Home  »  Company  »  Rane Engine Valve Lt  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Rane Engine Valve Ltd.

Mar 31, 2014

1.1 The Company has only one class of shares i.e. equity shares having a par value of Rs.10/- per share. Each shareholder is eligible for one vote per share held. The dividend if any proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to shareholding.

2.1 Notes on Secured Long Term Borrowings

Term loans are secured by Pari-passu basis first charge on the company''s immovable properties (other than Property situated at Alandur,Chennai) both present and future and also secured by hypothecation of company''s movable properties both present and future.

2.2 Notes on Unsecured Long Term Borrowings

2.2.1 Fixed Deposit accepted from public carry interest @ 9.0 % to 10.0 % and are for a tenure of 2 to 3 years

2.2.2 Fixed Deposit includes due to related parties of Rs. 1.25 Crores (Rs. 0.92 Crores)

2.2.3 The company is entitled for deferment of sales tax for a period of 14 years from 1996 to 2010 and the first year loan is repayable during March 2010 and the second year''s loan is repayable in the year 2011 and the amount deferred in year 2010 is repayable in the year 2024.The company should continue to be in operation and there should not be any change in location or management of the company until the loan is fully repaid.

3.1 Amount payable on investment as per the agreement with TCW Renewable Energy (India) Private Limited

4.1 Short term borrowings from banks are secured By hypothecation of raw materials, work in progress, finished goods, stores & spares and book debts.

4.2 None of the above loans have been guaranteed by any Directors or others.

Rs. Crores

Particulars Year ended Year ended 31 March 2014 31 March 2013

5 CONTINGENT LIABILITIES AND COMMITMENTS

5.1 Contingent Liabilities

Claims against the company not acknowledged as debt

Labour Disputes 0.16 0.16

Income Tax 2.31 1.90

Other Liabilities 0.73 0.71

Guarantees & Letter of Credits issued by the banks 0.36 3.79

Liability on bills discounted with banks 6.69 5.99

10.25 12.55

5.2 Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for 2.13 2.26

5.3 Other commitments

5.3.1 The Company has imported Capital Goods under the Export Promotion Capital Goods Scheme, of the Government of India, at concessional rates of duty on an undertaking to fulfil quantified exports amounting to Rs. 9.97 Crores within the period allowed under the scheme.

6 Derivative Instrument and hedge accounting

As per Accounting Standard AS 30 "Financial Instruments: Recognition and Measurement", the Company has provided for the effective portion amounting to Rs. Nil (Rs. Nil) of the changes in the fair values of forward contracts and options designated as cash flow hedges directly in ''Hedge Reserve Account'' being part of the shareholders'' funds the changes in fair value relating to the ineffective portion amounting to Rs. Nil (Rs. Nil) of the cash flow hedges and forward contracts / options are recognised in the profit and loss account.

7 Segment Reporting

The entire operations of the company relate only to one segment, viz, "Components for Transport Industry". As the exports are predominantly to developed countries, geographical risk is not different from domestic market and hence no separate secondary segment disclosure is required.

8 In the opinion of the Board, none of the assets have a value lower on realization in the ordinary course of business than the amount at which they are stated in the Balance Sheet.

9 There are no amounts due and outstanding to be credited to the Investor Education and Protection Fund as on 31st March 2014.

10 Revenue expenditure during the year on Research & Development activities shown under the various heads of account amounted to Rs. 0.72 Crores (Previous Year Rs. 0.71 Crores)

11 Exceptional Item represents

11.1 Profit on sale of company''s surplus land near Chennai amounts to Rs. 0.49 Crores (Previous Year Rs. Nil Crores)

11.2 Voluntary Retirement Scheme (VRS) expenditure in the nature of employee benefits paid to employees opted for VRS amounts to Rs. 40.76 Crores (Previous Year Rs. 0.08 Crores)

12 The previous year''s figures have been re-grouped, reclassified wherever necessary so as to make them comparable with the current year''s figures.

