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Notes to Accounts of Modison Metals Ltd.

Mar 31, 2015

Note No 1.1: Terms/rights attached to equity shares

(A) The company has only one class of equity shares having a par value of Re. 1 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(B) In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note No 2: Terms of Repayment, Nature of Securities in respect of Term Loans

(2.1) Rupee loan from Bank of India amounting to Rs.Nil (Previous Year : Rs.53,95,885/-) carries interest rate ranging from 12.45% to 13% p.a and was repayable in 12 quarterly installments. This loan facility was secured by first pari pasu charge on all (present and future) factory fixed assets of the company including equitable mortgage on the factory land and building at Vapi & Mumbai Office.

(2.2) Vehicle loan taken from ICICI Bank Limited carried interest @ 10.49% and is repayable in 36 monthly installment. The loan is secured by hypothecation of Vehicle.

(2.3) Vehicle loan taken from BMW Financial Services carried interest rate @ 9% and is repayable in 36 monthly installment. The loan is secured by hypothecation of Vehicle.

3 CONTIGENT LIABILITIES AND COMMITMENTS

a) CONTIGENT LIABILITIES

Particulars As at As at March 31,2015 March 31,2014

Disputed Income Tax LiabiIites 12,393,245 7,112,460

Disputed Sales Tax Liabilites 733,430 -

Disputed Central Excise & Service Tax Liabilities 1,735,873 1,730,140

Bond issued under Advance Licence Scheme - 1,524,318

Bond issued under Export Promotion Capital Goods Scheme 27,580,188 23,968,842

42,442,736 34,335,760

Notes:

(a) The segment revenue in the geographical segments considered for disclosure are as follows:-

(i) Revenue within India includes sales to customers located within India and Earnings in India.

(ii) Revenue outside India includes sales to customers located outside India and Earnings outside India.

(b) Segment Revenue, Segment Assets and Capital Expenditure include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

4 RELATED PARTY DISCLOSURES

(A) Names of related parties and description of relationship:

1. Enterprises over which key management personnel and relative of such personnel have significant influence

i) Modison (Partnership Firm)

ii) Modison Copper Pvt. Ltd.

iii) Modicon Pvt. Ltd.

iv) Dishah Innovative Solutions Pvt. Ltd.

v) Modison Engineering Pvt. Ltd.

2. Enterprises over which Company has Control:

i) Modison Contacts Pvt Ltd (w.e.f. 05/03/2015)- Subsidiary Company

3. Key Management Personnel

i) Mr. G. L. Modi Managing Director

ii) Mr. Rajkumar Modi Wholetime Director

i) Mr. Kumar Jay Modi Wholetime Director

4. Relatives of Key Management Personnel

i) Mrs. Chandramani Devi Modi Mother of Mr. Rajkumar Modi

5 OPERATING LEASES DISCLOSURES Assets Taken on Lease

The company's major leasing arrangements are in respect of staff quarters and office premises taken on Leave and License basis. The aggregate lease rentals of Rs 912,610/- (Previous Year: 579,850/-) are charged as Rent and shown under the Note No. 26 "Other Expenses". These leasing arrangements, which are cancelable, range between eleven months and three years generally or longer and are usually renewable by mutual consent at mutually agreed terms and conditions.

6 Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any.

7 The previous year figures have been regrouped/reclassified, wherever necessary to confirm to the current presentation as per the schedule III.


Mar 31, 2014

Note No 1.1: Terms/rights attached to equity shares

(A) The company has only one class of equity shares having a par value of Re. 1 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(B) In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note No 2: Terms of Repayment, Nature of Securities in respect of Term Loans

(3.1) Rupee loan from Bank of India amounting to Rs.53,95,885/- (Previous Year : Rs.2,96,25,603/-) carries interest rate ranging from 12.45% to 13% p.a and was repayable in 11 quarterly installments. This loan facility was secured by first pari pasu charge on all (present and future) factory fixed assets of the company including equitable mortgage on the factory land and building at Vapi.

(3.2) Vehicle loan taken from BMW Financial Services carried interest rate ranging from 9% to 9.32% and was repayable in 36 monthly installment. The loan was secured by hypothecation of Vehicle.

Note No. 2.1:

The Company has not received any information from Vendors regarding their status under the Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosures relating to amounts unpaid as at the end of reporting period together with interest paid/payable under this Act have not been given. The same has been relied upon by the Auditors.

