Mar 31, 2014
As at As at
Particulars March 31,2014 March 31,2013
1 Contingent liabilities and
Commitments:
(to the extent not provided for)
Contingent Liabilities:
i) Counter guarantees given to 16,374,190 20,349,625
the bankers for guarantees
given by them on behalf of
the Company.
ii) Claim by former employees/casual 84,311 84,311
workers pending before courts.
iii) The Company has considered 7,348,629 7,348,629
an amount of Rs.1,457,586 due
from a customer as good of
recovery in respect of which the
customer has made a claim for
which no provision is made
since the matter is pending in
court. The Company is confident
of recovering the dues and that
the claim of the customer will
not stand.
iv) a) Liability in respect of Not Not
pending sales tax and entry ascertainable ascertainable
tax assessments
b) Disputed Sales Tax liability 179,157 179,157
penalty and interest in respect
of financial year 2005-06
v) The Company''s premises is located at Tarihal Industrial Area,
Tarihal, Hubli, which was earlier covered under the jurisdiction of
Rainal Mandal Panchayat. Subsequently, Rainal Mandal Panchayat was
merged with Hubli Dharwad Municipal Corporation (HDMC), Hubli. Since
KIADB had not fully developed this Industrial Estate, it has not handed
over the same to H D M C. As such, they were collecting annual
maintenance charges. The Company has been regular in making the payment
of annual maintenance charges to KIADB till 2007-08. Subsequently,
KIADB has also made claims for maintenance charges and interest totally
amounting to Rs.2,94,420/- including for prior years which has been
disputed by the Company. Further HDM C has claimed Rs.2,51,28,186/-
(Rs.2,36,79,570/-) towards tax including penalty of Rs. 1,71,09,519/-
(Rs. 1,56,71,703/-) for the period from 1995 to 2008. However, for the
year under report property tax of Rs. 1,25,504/- (Rs. 1,04,438) has
been provided as payable to H D M C. The matter relating to the payment
of property tax for the years prior to 2008-09 is disputed through the
Greater Hubli - Dharwad Industries Association and the matter was
pending before Government of Karnataka. Further the Company is in the
process of filing petition before the jurisdictional court through
Greater Hubli Dharwad Association. The Company is confident that the
claim relating to prior years will be withdrawn and will not be
payable. Consequently, no provision has been made for the said demand.
However and as a matter of abundant precaution, tax amount based on
past demands of the Mandal Panchayat which has been provided in prior
years to an extent of Rs.3,17,972/- (Rs.3,17,972/-) though not paid is
retained in the books of account.
The management believes, based on internal assessment and/or legal
advice, that the probability of an ultimate adverse decision and
outflow of resources of the Company is not probable and accordingly, no
provision for the same is considered necessary.
2. Considering the business plans made by the Company, improvement in
turnover, Orders on hand, reorganisation of product mix and with
continued support from the Bankers and the Holding Company, the Company
expects to recover from the losses. According to the Company
considering all the facts and not withstanding the erosion of net worth
the assumption of ''Going Concern'' is not vitiated.
3. Confirmation of balances from certain Sundry Debtors and Sundry
Creditors have been called for and awaited. The company does not expect
any material variation in respect of these accounts.
Defined Benefit Plan :
The employees'' gratuity fund scheme managed by a trust is a defined
benefit plan. The Present value of obligation is determined based on
actuarial valuation using the projected unit credit method.
The estimates of rate of escalation in salary considered in actuarial
valuation, take into account inflation, seniority, promotion and other
relevant factors including supply and demand in the employment market.
The above information is as certified by the actuary.
4. The Company has only one business segment viz., Metal Cutting
including grinding machines. All sales are in India. Hence the
disclosures required under Accounting Standard - 17 (Segment Reporting)
is not applicable.
5. Previous year''s figures have been regrouped wherever required in
conformity with the presentation for the current year.
Mar 31, 2013
PARTICULARS As at March 31'' 2013 As at March 31, 2012
Rs. Rs.
