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Notes to Accounts of Menon Pistons Ltd.

Mar 31, 2019

Notes to Financial Account

38. Details of provisions and movements in each class of provisions.

(Rs. in Lakhs)

Particulars

Compensated Absences

Carrying amount as at April 1, 2017

80.68

Add: Provision during the year 2017-18

10.30

Add: Unwinding of discounts

-

Less: Amount utilized during the year 2017-18

4.78

Less: Amount reversed during the year 2017-18

-

Carrying amount as at March 31, 2018

86.20

Add: Provision during the year 2018-19

3.72

Add: Unwinding of discounts

-

Less: Amount utilized during the year 2018-19

0.18

Less: Amount reversed during the year 2018-19

-

Carrying amount as at March 31, 2019

89.73

39. Corporate Social Responsibility (CSR)

(a) CSR amount required to be spent by the Company as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof during the year is Rs. 19.44 Lakhs (Previous Year Rs. 16.54 Lakhs)

(b) Expenditure related to Corporate Social Responsibility is Rs. 20.60 Lakhs (Previous Year Rs. 16.64 Lakhs)

Details of Amount spent towards CSR is given below:

(Rs. in Lakhs)

Particulars

2018-19

2017-18

Education

3.80

6.51

Health

0.36

1.32

Sports For Development

0.10

7.10

Arts, Culture and Heritage

13.44

0.20

Environment, animal welfare

2.90

1.50

Total

20.60

16.64

40. Fair Value of financial assets and liabilities

a) Set out below, is the fair value of the company''s financial instruments that are recognized in the financial statements

(Rs. in Lakhs)

Sr. No.

Particulars

Fair Value

As at March 31, 2019

As at March 31, 2018

Financial Assets

a)

Carried at amortized cost

Non Current Loans-Security Deposits

144.60

140.55

Trade receivable

4,368.56

4,104.01

Current loans

-

562.87

Other financial assets

8.68

11.41

Cash and cash equivalent

137.67

192.95

Other bank balances

47.91

69.90

4,707.41

5,081.68

b)

Carried at FVTOCI

Investments - Non Current

0.37

0.37

0.37

0.37

Financial Liabilities

a)

Carried at amortized cost

Non Current Borrowings (Incl Current maturities)

-

13.22

Current borrowings at fixed rate of interest

244.83

816.58

Trade payable

1,099.79

1,041.98

Other current financial liabilities (Current)

602.87

572.67

1,947.50

2,444.46

The fair value of the financial assets and liabilities are included at the amount at which the instrument that would be received to sell an asset or paid to transfer liability in an orderly transaction between market participants at the measurement date.

The carrying amounts of financial assets and liabilities measured at amortised cost are a reasonable approximation of their fair values.

Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into three levels prescribed under the accounting standard. An explanation of each level is given in Note no 31.18 of Significant Accounting Policies.

b) Financial assets and liabilities for which fair value is disclosed

(Rs. in Lakhs)

Particulars

Level 1

Level 2

Level 3

Non current investments -Carried at FVTOCI

March 31, 2019

-

-

0.37

March 31, 2018

-

-

0.37

41 A. Financial risk management policy and objectives

Company''s principal financial liabilities, comprise loans and borrowings, trade and other payables, and other financial liabilities. The main purpose of these financial liabilities is to finance company''s operations. Company''s principal financial assets include trade and other receivables, security deposits, investments, cash and cash equivalents and other bank balances that derive directly from its operations. Company is exposed to certain risks which includes market risk, credit risk and liquidity risk. Risk Management committee of the company oversees the management of these risks. This committee is accountable to audit committee of the board. This process provides assurance to the company''s senior management that company''s financial risk- taking activities are governed by the appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with company''s policies and risk appetite. The policies for managing these risks are summarised below.

1) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits, foreign exchange transactions and other financial instruments. The Company uses expected credit loss model for assessing and providing for credit risk.

a) Trade receivable

Customer credit risk is managed by each business unit subject to the company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating score card and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored. Trade receivables are non interest bearing and are generally on 30 days to 75 days credit terms. The company has no concentration of risk as customer base in widely distributed both economically and geographically.

i) Ageing analysis of trade receivable as on reporting date

(Rs. in Lakhs)

Particulars

Not Due

Less than 1 year

More than 1 year

Total

March 31, 2019

2,982.54

1,0858.61

297.41

4,368.56

March 31, 2018

3,664.13

419.71

20.17

4,104.01

ii) Movement of impairment Allowance (allowance for bad and doubtful debts)

Particulars

Total

Loss Allowance as at April 1 2017

-

Provided during the year

-

Amounts written off

-

Amount written back

-

Loss Allowance as at 31 March 2018

-

Provided during the year

-

Amounts written off

-

Amount written back

-

Loss Allowance as at 31 March 2019

-

b) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the company''s treasury department in accordance with company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Company monitors rating, credit spreads and financial strength of its counter parties. Based on ongoing assessment company adjust it''s exposure to various counterparties. Company''s maximum exposure to credit risk for the components of statement of financial position is the carrying amount.

