managing Director

4. Shri Ram Menon Chairman Sitting Fees

5. Shri Vice Chairman & Managerial R. D. Dixit Managing Director Remuneration

6. Shri Nitin Joint Managing Managerial Menon Director Remuneration

7. Shri Sachin Director Sitting Fees Menon

8. Shri Kumar Independent Sitting Fees Nair Director

9. Shri B.S. Independent Sitting Fees Ajit Kumar Director

10. Capt.Sudheer Independent Sitting Fees Naphade Director

11. Mrs.Nazura Independent Sitting Fees Director

Sr. Name of Party Current Year Previous Year No. 31.03.2015 31.03.2014 Amount Rs. Amount Rs.

1. MB Exports 9,64,77,902 10,91,97,346

2. Mani Auto Components 7,58,98,219 2,26,64,403

3. Master Aditya Nitin Menon 1,80,00,000 -

4. Shri Ram Menon 4,000 3,000

5. Shri R. D. Dixit 47,03,986 43,94,440

6. Shri Nitin Menon 73,49,704 73,49,704

7. Shri Sachin Menon 4,000 3,000

8. Shri Kumar Nair - 1,000

9. Shri B.S. Ajit Kumar 3,000 3,000

10. Capt.Sudheer Naphade 4,000 2,000

11. Mrs.Nazura 2,000 -

Notes:

a. Shri R. D. Dixit - Vice Chairman & Managing Director and Shri Nitin Menon - Joint Managin Director are employees of the Company. Shri Kumar Nair, Shri B. S. Ajitkumar, Capt. Sudhir Naphade and Mrs. Nazura Ajaney Independent Directors are not paid any remuneration. Only Sitting Fees are paid to them. The salary, perquisites and remuneration paid are disclosed under Report on Corporate Governance point no.4.4 as details of Remuneration and sitting fees paid to Directors.

Apart from above mentioned parties, following parties are also related parties of the Company. However, no significant transactions took place with these parties during the year.

b. 1. Karveer United Pvt. Ltd.

2. Menon Piston Ltd.

3. Menon & Menon Limited

4. Menon Engineering Services.

5. Menon Piston Rings Private Limited

There are no write offs / write backs of any amount for any of the above parties during the year.

1.14 Lease Accounting as per Accounting Standard 19:

Not applicable to the company since no new lease transaction took place during the year, which is covered under the preview of AS-19.

1.15 Earning Per Share:

The Basic Earnings Per Share for the year 2014-15 is Rs. 12.36 (Previous year Rs. 6.61). The Diluted Earnings Per Share is not applicable as the Company has not issued any Preference Shares / security / warrant / debentures which are convertible into equity shares in future.

1.16 Accounting for Taxes on Income:

Deferred taxes on income are computed as per accounting standard 22 and same are provided in the audited accounts at appropriate places.


Mar 31, 2014

1.1 Basis of Accounting:

Accounts of the Company are prepared in accordance with the Indian Generally Accepted Accounted Principles (GAAP) under the historical cost convention. Company has complied with Accounting Standards as recommended by Institute of Chartered Accountants of India, provisions of Companies Act, 1956 and guidelines issued by Securities and Exchange Board of India.

The Company has prepared the financial statements as per the format prescribed under the Revised Schedule VI of the Companies Act, 1956 issued by the Ministry of Corporate Affairs. The previous period figures are regrouped/ restated wherever necessary to conform to the classification required under the Revised Schedule VI.

1.2 Fixed Assets:

(i) Fixed assets except leasehold land are stated at cost (net of Cenvat and MVAT wherever applicable) of appreciation less accumulated depreciation. Cost includes all costs incurred for bringing the assets to its working condition for intended use.

(ii) The cost of leasehold land are amortised over the period of lease. Intangible assets include Computer Software, which is recorded at cost of acquisition.

1.3 Impairment of Fixed Assets:

The company has reviewed the carrying costs of fixed assets and does not expect any loss on account of impairment.

1.4 Depreciation:

Depreciation is charged on all the assets on Straight Line basis (SLM) at the rates and manner prescribed in Schedule XIV of the Companies Act, 1956 as amended up to date.

1.5 Investment:

Investments are stated at cost and income thereon is credited to revenue on accrual basis.

1.6 Inventories:

Inventories are valued at cost or net realizable value whichever is lower. The Company has valued closing stock exclusive of excise duty as per the new guidelines.

