Home  »  Company  »  Sharp India  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Sharp India Ltd.

Mar 31, 2015

Defined benefit plans -

The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is eligible for gratuity on departure, computed based on the company's gratuity scheme for each completed year of service. The scheme is funded with an insurance company. The following tables summarizes the components of net benefit expense recognized in the statement of profit and loss and the funded status and the amount recognized in the balance sheet for the respective plans.

The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The overall expected rate of return on assets is based on the expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligation.

Note - 1 : LEASE COMMITMENTS

Operating Lease: Company as lessee

The company has entered into operating lease agreements for the rental of property. Typically, lease agreements are for a period of three years and contain provisions for early termination. There were no restrictions placed upon the Company by entering into this lease.

Lease payments on cancellable operating leases during the year: Rs.Nil. (31 March, 2014 Rs.0 lakhs)

Note - 2 : SEGMENT REPORTING

The company is exclusively engaged in the business of 'consumer electronics' consisting of all types of Colour Televisions, LED TVs and Air conditioners which is considered to constitute one single primary segment in context of Accounting Standard (AS) - 17 on Segment Reporting, notified under the Rules.

The analysis of geographical segment is based on the geographical location of the customers. The geographical segments considered for disclosure are as follows:

- Sales within India include sales to customers located within India.

- Sales outside India include sales to customers located outside India.

Note - 3 : RELATED PARTY TRANSACTIONS

a) Names of related parties and related party relationship

I. Related parties where control exists: Holding company:

Sharp Corporation, Japan

II. Related parties with whom transactions have taken place: Fellow subsidiaries:

Sharp Electronics (Malaysia) SDN. BHD., Malaysia

Sharp Manufacturing Corporation (M) SDN BHD, Malaysia

Sharp Business Systems (India) Limited

Sharp Software Development India Private Limited

Sharp Middle East FZE, UAE

S&O Electronics (M) SDN BHD, Malaysia

Sharp Manufacturing Poland SP.Z.O

P.T.Sharp Electronics Indonesia

Key management personnel:

Mr. M. Nakagawasai (from June 1, 2012) Mr. T.Isogai (from December 9, 2012) Mayuresh P Vaze

Note - 4 : CAPITAL COMMITMENT

There are capital commitments worth Rs. Nil outstanding as at the year-end (31 March, 2014: Rs. 3.06Lakhs)

Claims against the company for central excise pertain to claim for (i) cenvat on work-in-progress and finished goods destroyed by fire, (ii) service tax on repairs and maintenance services and cenvat credit on input services availed for procurement of inputs (iii) Service tax credit on input services attributable to purchase of inputs which were removed as such

Note - 5 : DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS DEFINED UNDER MSMED ACT, 2006

There are no dues to micro, small and medium enterprises as at March 31, 2015 (March 31, 2014: Nil), as no supplier has intimated the Company about its status as Micro or Small enterprise or its registration with the appropriate authorities under the Micro Small and Medium Enterprises Development Act, 2006.

In view of there being no virtual certainty for availability of sufficient future taxable income against which the deferred tax assets as at March 31, 2015 can be realized, the same have not been recognized in accordance with Accounting Standard 22 "Accounting for Taxes on Income" notified under the Rules. Accordingly deferred tax asset has been recognized to the extent of deferred tax liability.

Note- 6 : PROVISION FOR DUES UNDER DISPUTE

The Company had imported refrigerators during the financial year ended March 31, 2009 by paying nil duty on such imports under the free trade agreement with Thailand. The custom authorities have challenged the classification under which the refrigerators were imported under concessional rate of duty. The dispute is pending with the CESTAT authorities. The company has made full provision of the demand made by the custom authorities along with the interest. The outstanding provision amount of Rs.20.80 Lakhs as on March 31, 2015 represents interest on the demand.

Note - 7 : PREVIOUS YEAR FIGURES

Previous year's figures have been regrouped wherever necessary to conform to the current year's classification.


Mar 31, 2014

Note- 1 : Background

Sharp India Limited (''the Company'') was incorporated on July 5, 1985. The company is principally engaged in the manufacture and sale of colour televisions (''CTVs''), light emitting diode televisions(''LED TVs''). During current year, the Company has commenced the production of air conditioners (''ACs'').

Sharp Corporation (''Sharp''), a company incorporated in Japan, holds 75 per cent of the issued share capital of the company. The company has a technical collaboration with Sharp for the manufacture of colour televisions (''CTVs'') and (''LED TVs'') & air conditioners (''ACs'').