2) Liquidity risk

Liquidity risk is the risk that the company may not be able to meet it''s present and future cash flow and collateral obligations without incurring unacceptable losses. Company''s objective is to, at all time maintain optimum levels of liquidity to meet it''s cash and collateral requirements. Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including overdraft, debt from domestic banks at optimised cost.

The table summarises the maturity profile of company''s financial liabilities based on contractual undiscounted payments

(Rs. in Lakhs)

Particulars

On demand

Less than 1 year

More than 1 year

Total

a) Trade Payables

March 31, 2019

-

1,099.79

1,099.79

March 31, 2018

-

1,041.98

-

1,041.98

b) Borrowings

March 31, 2019

244.83

_

244.83

March 31, 2018

816.58

13.22

-

829.80

c) Other Financial Liabilities

March 31, 2019

17.67

585.20

602.87

March 31, 2018

22.55

550.13

-

572.67

The company has access to following undrawn facilities at the end of the reporting period

Particulars

Floating Rate

Expiring within 1 Year

Expiring beyond 1 Year

March 31, 2019

MCLR 0.90

-

March 31, 2018

MCLR 0.90

-

3) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk interest rate risk, currency risk and other price risk such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits and investments. Company''s activities expose it to variety of financial risks, including effect of changes in foreign currency exchange rate and interest rate.

a) Interest rate risk

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. Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.The company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

b) Foreign Currency Exposure Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency).

41B. Impairment of financial assets: Expected credit loss Provision for expected credit loss

Internal rating

Category

Description of category

Basis of recording expected credit loss

Loans and deposits

Trade receivables

A

High quality asset, negligible credit risk

Assets where the counter party has strong capacity to meet obligations and where risk is negligible or nil.

12 months expected credit losses

Life- time expected credit losses -simplified approach

B

Standard asset, moderate credit risk

Assets where there is moderate risk of default and where there has been low frequency of defaults in past.

C

Low quality asset, High credit risk

Assets where there is high probability of default. In general, assets where contractual payments are more than year past due are categorised as low quality asset. Also includes where credit risk of counter party has increased significantly through payments may not be more than a year past due.

Life- time expected credit losses

D

Doubtful asset- credit impaired

Assets are written off, when there is no reasonable expectations of recovery. Where loans and receivables have been written off, the company continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognised in profit or loss.

Asset is written off

As at 31st March 2019

1) Expected credit loss for loans, security deposits and investments

(Rs. in Lakhs)

Particulars

Asset group

Internal rating

Estimated gross carrying amount of default

Expected probability of default

Expected credit losses

Carrying amount net of impairment provision

Loss allowance measured at 12 months expected credit losses

Financial assets for which credit risk has not increased significantly from inception

Loans

Fixed Deposits

A A

144.60 32.66

144.60 32.60

Loss allowance measured at life time expected credit losses

Financial assets for which credit risk has increased significantly and not credit impaired

Nil

Financial assets for which credit risk has increased significantly and credit impaired

Nil

2) Expected credit loss for trade receivables under simplified approach

(Rs. in Lakhs)

Particulars

Not due

Past due but not impaired

Total

Less than 1 year

More than 1 year

Gross carrying amount

2,982.54

1,088.61

297.41

4,368.56

Expected loss rate

-

-

-

-

Expected credit losses (Loss allowance provision

-

-

-

-

Carrying amount of trade receivable (Net of impairment)

2,982.54

1,088.61

297.41

4,368.56

As at 31st March 2018

1) Expected credit loss for loans, security deposits and investments

(Rs. in Lakhs)

Particulars

Asset group

Internal rating

Estimated gross carrying amount of default

Expected probability of default

Expected credit losses

Carrying amount net of impairment provision

Loss allowance measured at 12 months expected credit losses

Financial assets for which credit risk has not increased significantly from inception

Loans Fixed Deposits

A A

703.42

55.97 55.97

703.42

Loss allowance measured at life time expected credit losses

Financial assets for which credit risk has increased significantly and not credit impaired

Nil

Financial assets for which credit risk has increased significantly and credit impaired

Nil

2) Expected credit loss for trade receivables under simplified approach

(Rs. in Lakhs)

Particulars

Not due

Past due but not impaired

Total

Less than 1 year

More than 1 year

Gross carrying amount

3,664.13

419.71

20.17

4,104.01

Expected loss rate

-

-

-

-

Expected credit losses (Loss allowance provision)

-

-

-

-

Carrying amount of trade receivable (Net of impairment)

3,664.13

419.71

20.17

4,104.01

42. Capital management

For the purpose of the company''s capital management, capital includes issued equity capital , share premium and all other equity reserves. The primary objective of the company''s capitaI management is to maximise the shareholders value.