1.7 Foreign Exchange Transactions:

Foreign Currency transactions are accounted at the exchange rates ruling on the date of the transactions. At the year end all monetary assets and liabilities denominated in foreign currency are restated at the closing exchange rate. Exchange differences arising out of actual payments/realizations and from the year-end

1.8 Contingent Liabilities & Provisions:

Contingent liabilities are disclosed after careful evaluation of facts and legal aspects of the matter involved. Provisions are recognized when the company has a legal obligation and on management discretion as a result of past events for which it is probable that cash outflow may be required and reliable estimate can be made of the amount of obligation.

1.9 Sales:

Sales are recognised on despatches to customers. Sales exclude Excise Duties, VAT and CST.

1.10 Retirement Benefits:

The Company has created The Employees Group Gratuity Fund, which has taken Gratuity Cum Life Insurance Corporation of India. Base for gratuity is the premium paid on the above policy. Provision for leave encashment is made on the basis of Actuarial Valuation. Company''s contribution to Provident Fund has been changed to Statement of Profit and Loss.

1.11 Disclosure of Borrowing Cost Capitalised under Accounting Standard 16:

During the year Company has capitalised certain assets. Appropriate borrowing cost directly related to asset has been capitalized to respective assets including Capital Work in Process as required under AS 16.

1.12 Segment Reporting Under Accounting Standard 17:

The company operates in one business segment namely "Auto Components" hence reporting under this standard is not applicable to the company

1.14 Lease Accounting as per Accounting Standard 19:

Not applicable to the company since no new lease transaction took place during the year, which is covered under the preview of AS-19.

1.15 Earning Per Share:

The Basic Earnings Per Share for the year 2013-14 is Rs. 6.61 (Previous year Rs. 3.96). The Diluted Earnings Per Share is not applicable as the Company has not issued any Preference Shares / Security / Warrant / Debentures which are convertible into equity shares in future.

1.16 Accounting for Taxes on Income:

Deferred taxes on income are computed as per accounting standard 22 and same are provided in the audited accounts at appropriate places.


Mar 31, 2013

1.1 Basis of Accounting:

Accounts of the Company are prepared in accordance with the Indian Generally Accepted Accounted Principles (GAAP) under the historical cost convention. Company has complied with Accounting Standards as recommended by Institute of Chartered Accountants of India, provisions of Companies Act, 1956 and guidelines issued by Securities and Exchange Board of India.

The Company has prepared the financial statements as per the format prescribed under the Revised Schedule VI of the Companies Act, 1956 issued by the Ministry of Corporate Affairs. The previous period figures are regrouped/ restated wherever necessary to conform to the classification required under the Revised Schedule VI.

1.2 Fixed Assets:

(i) Fixed assets except leasehold land are stated at cost (net of Cenvat and MVAT wherever applicable) of appreciation less accumulated depreciation. Cost includes all costs incurred for bringing the assets to its working condition for intended use.

(ii) The cost of leasehold land are amortised over the period of lease. Intangible assets include Computer Software, which is recorded at cost of acquisition.

1.3 Impairment of Fixed Assets:

The Company has reviewed the carrying costs of fixed assets and does not expect any loss on account of impairment.

1.4 Depreciation:

Depreciation is charged on all the assets on Straight Line basis (SLM) at the rates and manner prescribed in Schedule XIV of the Companies Act, 1956 as amended up to date.

1.5 Investment:

Investments are stated at cost and income thereon is credited to revenue on accrual basis.

1.6 Inventories:

Inventories are valued at cost or net realisable value whichever is lower. The Company has valued closing stock exclusive of excise duty as per the new guidelines.

1.7 Foreign Exchange Transactions:

Foreign Currency transactions are accounted at the exchange rates ruling on the date of the transactions. At the year end all monetary assets and liabilities denominated in foreign currency are restated at the closing exchange rate. Exchange differences arising out of actual payments/realizations and from the year-end restatement referred to above are dealt with in the Statement of Profit & Loss.

1.8 Contingent Liabilities & Provisions:

Contingent liabilities are disclosed after careful evaluation of facts and legal aspects of the matter involved. Provisions are recognized when the company has a legal obligation and on management discretion as a result of past events for which it is probable that cash outflow may be required and reliable estimate can be made of the amount of obligation.

1.9 Sales:

Sales are recognised on despatches to customers. Sales exclude Excise Duties, VAT and CST.