Note- 2 : Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under Companies (Accounting Standards) Rules 2006 (as amended) and the relevant provisions of the Companies Act,1956 read with General Circular 8/2014 dated 4 April 2014 issued by the Ministry of Corporate Affairs. The financial statements have been prepared under the historical cost convention on an accrual basis except for derivative financial instruments which have been measured at fair value.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

Note - 3 : LEASE COMMITMENTS

Operating Lease: Company as lessee

The company has entered into operating lease agreements for the rental of property. Typically, lease agreements are for a period of three years and contain provisions for early termination. There were no restrictions placed upon the Company by entering into this lease.

Lease payments on cancellable operating leases during the year: Rs.13 thousands. (31 March, 2013 Rs.13 thousands)

Note - 4 : SEGMENT REPORTING

The company is exclusively engaged in the business of ''consumer electronics'' consisting of all types of Colour Televisions, LED TVs and air conditioners which is considered to constitute one single primary segment in context of Accounting Standard (AS) - 17 on Segment Reporting, notified under the Rules.

The analysis of geographical segment is based on the geographical location of the customers. The geographical segments considered for disclosure are as follows:

- Sales within India include sales to customers located within India.

- Sales outside India include sales to customers located outside India.

Note - 5 : RELATED PARTY TRANSACTIONS

a) Names of related parties and related party relationship

I. Related parties where control exists: Holding company:

Sharp Corporation, Japan

II. Related parties with whom transactions have taken place: Fellow subsidiaries:

Sharp Electronics (Malaysia) SDN. BHD., Malaysia

Sharp Manufacturing Corporation (M) SDN BHD, Malaysia

Sharp Business Systems (India) Limited

Sharp Roxy Sales (Singapore) Pte Ltd, Singapore

Sharp Software Development India Private Limited

Sharp Middle East FZE, UAE

S&O Electronics (M) SDN BHD, Malaysia

Key management personnel:

Mr. M. Nakagawasai (from June 1, 2012) Mr.T.Isogai (from December 9, 2012)

Note - 6 : CONTINGENT LIABILITIES

March 31, 2014 March 31, 2013

Claims against the company not acknowledged as debts

- Central excise authorities 24,995 20,601

24,995 20,601

Claims against the company for central excise pertain to claim for (i) cenvat on work-in-progress and finished goods destroyed by fire, (ii) service tax on repairs and maintenance services and cenvat credit on input services availed for procurement of inputs (iii) Service tax credit on input services attributable to purchase of inputs which were removed as such (v) proportionate reversal of cenvat credit availed on common input services availed for procurement & sale of trading goods.

Note - 7 : DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS DEFINED UNDER MSMED ACT, 2006

There are no dues to micro, small and medium enterprises as at March 31, 2014 (March 31, 2013 : Nil), as no supplier has intimated the Company about its status as Micro or Small enterprise or its registration with the appropriate authorities under the Micro Small and Medium Enterprises Development Act, 2006.

In view of there being no virtual certainty for availability of sufficient future taxable income against which the deferred tax assets as at March 31, 2014 can be realised, the same have not been recognised in accordance with Accounting Standard 22 "Accounting for Taxes on Income" notified under the Rules.Accordingly deferred tax asset has been recognized to the extent of deferred tax liability.

Note- 8 : PROVISION FOR DUES UNDER DISPUTE

The Company had imported refrigerators during the financial year ended March 31, 2009 by paying nil duty on such imports under the free trade agreement with Thailand. The custom authorities have challenged the classification under which the refrigerators were imported under concessional rate of duty. The dispute is pending with the CESTAT authorities. The company has made full provision of the demand made by the custom authorities along with the interest. The outstanding provision amount of Rs. 2,080 thousands as on March 31, 2014 represents interest on the demand.

Note - 9 : PREVIOUS YEAR FIGURES

Previous year''s figures have been regrouped wherever necessary to conform to the current year''s classification.


Mar 31, 2013

Note - 1 : BACKGROUND

Sharp India Limited (''the company'') was incorporated on July 5, 1985. The company is principally engaged in the manufacture and sale of colour televisions (''CTVs'') and liquid crystal display televisions (''LCD TVs''). Further, the company was also engaged in trading microwave ovens, refrigerators, colour televisions, LCD TVs, air conditioners and audio systems.

Sharp Corporation (''Sharp''), a company incorporated in Japan, holds 80 per cent of the issued share capital of the company. The company has a technical collaboration with Sharp for the manufacture of colour televisions (''CTVs'') and (''LCD/ LED TVs'').

The Company has commenced the production of Air conditioners from May 2013.