The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. Company monitors capital using a gearing ratio, which is, net debt divided by total capital plus net debt. Company''s policy is to keep the gearing ratio between 20% and 40%. The company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents, excluding discontinued operations. However, recently company has focused on becoming zero debt company in order to minimise interest burden and maximum profits.

Particulars

As at March 31, 2019

As at March 31, 2018

Loans and borrowings (including Current maturities)

244.83

829.80

Less: Cash and Bank Balance

185.58

262.84

Net debt

59.25

566.96

Equity

7,771.61

7,147.59

Capital and net debt

7,830.86

7,714.55

Gearing %

0.76%

7.35%

43. Leases

Operating lease commitments — Company as lessor

The company has entered into operating leases for land and non-factory building, with lease terms of ten years. The company has the option to lease the assets for additional terms. The lease rent is increased by 10% after 3 years. Future minimum rentals payable under non-cancellable operating leases as at March 31,2019 are as follows:

Particulars

As at March 31, 2019

As at March 31, 2018

Within one year

4.24

1.56

After one year but not more than 5 years

18.00

-

More than five year

20.52

-

Total

42.76

1.56

44. Segment Reporting

Company operates in single segment as business of Pistons, Pins and Auto Shafts (Auto Components). The Executive Management Committee monitors the operating results of entire company as whole for the purpose of making decisions about resource allocation and performance assessment.

45. Previous Years figures are rearranged and regrouped wherever necessary

As per our report of even date

For and on behalf of the Board of Directors of

M/s. P. G. Bhagwat

Menon Pistons Limited

Chartered Accountants

FRN:101118W

Mr. Akshay B. Kotkar

Mr. Sachin Menon

Mr. R. D. Dixit

Partner

Chairman & Managing Director

Director

Membership No. 140581

DIN:00134488

DIN:00626827

Place : Kolhapur

Mr. S.B.P. Kulkarni

Mr. Pramod Suryavanshi

Date : 10.05.2019

CFO & Associate Vice President

Company Secretary


Mar 31, 2018

Notes to Accounts

Note 1: Property, Plant and Equipment

(Rs. in Lakhs)

Particulars

Tangible Assets

Intangible asset

Grand Total

Land Free hold

Land Lease hold

Building

Plant & Equipment

Compu ter

Electrical Installation

Furniture & Fixtures

Office Equipments

Vehicles

Total

Goodwill

Softwares

Technical Know-how

R&D

Total

Gross Block As at 1 April 2016

Additions Disposals Impairment of asset As at 31 March 2017

Additions Disposals Impairment of asset As at 31 March 2018

Depreciation/Amortisation As at 1 April 2016

Charge for the year Depreciation on disposal As at 31 March 2017 Charge for the year Depreciation on disposal As at 31 March 2018

Net block At 31 March 2018 At 31 March 2017 At 1 April 2016

3.76

4.76

1,175.55

6,617.50

113.72

626.23

130.22

99.89

149.21

8,920.83

0.71

47.38

2.89

0.09

51.07

8,971.90

-

-

14.85

197.24 33.77

5.73

5.30

9.72

3.73 0.25

32.45 83.16

269.01 117.18

-

2.92

-

-

2.92

271.93 117.18

3.76

4.76

1,190.39

6,780.97

119.45

631.53

139.94

103.36

98.50

9,072.66

0.71

50.30

2.89

0.09

53.99

9,126.65

-

-

6.52

153.25

8.82

0.48

19.61

18.82

-

207.49

0.71

16.58

-

-

16.58 0.71

224.07 0.71

3.76

4.76

1,196.91

6,934.22

128.27

632.00

159.55

122.18

98.50

9,280.16

-

66.88

2.89

0.09

69.86

9,350.02

-

0.15

406.95

4,632.28

91.35

389.68

83.74

76.27

88.42

5,768.85

-

43.43

2.89

0.09

46.42

5,815.26

-

0.01

45.02

318.72 9.83

8.91

40.63

7.92

5.00 0.21

10.38 54.74

436.58 64.79

-

1.36

-

-

1.36

437.94 64.79

-

0.16

451.98

4,941.17

100.27

430.31

91.65

81.06

44.05

6,140.64

-

44.79

2.89

0.09

47.77

6,188.42

-

0.01

44.90

324.02

8.57

36.73

8.80

6.13

7.73

436.88

-

3.98

;