13 Figures in brackets in the Schedules and Notes pertain to previous year.


Mar 31, 2013

1.1 The Company has only one class of shares i.e. equity shares having a par value of Rs.10/- per share. Each shareholder is eligible for one vote per share held. The dividend if any proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to shareholding.

2.1 Notes on Secured Long Term Borrowings

Term loans are secured by pari-passu basis first charge on the company''s immovable properties both present and future and also secured by hypothecation of company''s movable properties both present and future.

2.2 Notes on Unsecured Long Term Borrowings

2.2.1 Fixed Deposit accepted from public carry interest @ 8.5 % to 10.0 % and are for a tenure of 2 to 3 years.

2.2.2 Fixed Deposit includes due to related parties of Rs..0.92 Crores (Rs..0.57 Crores).

2.2.3 The company is entitiled for deferment of sales tax for a period of 14 years from 1996 to 2010 and the first year loan is repayable during March 2010 and the second year''s loan is repayable in the year 2011 and the amount deferred in year 2010 is repayable in the year 2024.The company should continue to be in operation and there should not be any change in location or management of the company until the loan is fully repaid.

3.1 Short term borrowings from banks are secured on pari-passu basis by hypothecation of raw materials, work in progress, finished goods, stores & spares and book debts.

3.2 Maximum amount of Commercial Paper outstanding at any time during the year was Rs..10 Crores (Rs.10 Crores)

3.3 None of the above loans have been guaranteed by any Directors or others.

4.1 Foreign currency fluctuation loss of Rs. NIL (fluctuation loss of Rs. 0.09 Crores) arising on settlement / translation of long tern borrowings utilised for acquisition of capital assets are adjusted to the cost of the assets.

4.2 Borrowing Cost of Rs. 0.34 Crores (Rs. 0.28 Crores) is capitalised along with the cost of capital asset.

5.1 Other commitments

5.1.1 The Company has imported Capital Goods under the Export Promotion Capital Goods Scheme, of the Government of India, at concessional rates of duty on an undertaking to fulfill quantified exports amounting to Rs. 9.97 Crores within the period allowed under the scheme.

5.1.2 Voluntary Retirement Scheme (VRS) was offered in one of the plants. The commitment under VRS implemented during April 2013 amounts to Rs..40.76 Crores.

6 Derivative Instrument and hedge accounting

As per Accounting Standard AS 30 "Financial Instruments: Recognition and Measurement", the Company has provided for the effective portion amounting to Rs. Nil (Rs. NIL) of the changes in the fair values of forward contracts and options designated as cash flow hedges directly in ''Hedge Reserve Account'' being part of the shareholders'' funds the changes in fair value relating to the ineffective portion amounting to Rs. Nil (Rs. Nil) of the cash flow hedges and forward contracts / options are recognised in the profit and loss account.

7 Segment Reporting

The entire operations of the company relate only to one segment, viz, "Components for Transport Industry". As the exports are predominantly to developed countries, geographical risk is not different from domestic market and hence no separate secondary segment disclosure is required.

8 In the opinion of the Board, none of the assets have a value lower on realization in the ordinary course of business than the amount at which they are stated in the Balance Sheet.

9 There are no amounts due and outstanding to be credited to the Investor Education and Protection Fund as on 31st March 2013.

10 Revenue expenditure during the year on Research & Development activities shown under the various heads of account amounted to Rs. 0.71 Crores (Previous Year Rs. 0.65 Crores).

11 Exceptional Item represents:

11.1 Profit on sale of company''s surplus land near Chennai along with appurtenant building amounts to Rs. Nil (Previous Year Rs. 16.27 Crores).

11.2 Voluntary Retirement Scheme (VRS) expenditure in the nature of employee benefits paid to employees opted for VRS amounts to Rs. 0.08 Crores (Previous Year Rs. 4.06 Crores).

12 Quality Claims is net of claims received / receivable of Rs. Nil (Rs. 6.22 Crores).

13 Power and Fuel Cost includes a) Rs. 0.24 Crores incurred towards providing dedicated feeder for availing private power, b) Fuel Surcharge Adjustment (FSA) charges amounting to Rs. 1.69 Crores relating to earlier financial years.

