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Notes to Accounts of Simplex Castings Ltd.

Mar 31, 2015

A) Interest on Investments under lien & in custody of Govt. Departments and Export Incentives the quantum of which is un-ascertainable with reasonable certainty, continue to be accounted for on cash basis.

b) As per the accounting policy followed by the company the valuation of Finished Goods is inclusive of excise duty. Accordingly the value of Finished Goods in Profit & Loss A/c include the amount of excise duty. Correspondingly the amount of such duty on finished goods has been debited to Excise Duty Expenses in the Profit & Loss A/c with an equivalent credit amount carried forward in the Balance Sheet under the head 'Liability for Expenses'. As a result the effect of the same on the Profit for the year is 'Nil'.

c) On 8th July, 2011, a wholly owned subsidiary 'Simplex Mash' was registered in Temirtau city, Kazakhstan, as a Limited Liability Partnership (LLP) with an initial capital contribution of $ 1,000 (Rs.51,820/-). Further the company has also deposited by way of transfer to a/c of Simplex Mash with Halyk Bank, Kazakhastan a sum of USD 133,232 (Rs. 72,90,526/-) during the period 2011-2013 towards Kazag Governmental expertise on further feasibility report before fnalising the agreement between the LLP and the government agency. The bank balance has been included in Balance with Banks under Note 16 above. No further transaction has taken place and Simplex Mash is yet to commence it activity. Accordingly no other disclosure nor the consolidated balance sheet has been made.

d) During the year the company received the approval from Central Govt. in respect of the excess managerial remuneration paid to directors during 2012-13 amounting to Rs. 21.28 lacs . Further in respect of the application moved with the Central Government for approval of the excess managerial remuneration paid to directors during 2013-14 amounting to Rs. 27.85 lacs, the company has received partial approval for Rs. 19.35 lacs paid to one of its directors, from the appropriate authority. The company is in the process of complying with the clarifications called for with regards to the balance amount of Rs. 8.50 lacs.

e) Pursuant to the final judgement dtd. 20.03.2013 of the Honourable High Court, Bilaspur in the case relating to levy of Terminal Tax by Municipal Corporation, Bhilai, the petition has been dismissed as withdrawn. Accordingly, the Company has made a provision for the balance 50% of the tax demand for the period from 1999-2000 to 2012-2013 amounting to Rs.27.07 lacs. However based on the said order of the Honourable High Court, Bilaspur the company has again fled an application date 06.12.2013 with the Municipal Corporation, Bhilai contesting the validity of imposition of Terminal Tax which is still pending for fnal review by Municipal Corporation, Bhilai. From the year 2013-14 onwards the company is providing for the full amount of Terminal Tax as applicable and depositing the same within the specified time.

f) Pursuant to Accounting Standard (AS) 28, as explained to us, there being no indication of impairment of assets, no loss has been recognised on this account by the company.

g) In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business. The Provisions for depreciation and all known liabilities are adequate and not in excess of amount considered reasonably necessary.

h) Trade Receivables and other debit and credit balances are subject to confirmation and reconciliation, if any.

i) Some of the Bank Balances are subject to reconciliation and balance confirmation.

j) Previous year's figures have been re-arranged and/or regrouped wherever necessary to conform with the classification


Mar 31, 2014

1. Rights of shareholders:

The Company has only one class of equity shareholders. Each holder is entitled to one vote per share.

The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval by the shareholders at the ensuing Annual General Meeting.

In the event of liquidation, the shareholders of equity shares are eligible to receive in proportion to their shareholdings, the remaining assets of the company after distribution of all preferential amounts.

