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Notes to Accounts of Precision Wires India Ltd.

Mar 31, 2015

Rs. Lakhs Rs. Lakhs 2014-15 2013-14

1. A. Contingent Liabilities:

a. Disputed Wealth Tax Demands (not acknowledged) against which Company has preferred an appeal 3.40 3.40

b. Disputed demands of Central Excise against erstwhile Atlas Wires Limited pending in Appeal 4.55 4.55

c. Disputed demands of Central Excise pending in Appeal 5.00 5.00

d. Guarantees given by Bank to third parties 2,707.88 1,140.94

1. B. Estimated amount of Contracts remaining to be executed on Capital Account (net of advances paid) and not provided for 71.02 127.36

2. a) Bank borrowings from Bank of Baroda (Term Loan and Working Capital facilities) are secured by a first charge on Hypothecation of Machinery, Stock-in-Trade, Book debts and Equitable Mortgage of Land, Factory & Residential Buildings of the Company and in addition, are guaranteed by Executive Directors. The balance amount of the Term Loan is repayable in Three equal quarterly instalments and bears interest @ Bank of Baroda Base Rate 2.50% p.a..

b) Unsecured Working capital facilities from ING Vysya Bank,BNP Paribas, Ratnakar Bank Ltd , Yes Bank Ltd and Societe Generale Bank are guaranteed by Executive Directors..

3. In accordance with ASI 14 (Revised) on 'Disclosure of Revenue from Sales Transactions' issued by Institute of Chartered Accountants of India, excise duty on sales amounting to Rs. 1,36,60,58,599/- (Rs. 1,35,85,92,422/-) has been reduced from sales in Profit and Loss account and [Accretion]/Decretion of Excise Duty on Inventory of Finished Goods amounting to Rs. 69,30,532/- [Rs. 2,26,539/-] has been accounted in the profit and loss account under Note 22 - "Changes in Inventory of Finished Goods, Work-in-Progress and Stock-In-Trade".

4. As the Company operates in the single business segment of Winding Wires made of Copper, there are no reportable segments of business as defined under the Accounting Standard AS 17-Segment Reporting issued by The Institute of Chartered Accountants of India.

5. Disclosure of Transactions with related parties as required under Accounting Standard AS 18on Related Party disclosures issued by The Institute of Chartered Accountants of India are given below:

a) Key Management personnel and their relatives:

Chairman & Managing Director Managing Director Shri Mahendra R. Mehta Shri Milan M. Mehta

Relative Relative Mrs. S. M. Mehta, Wife Mrs. G. M. Mehta, Wife

Master A. M. Mehta, Son

Miss M. M. Mehta, Daughter

Milan Mahendra Mehta (HUF)

Whole Time Director Shri Deepak M. Mehta

Relative Mrs. S. D. Mehta - Wife

Mr. N. D. Mehta, Son

Mrs. A. N. Mehta, Daughter-in-law

Deepak Mahendra Mehta (HUF)

Shri Mahendra R. Mehta and Mrs. S. M. Mehta are parents of Shri Milan M. Mehta and Shri Deepak M. Mehta Shri Milan M. Mehta and Shri Deepak M. Mehta are brothers.

6. Figures in brackets pertain to the previous year.

7. Previous year's figures have been regrouped/reworked wherever necessary.


Mar 31, 2014

Rs. Lakhs Rs. Lakhs 2013-14 2012-13

1. A. Contingent Liabilities:

a. Guarantees given by Bank to third parties 1,140.94 615.94

b. Disputed Wealth Tax Demands (not acknowledged) against which Company has preferred an appeal 3.40 3.40

c. Disputed demands of Central Excise against erstwhile Atlas Wires Limited pending in Appeal 4.55 4.55

d. Disputed demands of Central Excise pending in Appeal 5.00 5.00

1. a. Estimated amount of Contracts remaining to be executed on Capital Account (net of advances paid) and not provided for 127.36 40.76

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 which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

2. a) Bank borrowings from Bank of Baroda (Term Loan and Working Capital facilities) are secured by a first charge on Hypothecation of Machinery, Stock-in-Trade, Book debts and Equitable Mortgage of Land, Factory & Residential Buildings of the Company and in addition, are guaranteed by Executive Directors.

b) Unsecured Working capital facilities from ING Vysya Bank, BNP Paribas, HSBC Bank and Societe Generale Bank are guaranteed by Executive Directors.

