Home  »  Company  »  Permanent Mag.  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Permanent Magnets Ltd.

Mar 31, 2015

Company Overview

Permanent Magnet Limited is one of the flagship Company of Taparia Group, Mumbai and one of the leading manufacturers of Alnico Cast Magnets and Yoke Assemblies, Parts and accessories of electricity meters in the world. Company has good customer base in India as well as in Europe, USA, South America and South East Asia. The Significant Accounting Policies are as follows:

1. In the opinion of Directors, the Current Assets, Loans & Advances and Investments have a value on realization in the ordinary course of business, which is at least equal to the amount at which they are stated in the Balance Sheet.

2. Honorable Bombay High Court has passed winding up order on the petition of M/s Savino Del Beno "Petitioner" (Freight forwarder agent & CHA of company).

Facts of the case - During the year 2010, Petitioner has raised bills for their services but failed to submit Original EP copy to the company which is essential documents to claim Excise rebate, and accordingly company withheld their payment. Subsequently, petitioner has fled winding up petition against the Company of dues of Rs. 12,95,305/-. Honorable Mumbai High Court has passed an order allowing the petition.

The order dated 15th April 2015 was passed and uploaded on 16th May 2015 on High court website. Company has not yet received the certified copy yet due to court summer vacation.

However, Company has taken opinion of legal advisors on this issue and is in the process of filing an Appeal against the said order in Division Bench of Bombay High Court. An amount of Rs. 12,95,305/- has been shown under contingent liabilities showing all facts.

3. The Company has provided for Excise Duty on excisable stock of finished goods at the end of the year. The amount of Excise Duty on such Finished Goods is Rs. 08.46 Lakhs (P. Y. Rs. 09.29 Lakhs). The same amount has been included in the calculation of Cost for valuation of finished goods.

4. Balance under the head 'Trade Receivables', 'Trade Payables', 'Loan and Advances Receivable and Payable' are shown as per books of accounts subject to confirmation by concerned parties and adjustment if any, on reconciliation thereof.

5. During the year Rs. 152.64 Lakh (P. Y. Rs. 309.55 Lakh debit) has been credited to the Statement of Profit and Loss in respect of the Foreign Exchange Differences.

6. Leases:

The company has operating lease agreements, primarily for leasing office space. Most of these lease agreements provide for cancellation by either party with a notice period ranging from 30 days to 120 days and contain a clause for renewal of lease agreement at the option of the company. There are no non-cancellable operating leases. There are no assets are taken on finance lease.

7. Related Party Disclosure:

As per the accounting standard 18 prescribed by Companies (Accounting Standards) Rules, 2006, details of related parties & transactions with them are given below:

8. Segment Reporting :

The company is operating in single business segment i.e. manufacturing of Cast Magnetics & its application. Hence AS-17 is not applicable.

9. Impairment of Assets:

During the year under consideration, none of the assets has been impaired.

10. Additional information as per revised schedule VI to the companies Act, 1956.

A) Purchases of Finished Goods: NIL (P.Y. NIL)

B) Expenditure and Earning in Foreign Currencies:

a. CIF Value of Imports:

d) Previous year's figures have been recast or regrouped wherever necessary to make them comparable with current year's figures.


Mar 31, 2014

1. Share Capital

a. Terms/Rights attached to Equity Shares

Equity shares are having a par value of Amount Rs. 10/- per share. Each holder of equity shares 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 the approval of shareholders in the ensuing Annual General Meeting.

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.

b. Details of shareholders holding more than 5% shares in the company

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

The company has neither issued any bonus shares nor any shares pursuant to contract without payment being received in cash during preceding five years. It has also not bought back any shares during these years.

2. Long Term Borrowings

a) Rupee Loans from banks are repayable in 3 years to 5 year from the date of loan. Above loans are secured by first charges on specific assets financed by the lender except working capital term loan from bank which is secured by exclusive charge on 5000 sq.ft. of constructible area at Borivali property out of the 15% Share of the Company. Further these facilities are secured by personal guarantees of Directors and relatives and a Corporate Guarantee by Synagogue Impex Ltd. and payable in monthly/Qtrly Installments.

b) Central Excise Loan taken from ICICI Bank is secured by hypothecation of specific assets purchased under the scheme and payable in Qtrly instalment which are overdue since 15th October, 2002 to 15th October, 2004.