2. contingent LIABILITIES : As at As at 31.03.2014 31.03.2013

a) Bank Guarantees 2,275.16 2,416.18 (Time deposits pledged with banks 187.65 226.75 agst. above)

b) Letters of Credit 2,404.39 2,509.31

c) Excise/Service Tax matters 4.10 -

d) Income Tax matters 1,331.56 979.27

e) ESI Demand 10.18 -

f) Penalties for late deliveries / liquidated damages in respect of contracts are accounted for as and when claims are received and accepted. Aggregate amount of possible claims as at the year end is not ascertained.

g) Pursuant to the judgement of the State Industrial Court, Raipur, on the labour case relating to strike declared in the year 1990, the Company has been directed to pay compensation to the retrenched workers amounting to Rs.82.80 lacs in total. However the company has obtained a stay against the said order from the High Court, Bilaspur vide order dated 28.11.2001, on account of a petition contending the order which is yet to be heard. Since the management is hopeful of favourable decision, no provision has been made in the accounts for the said liability of Rs. 82.80 lacs.

3. other notes

a) Interest on Investments under lien & in custody of Govt. Departments and Export Incentives the quantum of which is un-ascertainable with reasonable certainity, continue to be accounted for on cash basis.

b) As per the accounting policy followed by the company the valuation of Finished Goods is inclusive of excise duty. Accordingly the value of Finished Goods in Profit & Loss A/c include the amount of excise duty. Correspondingly the amount of such duty on finished goods has been debited to Excise Duty Expenses in the Profit & Loss A/c with an equivalent credit amount carried forward in the Balance Sheet under the head ''Liability for Expenses''. As a result the effect of the same on the profit for the year is ''Nil''.

c) On 8th July, 2011, a wholly owned subsidiary ''Simplex Mash'' was registered in Temirtau city, Kazakhstan, as a Limited Liability Partnership (LLP) with an initial capital contribution of $ 1,000 (Rs.51,820/-). Further the company has also deposited by way of transfer to a/c of Simplex Mash with Halyk Bank, Kazakhastan a sum of USD 133,232 (Rs. 72,90,526/-) during the period 2011-2013 towards Kazag Govermental expertise on furhter feasibility report before finalising the agreement between the LLP and the government agency. The bank balance has been included in Balance with Banks under Note 16 above. No further transation has taken place and Simplex Mash is yet to commence it activity. Accordingly no other disclosure nor the consolidated balance sheet has been made.

d) The company is moving an application with the Central Government for approval in respect of the excess mangerial remuneration paid to directors for the current year amounting to Rs. 27.85 lacs (prev. year Rs.21.28 lacs), arrived at based on the limits laid down under Schedule XIII of the Companies Act, 1956 and as specified in the terms of appointment. Further, in respect of the application filed with the Central Govt. for the year 2012-13 for approval of excess amount of Rs. 21.28 lacs, the same is still pending with the appropriate authority.

e) Pursuant to the final judgement dtd. 20.03.2013 of the Honourable High Court, Bilaspur in the case relating to levy of Terminal Tax by Municipal Corporation, Bhilai, the petition has been dismissed as withdrawn. Accordingly, the Company has made a provision for the balance 50% of the tax demand for the period from 1999-2000 to 2012-2013 amounting to Rs.27.07 lacs. For the current year 2013-14 the company has provided for the full amount of Terminal Tax amounting to 5.24 lacs. However based on the said order of the Honourable High Court, Bilaspur the company has again filed an application dtd 06.12.2013 with the Municipal Corporation, Bhilai contesting the validity of imposition of Terminal Tax which is still pending for final review by Municipal Corporation, Bhilai.

f) Pursuant to Accounting Standard (AS) 28, as explained to us, there being no indication of impairment of assets, no loss has been recognised on this account by the company.

g) In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business. The Provisions for depreciation and all known liabilities are adequate and not in excess of amount considered reasonably necessary.

h) Trade Receivables and other debit and credit balances are subject to confirmation and reconciliation, if any.

i) Some of the Bank Balances are subject to reconciliation and balance confirmation.

j) Previous years figure''s have been re-arranged and/or regrouped wherever necessary toconform with the classification.