Note No. 3.1: Rupee loan from Bank of India amounting to Rs. Nil (Previous Year : Rs. 47,80,388/-) carried interest rate ranging from 12.45% to 13%p.a and was repayable in 18 quarterly installments. This loan facility was secured by first pari pasu charge on all (present and future) factory fixed assets of the company including equitable mortgage on the factory land and building at Vapi.

Note No. 3.2: Vehicle loan taken from Axis Bank amounting to Rs. Nil (Previous Year : 13,06,758/-) carried interest rate @ 9.32% and was repayable in 36 monthly installments. The loan was secured by hypothecation of Vehicle.

Note No. 4.1: The amount of dividend per share of Re. 1.25 (Previous Year Re. 1.00) has been proposed to be distributied to equity shareholders for the year ended 31/03/2014. The total amount of dividend shall be Rs.47,456,097 /- including dividend distribution tax Rs. 6,893,597/- (Previous Year Rs. 37,964,878/- including dividend distribution tax Rs.5,514,878/-).

2 Derivatives: HEDGED:

The Company has entered into Forward Hedged Exchange Contracts, being derivative instruments for hedge purpose and not intended for trading or speculation purposes, to establish the amount of currency in Indian Rupees required or available at the settlement date of certain payables and receivables including firm committment. The following are the outstanding Forward Exchange Contracts entered into by the Company:

3 RELATED PARTY DISCLOSURES

(A) Names of related parties and description of relationship:

1. Enterprises over which key management personnel and relative of such personnel have significant influence

i) Modicon Pvt. Ltd. ii) Modison Copper Pvt. Ltd. iii) Disha Innovative Solutions Pvt. Ltd. iv) Modison

2. Key Management Personnel

i) Mr. G. L. Modi Managing Director

ii) Mr. Rajkumar Modi Wholetime Director

i) Mr. Kumar Jay Modi Wholetime Director

3. Relatives of Key Management Personnel

i) Mrs. Chandramani Devi Modi Mother of Mr. Rajkumar Modi

Note: Related Party relationship is as identified by the company and relied upon by the Auditors.

Note No 30.1: Director remuneration for previous year includes Rs. 69,93,549/- being provision made towards increase in remuneration of Mr. G.L.Modi w.e.f. 09.07.2012, the same was not paid pending the Central Government approval. During the year approval has been received and payment has been made as per the approval.

4 OPERATING LEASES DISCLOSURES

Assets Taken on Lease

The company’s major leasing arrangements are in respect of staff quarters and office premises taken on Leave and License basis. The aggregate lease rentals of Rs 5,79,850/- (Previous Year: 5,47,050/-) are charged as Rent and shown under the Note No. 24 "Other Expenses". These leasing arrangements, which are cancelable, range between eleven months and three years generally or longer and are usually renewable by mutual consent at mutually agreed terms and conditions.

5 Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any.

6 The previous year figures have been regrouped/reclassified, wherever necessary to confirm to the current presentation as per the revised schedule VI.


Mar 31, 2013

1 EMPLOYEE BENEFITS

The disclosures as required under the Accounting Standard 15 (Revised) are as under:

The Company has schemes for the long term benefits such as Provident Funds, Gratuity and Leave encashment. In case of funded scheme, the funds are recognised by the Income tax authorities and administered through trustees/appropriate authorities. The Company''s benefit plans include gratuity and leave encashment. The companies Defined Contribution Plan includes Provident Fund. Accordingly related disclosure are as under:

2 Derivatives:

HEDGED:

The Company has entered into Forward Hedged Exchange Contracts, being derivative instruments for hedge purpose and not intended for trading or speculation purposes, to establish the amount of currency in Indian Rupees required or available at the settlement date of certain payables and receivables including firm committment. The following are the outstanding Forward Exchange Contracts entered into by the Company:

3 RELATED PARTY DISCLOSURES

(A) Names of related parties and description of relationship:

1. Enterprises over which key management personnel and relative of such personnel have significant influence

i) Modicon Pvt. Ltd.

ii) Modison Copper Pvt. Ltd.

iii) Disha Innovative Solutions Pvt. Ltd.

iv} Modison

2. Key Management Personnel

i) Mr. G. L. Modi Managing Director

ii) Mr. Rajkumar Modi Wholetime Director

3. Relatives of Key Management Personnel

i) Mr. Kumar Jay Modi Son of Mr. G. L. Modi

ii) Mrs. Chandramani Devi Modi Mother of Mr. Rajkumar Modi

Note: Related Party relationship is as identified by the company and relied upon by the Auditors.