Note - 2 :BASIS OF PREPARATION

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under Companies (Accounting Standards) Rules 2006 (as amended)(''the rules'') and the relevant provisions of the Companies Act ,1956. The financial statements have been prepared under the historical cost convention on an accrual basis except for derivative financial instruments which have been measured at fair value.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

Note - 3 : DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS DEFINED UNDER MSMED ACT, 2006

There are no dues to micro, small and medium enterprises as at March 31, 2013, as no supplier has intimated the Company about its status as Micro or Small enterprise or its registration with the appropriate authorities under the Micro Small and Medium Enterprises Development Act, 2006.

Note - 4 : PROVISION FOR DUES UNDER DISPUTE

The Company had imported refrigerators during the financial year ended March 31, 2009 by paying nil duty on such imports under the free trade agreement with Thailand. The custom authorities have challenged the classification under which the refrigerators were imported under concessional rate of duty. The dispute is pending with the CESTAT authorities. The company has made full provision of the demand made by the custom authorities along with the interest. The outstanding provision amount of Rs.2,080 thousands as on March 31, 2013 represents balance demand and interest on the same.

Note - 5 : PREVIOUS YEAR FIGURES

Previous year''s figures have been regrouped wherever necessary to conform to the current year''s classification.


Mar 31, 2012

Note - 1 : BACKGROUND

Sharp India Limited ('the company') was incorporated on July 5, 1985. The company is principally engaged in the manufacture and sale of colour televisions ('CTVs') and liquid crystal display televisions ('LCD TVs'). Further, the company was also engaged in trading microwave ovens, refrigerators, colour televisions, LCD TVs, air conditioners and audio systems.

Effective from 1st April 2011, the company has shifted to a new business model wherein it has focused on its core strength of manufacturing. The products manufactured by the company would be sold to Sharp Business Systems (India) Limited ('SBSIL'), a 100% subsidiary company of Sharp Corporation Japan. SBSIL would handle the after sales and service activity for all products manufactured by the company and sold to SBSIL. Due to the change in business model the current year figures are not comparable with the previous year.

Sharp Corporation ('Sharp'), a company incorporated in Japan, holds 80 per cent of the issued share capital of the company. The company has a technical collaboration with Sharp for the manufacture of colour televisions ('CTVs') and ('LCD TVs').

a) Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.

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 share holders.

Note 2a

Freehold land includes Rs.1,812 thousands, paid for the acquisition of land at Koregaon Bhima. Although the Company possesses the title deeds to this land, the final purchase consideration is still to be determined. Management believes that no additional claims are likely to be made against the Company consequent to the finalisation of the purchase consideration.

Note 2b

Depreciation figure disclosed in the statement of profit and loss for the year ended March 31, 2012 is net of reimbursement amounting to Rs. 15,733 thousands (previous year Rs. 13,888 thousands) received from Sharp Corporation, Japan, towards additional depreciation on certain assets of plant and machinery, moulds, technical know-how, furniture and fittings and assets located at various branches.

Defined benefit plans -

The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is eligible for gratuity on departure, computed based on the company's gratuity scheme for each completed year of service. The scheme is funded with an insurance company. The following tables summarises the components of net benefit expense recognised in the statement of profit and loss and the funded status and the amount recognised in the balance sheet for the respective plans.

Note - 3 : LEASE COMMITMENTS

The company had entered into operating lease agreements for the rental of property. Typically, lease agreements are for a period of one to three years and contain provisions for early termination. The lease agreement for the office premises taken by the company on operating lease with a non-cancellable three year term was cancelled with the consent from 1st April 2011. There were no restrictions imposed by leased agreement. There are no sub-leases. Hence the lease rental charge during the year for such an agreement is Rs. Nil (Previous year Rs. 2,040 thousands) and maximum obligation on long-term non-cancellable operating lease payable as per the rentals stated in the agreement is as follows;

Lease payments on cancellable operating leases during the year Rs. 2,044 thousands (Previous year Rs. 12,902 thousands).

Note - 4 : SEGMENT REPORTING

The company is exclusively engaged in the business of 'consumer electronics' consisting of all types of Colour Televisions and other products which is considered to constitute one single primary segment in context of Accounting Standard (AS) - 17 on Segment Reporting, notified under the Rules.

The analysis of geographical segment is based on the geographical location of the customers. The geographical segments considered for disclosure are as follows:

- Sales within India include sales to customers located within India.

- Sales outside India include sales to customers located outside India.

The company has only one geographical location based on location of assets and hence the additional information relating to carrying amount of segment assets and cost to acquire tangible and intangible fixed assets based on location of assets has not been disclosed.