3. Short Term Borrowings

Foreign as well Rupee currency Loans are secured by first pari passu charge on residential flat standing in the name of Synagauge Impex Ltd and second pari passu charge on entire fixed assets of the company, (Excluding Borivli property). Further working capital enhancement of Rs 1.9 crores by Central Bank of India is secured by exclusive 2500 squire feet constructable area of Borivli Property.

4. Exceptional items (Net)

During the previous year, company has announced Voluntary retirement Scheme (VRS) for its permanent employees. In response of the scheme, total of 35 employees has opted for the same. The company has incurred a total expenditure of Rs. 215.55 Lakhs on the said scheme. In compliance with the provisions of the Accounting Standards -15 "Employees Benefits", the entire amount of Rs. 215.55 Lakhs is charged to Statement of Profit and Loss Under the head "Exceptional items (net) during the previous financial year.

5. In the opinion of Directors, the Current Assets, Loans & Advances and Investments have a value on realization in the ordinary course of business, which is at least equal to the amount at which they are stated in the Balance Sheet.

6. Contingent Liabilities:

(Rs. in Lakhs)

Particulars 31.03.14 31.03.13

a) Unutilized Letters of Credit with Bankers 47.00 126.54

b) Bank Guarantee 13.70 19.05

c) Labour cases in the court for reinstatement and/or higher compensation, which in the opinion of the management demand no provision of liability than what is recorded in accounts. 34.74 16.79

d) Excise Department has rejected the appeal filed by the company and has raised demand as regards inter-unit transfers. The Company has filed appeal against the said order in CESTAT and has made payment of Rs. 5 Lakh for stay order. Stay order against recovery of the dues has been granted. In the opinion of Company''s Consultant, since there is no suppression of facts by the Company, penalty imposed will be quashed. In case, if the case is decided against the Company, there will be no actual outflow to the Company due to availability of Cenvat credit.

Further, in similar cases, the Commissioner of Central Excise has ruled in favour of the company and has set aside the show cause notices.

Duty Demanded 31.59 31.59

Penalty 31.59 31.59

e) Interest on Central Excise loan (Operated through ICICI). 571.64 447.87

According to the management, Central Excise loan is interest free. However ICICI, the Operating Agency raises certain demands towards the overdue installments. The Company has provided simple interest as demanded by ICICI. Total interest provided by the company is Rs. 151.13 lakhs, which may be reversible if the Central Government finally doesn''t demand. The ICICI had also demanded Compounded interest which is not provided in the account as according to the company, the same is not payable and the same is shown as contingent here. Additional interest if claimed by the department will be payable. However the management does not expect any liability on that account.

f) During the year, credit balances had been written back under the head "Misc. Balances Written back". According to the company those amounts are not payable since all have become time barred. 18.31 0.15

g) Income tax Department has raised a demand of Rs. 2,59,318 in respect of Suyog Agency Ltd. (Company merged with PML) for the A. Y. 07-08 of which Rs. 53,517 is recognized in the books and for the balance amount the company has filed an appeal with CIT (A). 2.06 2.06

7. The Company has provided for Excise Duty on excisable stock of finished goods at the end of the year. The amount of Excise Duty on such Finished Goods is Rs. 09.29 Lakhs (P. Y. Rs. 09.63 Lakhs). The same amount has been included in the calculation of Cost for valuation of finished goods.

8. Donation made by the Company is within the limits prescribed u/s. 293(1) (e) of the Companies Act 1956.

9. Balance under the head ''Trade Receivables'', ''Trade Payables'', ''Loan and Advances Receivable and Payable'' are shown as per books of accounts subject to confirmation by concerned parties and adjustment if any, on reconciliation thereof.

10. During the year Rs. 309.55/- Lakhs (P. Y. Rs. 32.22 Lakhs credited) has been debited to the Statement of Profit and Loss in respect of the Foreign Exchange Differences.