Mar 31, 2013

NOTE 1 - CONTINGENT LIABILITIES : As at As at 31.03.2013 31.03.2012

a) Bank Guarantees 2,416.18 2,546.08

(Time deposits pledged with banks agst. Above) 226.75 176.64

b) Letters of Credit 2,509.31 3,025.21

c) Excise/Service Tax matters - 0.80

d) Income Tax matters 979.27 158.43

f) Penalties for late deliveries / liquidated damages in respect of contracts are accounted for as and when claims are received and accepted. Aggregate amount of possible claims as at the year end is not ascertained.

g) Pursuant to the judgement of the State Industrial Court, Raipur, on the labour case relating to strike declared in the year 1990, the Company has been directed to pay compensation to the retrenched workers amounting to Rs. 82.80 lacs in total. However the company has obtained a stay against the said order from the High Court, Bilaspur vide order dated 28.11.2001, on account of a petition contending the order which is yet to be heard. Since the management is hopeful of favourable decision, no provision has been made in the accounts for the said liability of Rs. 82.80 lacs.

h) Pursuant to the interim judgement of the Honourable High Court, Bilaspur in the case relating to levy of Termi- nal Tax by Municipal Corporation, Bhilai, the Company has been directed to deposit 50% of the tax demand for the period upto 31st December, 2001 subject to which the balance 50% has been stayed. Accordingly the company deposited Rs. 5.83 lacs on 14.02.02. However the said amount covers about 50% of the full liability (100%) upto 31.03.2005. The petition is yet to be heard. However from 2005-2006 onwards the company is making a provision / payment only for 50% of the tax liability for the respective year on the basis of the interim judgement. Since the management is hopeful of favourable decision no provision is being made in the ac- counts for the balance 50% of the liability.

NOTE 3 - OTHER NOTES

a) Interest on Investments under lien & in custody of Govt. Departments and Export Incentives the quantum of which is un-ascertainable with reasonable certainity, continue to be accounted for on cash basis.

b) As per the accounting policy followed by the company the valuation of Finished Goods is inclusive of excise duty. Accordingly the value of Finished Goods in Proft & Loss A/c include the amount of excise duty. Corre- spondingly the amount of such duty on fnished goods has been debited to Excise Duty Expenses in the Proft & Loss A/c with an equivalent credit amount carried forward in the Balance Sheet under the head "˜''Liability for Expenses''. As a result the effect of the same on the proft for the year is "˜Nil''.

c) On 8th July, 2011, a wholly owned subsidiary "˜Simplex Mash'' was registered in Temirtau city, Kazakhstan, as a Limited Liability Partnership (LLP). The initial capital contribution of $ 1,000 (Rs. 51,820/) and $ 144,840 (Rs. 79,34,971/-) other payments towards formation & other related expenditure has been made by Simplex Castings Ltd. This includes $ 128,560 (Rs. 71,43,111/-) invested during the year by way of transfer to the Bank a/c of Simplex Mash for Kazag Govermental expertise on furhter feasibility report before fnalising the agree- ment between the LLP and the government agency. No transation has taken place and Simplex Mash is yet to commence it activity. Accordingly no other disclosure nor the consolidated balance sheet has been made.

d) The company is moving an application with the Central Government for approval in respect of the excess mangerial remuneration paid to directors for the year 2012-13 amounting to Rs. 21.28 lacs, arrived at based on the limits laid down under Schedule XIII of the Companies Act, 1956 and as specifed in the terms of ap- pointment.

e) Pursuant to Accounting Standard (AS) 28, as explained to us, there being no indication of impairment of as- sets, no loss has been recognised on this account by the company.

f) In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business. The Provisions for depreciation and all known liabilities are adequate and not in excess of amount considered reasonably necessary.

g) Trade Receivables and other debit and credit balances are subject to confrmation and reconciliation, if any.

h) Some of the Bank Balances are subject to reconciliation and balance confrmation.


Mar 31, 2012

A) Rights of shareholders:

The Company has only one class of equity shareholders. Each holder is entitled to one vote per share.

The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Direc- tors is subject to the approval by the shareholders at the ensuing Annual General Meeting.

In the event of liquidation, the shareholders of equity shares are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholdings.

1) Term Loans from Banks (State Bank of India (SBI) Bank of Baroda (BOB) & Axis Bank (Axis)) are secured by 1st Pari Passu charge by way of Equitable Mortgage of factory leasehold land located at Bhilai and Urla includ- ing hypothecation of Plant & Machineries and entire existing and proposed Fixed Assets of the company and 2nd Pari-passu charge on the entire Current Assets of the company by way of hypothecation/pledge.