Note - 5 : RELATED PARTY TRANSACTIONS

a) Names of related parties and related party relationship

I. Related parties where control exists:

Holding company:

Sharp Corporation, Japan

II. Related parties with whom transactions have taken place:

Fellow subsidiaries:

Sharp Electronics (Malaysia) SDN. BHD., Malaysia

Sharp Manufacturing Corporation (M) SDN BHD, Malaysia

Sharp Business Systems (India) Limited

Sharp Manufacturing Thailand Co. Ltd. Thailand

Sharp Electronics Inc of Korea

Sharp Middle East FZE, UAE

P.T Sharp Electronics Indonesia

Sharp Roxy Sales (Singapore) Pte Ltd, Singapore

Sharp Electronics (Singapore) Pte Ltd, Singapore

Sharp Appliances (Thailand) Ltd; Thailand

Key management personnel:

Mr. T. Sakamoto

Mr. K. Ajikawa

Mr. T. Mikami

e) Reimbursements from holding company

During the current year, the company has received following reimbursements from Sharp Corporation, Japan:

1) Rs. Nil (Previous year Rs. 7,015 thousands) towards liquidation of defective inventories.

2) Rs. 15,733 thousands (Previous Year Rs. 13,888 thousands) towards additional depreciation on certain assets of plant and machinery and model fees.

3) Rs. 25,115 thousands towards LCD panel price support.

4) Rs.6,650 thousands (Previous year Rs. Nil) towards Voluntary Retirement Scheme (VRS) expenses.

5) Rs. 9,310 thousands (Previous year Rs. 12,741 thousands) towards other expenses, net.

Note - 6 : There are no capital commitments outstanding as at the year end (Previous Year Rs. Nil)

Note - 7 : CONTINGENT LIABILITIES

2012 2011

Claims against the company not acknowledged as debts

- Central excise authorities 20,038 20,188

20,038 20,188

Based on the opinion of the legal counsel of the company, all contingent liabilities as at balance sheet date have been assessed as remote. Claims against the company for central excise pertain to claim for (i) cenvat on work-in-progress and finished goods destroyed by fire and (ii) service tax on royalty paid to Sharp Corporation, Japan, and service tax on repairs and maintenance services.

Note - 8 : DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS DEFINED UNDER MSMED ACT, 2006

There are no dues to micro, small and medium enterprises as at March 31, 2012, as no supplier has intimated the Company about its status as Micro or Small enterprise or its registration with the appropriate authorities under the Micro Small and Medium Enterprises Development Act, 2006.

The provision for product warranty represents the expected claims on account of field failure of parts and expected expenditure of servicing the products over the period of free warranty, which varies on the product type and model sold, the field failure rate of key parts, the current cost of components etc.

Note - 9 : VOLUNTARY RETIREMENT SCHEME EXPENSES

The Company had during the current year ended March 31, 2012, declared a Voluntary Retirement Scheme ('VRS') for its employees. As the entire cost on this account is reimbursed by Sharp Corporation, Japan, there is no impact on the statement of profit and loss for the year ended March 31, 2012.

Note - 10 : PROVISION FOR DUES UNDER DISPUTE

The Company had imported refrigerators during the financial year ended March 31, 2009 by paying nil duty on such imports under the free trade agreement with Thailand. The custom authorities have challenged the classification under which the refrigerators were imported under concessional rate of duty. The dispute is pending with the CESTAT authorities. The company has made full provision of the demand made by the custom authorities along with the interest. During the current year; CESTAT Mumbai has granted stay with a pre-deposit of Rs. 3,000 thousands; pending disposal of the appeal. The outstanding provision amount of Rs. 4,399 thousands as on March 31, 2012 represents balance demand and interest on the same.

Note - 11 : PREVIOUS YEAR FIGURES

Previous year's figures have been regrouped wherever necessary to conform to the current year's classification.


Mar 31, 2011

1. Background

Sharp India Limited ('the Company') was incorporated on July 5, 1985. The Company is principally engaged in the manufacture and sale of colour televisions & LCD TV's. Further, the Company is also engaged in trading microwave ovens, refrigerators, colour televisions, LCD TV's, air conditioners and audio systems.

Sharp Corporation ('Sharp'), a company incorporated in Japan, holds 80 per cent of the issued share capital of the Company. The Company has a technical collaboration with Sharp for the manufacture of colour televisions ('CTVs').

2. CONTINGENT LIABILITIES 2011 2010 Claims against the Company not acknowledged as debts

- Central Excise authorities 20,188 20,780

20,188 20,780

Based on the opinion of the legal counsel of the Company, all contingent liabilities as at balance sheet date have been assessed as remote. Claims against the Company for Central Excise pertain to claim for (i) cenvat on work-in-progress and finished goods destroyed by fire and (ii) service tax on royalty paid to Sharp Corporation, Japan, and service tax on contract carriage services, repairs and maintenance and canteen services.