3. Forward Contracts:

In respect of the import of raw materials and equipments, the Company used forward cover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign currency rates fluctuations and is not used by the company for trading or speculation purposes.

4. In accordance with AS 14 (Revised) on ''Disclosure of Revenue from Sales Transactions'' issued by Institute of Chartered Accountants of India, excise duty on sales amounting to Rs. 1,35,85,92,422/- (Rs.1,51,96,57,950/-) has been reduced from sales in Profit and Loss account and [Accretion]/Decretion of Excise Duty on Inventory of Finished Goods & Copper Scrap amounting to Rs. 2,26,539/- (Rs. 29,26,315/-) has been accounted in the profit and loss account under Note 22 - "Changes in Inventory of Finished Goods, Work-in-Progress and Stock-In-Trade".

5. As the Company operates in the single business segment of Winding Wires made of Copper, there are no reportable segments of business as defined under the Accounting Standard AS 17-Segment Reporting issued by The Institute of Chartered Accountants of India.

6. Disclosure of Transactions with related parties as required under Accounting Standard AS 18 on Related Party disclosures issued by The Institute of Chartered Accountants of India are given below:

7. (a) The Company has amounts due to Micro and Small Enterprises under The Micro Small and Medium Enterprises development Act, 2006 (MSMED ACT) at the Year End. Rs. NIL(Rs.8,103/-)

8. Interest paid to Suppliers/Bank Discounting Charges in relation to purchase of Copper of Rs.1207.33 Lacs (Rs.1564.81 Lacs) is grouped with the cost of Raw Material (Copper).

9. Figures in brackets pertain to the previous year.

10. Previous year''s figures have been regrouped/reworked wherever necessary.


Mar 31, 2013

1.(A) REMITTANCE IN FOREIGN CURRENCY ON ACCOUNT OF DIVIDEND :

The Company has paid dividend in respect of shares held by Non-Residents on repatriation basis. This inter-alia includes investment where the amount is also credited to Non-Resident External Account (NRE A/c.). The exact amout of dividend remitted in foreign currency cannot be ascertained. The total amount remittable in this respect is given herein below :-

2. a) Bank borrowings from Bank of Baroda (Term Loan and Working Capital facilities) are secured by a first charge on Hypothecation of Machinery, Stock-in-Trade, Book debts and Equitable Mortgage of Land, Factory & Residential Buildings of the Company and in addition, are guaranteed by Executive Directors.

b) Unsecured Working capital facilities from ING Vysya Bank, BNP Paribas, HSBC Bank and Yes Bank are guaranteed by Executive Directors.

3. Forward Contracts :

In respect of the import of raw materials and equipments, the Company used forward cover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign currency rates fluctuations and is not used by the company for trading or speculation purposes.

4. In accordance with ASI 14 (Revised) on ''Disclosure of Revenue from Sales Transactions'' issued by Institute of Chartered Accountants of India, excise duty on sales amounting to Rs. 151,96,57,950/- (Rs.115,27,50,924/-) has been reduced from sales in Profit and Loss account and [Accretion]/Decretion of Excise Duty on Inventory of Finished Goods amounting to Rs. [29,26,315/-] (Rs. 53,06,756/-) has been accounted in the profit and loss account under Note 22 - "Changes in Inventory of Finished Goods, Work-in-Progress and Stock-In-Trade".

5. As the Company operates in the single business segment of Winding Wires made of Copper, there are no reportable segments of business as defined under the Accounting Standard AS 17-Segment Reporting issued by The Institute of Chartered Accountants of India.

6. Disclosure of Transactions with related parties as required under Accounting Standard AS 18 on Related Party disclosures issued by The Institute of Chartered Accountants of India are given below :

7. The Company has amounts due to Micro and Small Enterprises under The Micro Small and Medium Enterprises development Act 2006 (MSMED ACT) at the Year End. Rs. NIL (Rs. 8,103/-).

8. Interest paid to Suppliers/Bank Discounting Charges in relation to purchase of Copper of Rs. 1564.81 Lacs (Rs.1381.56 Lacs) is grouped with the cost of Raw Material (Copper).