14 The previous year''s figures have been re-grouped, reclassified wherever necessary so as to make them comparable with the current year''s figures.

15 Figures in brackets in the Schedules and Notes pertain to previous year.


Mar 31, 2012

1.1 The Board of Directors in their meeting on January 24, 2012 declared an interim dividend of Rs.7.50 per equity share. Further the Board of Directors, in their meeting on May 21, 2012 proposed a final dividend of Rs.3/- per equity share. The proposal is subject to approval of shareholders at the Annual General Meeting to be held on July 23, 2012.

1.2 The Company has only one class of shares i.e. equity shares having a par value of Rs10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to shareholding.

2.1 Notes on Secured Long Term Borrowings

Term loans are secured by pari-passu basis first charge on the company's immovable properties both present and future and also secured by hypothecation of company's movable properties both present and future.

2.2 Notes on Unsecured Long Term Borrowings

2.2.1 Fixed Deposit accepted from public carry interest @ 8.5 % to 11.0 % and are for a tenure of 2 to 3 years.

2.2.2 Fixed Deposit includes due to related parties of Rs.0.57 Crores (Rs.1.55 Crores)

2.2.3 The company is entitiled for deferment of sales tax for a period of 14 years from 1996 to 2010 and the first year loan is repayable during March 2010 and the second year's loan is repayable in the year 2011 and the amount deferred in year 2010 is repayable in the year 2024.The company should continue to be in operation and there should not be any change in location or management of the company until the loan is fully repaid.

3.1 Short term borrowings from banks are secured by hypothecation of raw materials, work in progress, finished goods, stores & spares and book debts.

3.2 Maximum amount of Commercial Paper outstanding at any time during the year was Rs.10 Crores (Rs10 Crores)

3.3 None of the above loans have been guaranteed by any Directors or others.

4.1 Foreign currency fluctuation loss of Rs 0.09 Crores (fluctuation gain of Rs 0.08 Crores) arising on settlement / translation of long tern borrowings utilised for acquisition of capital assets are adjusted to the cost of the assets.

4.2 Borrowing Cost of Rs 0.28 Crores (Rs 0.18 Crores) is capitalised along with the cost of capital asset.

4.3 In compliance with the Notification No.GSR226 (E), dated 31st March, 2009 issued by Ministry of Corporate Affairs, the company has exercised the option in terms of newly inserted paragraph 46 to the Accounting Standard - AS -11 "the effect of changes in Foreign Exchange Rates". Accordingly, the exchange differences, fluctuation loss of Rs 0.09 Crores (fluctuation gain of Rs 0.08 Crores) adjusted to cost of fixed assets arising on settlement / translation of foreign currency monetary items utilised to acquire depreciable capital assets.

Rs. Crores

Particulars Year ended Year ended 31March 2012 31March 2011

5 CONTINGENT LIABILITIES AND COMMITMENTS

5.1 Contingent Liabilities

Claims against the company not acknowledged as debt

Labour Disputes 0.16 0.16

Income Tax 1.59 0.89

Other Liabilities 0.39 0.30

Guarantees & Letter of Credits issued by the banks 1.75 7.94

Liability on bills discounted with banks 2.60 3.59

6.49 12.88

5.2 Other commitments

5.2.1 The Company has imported Capital Goods under the Export Promotion Capital Goods Scheme, of the Government of India, at concessional rates of duty on an undertaking to fulfill quantified exports amounting to Rs 9.97 Crores within the period allowed under the scheme.

5.2.2 The Company may have liability on account of Fuel Surcharge Adjustment, if any, to be notified by Southern Power Distribution Company of A.P. Limited (APSPDCL) for the earlier years on the power supplied by them.

6 Derivative Instrument and hedge accounting

As per Accounting Standard AS 30 "Financial Instruments: Recognition and Measurement", the Company has provided for the effective portion amounting to Rs Nil (Rs NIL) of the changes in the fair values of forward contracts and options designated as cash flow hedges directly in 'Hedge Reserve Account' being part of the shareholders' funds the changes in fair value relating to the ineffective portion amounting to Rs Nil (Rs 0.027 crores) of the cash flow hedges and forward contracts / options are recognised in the profit and loss account.