3. LEASE COMMITMENTS

The Company has entered into operating lease agreements for the rental of property. Typically, lease agreements are for a period of one to three years and contain provisions for early termination. There is also an office premises taken by the Company on operating lease with a non-cancellable three year term. There are no restrictions imposed by leased agreement. There are no sub-leases. The lease rental charge during the year for such an agreement is Rs. 2,040 (Previous Year Rs. 2,040) and maximum obligation on long-term non- cancellable operating lease payable as per the rentals stated in the agreement is as follows;

4. REIMBURSEMENTS FROM HOLDING COMPANY

During the current year, the Company has received Rs.7,015 (Previous year Rs. Nil ) as reimbursements from Sharp Corporation, Japan, towards liquidation of defective inventories and Rs. 13,888 (Previous Year Rs. Nil) towards additional depreciation on certain assets of plant and machinery , furniture and fittings and assets located at various branches.

5. RELATED PARTY TRANSACTIONS

(a) The names of the related parties under the appropriate relationship included in notes 9(b) and 9(c) are as follows:

Sr No Type of relationship Name of the party

1. Holding Company Sharp Corporation - Japan

2. Fellow Subsidiary Sharp Electronics (Malaysia) SDN. BHD., Malaysia

Sharp Manufacturing Co.(M) SDN BHD., Malaysia

Sharp Business Systems (India) Limited

Sharp Manufacturing Thailand Co. Ltd., Thailand

Sharp Appliances (Thailand) Ltd., Thailand

P.T. Sharp Electronics Indonesia.

Sharp Roxy Sales (Singapore) Pte. Ltd., Singapore

Sharp Electronics (SINGAPORE)PTE LTD, Singapore

3. Key Management Personnel Mr T. Sakamoto

Mr. K. Ajikawa Mr. Y. Mizuno

6. SEGMENT REPORTING

The Company is exclusively engaged in the business of 'consumer electronics' consisting of all types of Colour Televisions and other products which is considered to constitute one single primary segment in context of Accounting Standard (AS) - 17 on Segment Reporting, notified under the Rules. Further the Company mainly caters to the needs of the Indian market & the export turnover amounts to approximately 0.00% (Previous Year 0.07% ) of the total turnover of the Company. Hence there are no reportable geographical segments.

Defined Benefit Plans -

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is eligible for gratuity on departure, computed based on the Company's gratuity scheme for each completed year of service. The scheme is funded with an insurance company. The following tables summarises the components of net benefit expense recognised in the profit and loss account and the funded status and the amount recognised in the balance sheet for the respective plans.

The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. Net employees benefit expense recognised in the Profit and Loss Account

* The Company expects to contribute Rs. 1,500 to gratuity in 2011-12.

** During the year Company has paid premium to LIC Rs. 333 (Previous Year: Rs. 6,040), which has been included in the Gratuity expenses.

The following table summarises the components of net benefit balance recognized in the balance sheet: Details of defined benefit gratuity plan

7. In accordance with ASI 14 (revised) on 'Disclosure of revenue from Sales Transaction' issued by the Institute of Chartered Accountants of India, excise duty on sales amounting to INR 89,473 (Previous year INR 73,253) has been reduced from sales in profit and loss account and excise duty on (increase)/decrease in stock amounting to INR (5,262) (Previous Year INR 414) has been considered as (income)/expense in schedule 17 of the financial statements.

In view of there being no virtual certainty for availability of sufficient future taxable income against which the deferred tax assets of Rs.41,848 (Previous Year Rs. 41,167) (net) as at the close of the year can be realized, the same have not been recognized In accordance with Accounting Standard 22 "Accounting for Taxes On Income" notified under the Rules, and has been restricted to the deferred tax liability which is an evidence of virtual certainty.

8. There are no dues to micro, small and medium enterprises as at March 31, 2011, as no supplier has intimated the Company about its status as Micro or Small enterprise or its registration with the appropriate authorities under the Micro Small and Medium Enterprises Development Act, 2006.

9. WRITE BACK OF LIABILITIES OF PREVIOUS YEAR

During the year, the Company has written back liabilities of earlier years no longer required in respect of sales promotion expenses amounting to Rs. Nil (Previous year Rs. 7,742) and which has been credited to the corresponding expense account.

10. There are no capital commitments outstanding as at the year end (Previous Year Rs. Nil)

11. Previous year's figures have been regrouped wherever necessary to conform to the current year's classification.

 
Subscribe now to get personal finance updates in your inbox!