9. Earning Per Share (EPS) - EPS is calculated by dividing the profit attributable to the equity shareholders by the average number of equity shares outstanding during the year as stated below.

10. Figures in brackets pertain to the previous year.

11. Previous year''s figures have been regrouped/reworked wherever necessary.


Mar 31, 2010

Rs. Lacs Rs. Lacs 2009/10 2008/09 1. A. Contingent Liabilities: a. Guarantees given by Bank to third parties 534.22 1113.65 b. Disputed Income Tax Demands (not acknowledged) against which Company / Department has preferred an appeal 2.70 1.09 c. Disputed Wealth Tax Demands (not acknowledged) against which Company has preferred an appeal 3.40 3.40 d. Disputed demands of Central Excise against erstwhile Atlas Wires Limited pending in Appeal 4.55 4.55 e. Disputed demand of Gujarat Electricity Board pending at Apex Court 4.22 4.22

B. 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 which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

2. (M) (c) The remuneration paid / payable to Shri Mahendra R. Mehta - the Chairman & Managing Director, for the year ended 31st

March, 2009 exceeded 10% of the Profits of the Company as computed under Section 198 of the Companies Act, 1956, by Rs. 27,01,749/-. However, the same is within the minimum remuneration payable as per Schedule XIII of the Companies Act, 1956. The Company has been advised that since the period of appointment of Shri Mahendra R. Mehta was for Five years up to 30.9.2008, it is necessary to obtain approval of the Central Government for payment of Minimum Remuneration to Shri Mahendra R Mehta. The Company has made an application to the Central Government for the approval of minimum remuneration paid / payable to Shri Mahendra R Mehta and the same is pending.

3. a) Bank borrowings from Bank of Baroda (Term Loan and Working Capital facilities) are secured by a first charge by way of

Hypothecation of Machinery, Stock-in-Trade, Book debts and Equitable Mortgage of Land & Factory Buildings of the Company, in addition to personal guarantees of three Directors.

b) Bank borrowings from BNP Paribas (Working Capital facilities) are secured by a second charge by way of Hypothecation of Stock-in-Trade and Book debts, in addition to personal guarantees of three Directors.

4. The Company has closed down with effect from 01.09.2008, the Winding Wire Division at Palej. The Wire Enamel Division at Palej continues to operate. The estimated net realisable value of the Assets as at the balance sheet date of the above closed down Division at the Palej Unit is not less than its Carrying Cost.

5. Forward Contracts :

In respect of the import of raw materials and equipments, the Company used forward cover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign currency rates fluctuations and is not used by the company for trading or speculation purposes.

6. In accordance with ASI14 (Revised) on "Disclosure of Revenue from Sales Transactions issued by Institute of Chartered Accountants of India, excise duty on sales amounting to Rs. 668,700,415 A (Rs.92,55,52,145/-) has been reduced from sales in Profit and Loss account and [Accretion]/Decretion of Excise Duty on Inventory of Finished Goods amounting to [Rs. 8,44,589/-] ([Rs. 92,47,899/-]) has been accounted in the profit and loss account under Schedule 11 - Material Consumed.

7. As the Company operates in the single business segment of Winding Wires made of Copper, there are no reportable segments of business as defined under the Accounting Standard AS 17-Segment Reporting issued by The Institute of Chartered Accountants of India.

8. Income from Investments consists of Dividends from Companies Rs. 62,613/- (Rs. 55,656/-).

9. (a) Amounts due to Small Scale Industrial Undertakings, and outstanding for a period exceeding 30 days are : 1. G.S. Dies Rs. NIL (8,389/-), 2. Xclusive Machineries Pvt. Ltd. Rs. NIL (Rs. 46,000/-), and Andhra Carbon Products Rs. 44,982/- (NIL).

10. The Net Loss on Copper Hedging Transaction squared up during the year is Rs. 4,88,04,294/- (Previous Year -1,63,05,886/-) and the same is included in the cost of Material Consumed (Schedule 11-B to the Profit and Loss Account for the year).

11. Figures in brackets pertain to the previous year.

12. Previous years figures have been regrouped/reworked wherever necessary.

 
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