1.10 Retirement Benefits:

The Company has created The Employees Group Gratuity Fund, which has taken Gratuity Cum Life Insurance Corporation of India. Base for gratuity is the premium paid on the above policy. Provision for leave encashment is made on the basis of Actuarial Valuation. Company''s contribution to Provident Fund has been charged to Statement of Profit and Loss.

1.11 Disclosure of Borrowing Cost Capitalised under Accounting Standard 16:

During the year Company has capitalised certain assets. Appropriate borrowing cost directly related to asset has been capitalized to respective assets including Capital Work in Process as required under AS 16.

1.12 Segment Reporting under Accounting Standard 17:

The Company operates in one business segment namely "Auto Components" hence, reporting under this standard is not applicable to the Company.

1.14 Lease Accounting as per Accounting Standard 19:

Not applicable to the Company since no new lease transaction took place during the year, which is covered under the preview of AS-19.

1.15 Earnings Per Share :

The Basic Earnings Per Share for the year 2012-13 is Rs. 3.96 (Previous Year Rs.7.93). The Diluted Earnings Per Share is not applicable as the Company has not issued any Preference Shares / Security / Warrant / Debentures which are convertible into Equity Shares in future.


Mar 31, 2012

1.1 Basis of Accounting:

Accounts of the Company are prepared in accordance with the Indian Generally Accepted Accounted Principles (GAAP) under the historical cost convention. Company has complied with Accounting Standards as recommended by Institute of Chartered Accountants of India, provisions of Companies Act, 1956 and guidelines issued by Securities and Exchange Board of India.

The Company has prepared the financial statements as per the format prescribed under the Revised Schedule VI of the Companies Act, 1956 issued by the Ministry of Corporate Affairs. The previous period figures are regrouped/ restated wherever necessary to conform to the classification required under the Revised Schedule VI.

1.2 Fixed Assets:

(i) Fixed assets except leasehold land are stated at cost (net of Cenvat and MVAT wherever applicable) of appreciation less accumulated depreciation. Cost includes all costs incurred for bringing the assets to its working condition for intended use.

(ii) The cost of leasehold land are amortised over the period of lease. Intangible assets include Computer Software, which is recorded at cost of acquisition.

1.3 Impairment of Fixed Assets:

The Company has reviewed the carrying costs of fixed assets and does not expect any loss on account of impairment.

1.4 Depreciation:

Depreciation is charged on all the assets on Straight Line basis (SLM) at the rates and manner prescribed in schedule XIV of the Companies Act, 1956 as amended up to date.

1.5 Investment:

Investments are stated at cost and income thereon is credited to revenue on accrual basis.

1.6 Inventories:

Inventories are valued at cost or market price whichever is lower. The Company has valued closing stock exclusive of excise duty as per the new guidelines.

1.7 Foreign Exchange Transactions:

Foreign Currency transactions are accounted at the exchange rates ruling on the date of the transactions. At the year end all monetary assets and liabilities denominated in foreign currency are restated at the closing exchange rate. Exchange differences arising out of actual payments/realizations and from the year-end restatement referred to above are dealt with in the Statement of Profit & Loss.

1.8 Contingent Liabilities & Provisions:

Contingent liabilities are disclosed after careful evaluation of facts and legal aspects of the matter involved. Provisions are recognized when the company has a legal obligation and on management discretion as a result of past events for which it is probable that cash outflow may be required and reliable estimate can be made of the amount of obligation.

1.9 Sales:

Sales are recognised on despatches to customers. Sales exclude Excise Duties, VAT and CST.

1.10 Retirement Benefits:

The Company has created The Employees Group Gratuity Fund, which has taken Gratuity Cum Life Insurance Corporation of India. Base for gratuity is the premium paid on the above policy. Provision for leave encashment is made on the basis of Actuarial Valuation. Company's contribution to Provident Fund has been charged to Statement of Profit and Loss.

1.11 Disclosure of Borrowing Cost Capitalised under Accounting Standard 16:

During the year Company has capitalised certain assets. Appropriate borrowing cost directly related to asset has been capitalized to respective assets including Capital Work in Process as required under AS 16.

1.12 Segment Reporting Under Accounting Standard 17:

The Company operates in one business segment namely "Auto Components" hence, reporting under this standards is not applicable to the Company

Notes:

Apart from above mentioned parties, following parties are also related parties of the Company. However, no significant transactions took place with these parties during the year.