-

3.98

440.86

-

0.16

496.88

5,265.18

108.84

467.04

100.45

87.19

51.78

6,577.53

-

48.76

2.89

0.09

51.75

6,629.27

3.76

4.60

700.04

1,669.03

19.43

164.96

59.10

34.99

46.72

2,702.63

-

18.11

-

-

18.11

2,720.74

3.76

4.60

738.42

1,839.80

19.18

201.22

48.29

22.31

54.45

2,932.02

0.71

5.51

-

-

6.22

2,938.24

3.76

4.61

768.59

1,985.22

22.36

236.55

46.48

23.62

60.79

3,151.98

0.71

3.94

-

-

4.65

3,156.64

Notes:

1) Contractual obligations -Refer note no 33 for estimated amount of contract remaining to be executed on capital account

2) For Depreciation and amortisation refer accounting policy (Note 31.8).

3) Refer Note 42 on first time adoption

4) No Provision for Impairment loss is made during the year.

5) Company has Hypothecated Property, Plant and Equipments- Vehicles & Land and Building situated at 182, Shiroli, Kolhapur & at H1,MIDC, Kupwad, Sangli, against the Borrowings from HDFC Bank & IDBI Bank.

Notes to the Financial Statements

Note 2 : Non-current investments

Par Value/ Face Value Per Unit Rs.

As at March 31, 2018

As at March 31, 2017

As at April 1, 2016

(1) At Fair value through

Other Comprehensive

Income (FVTOCI) Investment

10.00

3,675.00

0.37

3,675.00

0.37

3,675.00

0.37

In Unquoted Equity

Instruments

Total

0.37

0.37

0.37

1. Aggregate amount of Unquoted Investments

0.37

0.37

0.37

2. Face value per unit in Rupees unless otherwise stated.

3. Refer Note 39 for Financial assets at fair value through Other Comprehensive Income - unquoted equity instruments

4. Refer Note 40A on risk management objectives and policies for financial instruments.

Rsin Lakhs

Note 3 : Loans (Non current)

As at March 31, 2018

As at March 31, 2017

As at April 1, 2016

Unsecured Deposits

140.55

130.06

127.24

TOTAL

140.55

130.06

127.24

Deposits are measured at amortised cost.

Rs in Lakhs

Note 4 : Other non-current assets

As at March 31, 2018

As at March 31, 2017

As at April 1, 2016

Capital advances

208.14

19.89

15.68

Sales Tax recoverable

26.00

26.00

26.00

Tax paid in advance (net of provision)

162.52

154.80

154.67

Other Non Current assets

2.02

6.32

6.23

TOTAL

398.68

207.01

202.58

Advance to Directors or to firm / Private company where Director is interested

103.58

16.00

Rs in Lakhs

Note 5 :

As at March 31,

As at March 31,

As at April 1,

Inventories

2018

2017

2016

Raw materials

Raw materials and components

297.37

346.37

350.02

Raw materials in transit

-

-

-

Work-in-progress

296.87

326.61

236.67

Finished goods

Finished goods

594.32

661.48

698.56

Finished goods in transit

18.44

-

-

Stores and spares

379.10

358.59

366.92

TOTAL

1,586.10

1,693.05

1,652.15

Amount Recognized in Profit and Loss Account:

Write-Down of Inventory to net realizable value amounts to Rs. Nil (31st March 2017 Rs. Nil, 31st March 2016 Rs. Nil). These were recognized as expenses during the yea rand included in raw material consumptions.

Rsin Lakhs

Note 6 :

As at March 31,

As at March 31,

As at April 1,

Trade receivables

2018

2017

2016

Unsecured

Considered Good

4,104.01

3,156.73

2,794.99

From Related Parties

941.44

441.84

617.00

From Others

3,162.57

2,714.89

2,177.99

Considered Doubtful

-

-

-

Break-up for security details:

4,104.01

3,156.73

2,794.99

Secured, considered good

-

-

-

Unsecured, considered good

4,104.01

3,156.73

2,794.99

Doubtful

-

-

-

Impairment Allowance (allowance for bad

-

-

-

anddoubtful debts)

TOTAL

4,104.01

3,156.73

2,794.99

1. Trade receivables are measured at amortised cost.

2. No trade or other receivable are due from directors or other officers of the Company either severally or jointly with any other person.

