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Notes to Accounts of Miven Machine Tools Ltd.

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 The Company is confident that the claim relating to prior years will be withdrawn and will not be payable.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.

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