1. Menon Pistons Limited

2. Menon & Menon Limited

3. Menon Engineering Services

4. Menon Piston Rings Private Limited

There are no write offs / write backs of any amount for any of the above parties during the year.

1.14 Lease Accounting As Per Accounting Standard 19:

Not applicable to the Company since no new lease transaction took place during the year, which is covered under the preview ofAS-19.

1.15 Earning Per Share:

The Basic Earnings Per Share for the year 2011-12 is Rs. 7.93 (Previous year Rs. 6.83). The Diluted Earnings Per Share is not applicable as the Company has not issued any Preference Shares / Security / Warrant / Debentures which are convertible into Equity Shares in future.


Mar 31, 2010

A) Basis of Accounting:

Accounts of the Company are prepared under the historical cost convention. Company has complied with Accounting Standards as recommended by Institute of Chartered Accountants of India, provisions of companies Act 1956 and guidelines issued by Securities and Exchange Board of India.

B) Fixed Assets:

i. Fixed assets except lease hold land are stated at cost (net of Cenvat and MVAT wherever applicable) of appreciation less accumulated depreciation. Cost includes all costs incurred for bringing the assets to its working condition for intended use.

ii. The cost of leasehold land is amortised over the period of lease.

C) Impairment of Fixed Assets:

The company has reviewed the carrying costs of fixed assets and does not expect any loss on account of impairment.

D) Depreciation:

1. Depreciation is charged on all the assets on Straight Line basis (SLM) at the rates and manner prescribed in schedule XIV of the Companies Act, 1956 as amended up to date.

2. Leaseholdlandisamortizedovertheperiodoflease.

E) Investment:

Investments are stated at cost and income thereon is credited to revenue on accrual basis.

F) Inventories:

Inventories are valued at cost or market price whichever is lower. The Company has valued closing stock exclusive of excise duty as per the new guidelines.

G) Foreign Exchange Transactions:

Foreign Currency transactions are accounted at the exchange rates ruling on the date of the transactions. At the year end all monetary assets and liabilities denominated in foreign currency are restated at the closing exchange rate. Exchange differences arising out of actual payments/realizations and from the year end restatement referred to above are dealt with in the Profit & Loss Account.

H) Contingent Liabilities & Provisions:

Contingent liabilities are disclosed after careful evaluation of facts and legal aspects of the matter involved. Provisions are recognized when the company has a legal obligation and on management discretion as a result of past events for which it is probable that cash outflow may be required and reliable estimate can be made of the amount of obligation.

I) Sales:

Sales are recognized on despatches to customers. Sales exclude Excise Duties, VATand CST.

K) DISCLOSURE OF BORROWING COST CAPITALISED UNDER ACCOUNTING STANDARD 16.

During the year Company has capitalised certain assets. Appropriate borrowing cost directly related to asset has been capitalized to respective assets including Capital Work in Process as required under AS 16.

L) SEGMENT REPORTING UNDER ACCOUNTING STANDARD 17

The Company operates in one business segment namely "Auto Components". Hence reporting under this standard is not applicable to the Company.

Shri R. D.Dixit - Vice Chairman & Managing Director, Shri Nitin Menon - Joint Managing Director and Shri T. K. Guha-Executive Director are employees of the Company. Shri Kumar Nair and Shri B. S.Ajitkumar, Independent Directors are not paid any remuneration. The salary, perquisites and remuneration paid are disclosed under Note No.6 as "Managerial Remuneration".

Apart from above mentioned parties following parties are also related parties of the Company. However, no significant transactions took place with these parties during the year.

1) Menon & Menon Limited

2) Menon Engineering Services.

3) Menon Piston Rings Private Limited

4) Menon Pistons Limited

There are no write offs / write backs of any amount for any of the above parties during the year.

N) LEASE ACCOUNTING AS PER ACCOUNTING STANDARD 19

Not applicable to the company since no new lease transaction took place during the year which is covered under the preview of AS-19

0) EARNINGS PER SHARE AS PER ACCOUNTING STANDARD 20

The basic earnings per share for the year 2009-2010 is Rs.4.93 (Previous year Rs. 6.56). During the year the shares of the Company were sub-divided from face value of Rs.10/- each to Rs. 5/- each w.e.f. 9th Oct. 2009. Hence the current year EPS is not comparable with previous year. Diluted earnings per share is not applicable as the Company has not issued any Preference Shares / security / warrant / debentures which are convertible into equity shares in future.

 
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