3. Trade or other receivables due from firms or private companies respectively in which any director is a partner, a director or a member Rs. 941.44 (March 31, 2017 : Rs. 441.84 lakhs, April 1, 2016 : Rs. 617.00 lakhs).

4. Trade receivables are non-interest bearing and are generally on terms of 30 to 75 days

5. Movement of impairment Allowance (allowance for bad and doubtful debts)

Particulars

Rs in Lakhs

At April 1, 2016 Provided during the year Amounts written off Amount written back

-

At March 31, 2017

-

Provided during the year Amounts written off Amount written back

-

At March 31, 2018

-

6. Refer Note 40A & 40B on credit risk of trade receivables, which explains how the Company manages and measures credit quality of trade receivables that are neither past due nor impaired.

Rs in Lakhs

Note 7a : Cash and cash equivalents

As at March 31, 2018

As at March 31, 2017

As at April 1, 2016

Cash on hand

2.50

5.48

6.58

Balance with Bank

Current accounts and debit balance in

cash credit accounts

190.45

111.66

234.86

Deposits with bank

_

_

_

TOTAL

192.95

117.14

241.44

Rs in Lakhs

Note 7b : Other bank balances

As at March 31, 2018

As at March 31, 2017

As at April 1, 2016

Unpaid dividend accounts

13.93

13.06

19.55

Deposits with original maturity of more than three months but less than 12 months

55.97

723.95

317.47

TOTAL

69.90

737.01

337.02

Refer Note 40A on risk management objectives and policies for financial instruments.

Rs in Lakhs

Note 8 : Loans (Current)

As at March 31, 2018

As at March 31, 2017

As at April 1, 2016

Advances to Related Parties
Unsecured, considered good Doubtful Less : Provision for doubtful advances

562.87

940.00

1,188.74

TOTAL

562.87

940.00

1,188.74

1. Loans are measured at amortised cost.

2. Loans are non-derivative financial assets carried at amortised cost which generate a fixed or variable interest income for the Company. The carrying value may be affected by changes in the credit risk of the counterparties.

Rs in Lakhs

Note 9: Other financial assets (Current )

As at March 31, 2018

As at March 31, 2017

As at April 1, 2016

Others:

Interest receivable on Bank Deposits

11.41

7.24

9.59

TOTAL

11.41

7.24

9.59

1. Other financial assets are measured at amortised cost.

2. Refer Note 40A on risk management objectives and policies for financial instruments.

Rs in Lakhs

Note 10 :

As at March 31,

As at March 31,

As at April 1,

Other current assets

2018

2017

2016

Advances to Suppliers & others

25.35

31.39

18.42

Unsecured, Considered Good

Related Parties

5.81

-

-

Others

19.54

31.39

18.42

Claims receivable

17.73

105.11

110.69

Deposits and receivables from excise

-

70.33

84.83

Sales tax / VAT / service tax receivable (net)

17.73

34.78

25.86

Prepaid Expenses

67.52

32.67

32.49

Advances to Staff

1.62

1.58

1.49

Employee Benfit Obligation- Gratuity

109.12

135.80

156.77

( Refer Note 36)

Other Current Asset

17.13

15.30

9.50

TOTAL

238.47

321.85

329.36

Note 11 : Share capital

No. of shares

Rs in Lakhs

Authorised share capital

As at April 1, 2016

lncrease/(decrease) during the year (Note (b) below)

5,500,000

49,500,000

As at March 31, 2017

55,000,000

550.00

lncrease/(decrease) during the year

-

-

As at March 31, 2018

55,000,000

550.00

Issued share capital As at April 1, 2016

lncrease/(decrease) during the year (Note (b) below)

5,100,000

45,900,000

510.00

As at March 31, 2017

51,000,000

510.00

lncrease/(decrease) during the year

-

As at March 31, 2018

51,000,000

510.00

Subscribed and fully paid up As at April 1, 2016

5,100,000

510.00

lncrease/(decrease) during the year (Note (b) below)

45,900,000

As at March 31, 2017

51,000,000

510.00

lncrease/(decrease) during the year

-

As at March 31, 2018

51,000,000

510.00

1. Terms/Rights attached to the equity shares

a. The Company has only one class of equity shares having a par value of Re.I/- each. Each equity shareholder is entitled to one vote per share and has a right to receive dividend as recommended by Board of Directors subject to the necessary approval from the shareholders. The Company declares and pays dividend in Indian Rupees.

b. During the financial year 2016-2017,the Share Capital of the Company was sub-divided from share of Rs. 10/-each to Re. I/-each which has resulted into change in number of shares.