2) Vehicle Loans from Banks are secured by Hypothecation of respective vehicles purchased under the loan.

1) Cash credit, WCDL, Stand-by line of credit & Export Packing credit facility from Banks (State Bank of India (SBI), Bank of Baroda (BOB) and Axis Bank) under Cash Credit facilities are secured by 1st Pari Passu charge by way of Hypothecation / Pledge of entire Current Assets including Raw-Materials, Stock-in-Pro- cess, Finished Goods, Stores & Spares at factory premises or such other places as may be approved by bank and assignment of Book Debts both present and future and 2nd Pari-passu charge on the entire Fixed Assets (existing & proposed) of the company by way of hypothecation/mortgage._

There are no Micro, Small & Medium Enerprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2012. This information as required to be disclosed under the Micro, Small and Medium Enterprise Development Act, 2006 has been determined to the extent such parties have been identified on the information available with the Company.

* There is no amount due and outstanding to be paid to the Investor Education and Protection Fund as at 31st March, 2012. As informed by management these amounts shall be paid to the said fund as and when they be- come due.

NOTE 2 - CONTINGENT LIABILITIES : As at As at 31.03.2012 31.03.2011

a) Bank Guarantees 2,546.08 2,276.28 (Time deposits pledged with banks agst. Above) 176.64 166.58

b) Letters of Credit 3,025.21 2,072.63

c) Excise/Service Tax matters 0.80 2.52

d) Income Tax matters 158.43 477.72

f) Penalties for late deliveries / liquidated damages in respect of contracts are accounted for as and when claims are received and accepted. Aggregate amount of possible claims as at the year end is not ascertained.

g) Pursuant to the judgement of the State Industrial Court, Raipur, on the labour case relating to strike de- clared in the year 1990, the Company has been directed to pay compensation to the retrenched workers amounting to Rs.82.80 lacs in total. However the company has obtained a stay against the said order from the High Court, Bilaspur vide order dated 28.11.2001, on account of a petition contending the order which is yet to be heard. Since the management is hopeful of favourable decision, no provision has been made in the accounts for the said liability of Rs. 82.80 lacs.

h) Pursuant to the interim judgement of the Honourable High Court, Bilaspur in the case relating to levy of Terminal Tax by Municipal Corporation, Bhilai, the Company has been directed to deposit 50% of the tax demand for the period upto 31st December, 2001 subject to which the balance 50% has been stayed. Ac- cordingly the company deposited Rs.5.83 lacs on 14.02.02. However the said amount covers about 50% of the full liability (100%) upto 31.03.2005. The petition is yet to be heard. However from 2005-2006 onwards the company is making a provision / payment only for 50% of the tax liability for the respective year on the basis of the interim judgement. Since the management is hopeful of favourable decision no provision is being made in the accounts for the balance 50% of the liability.

NOTE 3 - OTHER NOTES

a) The revised Schedule VI has become effective from 1st April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped /reclassified wherever necessary to correspond with the current year classification / disclosure.

b) Interest on Investments under lien & in custody of Govt. Departments and Export Incentives the quantum of which is un-ascertainable with reasonable certainity, continue to be accounted for on cash basis.

c) As per the accounting policy followed by the company the valuation of Finished Goods is inclusive of excise duty. Accordingly the value of Finished Goods in Profit & Loss A/c include the amount of excise duty. Correspondingly the amount of such duty on finished goods has been debited to Excise Duty Expenses in the Profit & Loss A/c with an equivalent credit amount carried forward in the Balance Sheet under the head ''Liability for Expenses'. As a result the effect of the same on the profit for the year is 'Nil'.

d) Pursuant to Accounting Standard (AS) 28, as explained to us, there being no indication of impairment of assets, no loss has been recognised on this account by the company.

