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Notes to Accounts of Samkrg Pistons & Rings Ltd.

Mar 31, 2015

NOTE-1

SHORT TERM BORROWINGS

Working capital loan with SBI is secured by hypothecation of all current assets including book debts on first charge basis and second charge on all fixed assets and immovable Properties of the Company.

The work-in-progress represents only part of the regular product that were under production and not covered for any reservation for waranty claims.

The finished goods were valued at lower of the cost of sale or realisable value.

The cost does not include excise duty component.

The excise duty is neither considered for opening stock nor closing stock. This method was followed consistantly by the company. The raw materials including trade goods Stores and spares were valued at cost to the unit.

NOTE-2

DEPRECIATION AND AMORTIZATION EXPENSES

The total depreciation provided for the current financial year was 11.57 crores. The depreciation was provided on straight line basis on the assets that were put to use and calculated according to the period of use the depreciation on assets whose value had reached 95% of the asset value were not considered for depreciation.

NOTE: 3

The Extraordinary Item Represents the Provision Made for Corporate Social Responsibility for an Amount of Rs. 21.46 Lacs. Please Refer Corporate Social Responsibility Report by the Board of Directors.

4. Other Information:

1. Retirement Benefits

A) The Company's Contribution to Provident Fund is Administered through Regional Provident Fund Commissioner and being Charaged to Revenue as incurred.

B) Leave Encashment is Accounted for on Cash basis of the actual payments made.

2. Taxes And Income

A) Current Tax: Provision for Income Tax is determined in accordanace with the provisions of income Tax Act 1961.

B) Defered Tax Provision: Defered Tax is Recognized on Timing Differences Being the Differences Between Taxable Incomes and Accounting Income that Originate in one period and are capable of Reversal in one or more subsequent period(s). Provision had been made on the account of above as there exist deferment assets.

C) The timing deference on account of depreciation charged on the assets as per the Companies Act and as per the Income Tax Act has been provided. The net defered tax liability over the defered tax assets was Rs. 37.86 Lacs and considered for the current year was Rs. 37.86 Lacs (Previous year Rs. 34.57 Lacs).

Contingent Liabilities Not Provided For

Disputed Amount of Rs. 25.68 Lacs towards A.P. Tax on Entry of Goods for the Assessment Year 2002- 03 is pending with the ADC (CT) Punjagutta Division, Hyderabad against which we have already Paid an amount of Rs. 3.21 Lacs the case did not come for any hearing further.

3. Details Under MASA

4. Amount of exchange difference as per AS -11 accounting for the effects of changes in Foreign Exchange rates included in the finance cost was Rs. 90.26 Lacs (Previous year Rs. 99.48 Lacs)

5. Estimated amount of contracts remaining to be executed on capital account is Rs. 200.00 Lacs (Previous year Rs. 63.76 Lacs) against which advances has been paid Rs. 3.40 Lacs (Previous year Rs. 7.18 Lacs)

6. Segment Reporting Under Accounting Standard - 17

The Comlpany Operates in Singal Primary Business Segment Namely Manufacture of Auto Components - Piston Assemblies, hence no separate Disclosure is Required.

7. The Company had already Transfered Balance Funds In Un-Paid Dividend Account to Investors Education Fund Amount to Rs. 2.57 Lacs. The Amount was Deposited on Jan 2015 after a Delay of Three Months for the year 2006-07.

8. The Obligation Under EPCG Concessional Duty Scheme on Account Capital Equipments Imports Amounting To Amounting To Rs. 527.82 Lacs (Previous Year 183.29 Lacs)

9. The Company had not accepted any Deposits from public nor solicited any as per Companies Act Deposit Rules 2013.

The Company had taken Security Deposits from our Dealers of our Products and Paying Interset at @9%. The Deposits are Repayable at the Closure of the Dealership only.

10. The Company Proposes to Declare a Dividend of Rs. 3.00 Per Shares on a Face Value of Rs. 10/- Per Share and the Total Amount Works Out to Rs. 294.62 Lacs.

11. Figures for the Previous Year has been regrouped/reclassified wherever necessary to be confirmity with the current year format of revised Schedule VI.

12. The figures are rounded off to the nearest rupee.


Mar 31, 2014

INTEREST FREE SALES TAX LOAN IS REPAYABLE AS FOLLOWS:

1. Plant-1 A-Second Deferment Repayable in 14 Years Commenced from April 2012.

2. Plant-II-First Deferment Repayable in 10 Years Commenced from 2004 and Second Deferment from April 2015

3. Plant-III-Repayable in 14 Years Commenced from April 2011.

an Amount of Rs. 164.60 Lacs represents repayable in the next 12 Months had been shown under Current Liablities Gratuity in respect of past and present services of employees is being accounted for on accrual basis based on actuarial valuation done by the company. The payment of gratuity to the employees who had left the service had been adjusted against the provision made. The provision of gratuity has been computed as on the date of closure of accounts by reducing the provision made in the earlier years.