Mar 31, 2016

a. There is no change during the year in number of shares.

b. The company has only one class of equity shares having par value of Rs. 10 per" share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting.

c. Shares in the company held by each shareholder holding more than 5 percent shares specifying the number of shares held.

As per records of the company, including its register of shareholders and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

1) Contingent Liability: Contingent Liabilities are not provided for in respect of:

a) Guarantees:

ID BI Bank Ltd. has issued Guarantees on behalf of the Company for Rs 33.47 lakhs (previous year Rs. 30.58 Lakhs) and Letters of Credit for Rs. NIL (previous year Rs. 97.70 lakhs).

b) The Income Tax Assessments are completed up to the Assessment year 2013-14 (Relevant to Accounting year ended 31.03.2013). Company has gone into appeal against the assessment order for A.Y. 2013-14. Liability, if any, in respect of the pending assessments, or appeals under the Income-Tax Act, 1961 is unascertainable.

c) VAT and Central Sales Tax:

VAT and C.S.T. assessments are completed up to the accounting year 2006-2007 and 2009-10. MVAT Audit Report for the year 2014-2015 was considered while finalizing the accounts. Liability reported is not final and the same is against non -receipt of ''C'' Forms and'' F1 Forms, which Company expects to receive in near future, hence not provided for.

2) Other Notes:

a) Previous year figures are regrouped wherever necessary.

b) Paises are rounded off to the nearest rupee.

d) Excise Duty

The Company has been accounting liability for Excise Duty on Finished Goods as and when they are cleared. A liability in respect of finished goods lying in stock at the close of the year is estimated at Rs. 135.97 Lacs and has not been provided in the accounts and hence not included in the valuation of inventory of such goods. However, the said liability, if accounted, would have no impact on the profit/loss for the year.

e) Micro, Small and Medium Enterprises:

The Company is in the process of identifying the Micro, Small and Medium Enterprises and hence interest, if any payable as per Interest under the Micro, Small and Medium Enterprises Development Act, 2006 is not ascertainable.

i) Employee Benefit:

The Company has made provision in the Accounts for Gratuity on the basis of Actuarial valuation. The particulars under AS 15 (revised) furnished below are those which are relevant and available to company for this year.


Mar 31, 2015

1) Contingent Liability: Contingent Liabilities are not provided for in respect of :

1) Guarantees:

IDBI Bank Ltd. has issued Guarantees on behalf of the Company for Rs 30.58 lakhs (previous year Rs. 43.08 Lakhs) and Letters of Credit for Rs. 97.70 Lakhs (previous year Rs. 697.61 lakhs).

2) The Income Tax Assessments: are completed up to the Assessment year 2012-13 (Relevant to Accounting year ended 31.03.2012). Liability, if any, in respect of the pending assessments, or appeals under the Income-Tax Act, 1961 is unascertainable.

3) VAT and Central Sales Tax: C.S.T. assessments are completed up to the accounting year 2005-2006. MVAT Audit Report for the year 2013-2014 was considered while finalizing the accounts. Liability reported is not final and the same is against non -receipt of 'C' Forms and ' F' Forms, which Company expects to receive in near future, hence not provided for.

2) Other Notes

2.1 Previous year figures are regrouped wherever necessary.

2.2 Paises are rounded off to the nearest rupee.

2.3 Auditors remuneration :

2.4) Excise Duty

The Company has been accounting liability for Excise Duty on Finished Goods as and when they are cleared. A liability in respect of finished goods lying in stock at the close of the year is estimated at Rs. 105.31 Lacs and has not been provided in the accounts and hence not included in the valuation of inventory of such goods. However, the said liability, if accounted, would have no impact on the profit/loss for the year.

2.5) Micro, Small and Medium Enterprises:

The Company is in the process of identifying the Micro, Small and Medium Enterprises and hence interest, if any payable as per Interest under the Micro, Small and Medium Enterprises Development Act, 2006 is not ascertainable.

2.6) Employee Benefit:

The Company has made provision in the Accounts for Gratuity on the basis of Actuarial valuation. The particulars under AS 15 (revised) furnished below are those which are relevant and available to company for this year.


Mar 31, 2014

1) M/s. Menon Exports: This is a partnership firm and an Export House. Menon Exports purchases goods from M/s. Menon Pistons Ltd. and other outside parties for the purpose of export outside India. Two of the Partners of the firm are Directors of Menon Pistons Ltd. The balance amount receivable from the firm is considered as good.