e) On 8th July, 2011, a wholly owned subsidiary 'Simplex Mash' was registered in Temirtau city, Kazakhstan, as a Limited Liability Partnership (LLP). The initial capital contribution of $ 1,000 (Rs.51,820/) and $ 1,868 (Rs. 96,805/-) other payments towards formation & other related expenditure has been made by Simplex Castings Ltd. No further transaction has taken place between the two entities, and Simplex Mash has not commenced it activity during the year. Accordingly no other disclosure nor the consolidated balance sheet has been made.

f) In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated if realised in the ordinary course of business. The Provisions for depreciation and all known liabilities are adequate and not in excess of amount considered reasonably necessary.

g) Trade Receivables and other debit and credit balances are subject to confirmation and reconciliation, if any.

h) Some of the Bank Balances are subject to reconciliation and balance confirmation.


Mar 31, 2011

1. Contingent Liabilities : (Rs. in lacs) Current Year Previous Year

a) i) Bank Guarantees 2,276.28 1728.82 (includes expired BGs-Rs. 82.57 lacs - Pre. Yr. Rs. Nil)

ii) Letters of Credit 2,072.63 886.14 Times deposits pledged with banks agst. (a-i) above 166.27 166.27

b) Excise/Service Tax matters 2.52 2.52

c) Sales Tax matters - 13.27

d) Income Tax matters 477.72 6.50

e) Penalties for late deliveries/liquidated damage in respect of contracts are accounted for as and when claims are received and accepted. Aggregate amount of possible claims as at the year end is not ascertained.

f) Pursuant to the judgement of the State Industrial Court, Raipur, on the labour case relating to strike declared in the year 1990, the Company has been directed to pay compensation to the retrenched workers amounting to Rs.82.80 lacs in total. However the company has obtained a stay against the said order from the High Court, Bilaspur vide order dated 28.11.2001, on account of a petition contending the order which is yet to be heard. Since the management is hopeful of favourable decision, no provision has been made in the accounts for the said liability of Rs. 82.80 lacs.

g) Pursuant to the interim judgement of the Honourable High Court, Bilaspur in the case relating to levy of Terminal Tax by Municipal Corporation, Bhilai, the Company has been directed to deposit 50% of the tax demand for the period upto 31st December, 2001 subject to which the balance 50% has been stayed. Accordingly the company deposited Rs.5.83 lacs on 14.02.02. However the said amount covers about 50% of the full liability (100%) upto 31.03.2005. The petition is yet to be heard. However from 2005-2006 onwards the company is making a provision / payment only for 50% of the tax liability for the respective year on the basis of the interim judgement. Since the management is hopeful of favourable decision no provision is being made in the accounts for the balance 50% of the liability.

2. Interest on Investments under lien & custody of Government Departments and Export Incentives, the quantum of which are unascertainable with reasonable certainty, continue to be accounted for on Cash basis.

3. a) Sales include sale of scrap / surplus raw materials from manufacturing units. Sales and Job work receipts are exclusive of :

i) Sales Tax Rs. 6,62,02,706/- (Previous Year Rs. 5,21,90,286/-)

b) Sales of goods include direct & indirect exports as under;

-Direct Exports Rs. 7,57,44,878/- (Previous Year - Rs.5,02,32,936/-)

-Indirect Exports Rs. Nil (Previous Year - Rs. Nil)

4. During the year ending 31-03-2011 the company has generally worked on single shift. Hence depreciation has been provided on single shift basis.

5. Pursuant to Accounting Standard (AS) 28, as explained to us, there being no indication of impairment of assets, no loss has been recognised on this account by the company.

6. Sundry Debtors and other debit and credit balances are subject to confirmation.

7. Previous year's figures have been re-arranged & re-grouped wherever necessary to conform to the classifications and make them comparable with those of current year.

8. Some of the Bank Balances are subject to reconciliation and balance confirmation.

9. As per the accounting policy followed by the company the valuation of Finished Goods is inclusive of excise duty. Accordingly the value of Finished Goods in Profit & Loss A/c include the amount of excise duty. Correspondingly the amount of such duty on.finished goods has been debited to Excise Duty Expenses in the Profit & Loss A/cwith an equivalent credit amount carried forward in the Balance Sheet under the head "Liability for Expenses'. As a result the effect of the same on the profit for the year is 'Nil'.