1. CONTINGENT LIABILITIES
AND COMMITMENTS
(to the extent not provided
for)
Contingent Liabilities:
i) Counter guarantees given
to the bankers for guarantees
given by them on behalf of
the company 20,349,625 14,412,104
ii) Claim by former employees
/ casual workers pending
before courts 84,311 84,311
iii) The Company has
considered an amount of
Rs.1,457,586 due from a
customer as good of recovery
in respect of which the
customer has made a claim
for which no provision is made
since the matter is
pending in court. The Company
is confident of recovering the
dues and that the claim of the
customer will not stand. 7,348,629 7,348,629
iv) a) Liability in respect of
pending Fringe Benefit Tax,
sales tax and entry tax
assessments Not ascertainable Not ascertainable
b) Disputed Sales Tax
liability, penalty and interest
in respect of financial year
2005-06 179,157 NIL
v) The Company''s premise is located at Tarihal Industrial Area,
Tarihal, Hubli, which was earlier covered under the jurisdiction of
Rainal Mandal Panchayat. Subsequently, Rainal Mandal Panchayat was
merged with Hubli-Dharwad Municipal Corporation (HDMC), Hubli. Since
KIADB had not fully developed this Industrial Estate, it has not handed
over the same to HDMC. As such, they were collecting annual maintenance
charges. The company has been regular in making the payment of annual
maintenance charges to KIADB till 2007-08. Subsequently KIADB has also
made claims for maintenance charges and interest totally amounting to
Rs.2,94,420/- including for prior years. The company is disputing the
said claim and is in the process of filing a petition for waiver,
further HD.MC has claimed Rs.2,35,75,132 (Rs.1,91,53,046) towards tax
including penalty of Rs.1,56,71,703 (Rs.1,11,51,251) for the period
from 1995 to 2008. However, for the year under report property tax of
Rs.1,04,438/- (Rs.87,494) has been paid to HDMC as per the terms of
HDMC for the relevant year. The matter relating to the payment of
property tax for the years prior to 2008-09 is disputed through the
Greater Hubli-Dharwad Industries Association and the matter is pending
before the Government of Karnataka. The company is confident that the
claim relating to prior years will be withdrawn and will not be
payable. Consequently no provision has been made for the said demand.
However, and as a matter of abundant precaution, tax amount based on
past demands of the Mandal Panchayat which has been provided in prior
years to an extent of Rs.3,17,972/- (Rs.3,17,972/-) though not paid, is
retained in the books of account.
The management believes, based on internal assessment and/or legal
advice, that the probability of an ultimate adverse decision and
outflow of resources of the Company is not probable and accordingly, no
provision for the same is considered necessary.
2. Considering the business plans made by the Company, orders on
hand, re-organisation of product mix and with continued support from
the Bankers and the Holding Company, the Company expects to recover
from the losses. According to the Company considering all the facts and
notwithstanding the erosion of net worth the assumption of "Going
Concern" is not vitiated.
3. Confirmation of balances from certain Sundry Debtors and Sundry
Creditors have been called for and awaited. The company does not
expect any material variation in respect of these accounts.
Defined Benefit Plan:
The employees'' gratuity fund scheme managed by a trust is a defined
benefit plan. The Present value of obligation is determined based on
actuarial valuation using the projected unit credit method.
* Recast the estimates of rate of escalation in salary considered in
actuarial valuation, take into account inflation, seniority, promotion
and other relevant factors including supply and demand in the
employment market. The above information is as certified by the
actuary. 34. The Company has only one business segment viz., Metal
Cutting including grinding machines. All sales are in India. Hence the
disclosures required under Accounting Standard-17 (Segment Reporting)
is not applicable.
4. a) The Company has made purchass from a Private Company in which a
director is interested for the year under report to an extent of
Rs.24,44,782/- (Rs. 12,63,217/-) and sales to an extent of
Rs.1,82,023/- (Rs.9,30,751/-) after the expiry period of the approval
u/s 297 of the Companies Act, 1956. The Company has made an application
before the expiry date to the Central Government for extension and
enhancement of the limits. The approval is awaited.
b) During the year the Company has sold goods amounting to
Rs.21,92,986/- to a private limited company covered under Section 297
of the Companies Act, 1956 in respect of which no prior approval of the
Central Government as required under Section 297 of the Companies Act,
1956 has been obtained. However, the Company has filed an application
with Company Law Board subsequent to the transaction and awaiting their
reply. However, no adjustments have been made to the financial
statements for the year ended March 31, 2013.
5. Previous year''s figures have been regrouped wherever required in
conformity with the presentation for the current year. Figures in
brackets represent previous year figures.
Mar 31, 2012
1. SHORT TERM BORROWINGS
ADDITIONAL INFORMATION :
Details of security for secured loans
i) Working capital loan is secured against Hypothecation of stocks and
book debts and guaranteed by the Chairman of the Company and holding
Company.
ii) Demand loan was secured against land and building and plant &
machinery of the Company.
PARTICULARS As at March As at March
31, 2012 Rs. 31, 2011 Rs.