2) M/s. Menon Engineering Services: This is a partnership firm. Menon Engineering Services supplies goods to Menon Pistons Ltd. One of the Partner of the firm is Director of Menon Pistons Ltd.

Apart from the above Director , all other Directors are Non Executive directors. The Company has not entered into any transactions with them. They are paid sitting fees from the company for the Board Meetings attended by them.

3) M/s. Menon Bearings Ltd: is a public limited listed company, having Mr. Ram Menon, as Chairman, Mr. R. D. Dixit as Vice Chairman & Managing Director, Mr. Nitin Menon as Jt.Managing Director and Mr. Sachin Menon as Director. There are no transactions.

Note: There are no write offs/write backs of any amount for any of the above Parties during the Year 2013-2014

4) Other Parties: Apart from the above-mentioned parties, following parties are also related parties of the Company. However, no transactions have taken place with these parties in the year 2013-14.

1. Menon Metals and Alloys P. Ltd.

2. Menon Automobiles

Note: There are no write off / write backs of any amount for any of the above Parties during the Year 2013-14.

n) Lease accounting as per Accounting Standard 19 is not applicable to the Company since no Lease transaction during the year 2013-14.

p) Consolidated Financial Statements as per Accounting Standard 21 is not applicable to the company, as the Company does not have any subsidiary.

a. There is no change during the year in number of shares.

b. The company has only one class of equity shares having par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting.

c. Shares in the company held by each shareholder holding more than 5 percent shares specifying the number of shares held.


Mar 31, 2013

1) Contingent Liability: Contingent Liabilities are not provided for in respect of:

1) Guarantees: ! D B I Bank Ltd, has issued Guarantees on behalf of the Company for Rs 39.73 lacs (previous year Rs. 67.49 Lacs) and Letters of Credit for Rs. 376.25 Lacs (previous year Rs. 676.60 lacs).

2) The Income Tax Assessments: are completed up to the Assessment year 2010-11 (Relevant to Accounting year ended 31.03.2010). Liability, if any in respect of the pending assessments, or appeals underthe Income-Tax Act, 1961 is unascertainable.

3} VAT and Central Sales Tax: C.S.T. assessments are completed up to the accounting year 2005-2006. MVAT Audit Report for the year 2011-2012 was considered while finalizing the accounts. Liability reported is not final and the same is against non -receipt of ''C Forms and '' F'' Forms, which Company expects to receive in near future, hence not provided for.

2) Other Notes

2.1 Previousyearfigures are regrouped wherever necessary.

2.2 Raises are rounded off to the nearest rupee.

2.3 Auditors remuneration:

2.4) Excise Duty

The Company has been accounting liability for Excise Duty on Finished Goods as and when they are cleared. A liability in respect of finished goods lying in stock at the close of the year is estimated at Rs 102.34 Lacs and has not been provided in the accounts and hence not included in the valuation of inventory of such goods. However, the said liability, if accounted, would have no impact on the profit/loss for the year.

2.5) Micro, Small and Medium Enterprises:

The Company is in the process of identifying the Micro, Small and Medium Enterprises and hence interest, if any payable as per Interest underthe Micro, Small and Medium Enterprises Development Act, 2006 is not ascertainable and the Auditors relied upon this submission

2.6) Employee Benefit:

The Company has made provision in the Accounts for Gratuity on the basis of Actuarial valuation. The particulars under AS 15 (revised) furnished below are those which are relevant and available to company for this year.


Mar 31, 2012

1) Contingent Liability: Contingent Liabilities are not provided for in respect of :

1) Guarantees: I D B I Bank Ltd. has issued Guarantees on behalf of the Company for Rs 67.49 lacs (previous year Rs. 47.78 Lacs) and Letters of Credit for Rs. 676.60 Lacs (previous year Rs. 608.96 lacs).

2) The Income Tax Assessments: are completed up to the Assessment year 2009-10 (Relevant to Accounting year ended 31.03.2009). Liability, if any, in respect of the pending assessments, or appeals under the Income-Tax Act, 1961 is unascertainable.

3) VAT and Central Sales Tax: C.S.T. assessments are completed up to the accounting year 2004-2005. MVAT Audit Report for the year 2010-2011 was considered while finalizing the accounts. Liability reported is not final and the same is against non -receipt of 'C' Forms and ' F' Forms, which Company expects to receive in near future, hence not provided for.