The work in progress represents only part of the regular product that were under production and not covered for any reservation of warrnty claims.

The finished goods were valued at cost which does not include excise duty component. The excise duty is neither con- sidered for opening stock nor closing stock.

This method was followed consistantly by the company.

The Raw Materails including packing material, stores and spares were valued at cost to the unit.

NOTE-1

The exceptional item represents the excess provision made in the earlier years with regards to deferment of sales tax. This is on the basis of the assessment completed for the assessment years 2005-06 to 2009-10.

4. OTHER INFORMATION:

1. Retirement Benefits

a) The Company''s contribution to Provident Fund is administered through Regional Provident Fund Commissioner and being charged to revenue as incurred.

b) Leave encashment is accounted for on cash basis on the basis of the actual payments made.

2. Taxes on Income

a) Current Tax: Provision for Income Tax is determined in accordance with the provisions of Income Tax Act. 1961.

b) Deferred Tax Provision: Deferred Tax is recognized on timing differences being the differences between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent period(s). Provision had been made on the account of above as there exist deferment assets.

c) The timing deference on account of Depreciation charged on the Assets as per the Companies Act and as per the Income Tax Act has been provided. The net deferred tax liability over the Deferred Tax Assets was Rs. 166.57 lacs and considered for the current year was Rs. 34.57 lacs.

5 Contingent liabilities not provided for

Disputed amount of Rs. 25.68 lacs towards A.P. Tax on Entry of goods for the assessment year 2002-03 is pending with the ADC (CT) Punjagutta Division, Hyderabad against which we have already paid an amount of Rs. 3.21 Lacs. The case did not come for any hearing further.

6. Amount of exchange difference as per AS-11 accounting for the effects of changes in Foreign Exchange rates included in the finance cost was Rs. (-)99.48 lacs. (Previous year Rs. 220.05 lacs)

7. Estimated amount of contracts remaining to be executed on capital account is Rs. 63.76 lacs (Previous year Rs. 60.67 Lacs) against which advances have been paid Rs. 7.18 lacs (Previous Year Rs. NIL lacs.)

8. Segment reporting under Accounting Standard-17

The Company operates in single primary business segment namely manufacture of Auto Components - Piston Assemblies, hence no separate disclosure is required.

9. Related Party Disclosures:

The disclosure pertaining to the related party transactions as required by the Accounting Standards (As-18) issued by the Institute of Chartered Accountants of India, as applicable are indicated below:

10. The company is taking steps to transfer balance funds in un-paid dividend account to investors Amounting to Rs. NIL

11. The obligation under EPCG concessional duty scheme on account capital Equipments imports amounting to Rs. 183.29 LACS (Previous Year Rs. 183.29 lacs)

12. The company proposes to declare a dividend of Rs. 2.50 per share on a face value of Rs. 10/- per share and the total amount works out to Rs. 245.51 lacs

13. Figures for the previous year has been regrouped/reclassified wherever necessary to be Conformity with the current year format of Revised Schedule VI

14. The figures are rounded off to the nearest rupee


Mar 31, 2013

1. Foreign Currency Transactions

a) Other income includes the following items i) Sale of DEPB Licenses Rs. 42.95 lacs.

2. Retirement Benefits

a) The Company''s contribution to Provident Fund is administered through Regional Provident Fund Commissioner and being charged to revenue as incurred.

b) Gratuity in respect of past and present services of employees is being accounted for on accrual basis based on actuarial valuation done by the company. The payment of Gratuity to the employees who had left the service had been adjusted against the provision made. The provision of gratuity has been computed as on the date of closure of accounts by reducing the provision made in the earlier years.

c) Leave encashment is accounted for on cash basis on the basis of the actual payments made.

3. Taxes on Income

a) Current Tax: Provision for Income Tax is determined in accordance with the provisions of Income Tax Act. 1961.

b) Deferred Tax Provision: Deferred Tax is recognized on timing differences being the differences between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent period(s). Provision had been made on the account of above as there exist deferment assets.

c) The timing deference on account of Depreciation charged on the Assets as per the Companies Act and as per the Income Tax Act has been provided. The Net Deferred Tax liability over the Deferred Tax Assets was Rs. 132.00 lacs was considered for the current year as Rs. 132.00 lacs.

4. Contingent liabilities not provided for

Disputed amount of Rs. 25.68 lacs towards A.P. Tax on Entry of goods for the assessment year 2002-03 is pending with the ADC (CT) Punjagutta Division, Hyderabad against which we have already paid an amount of Rs. 3.21 Lacs. The case did not come for any hearing further.