7 Segment Reporting

The entire operations of the company relate only to one segment, viz, "Components for Transport Industry". As the exports are predominantly to developed countries, geographical risk is not different from domestic market and hence no separate secondary segment disclosure is required.

8 In the opinion of the Board, none of the assets have a value lower on realization in the ordinary course of business than the amount at which they are stated in the Balance Sheet.

9 There are no amounts due and outstanding to be credited to the Investor Education and Protection Fund as on 31st March 2012.

10 Revenue expenditure during the year on Research & Development activities shown under the various heads of account amounted to Rs 0.65 Crores (Previous Year Rs 0.46 Crores)

11 Exceptional Item represents:

11.1 Profit on sale of company's surplus land near chennai along with appurtenant building amounts to Rs. 16.27 Crores.

11.2 Voluntary Retirement Scheme (VRS) expenditure in the nature of employee benefits paid to employees opted for VRS amounts to Rs. 4.06 Crores.

12 During the year, the company has settled a Quality Claim of an earlier year with a customer and the company has preferred the claim with the Insurance company and received part of the amount and the balance claim is under process.

13 Quality Claims is net of claims received / receivable of Rs. 6.22 Crores (Rs. 0.47 Crores)

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

15 Figures in brackets in the Schedules and Notes pertain to previous year.


Mar 31, 2011

1. Share Capital

1.1 5,150,992 Equity Shares of Rs. 10/- each were allotted on February 06, 2008, as fully paid for consideration other than cash, pursuant to the scheme of arrangement of the company with erstwhile Rane Engine Valves Limited.

1.2 2,759,686 Equity Shares of Rs. 10/- each are held by Rane Holdings Ltd., the holding company

2. Loans

2.1 Foreign Currency Term Loan and Rupee Term Loans from Banks are secured on pari-passu basis by a first charge on the Companys immovable properties both present and future and also secured by hypothecation of companys movable properties both present and future.

2.2 Cash credit from banks is secured by hypothecation of raw materials, work in progress, finished goods, stores & spares and book debts.

2.3 Term Loans repayable within one year Rs. 183,095,107 (Rs. 175,858,242).

2.4 The Interest Free Sales Tax Loan from Government of Andhra Pradesh is due and repayable on completion of period of deferral starting from the month of February 2010. Amount due within one year amounts to Rs. 3,888,507 (Rs. 4,913,834).

2.5 Fixed Deposits outstanding include Rs. 1,850,000 (Rs. 1,250,000) from Directors.

2.6 Fixed Deposit maturing within a period of one year amounts to Rs. 34,870,000 (Rs. 22,550,000)

2.7 Maximum amount of Commercial Paper outstanding at any time during the period was Rs. 100,000,000 (Rs. 50,000,000)

3. Fixed Assets

3.1 Foreign currency fluctuation Gain of Rs. 788,772 (fluctuation loss of Rs. 9,853,024) arising on settlement / translation of long term borrowings utilized for acquisition of capital assets are adjusted to the cost of the assets.

3.2 Borrowing cost of Rs. 1,772,056 Rs. 2,110,793) is capitalized along with the cost of capital asset.

4. In compliance with the Notification No.GSR226 (E), dated 31 st March, 2009 issued by Ministry of Corporate Affairs, the company has exercised the option in terms of newly inserted paragraph 46 to the Accounting Standard - AS -11 "the effect of changes in Foreign Exchange Rates". Accordingly, the exchange differences, fluctuation gain of Rs. 788,722 (fluctuation loss of Rs. 9,853,024) adjusted to cost of fixed assets arising on settlement / translation of foreign currency monetary items utilized to acquire depreciable capital assets.