2) Other Notes

2.1 Previous year figures are regrouped wherever necessary.

2.2 Paises are rounded off to the nearest rupee.

2.3 Auditors remuneration :

2.4) Excise Duty

The Company has been accounting liability for Excise Duty on Finished Goods as and when they are cleared. A liability in respect of finished goods lying in stock at the close of the year is estimated at Rs 82.58 Lacs and has not been provided in the accounts and hence not included in the valuation of inventory of such goods. However, the said liability, if accounted, would have no impact on the profit/loss for the year.

2.5) Micro, Small and Medium Enterprises :

The Company is in the process of identifying the Micro, Small and Medium Enterprises and hence interest, if any payable as per Interest under the Micro, Small and Medium Enterprises Development Act, 2006 is not ascertainable and the Auditors relied upon this submission

2.6) Employee Benefit:

The Company has made provision in the Accounts for Gratuity on the basis of Actuarial valuation. The particulars under AS 15 (revised) furnished below are those which are relevant and available to company for this year.


Mar 31, 2011

A) Contingent Liability: Contingent Liabilities are not provided for in respect of:

1) Guarantees: I D BI Bank Ltd. have issued Guarantees on behalf of the Company for?. 47.78 lacs (previous year Rs. 44.47Lacs) and Letters of Credit for?. 608.96 Lacs (previous year?. 377.35 lacs).

2) The Income Tax Assessments : are completed up to the Assessment year 2008-09 (Relevant to Accounting year ended 31.03.2008). Liability, if any in respect of the pending assessments, or appeals under the Income-Tax Act, 1961 is unascertainable.

3) VAT and Central Sales Tax: Sales Tax & C.S.T. assessments are completed up to the accounting year 2004- 2005. MVAT Audit Report for the year 2009-2010 was considered while finalizing the accounts. Liability reported is not final and the same is against non -receipt of 'C Forms and ' F' Forms, which Company expects to receive in near future, hence not provided for.

4) EPCG Obligation is pending amounting to Rs. 1.18 crores, which will be fulfilled within the prescribed time limit. Custom duty of?. 19.69 Lacs against this obligation is contingent, and not provided for.

5) Excise Duty The Company has been accounting liability for Excise Duty on Finished Goods as and when they are cleared. A liability in respect of finished goods lying in stock at the close of the year is estimated at ?. 71.78 Lacs and has not been provided in the accounts and hence not included in the valuation of inventory of such goods. However, the said liability, if accounted, would have no impact on the profit/loss for the year.

6) Micro, Small and Medium Enterprises:

The Company is in the process of identifying the Micro, Small and Medium Enterprises and hence interest, if any payable as per Interest under the Micro, Small and Medium Enterprises Development Act, 2006 is not ascertainable and the Auditors relied upon this submission


Mar 31, 2010

A) Contingent Liability: Contingent Liabilities are not provided for in respect of :

1) Guarantees : I D B I Bank Ltd. have issued Guarantees on behalf of the Company for Rs 44.47 lacs (previous year Rs. 36.88 Lacs) and Letters of Credit for Rs. 377.35 Lacs (previous year Rs. 280.09 lacs).

2) The Income Tax Assessments : are completed up to the Assessment year 2007-08 (Relevant to Accounting year ended 31.03.2007). Tax demand of Rs. 1.90 lacs was raised. These dues are paid. However, the Company has preferred appeal against the same. Liability, if any, in respect of the pending assessments or appeals under the Income-Tax Act, 1961 is unascertainable.

3) VAT and Central Sales Tax : Sales Tax & C.S.T. assessments are completed up to the accounting year 2004- 2005. MVAT Audit Report for the year 2008-2009 was considered while finalizing the accounts. Liability reported is not final and the same is against non –receipt of C Forms and F Forms, which Company expects to receive in near future, hence not provided for.

4) Excise Duty

The Company has been accounting liability for Excise Duty on Finished Goods as and when they are cleared. A liability in respect of finished goods lying in stock at the close of the year is estimated at Rs 26.18 Lacs and has not been provided in the accounts and hence not included in the valuation of inventory of such goods. However, the said liability, if accounted, would have no impact on the profit/loss for the year.

5) Sundry Creditors

The Company is in the process of identifying the Micro, Small and Medium Enterprises and hence interest, if any payable as per Interest under the Micro, Small and Medium Enterprises Development Act, 2006 is not ascertainable and the Auditors relied upon this submission.

6) Employee Benefit

The Company has made provision in the Accounts for Gratuity on the basis of Actuarial valuation. The particulars under AS 15 (revised) furnished below are those which are relevant and available to company for this year.

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