4 OPERATING LEASES DISCLOSURES

Assets Taken on Lease

The company''s major leasing arrangements are in respect of staff quarters and office premises taken on Leave and License basis. The aggregate lease rentals of Rs 5,47,050/- {Previous Year: 4,24,272/-) are charged as Rent and shown under the Note No. 24 "Other Expenses". These leasing arrangements, which are cancelable, range between eleven months and three years generally or longer and are usually renewable by mutual consent at mutually agreed terms and conditions

5 Balances of Trade Receivables, Trade Payables and''Loans and Advances are subject to confirmation and consequential adjustment, if any.

6 The previous year figures have been regrouped/reclassified, wherever necessary to confirm to the current presentation as per the revised schedule VI.


Mar 31, 2012

Note No 1.1: Terms/rights attached to equity shares

(A) The company has only one class of equity shares having a par value of Re. 1 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(B) The amount of dividend per share of Re. 1.00 (Previous Year Re. 1.00) has been proposed to be distributied to equity shareholders for the year ended 31/03/2012. The total amount of dividend shall be Rs.37,714,201 /- including dividend distribution tax Rs. 5,264,201/- (Previous Year Rs. 37,714,201/- including dividend distribution tax Rs.5,264,201/-).

(C) In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note No 1.2: Details of sub-division of shares during the period of five years Immediately preceding the reporting date :

In the Financial Year 2007-08, 32,45,000 Equity Shares of Rs.10 each fully paid were sub-divided into 32,450,000 Equity Shares of Re.1 each fully paid up.

Note No 2.1: Terms of Repayment. Nature of Securities in respect of Term Loans

(i) Foreign currency loan from Citi Bank carries interest rate of 4.10% p.a. and is repayable in 12 quarterly installments, These facilities are secured by first pari pasu charge on all (Present and Future) factory fixed assets of the company including equitable mortgage on the factory land & building at Vapi..

(iia) Rupee loan from Bank of India amounting to Rs.4,962,607/- (March 31, 2011: Rs. 9,967,248/-) carries interest rate of 13.50%p.a and is repayable in 11 quarterly installments. This loan facility is secured by first pari pasu charge on all (Present and Future) factory fixed assets of the company including equitable mortgage on the factory land & building at Vapi.

(iib) Rupee loan from Bank of India amounting to Rs. 16,532,791/- (March 31, 2011: Rs. Nil) carries interest rate of 13.50% p.a and is repayable in 18 quarterly installments. This loans facility is secured by first pari pasu charge on all (Present and Future) factory fixed assets of the company including equitable mortgage on the factory land & building at Vapi.

(iii) Vehicle loan taken from Axis Bank carries interest rate @ 9.31% and is repayable in 36 monthly installments. The loan is secured by hypothecation of vehicle. .

(iv) Vehicle loan taken from BMW financial services carries interest rate @9.31% and is repayable in 36 monthly installment. The loan is secured by hypothecation of Vehicle.

Note No. 3.1 : Accounting Policy of Deferred Tax

The Deferred Tax for timing difference between Book Profits and Tax Profits for the year is accounted for using the tax rate and laws that have been enacted or substantially enacted as of the Balance Sheet Date. Deferred Tax assets arising from timing differences are recognized to the extent there is a virtual certainty that these would be realized in future and are reviewed for the appropriateness of their respective carrying values at each Balance Sheet Date,

Note No. 4.1:

Working capital facilities are secured by Hypothecation of stocks & book debts and further secured by collateral security of all movable and immovable factory properties.

Note No. 5.1 : Accounting Policies of Inventories Valuation

Consumable tools, raw material, packing material, work in progress, finished goods and stores & spares have been valued at lower of cost and net realisable value. Cost of finished goods and work-in-progress has been ascertained at estimated cost, Cost of raw material has been ascertained on weighted average cost basis. Cost of other inventories has been ascertained on First-ln-First-Out method (FIFO). Silver booked by customers for their process work has been valued at the rates at which the same is booked by them. Scrap is valued at Net Realizable Value.

Note No. 6.1 : Goods in transit

Raw Material includes goods in transit Rs. Nil (Previous Year Rs. 939,381/-)

7 CONTIGENT LIABILITIES AND COMMITMENTS

a) CONTIGENT LIABILITIES

Particulars As at As at

March 31, 2012 March 31,2011

Disputed Income Tax Liabiiites 1,312,740 456,084

Disputed Service Tax Liabilities 2,410,252 -

Bond issued under Advance Licence Scheme 1,670,761 -

Bond issued under Export Promotion Capital Goods 793,194 3,369,825

Scheme - -

6,186,947 3,825,909

b) COMMITMENTS

Particulars As at As at

March 31, 2012 March 31, 2011

Estimated amounts of Contracts remaining to be executed on Capital account and not provided

for (Net of Advances) 71,048,449 31,281,400 71,048,449 31,281,400

Note No. 8.1: Accounting Policies of Employee Benefit

i) Short Term Employee benefits are recognised as an expense at the undiscounted amounts in the Statement of Profit and Loss of the year in which the related service is rendered.