10. There are no Micro, Small & Medium Enerprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2011. This information as required to be disclosed under the Micro, Small and Medium Enterprise Development Act, 2006 has been determined to the extent such parties have been identified on the information available with the Company.


Mar 31, 2010

1. CONTINGENT LIABILITIES:

(Rs. in lacs) Current Year Prev. Year

a) i) Bank Guarantees 1726.82 1796.31

(includes expired BGs-Rs.Nil lacs-Pre.Yr. Rs.78.90 lacs)

ii) Letters of Credit 886,14 1135.35

Time deposits pledged with banks agst. (a-i) above 166.27 125.00

b) Excise/Service Tax matters 2,52 7.27

c) Sales Tax matters 13.27 49.78

d) Income Tax matters 6.50 7.27

e) Penalties for late deliveries / liquidated damage in respect of contracts are accounted for as and when claims are received and accepted. Aggregate amount of possible claims as at the year end is not ascertained.

f) Pursuant to the judgement of the State Industrial Court, Raipur, on ye labour case relating to strike declared in the year 1990, the Company has been directed to pay compensation to the retrenched workers amounting to Rs.82.80 lacs in total. However the company has obtained a stay against the said order from the High Court, Bilaspur vide order dated 28.11.2001, on account of a petition contending the order which is yet to be heard. Since the management is hopeful of favourable decision, no provision has been made in the accounts for the said liability of Rs. 82.80 lacs.

g) Pursuant to the interim judgement of the Honourable High Court, Bilaspur in the case relating to levy of Terminal Tax by Municipal Corporation, Bhilai, the Company has been directed to deposit 50% of the tax demand for the period upto 31st December, 2001 subject to which the balance 50% has been stayed. Accordingly the company deposited Rs.5.83 lacs on 14.02.02. However the said amount covers about 50% of the full liability (100%) upto 31.03.2005. The petition is yet to be heard. However from 2005-2006 onwards the company is making a provision / payment only for 50% of the tax liability for the respective year on the basis of the interim judgement. Since the management is hopeful of favourable decision no provision is being made in the accounts for the balance 50% of the liability.

2. Interest on Investments under lien & custody of Government Departments and Export Incentives, the quantum of which are unascertainable with reasonable certainty, continue to be accounted for on Cash basis.

3. a) Sales include sale of scrap / surplus raw materials from manufacturing units. Sales and Job work receipts are exclusive of:

Sales Tax Rs. 5,21,90,286/- (Prev.Year Rs. 5,71,16,936/-) b) Sales of goods include direct & indirect exports as under:

Direct Exports Rs. 5,02,32,936/- (Previous year - Rs. 14,67,53,945/-) Indirect Exports Rs. Nii (Previous year - Rs. 38,322/-)

4. During the year ending 31-03-2010 the company has generally worked on single shift. Hence depreciation has been provided on single shift basis.

5. Pursuant to Accounting Standard (AS) 28, as explained to us, there being no indication of impairment of assets, no loss has been recognised on this account by the company.

6. Sundry Debtors and other debit and credit balances are subject to confirmation.

7. Previous years figures have been re-arranged & re-grouped wherever necessary to conform to the classifications and make them comparable with those of current year.

8. Some of the Bank Balances are subject to reconciliation and balance confirmation.

9. Advances recoverable in cash or kind includes advances to companies / firms under the same management details of which are as follows :

10. As per the accounting policy followed by the company the valuation of Finished Goods is inclusive of excise duty. Accordingly the value of Finished Goods in Profit & Loss A/c include the amount of excise duty. Correspondingly the amount of such duty on finished goods has been debited to Excise Duty Expenses in the Profit & Loss A/c with an equivalent credit amount carried forward in the Balance Sheet under the head "Liability for Expenses. As a result the effect of the same on the profit for the year is Nil.

11. There are no Micro, Small & Medium to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2010. This information as required to be disclosed under the Micro, Small and Medium Enterprise Development Act, 2006 has been determined to the extent such parties have been identified on the information available with the Company.