2. CONTINGENT LIABILITIES AND
COMMITMENTS (to the extent not
provided for)
Contingent Liabilities:
i) Counter guarantees given to the
bankers for guarantees given by them
on behalf of the company 14,412,104 15,473,069
ii) Claim by former employees/casual
workers pending before courts 84,311 84,311
iii) 'The Company has considered
an amount of Rs. 1,457,586 due from
a customer as good of recovery
in respect of which the customer has
made a claim for which no provision
is made since the matter is pending
in court. The Company is confident of
recovering the dues and that the
claim of the customer will not stand. 7,348,629 7,348,629
iv) Liability in respect of pending
Fringe Benefit Tax, sales tax and
entry tax assessments Not Not
ascertainable ascertainable
v) The Company's premise is located at Tarihal Industrial Area,
Tarihal, Hubli, which was earlier covered under the jurisdiction of
Rainal Mandal Panchayat. Subsequently, Rainal Mandal Panchayat was
merged with Hubli-Dharwad Municipal Corporation (HDMC), Hubli. Since
KIADB had not fully developed this Industrial Estate, it has not handed
over the same to HDMC. As such, they were collecting annual maintenance
charges. The company has been regular in making the payment of annual
maintenance charges to KIADB till 2007-08. Subsequent to the balance
sheet date the KIADB has also made claims for maintenance charges and
interest totally amounting to Rs. 294,420/- including for prior years.
The company is disputing the claim and is in the process of filing a
petition for waiver, further HDMC has claimed Rs. 2,11,79,774 (Rs.
19,153,046) towards tax including penalty of Rs. 1,30,97,509 (Rs.
11,151,251) for the period from 1995 to 2008. However, for the year
under report property tax of Rs. 87,494 (Rs. 87,494) has been paid to
HDMC as per the terms of HDMC for the relevant year. The matter
relating to the payment of property tax for the years prior to 2008-09
is disputed through the Greater Hubli-Dharwad Industries Association
and the matter is pending before the Government of Karnataka. The
company is confident that the claim relating to prior years will be
withdrawn and will not be payable. Consequently no provision has been
made for the said demand. However, and as a matter of abundant
precaution, tax amount based on past demands of the Mandal Panchayat
which has been provided in prior years to an extent of Rs. 3,17,972
(Rs. 3,17,972) though not paid, is retained in the books of account.
The management believes, based on internal assessment and/or legal
advice, that the probability of an ultimate adverse decision and
outflow of resources of the Company is not probable and accordingly, no
provision for the same is considered necessary.
3. Considering the business plans made by the Company, improvement in
turnover, orders on hand, re-organisation of product mix and with
continued support from the Bankers and the Holding Company, the Company
expects to recover from the losses. According to the Company
considering all the facts and notwithstanding the erosion of net worth
the assumption of "Going Concern" is not vitiated.
4. Confirmation of balances from certain Sundry Debtors and Sundry
Creditors have been called for and awaited. The company does not expect
any material variation in respect of these accounts.
5. The Company has only one business segment viz., Metal Cutting
including grinding machines. All sales are in India. Hence the
disclosures required under Accounting Standard-17 (Segment Reporting)
is not applicable.
Mar 31, 2010
1. Contingent Liabilities:
a) Counter guarantees given to the bankers for guarantees given by them
on behalf of the company Rs.21,28,775 (Rs.45,22,693).
b) Claim by former employees/casual workers pending before Courts -
Estimated Rs.84,331 (Rs.1,973,418).
c) The Company has considered an amount of Rs.1,457,586 (Rs.1,457,586)
due from a customer as good of recovery in respect of which the
customer has made claim of Rs.7,348,629 for which no provision is made
since the matter is pending in court. The company is confident of
recovering the dues and that the claim of the customer will not stand.
d) Liability in respect of pending fringe benefit tax, sales tax and
entry tax assessments - not ascertainable.
e) The companys premise is located at Tarihal Industrial Area,
Tarihal, Hubli, which was earlier covered under the jurisidication of
Rainal Mandal Panchayat. Subsequently, Rainal Mandal panchayat was
merged with Hubli Dharwad Municipal Corporation (H D M C), Hubli. Since
KIADB had not fully developed this Industrial Estate, it has not handed
over the same to H D M C. As such, they were collecting annual
maintenance charges. The company has been regular in making the payment
of annual maintenance charges to KIADB till 2007-08. H D M C has
claimed Rs. 1,69,87,774/ - (Rs. 1,56,18,695/-) towards tax including
penalty of Rs. 89,04,804/- (Rs. 69,71,236/ -) for the period from 1995
to 2008. However, for the year under report property tax of Rs.
87,498/- (Rs.59,885/-) has been paid to H D M C as per the terms of H
DM C for the relevant year. The matter relating to the payment of
property tax for the years prior to 2008-09 is disputed through the
Greater Hubli-Dharwad Industrial Association and the matter is pending
before the Government of Karnataka. The company is confident that the
claim relating, to prior years will be withdrawn and will not be
payable. Consequently no provision has been made for the said demand.