11. Leases:

The company has operating lease agreements, primarily for leasing office space. Most of these lease agreements provide for cancellation by either party with a notice period ranging from 30 days to 120 days and contain a clause for renewal of lease agreement at the option of the company. There are no non-cancelable operating leases. There are no assets are taken on finance lease.

12. Related Party Disclosure:

As per the accounting standard 18 prescribed by Companies (Accounting Standards) Rules, 2006, details of related parties & transactions with them are given below:

Note: Reimbursement of expenses incurred by the related parties for and on behalf of the company and vice-versa has not been included above. Provision for Gratuity being on actuarial valuation, is not included as separate figure for related party is not available.

13. Segment Reporting:

The company is operating in single business segment i.e. manufacturing of Cast Magnetics & its application. Hence AS-17 is not applicable.

14. Impairment of Assets:

During the year under consideration, none of the assets has been impaired.

15. The Company has determined the liability for Gratuity and Leave encashment in accordance with Accounting Standard 15 (Revised 2005) - Employee Benefits.

16. Previous year''s figures have been recast or regrouped wherever necessary to make them comparable with current year''s figures.


Mar 31, 2013

Company Overview

Permanent Magnet Limited is one of the flagship Company of Taparia Group, Mumbai and one of the leading manufacturers of Alnico Cast Magnets and Yoke Assemblies, Parts and accessories of electricity meters in the world. The Company has good customer base in India as well as in Europe, USA, South America and South East Asia. The Significant Accounting Policies are as follows:

1. The Company has provided for Excise Duty on excisable stock of finished goods at the end of the year. The amount of Excise Duty on such Finished Goods is Rs. 9.63 Lakhs (P. Y. Rs. 08.56 Lakhs). The same amount has been included in the calculation of Cost for valuation of finished goods.

2. During the year Rs. 32.22/- Lakhs (P. Y. Rs. 77.03 Lakhs Debited) has been Credited to the Statement of Profit and Loss in respect of the Foreign Exchange Differences.

3. Leases:

The company has operating lease agreements, primarily for leasing office space. Most of these lease agreements provide for cancellation by either party with a notice period ranging from 30 days to 120 days and contain a clause for renewal of lease agreement at the option of the company. There are no non-cancelable operating leases. There are no assets are taken on finance lease.

4. Related Party Disclosure:

As per the accounting standard 18 prescribed by Companies (Accounting Standards) Rules, 2006, details of related parties & transactions with them are given below:

5. Segment Reporting :

The company is operating in single business segment i.e. manufacturing of Cast Magnetics & its application. Hence AS-17 is not applicable.

6. Impairment of Assets:

During the year under consideration, none of the assets has been impaired.

7. In the opinion of Directors, the Current Assets, Loans & Advances and Investments have a value on realization in the ordinary course of business, which is at least equal to the amount at which they are stated in the Balance Sheet.

8. Balance under the head ''Trade Receivables'', ''Trade Payables'', ''Loan and Advances Receivable and Payable'' are shown as per books of accounts subject to confirmation by concerned parties and adjustment if any, on reconciliation thereof.

9. Previous year''s figures have been recast or regrouped wherever necessary to make them comparable with current year''s figures.


Mar 31, 2012

1. Share Capital

a. Terms/Rights attached to Equity Shares

Equity shares are having a par value of Amount Rs. 10/- per share. Each holder of equity shares 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 the approval of shareholders in the ensuing Annual General Meeting.

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.

2. Long Term Borrowings

a) Rupee Loans from banks are repayable in 3 years to 5 years from the date of loan. Above loans are secured by first charge on specific assets financed by the lender except working capital term loan from bank which is secured by exclusive charge on 5000 sq.ft. of constructible area at Borivali property out of the 15% Share of the Company. Further these facilities are secured by personal guarantees of Directors and relatives and a Corporate Guarantee by Synagogue Impex Ltd. and payable in monthly/Qtrly Installments.

b) Central Excise Loans taken from ICICI Bank is secured by hypothecation of specific assets purchased under the scheme and payable in Qtrly instalment which are overdue since 15th October, 2002 to 15th October, 2004