4. Related Party Disclosures:

5.1 Related parties and their relationship

Holding Company : Rane Holdings Limited

Fellow Subsidiaries : Rane (Madras) Limited

Rane Brake Lining Limited Rane Diecast Limited

Enterprise Significantly influenced by

Key Management Personnel : Kar Mobiles Limited

Rane Foundation

Key Management Personnel : Mr L Ganesh

Relatives of Key Management Personnel : 1. Mr L Lakshman

2. Mrs Meenakhi Ganesh

3. Ms Aparna Ganesh

4. Mr Aditya Ganesh

5. Mrs Hema C Kumar

6. Mrs Vanaja Aghoram

7. Mrs Shanthi Narayan

20.3 The details of amount paid as remuneration to key management personnel are given in the note 16.

6. Segment Reporting:

6.1 The entire operations of the company relate only to one segment, viz, "Components for Transport Industry". As the exports are predominantly to developed countries, geographical risk is not different from domestic market and hence no separate secondary segment disclosure is required.

7. The Company has included an amount of Rs. 2,391,030 (Rs. 2,480,200) representing the excise duty on finished goods manufactured but not cleared as on 31st March, 2011, for valuation and charging off the excise duty to Profit and Loss Account. This has, however, no impact on profit of the year.

8. There are no amounts due and outstanding to be credited to the Investor Education and Protection Fund as on 31st March 2011.

9. Revenue expenditure during the year on Research & Development activities shown under the various heads of account amounted to Rs. 4,649,238 (Previous Year Rs. 2,992,302)

10. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is Rs. 88,358,946 (Rs.16,158,657).

11. Derivative Instrument and hedge accounting

As per Accounting Standard AS 30 "Financial Instruments: Recognition and Measurement", the Company has provided for the effective portion amounting to Rs. Nil (Rs. 2.06 Mio) of the changes in the fair values of forward contracts and options designated as cash flow hedges directly in Hedge Reserve Account being part of the shareholders funds, the changes in fair value relating to the ineffective portion amounting to Rs. 0.27 Mio (Rs. 0.08 Mio) of the cash flow hedges and forward contracts / options are recognised in the profit and loss account.

12. The company in an earlier year received an intimation of product recall on account of product defect from one of the Original Equipment Manufacturer (OEM) customer. The company has not accepted the facts and the claim made by the OEM customer. The Gompany is adequately insured for claims on account of product defect liability. In the opinion of the management, the potential claim net of insurance coverage would not be material.

13. Contingent Liabilities not provided for 31.03.2011 31.03.2010 Rs. 000 Rs. 000

Liability on bills discounted with bank 35,914 22,678

Liability on letter of credits & guarantees issued by the Banks 79,397 142,771

Labour Disputes 1,600 18,691

Income tax 8,875 11,320

Other Liabilities 2,991 1,097

14. Figures in brackets in the Schedules and Notes pertain to previous year.


Mar 31, 2010

NOTES

1. Share Capital

1.1 5,150,992 Equity Shares of Rs.10/- each were allotted on February 06, 2008, as fully paid for consideration other than cash, pursuant to the scheme of arrangement of the company with erstwhile Rane Engine Valves Limited.

1.2 2,754,521 Equity Shares of Rs.10/- each are held by Rane Holdings Ltd., the holding company (inclusive of 40,444 Equity Shares of Rs.10 each held in trust pending transfer to Rane Holdings Limited as on 31.03.2010).

2. Loans

2.1 Foreign Currency Term Loan and Rupee Term Loans from Banks are secured on pari-passu basis by a first charge on the Companys immovable properties both present and future and also secured by hypothecation of companys movable properties both present and future.

2.2 Cash credit from banks is secured by hypothecation of raw materials, work in progress, finished goods, stores & spares and book debts.