ii) Contribution payable to the recognised Provident Fund which is Defined Contribution Scheme is charged to Statement of Profit and Loss.

iii) Liabilities in respect of Defined Benefit Plans are determined based on actuarial valuation made by an independent actuary as at the Balance Sheet date. The actuarial gains or losses are recognised immediately in the Statement of Profit and Loss.

iv) In case of non-member of the Gratuity Fund, the same is provided as per the approval of Central Government and as per Payment of Gratuity Act, 1972, wherever applicable.

9 EMPLOYEE BENEFITS

The disclosures as required under the Accounting Standard 15 (Revised) are as under:

The Companay has schemes for the long term benefits such as Provident Funds, Gratuity and Leave encashment. In case of funded scheme,the funds are recognised by the Income tax authorities and administered through trustees/appropriate authorities.The Company's benefit plans include gratuity and leave encashment.The companies Defined Contribution Plan includes Provident Fund. Accordingly related diclosure are as under:

10 Derivatives:

HEDGED:

The Company has entered into Forward Hedged Exchange Contracts, being derivative instruments for hedge purpose and not intended for trading or speculation purposes, to establish the amount of currency in Indian Rupees required or available at the settlement date of certain payables and receivables. The following are the outstanding Forward Exchange Contracts entered into by the Company:

11 OPERATING LEASES DISCLOSURES Assets Taken on Lease

The company's major leasing arrangements are in respect of staff quarters and office premises taken on Leave and Licence basis. The aggregate lease rentals of Rs 424,272/- (Previous Year: 409,160/-) are charged as Rent and shown under the Note No. 24 "Other Expenses". These leasing arrangements, which are cancelable, range between eleven months and three years generally or longer and are usually renewable by mutual consent at mutually agreed terms and conditions.

12 The Company has paid a contribution of Rs. Nil (Previous Year Rs. 50,000/-) to Bharatiya Janata Party, a political party.

13 Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any.

14 The Financial Statement for the year ended 31st March 2011 had been prepared as per the then applicable, prerevised Schedule VI of the Companies Act, 1956. Consequent to the notification under the Companies Act, 1956, the Financial Statement for the year ended 31st March, 2012 are prepared under revised Schedule VI. Accordingly the previous year's figures have also been reclassified to conform to the year's classification.


Mar 31, 2011

1. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) is Rs. 31,281,400 (previous year Rs. 6,758,250).

(Amount in Rupees)

2010-11 2009-10

2. CONTIGENT LIABILITIES:

a) Disputed Income Tax Liability 456.084 NIL

b) Bonds issued under Export Promotion Capital Goods 3,369,825 NIL Scheme

3. The Company has not received information from Vendors regarding their status under the Micro, Small and Medium Enterprises Development Act 2006, and hence disclosures relating to amounts unpaid as at the year end together with interest paid / payable under this Act have not been given. The same has been relied upon by the Auditors.

4. Balances of Sundry Debtors, Loans & Advances and Creditors are subject to confirmation and consequential adjustment, if any.

5. Employee Benefits:

The disclosures as required under the Accounting Standard 15 (Revised) are as under: - The Company has schemes for long-term benefits such as Provident Fund, Gratuity and leave encashment. In case of funded scheme, the funds are recognized by the Income tax authorities and administered through trustees / appropriate authorities. The Companys defined benefit plans include gratuity and leave encashment. The companies Defined Contribution Plan includes Provident Fund. Accordingly related disclosures are as under:

6. RELATED PARTY DISCLOSURES:

a) LIST OF RELATED PARTIES AND RELATIONSHIPS:

PARTIES WHERE CONTROL EXIST:

I Companies / Partnership Firms / Proprietorship Concerns where the companys director (s) along with their relatives are Director(s) / Partners) / Proprietor hold more than 50% voting power or share:

i) Modicon Pvt. Ltd. (Formerly Modison Private Ltd.)

ii) Modison Copper Pvt. Ltd.

iii) Modison Chemtech Pvt. Ltd.

iv) Modison Contacts Pvt. Ltd.