5. DETAILS UNDER MASA SUNDRY CREDITORS

Disclosure under the Micro and Small Enterprises Development Act, 2006.

Amount due to Micro and Small Enterprises are disclosed on the basis of information company regarding available with the status of the suppliers is as follows.

6. Amount of exchange difference as per AS-11 accounting for the effects of changes in Foreign Exchange rates included in the finance cost account of Rs. 220.05 lacs (Previous year Rs. 31.50 lacs).

7. Estimated amount of contracts remaining to be executed on capital account is Rs. 60.67 lacs (Previous year Rs. 182.43 lacs) against which advances have been paid Rs. 5.05 lacs (Previous Year Rs. NIL lacs.)

8. Segment reporting under Accounting Standard-17

The Company operates in single primary business segment namely manufacture of Auto Components - Piston Assemblies, hence no separate disclosure is required.

9. Related Party Disclosures

The disclosure pertaining to the related party transactions as required by the Accounting Standards (As-18) issued by the Institute of Chartered Accountants of India, as applicable are indicated below:

The Company had taken on lease of properties from the Directors of the company & Relative of the Directors of the company for the staff at factory, Visakhapatnam and at Hyderabad.

The interest paid to Directors for an amount of Rs. 94,42,810/- and relative of Directors Rs. 1,14,75,000/- .

10. The company is taking steps to transfer balance funds in un-paid dividend account to investors Amounting to Rs. NIL/-

11. The company proposes to declare a dividend of Rs. 2.50 per shares on a face value of Rs. 10/- per share and the total amount works out to Rs. 245.51 lacs

12. Figures for the previous year has been regrouped/reclassified wherever necessary to be conformity with the current year revised format of schedule VI.

13. The figures are rounded off to the nearest rupee


Mar 31, 2012

1. Foreign Currency Transactions

a) Other income includes the following items i) Sale of DEPB Licenses Rs.67.42 lacs.

2. Retirement Benefits

a) The Company's contribution to Provident Fund is administered through Regional Provident Fund Commissioner and being charged to revenue as incurred.

b) Gratuity in respect of past and present services of employees is being accounted for on accrual basis based on actuarial valuation done by the company. The payment of Gratuity to the employees who had left the service had been adjusted against the provision made. The provision of gratuity has been computed as on the date of closure of accounts by reducing the provision made in the earlier years.

c) Leave encashment is accounted for on cash basis on the basis of the actual payments made.

3. Taxes on Income

a) Current Tax: Provision for Income Tax is determined in accordance with the provisions of Income Tax Act. 1961.

b) Deferred Tax Provision: Deferred Tax is recognized on timing differences being the differences between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent period(s). Provision had been made on the account of above as there exist deferment assets.

c) The timing deference on account of Depreciation charged on the Assets as per the Companies Act and as per the Income Tax Act has been provided. The net deferred tax liability over the Deferred Tax Assets was Rs. 106.00 lacs was considered for the current year as Rs.106.00 lacs.

4. Contingent liabilities not provided for

a) Disputed amount of Rs.25.68 lacs towards A.P. Tax on Entry of goods for the assessment year 2002- 03 is pending with the ADC (CT) Punjagutta Division, Hyderabad against which we have already paid an amount of Rs. 3.21 Lacs.

5. DETAILS UNDER MASA

SUNDRY CREDITORS

Disclosure under the Micro and Small Enterprises Development Act, 2006.

Amount due to Micro and Small Enterprises are disclosed on the basis of information company regarding available with the status of the suppliers is as follows.

6. Amount of exchange difference as per AS-11 accounting for the effects of changes in Foreign Exchange rat®es included in the finance cost account of Rs.31.50 lacs (Previous year Rs 17.85lacs)

7. Estimated amount of contracts remaining to be executed on capital account is Rs.182.43 lacs (Previous year Rs.124.65 Lacs ) against which advances have been paid Rs. NIL lacs (Previous Year Rs. 53.95 lacs.)

8. Segment reporting under Accounting Standard-17

The Company operates in single primary business segment namely manufacture of Auto Components - Piston Assemblies, hence no separate disclosure is required.

The Company had taken on lease of properties from the Directors of the company & Relative of the Directors of the company for the staff at factory, Visakhapatnam and at Hyderabad.

The interest paid to Directors for an amount of Rs.70,33,006/- and relative of Directors Rs.57,50,548/-

9. The company is taking steps to transfer balance funds in un-paid dividend account to investors amounting to Rs.3,06,932/-

10. The Company Proposes to declare a Dividend of Rs 3.50 Per Shares on a Face Value of Rs10/- Per Share and The Total Amount Works out to Rs 343.72 Lacs

11. Figures for the previous year has been regrouped/reclassified wherever necessary to be conformity with the current year revised format of schedule VI.