Company Overview

Permanent Magnet Limited is one of the flagship companies of Taparia group, Mumbai and one of the leading manufacturers of Alnico Cast Magnets and Yoke Assemblies, Parts and accessories of electricity meters in the world. Company has good customer base in India as well as in Europe, USA, South America, and South East Asia. The Significant Accounting Policies are as follows:-

3. Contingent Liabilities: (Rs. in Lakhs)

Particulars 31.03.12 31.03.11

a) Unutilized Letters of Credit with Bankers 116.67 244.52

b) Bank Guarantee 9.80 32.00

c) Bills discounted with Banks and not realized (Secured by hypothecation of all 383.97 696.62 movable assets and second Charge on all Fixed Assets.)

d) Labour cases in the court for reinstatement and/or higher compensation, which in the opinion of the management demand no provision of liability than what is recorded in accounts. 19.70 28.51

e) Excise Department has rejected the appeal filed by the company and has raised demand as regards inter-unit transfers. The Company has filed appeal against the said order in CESTAT and has made payment of Rs. 5 Lakh for stay order. Stay order against recovery of the dues has been granted. In the opinion of Company's Consultant, since there is no suppression of facts by the Company, penalty imposed will be quashed. In case, if the case is decided against the Company, there will be no actual outflow to the Company due to availability of Cenvat credit.

Further, in similar cases, the Commissioner of Central Excise has ruled in favour of the company and has set aside the chow cause notices.

Duty Demanded 31.59 31.59

Penalty 31.59 31.59

f) Interest on Central Excise loan (Operated through ICICI).

According to the management, Central Excise loan is interest free. However ICICI, the Operating Agency raises certain demands towards the overdue installments. The Company has provided simple interest as demanded by ICICI. Total interest provided by the company is Rs. 136.18 lakhs, which may be reversible if the Central Government finally doesn't demand. The ICICI had also demanded Compounded interest which is not provided in the account as according to the company, the same is not payable and the same is shown as contingent here. Additional interest if claimed by the department will be payable. However the management does not expect any liability on that account 271.07 225.91

g) During the year, credit balances had been written back under the head "Misc. Balances Written back". According to the company those amounts are not payable since all have become time barred. 21.38 13.98

h) Income tax Department has raised a demand of Rs. 2,59,318 in respect of Suyog Agency Ltd. (Company merged with PML) for the A. Y. 07-08 of which Rs. 53,517 is recognized in the books and for the balance amount the company has filed an appeal with CIT(A). 2.06 2.06

4. The Company has provided for Excise Duty on excisable stock of finished goods at the end of the year. The amount of Excise Duty on such Finished Goods is Rs. 8.56 Lakhs (P. Y. Rs. 16.86 lakhs). The same amount has been included in the calculation of Cost for valuation of finished goods.

5. Donation made by the Company is within the limits prescribed u/s. 293(1) (e) of the Companies Act 1956.

6. During the year Rs. 77.03 Lakhs (P. Y. Rs. 55.40 lakhs) has been Debited to the Profit and Loss account in respect of the Foreign Exchange Differences.

7. Leases:

The company has operating lease agreements, primarily for leasing office space. Most of these lease agreements provide for cancellation by either party with a notice period ranging from 30 days to 120 days and contain a clause for renewal of lease agreement at the option of the company. There are no non-cancelable operating leases. There are no assets taken on finance lease.

8. Related Party Disclosure:

As per the accounting standard 18 prescribed by Companies (Accounting Standards) Rules, 2006, details of related parties & transactions with them are given below:

9. Segment Reporting :

The company is operating in single business segment i.e. manufacturing of Cast Magnetics & its application. Hence AS-17 is not applicable.

10. Impairment of Assets:

During the year under consideration, none of the assets has been impaired.

11. Balance under the head 'Trade Receivables', 'Trade Payables', 'Loan and Advances Receivable and Payable' are shown as per books of accounts subject to confirmation by concerned parties and adjustment if any, on reconciliation thereof.

12. In the opinion of Directors, the Current Assets, Loans & Advances and Investments have a value on realisation in the ordinary course of business, which is at least equal to the amount at which they are stated in the Balance Sheet.

13. Previous year's figures have been recast or regrouped wherever necessary to make them comparable with current year's figures.

 
Subscribe now to get personal finance updates in your inbox!