v) Modison

vi) Modison Investments

vii) Modison International

viii)Anujay Corporation

II KEY MANAGEMENT PERSONNEL:

i) Mr. G. L. Modi Managing Director

ii) Mr. Rajkumar Modi Wholetime Director

III RELATIVES OF KEY MANAGEMENT PERSONNEL:

Mr. S. M. Mody, Mr. Prakash Modi, Mr. Kumar Jay Modi, Mrs. Rama S. Modi, Mr. Anand Modi, Mr. O. P. Modi, Mrs. Chandramani Devi Modi, Mrs. Gini Devi Modi, Mrs. Lalita Devi Modi, Mr. Amit Modi, Mrs. Sarla G Modi, Mohanlal Modi H.U.F., G. L. Modi H.U.F., S. M. Mody H.U.F. and Mohanlal Modi (Estate).

7. OPERATING LEASES DISCLOSURE.

Assets Taken on Lease

The companys major leasing arrangements are in respect of staff quarters and office premises taken on Leave and Licence basis. The aggregate lease rentals of Rs 409,160 and Rs. Nil (Previous Year: 480,500 and Rs.400,000) are charged as Rent and shown under the Schedule of "Manufacturing Expenses" and "Sales, Administrative & Other Expenses" respectively. These leasing arrangements, which are cancelable, range between eleven months and three years generally or longer and are usually renewable by mutual consent at mutually agreed terms and conditions.

8. Previous year figures have been re-grouped / rearranged / restated wherever considered necessary to make them comparable with those of the current year.


Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) is Rs. 6,758,250 (previous year Rs. 1,433,737)

2. CONTINGENT LIABILITIES:

(Amount in Rupees)

2009-10 2008-09

a) Disputed Custom Duty NIL 2,500,000

3. The Company has not received information from Vendors regarding their status under the Micro, Small and Medium Enterprises Development Act 2006, and hence disclosures relating to amounts unpaid as at the year end together with interest paid / payable under this Act have not been given. The same has been relied upon by the Auditors.

4. Balances of Sundry Debtors, Loans & Advances and Creditors are subject to confirmation and consequential adjustment, if any.

5. Employee Benefits:

The disclosures as required under the Accounting Standard 15 (Revised) are as under:-

The Company has schemes for long-term benefits such as Provident Fund, Gratuity and leave encashment. In case of funded scheme, the funds are recognized by the Income tax authorities and administered through trustees / appropriate authorities. The Companys defined benefit plans include gratuity and leave encashment. The companies Defined Contribution Plan includes Provident Fund. Accordingly related disclosures are as under:

6. RELATED PARTY DISCLOSURES:

a) LIST OF RELATED PARTIES AND RELATIONSHIPS:

I PARTIES WHERE CONTROL EXIST:

Companies / Partnership Firms / Proprietorship Concerns where the companys director (s) along with their relatives are Director(s) / Partner(s) / Proprietor hold more than 50% voting power or share:

i) Modison Pvt. Limited

ii) Modison Copper Pvt. Ltd.

iii) Modison Chemtech Pvt. Ltd.

iv) Modison Contacts Pvt. Ltd.

v) GLM Properties Pvt. Ltd.

vi) Modison

vii) Modison Investments

viii) Modison International

ix) Anujay Corporation

II KEY MANAGEMENT PERSONNEL:

i) Mr. G. L. Modi Managing Director

ii) Mr. Rajkumar Modi Wholetime Director

III RELATIVES OF KEY MANAGEMENT PERSONNEL:

Mr. S. M. Mody, Mr. P. C. Modi, Mr. Kumar Jay Modi, Mrs. Rama S. Modi, Mr. Anand Modi, Mr. O. P. Modi, Mrs. Chandramani Devi Modi, Mrs. Gini Devi Modi, Mrs. Lalita Devi Modi, Mr. Amit Modi, Mrs. Sarla G Modi, Mohanlal Modi H.U.F., G. L. Modi H.U.F., S. M. Mody H.U.F. and Mohanlal Modi (Estate).

7. OPERATING LEASES DISCLOSURE:

Assets Taken on Lease

The companys major leasing arrangements are in respect of residential / office premises taken on Leave and Licence basis. The aggregate lease rentals of Rs.480,500 and Rs.400,000 (Previous Year: 559,982 and Rs.2,400,000) are charged as Rent and shown under the Schedule of "Manufacturing Expenses" and "Sales, Administrative & Other Expenses" respectively. These leasing arrangements, which are cancelable, range between eleven months and three years generally or longer and are usually renewable by mutual consent at mutually agreed terms and conditions.

8. Previous year figures have been re-grouped / rearranged / restated wherever considered necessary to make them comparable with those of the current year.