12. The figures are rounded off to the nearest rupee


Mar 31, 2011

1. Interest free sales tax deferred loan is repayable as

a) Plant - I a) First Deferment completed in the year 2003, b) Second deferment Repayable in 14 years commences from April 2012

b) Plant - II First Deferment repayable in 10 years commences from April 2004 and second deferment April 2015

c) Plant - III repayable in 14 years commences from April 2011

2. Contingent liabilities not provided for

a) Disputed amount of Rs.25.68 lacs towards A.P. Tax on Entry of goods for the assessment year 2002-03 is pending with the ADC (CT) Punjagutta Division, Hyderabad against which we have already paid an amount of Rs. 3.21 Lacs.

b) Customs Duty liability on Imports under EPCG Scheme pending fulfillment of Export obligations of Rs.576.20 lacs is Rs. 109.63 lacs

3. Amount of exchange difference as per AS-11 accounting for the effects of changes in Foreign Exchange rates included in the other income account of Rs. 0.17 lacs. (Previous year Rs.8.83 lacs)

4. Estimated amount of contracts remaining to be executed on capital account is Rs. 124.65 lacs (Previous year Rs.91.07 Lacs) against which advances have been paid Rs.53.95 lacs (Previous Year Rs. 19.86 lacs.)

5. Unsecured Loan comprise of loan from Directors and their relatives - Rs.445.00 lakhs (Previous year Rs.800.00 lakhs)

6. The Company had taken on tease from the Directors of the company viz., Shri. S.Karunakar and Sri. S. Kishore, for the Branch office at Vizag, Staff Quarters at the factory and residence for the Directors. The rent paid is commensurate on the prevailing rate applicable at the relevant time.

7. Segment reporting under Accounting Standard-17

The Company operates in single primary business segment namely manufacture of Auto Components - Piston Assemblies, Hence no separate disclosure is required.

8. Related Party Disclosures:

c). Transactions with Executive Directors consists of remuneration as detailed in Note 7 of Schedule 20 and rent paid to the house taken on lease.

9. The company is taking steps to transfer balance funds in un-paid dividend account to Investors Education Protection Fund.

10. Figures for the previous year has been regrouped/reclassified wherever necessary to be conformity with the current year.

11. Figures are rounded off to the nearest rupee.


Mar 31, 2010

1. Interest free sales tax deferred loan is repayable as

a) Plant - I a) First Deferment completed in the year 2003, b) Second deferment Repayable in 14 years commences from April 2012

b) Plant - II First Deferment repayable in 10 years commences from April 2004 and second deferment April 2015

c) Plant - III repayable in 14 years commences from April 2011

2. Contingent liabilities not provided for

a) Disputed amount of Rs.25.68 lacs towards A.P. Tax on Entry of goods for the assessment year 2002-03 is pending with the ADC (CT) Punjagutta Division, Hyderabad against which we have already paid an amount of Rs. 3.21 Lacs.

b) Customs Duty liability on Imports under EPCG Scheme pending fulfillment of Export obligations of Rs.67.07 lacs is Rs. 8.38 lacs

3. SUNDRY CREDITORS

Disclosure under the Micro and Small Enterprises Development Act, 2006.

4. / Amount of exchange difference as per AS-11 accounting for the effects of changes in Foreign Exchange rates

included in the other income account of Rs. 8.83 lacs. (Previous year Rs.101.80 lacs)

5. Estimated amount of contracts remaining to be executed on capital account is Rs.91.07 lacs (Previous year Rs.119.31 Lacs) against which advances have been paid RS.19.86 lacs (Previous Year Rs. 62.96 lacs.)

6. The Company had taken on lease from the Directors of the company viz., Shri.S.D.M. Rao, Shri. S.Karunakar and Sri. S. Kishore, for the Branch office at Vizag, Staff Quarters at the factory and residence for the Directors. The rent paid is commensurate on the prevailing rate applicable at the relevant time.

7. Segment reporting under Accounting Standard-17

The Company operates in single primary business segment namely manufacture of Auto Components - Piston Assemblies, Hence no separate disclosure is required.

8. The Company is taking steps to transfer balance funds in un-paid dividend account to Investors Education and Protection fund.

9. Related Party Disclosures:

The disclosure pertaining to the related party transactions as required by the Accounting Standards (As -18) issued by the Institute of Chartered Accountants of India, as applicable are indicated below:

c) Transactions with Executive Directors consists of remuneration as detailed in Note 7 of Schedule20

10. Figures for the previous year has been regrouped/reclassified wherever necessary to be conformity with the current year.

11. Figures are rounded off to the nearest rupee.

 
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