2.3 Term Loans repayable within one year Rs. 175,858,242 (Rs.163,505,974)

2.4 The Interest Free Sales Tax Loan from Government of Andhra Pradesh is due and repayable on completion of period of deferral starting from the month of February 2010. Amount due within one year amounts to Rs.4,913,834 (Rs.2,422,180)

2.5 Fixed Deposits include Rs.1,250,000 (Rs. 550,000) from Directors.

2.6 Fixed Deposit maturing within a period of one year amounts to Rs.22,550,000 (Rs.17,715,000)

2.7 Maximum amount of Commercial Paper outstanding at any time during the period was Rs.50,000,000 (Rs. Nil)

3. Fixed Assets

3.1 Foreign currency fluctuation Gain of Rs.9,853,024 (fluctuation loss of Rs.27,338,136) arising on settlement / translation of long term borrowings utilized for acquisition of capital assets are adjusted to the cost of the assets.

3.2 Borrowing cost of Rs.2,110,793 (Rs.10, 710,015) is capitalized along with the cost of capital asset.

4. In compliance with the Notification No.GSR226 (E), dated 31st March, 2009 issued by Ministry of Corporate Affairs, the company has exercised the option in terms of newly inserted paragraph 46 to the Accounting Standard - AS -11 " the effect of changes in Foreign Exchange Rates". Accordingly, the exchange differences, fluctuation gain of Rs.9,853,024 (fluctuation loss of Rs.27,338,136) adjusted to cost of fixed assets arising on settlement / translation of foreign currency monetary items utilized to acquire depreciable capital assets.

5. Related Party Disclosures:

5.1 Related parties and their relationship Holding Company : Rane Holdings Limited Fellow Subsidiaries : Rane Madras Limited Rane Brake Lining Limited Enterprise Significantly influenced by Key Management Personnel : Kar Mobiles Limited Key Management Personnel : Mr L Ganesh Relatives of Key Management Personnel : 1. Mr L Lakshman 2. Mrs Meenakhi Ganesh 3. Ms Aparna Ganesh 4. Mr Aditya Ganesh 5. Mrs Hema C Kumar 6. Mrs Vanaja Aghoram 7. Mrs Shanthi Narayan

6. Segment Reporting:

6.1 The entire operations of the company relate only to one segment, viz, "Components for Transport Industry". As the exports are predominantly to developed countries, geographical risk is not different from domestic market and hence no separate secondary segment disclosure is required.

7. The Company has included an amount of Rs.2,480,200 (Rs. 1,934,145) representing the excise duty on finished goods manufactured but not cleared as on 31st March, 2010, for valuation and charging off the excise duty to Profit and Loss Account. This has, however, no impact on profit of the year.

8. There are no amounts due and outstanding to be credited to the Investor Education and Protection Fund as on 31st March 2010.

9. Revenue expenditure during the year on Research & Development activities shown under the various heads of account amounted to Rs.3,117,302 (Previous Year Rs.8,895,123)

10. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is Rs.16,158,657 (Rs.56,213,349)

11. Employee Benfits

The company has implemented Revised AS-15 and made the provisions accordingly. The disclosure as per Revised AS-15 produced below:-

12. Derivative Instrument and hedge accounting

As per Accounting Standard AS 30 "Financial Instruments: Recognition and Measurement", the Company has provided for the effective portion amounting to Rs.2.06 Mio (Rs.0.71 Mio) of the changes in the fair values of forward contracts and options designated as cash flow hedges directly in Hedge Reserve Account being part of the shareholders funds, the changes in fair value relating to the ineffective portion amounting to Rs.0.08 Mio (Rs.Nil) of the cash flow hedges and forward contracts / options are recognised in the profit and loss account.

13. The company has during the year received an intimation of product recall on acount of product defect from one of the Original Equipment Manufacturer (OEM) customer. The company has not accepted the facts and the claim made by the OEM customer. The company is adequately insured for claims on account of product defect liability. In the opinion of the management, the potential claim net of insurance coverage would not be material.

14. Contingent Liabilities not provided for 31.03.2010 31.03.2009 Rs.000 Rs. 000 Liability on bills discounted with bank 22,678 29,642 Liability on letter of credits & guarantees issued by the Banks 142,771 86,030 Labour Disputes 18,691 25,577 Income tax 11,320 9,912 Other Liabilities 1,097 6,226

15. Figures in brackets in the Schedules and Notes pertain to previous year.

 
Subscribe now to get personal finance updates in your inbox!