However and as a matter of abundant precaution, tax amount based on
past demands of the Mandal Panchayat which has been provided in prior
years to an extant of Rs. 317,972 (Rs.317,972) though not paid is
retained in the books of account.
Outflow of resources on the above can be determined at the time of
settlement of disputes/claim.
2. Loan from The Shamrao Vithal Co-op Bank Ltd., Koppikar Road, Hubli
is secured by hypothecation of all present and future goods, book
debts, receivables and all other moveable assets. The loan is also
guaranteed by corporate guarantee of M/s. N A Sirur (Hubli) Pvt. Ltd.
Hubli and personal guarantee of a director. The loan is also secured by
charge on immovable properties of the company i.e., Land and Building
by deposit of title deeds with the bank dnd existing unencumbered plant
and machineries.
3. Considering the business plans made by the Company, orders on hand,
recognisation of product mix and with continued support from the
Bankers and the holding company, including proposal for reduction of
interest rate, the Company expects to recover from the losses.
According to the Company and considering all the facts and not
withstanding the erosion of net worth the assumption of Going Concern
is not vitiated.
NOTES:
a. remuneration as above is as per the limits specified under Schedule
XIII to the Companies Act, 1956. In view of the loss, computation of
profits under Section 198 read with Section 349 of the Companies Act,
1956 is not applicable.
5. Confirmation of balances from certain sundry debtors and sundry
creditors have been called for and awaited. The company does not
expect any material variation in respect of these accounts.
6. The company has made purchases from a private company in which a
director is interested, for the year under report to an extent of Rs.
477,108/- (150,665/-) and cumulatively Rs.627,773/- and sales to the
extent of Rs. 3,215,553/- (1,471,674/-) and cumulatively Rs.
4,687,227/- after the expiry period of the approval u/s 297 of the
Companies Act, 1956. The company has made an application before the
expiry date to the Central Government for extension and enhancement of
the limits. The approval is awaited.
Notes :
The above information has been determined to the extent such parties
and other relevant data have been identified by the Company, which has
been relied upon by the auditors.
16. Employee Benefits
(a) Defined Contribution Plan :
(b) Defined benefit Plans :
i) The employees gratuity fund scheme and enchashment of earned leave
is managed by a trust is a defined benefit plan. The Present value of
obligation is determined in terms of their entitlement based on the
actual completed service at the end of the year. The details are as
under:
Note: Fair value of plan assets above comprises of insurer managed
assets of Rs. 7,18,563/- (Rs. 7,84,276) and bank balance of Rs.
20,497/- (Rs. Nil).
ii. The effect of changes in interest cost and acturial gains/losses
etc., in respect of Leave Encashment were not separately identifiable
in respect of the previous year. The company has obtained the actuarial
valuation report with all relevant details for the years under report.
17. The company has only one business segment viz., Metal Cutting
including grinding machines. All sales are in India. Hence the
disclosures required under Accounting Standard 17 dealing with segment
reporting are not applicable.
20. a) Key Management Personnel and their Relatives :
SI No. Name of the Related Party Nature of Relationship
1 Mr. Vikram Sirur Executive Chairman
2 Mrs.Alka Sirur Related to Executive
Chairman
3 Mr.Sandeep Sirur Related to Executive
Chairman
4 Ms.Neelima Parthiv
Hejmadi Related to Executive
Chairman
5 Ms.Sheetal Amarnath Savur Related to Executive
Chairman
6 Mr. A.R. Menon Executive Director
7 Mr. V.N. Hasalkar Company Secretary
b) Particulars of Holding Company :
Name of the Related Party Relationship
N.A. Sirur (Hubli) Pvt: Ltd. Holding Company
c) Particulars of Companies :
SI. No. Name of the Related Party Relationship
1 Miven Mayf ran Conveyors
Pvt. Ltd.,
2 Cotmac Pvt. Ltd., Enterprises over.which key
3 Cotmac Electronics Pvt.
Ltd., management personnel and
their reatives are able to
4 Cotmac Electronics (Surat)
Pvt.Ltd.. exercise significant
5 Cotmac Infotech Pvt. Ltd.,
6 Cotmac Telecom Pvt. Ltd.,
7 Cotmac Electronics
(Bangalore) Pvt Ltd.,
8 Cotmac Gastech Pvt. Ltd.,
9 Sirsi Weldaids Pvt. Ltd.,
10 Softech Pvt. Ltd.,
11 Ruris Tecnal Extraction
Systems Pvt. Ltd.,
12 Mipro International Pvt. Ltd.,
13 Finearc Systems Pvt. Ltd.,
21. Figures of the previous year have been re-grouped wherever
necessary to be in conformity with that of current year and. are shown
in brackets.