Mar 31, 2018
1) INTANGIBLE ASSETS AND AMORTIZATION
Intangible assets are stated at original cost net of tax/duty credit availed, if any, less accumulated amortization and cumulative impairment. Intangible assets are recognized when it is probable that the future economic benefits are attributable to the asset will fow to the enterprise and the cost of asset can be measured reliably. Intangible assets are amortized over their estimated useful life. The estimated useful life of an identifiable intangible asset is based on number of factors including the effects of obsolescence etc.
Intangible Assets not ready for the intended use on the date of balance sheet are disclosed as "intangible assets under development.
2) BORROWINGS
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs.
To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates. Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a initial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as other income or finance costs.
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.
3) BORROWING COST
Borrowing costs that are directly attributable to acquisition, construction or production of a qualifying asset are capitalized/inventoried as part of cost of such assets till such time the asset is ready for its intended use/or sale. Qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.
All other borrowing costs are expensed in the period in which they are incurred.
4) PROVISION
Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash fows estimated to settle the present obligation, its carrying amount is the present value of those cash fows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
5) CONTINGENT LIABILITIES
Contingent liabilities are disclosed when there is a possible obligation arising from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from part events where it is not probable that an outfow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably.
6) EMPLOYEE BENEFITS Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
Provident Fund & Employee State Insurance
Contribution towards provident fund and employee state insurance for employees is made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any further obligations, apart from the contributions made on a monthly basis.
Superannuation fund
The Company have a superannuation plan for the benefit of its employees. Employees who are members of the defined benefit superannuation plan are entitled to benefits depending on the years of service and salary drawn. The Company contributes up to 12% of the eligible employees'' salary or ''1,00,000, whichever is lower, every year. Such contributions are recognised as an expense as and when incurred. The Company does not have any further obligations beyond this contribution.
Gratuity
The Company provides for gratuity, a defined benefit plan (the "Gratuity Plan") covering eligible employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment. The gratuity plan in Company is funded through annual contributions to Life Insurance Corporation of India (LIC) under its Company''s Gratuity Scheme where as others are not funded. The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The Company''s liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. The present value of the defined benefit obligation is determined by discounting the estimated future cash outfows using interest rates of government bonds. Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise. They are included in retained earnings in the statement of changes inequity and in the balance sheet. Past-service costs are recognised immediately in profit or loss.
Compensated Absences
Accumulated compensated absences, which are expected to be availed or encashed within 12 months from the end of the year end are treated as short term employee benefits. The obligation towards the same is measured at the expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused entitlement as at the year end. Accumulated compensated absences, which are expected to be availed or encashed beyond 12 months from the end of the year end are treated as other long term employee benefits. The Company''s liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. The present value of the defined benefit obligation is determined by discounting the estimated future cash outfows using interest rates of government bonds. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in profit or loss in the period in which they arise. Past-service costs are recognised immediately in profit or loss.
7) SHARE-BASED PAYMENT ARRANGEMENTS
Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. Details regarding the determination of the fair value of equity settled share-based transactions are set out in note
8. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight line basis over the vesting period, based on the Company''s estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Company revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in the statement of profit and loss such that the cumulative expense refects the revised estimate, with a corresponding adjustment to the equity settled share option outstanding account. Equity-settled share-based payment transactions with parties other than employees are measured at the fair value of the goods or services received, except where that fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counter party renders the service. For cash-settled share-based payments, a liability is recognised for the goods or services acquired, measured initially at the fair value of the liability. At the end of each reporting period until the liability is settled, and at the date of settlement, the fair value of the liability is re-measured, with any changes in fair value recognised in profit or loss for the year.
9) TRANSACTIONS IN FOREIGN CURRENCY
A) Functional and Presentation currency
The functional currency of the Company is Indian Rupee. These financial statements are presented in Indian Rupee (rounded off to lakhs).
B) Transaction and balances
The foreign currency transactions are recorded, on initial recognition in the functional currency, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.
The foreign currency monetary items are translated using the closing rate at the end of each reporting period. Non-monetary items that are measured in terms of historical cost in a foreign currency shall be translated using the exchange rate at the date of the transaction. Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous financial statements shall be recognised in profit or loss in the period in which they arise.
Foreign exchange differences recorded as an adjustment to borrowing costs are presented in the statement of profit and loss, within finance cost. All other foreign exchange gains and losses are presented in the statement of profit and loss on net basis.
10) SEGMENT REPORTING
Operating segments are reported in a manner consistent with the internal reporting to the Chief Operating Decision Maker "CODM" of the Company. The CODM is responsible for allocating resources and assessing performance of the operating segment. The Company has monthly review and forecasting procedure in place and CODM reviews the operations of the Company as a whole.
11) EARNING PER SHARE
Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes and dividend on cumulative preference shares for the year) by the weighted average number of equity shares outstanding during the year. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for event of bonus issue/right issue etc; bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of shares).
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
12) OPERATING CYCLE
Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.
22) SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS
In the process of applying the Company''s accounting policies, management has made the following estimates, assumptions and judgments which have significant effect on the amounts recognized in the financial statement:
a) Contingencies
Judgment of the Management is required for estimating the possible outfow of resources, if any, in respect of contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.
b) Allowance For Uncollected Accounts Receivable And Advances
Trade receivables do not carry any interest and are stated at their normal value as reduced by appropriate allowances for estimated irrecoverable amounts. Individual trade receivables are written off when management deems them not collectible. Impairment is made on ECL, which are the present value of the cash shortfall over the expected life of the financial assets.
c) Defined Benefit Plans
The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in future. These includes the determination of the discount rate, future salary increases, mortality rates and attrition rate. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.
d) Fair Value Measurement Of Financial Instruments
When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow (DCF) model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
Nature of Securities Loan payable on Demand
1st pari passu charge by way of hypothecation of entire current asset constituted of raw materials, stock in process, finished goods, consumable stores, book debts, bills whether documentary or clean outstanding monies, receivables both present and future of the company.2nd pari-passu charge on entire moveable assets forming part of fixed/block assets of the company both present and future situated at Village Dappar Tehsil Derabassi, Distt. Mohali (Punjab), Orgadam, Chennai (Tamil Nadu) and Jamshedpur (Jharkhand).
Foreign Currency Loan
Buyer credit loans are secured by way of lien on non-funds based working capital limits and counter indemnity of the Company.
All secured loans are further secured by personal guarantee of Chairman and Managing Director of the Company.
Note:- 41 Related party disclosure
1) Related Party Disclosure
a) Key Managerial Personnel Sh. Dheeraj Garg, (Managing Director)
Sh. A.V Unnikrishnan-(Deputy Managing Director)
Sh. M.L. Jain-(Executive Director)
Sh. Naveen Sorot ( CFO)
Sh. Shaman Jindal ( Company Secretary)
b) Relatives of the KMP Sh. R.K Garg, Chairman
Smt. Sunena Garg Ms. Priya Garg Mr. Rahul Jain
c) Enterprises over which key management personnel (KMP) are able to exercise significant control:-
SAB Industries Limited, SAB Udyog Limited, Malwa Chemtex Udyog Ltd., Steel Strips Financiers Pvt. Ltd., Munak International Pvt. Ltd., S.S. Credits Pvt. Ltd., S.J. Mercantile Pvt. Ltd(Earlier known as S.A. Holding Pvt. Ltd.) ., Malwa Holdings Pvt. Ltd., Munak Investment Pvt. Ltd., Steel Strips Holding Pvt. Ltd., Chandigarh Developers Pvt. Limited , DHG Marketing Pvt. Ltd , Steel Strips Infrastructre Limited, Munak financiers P Ltd, Steel Strips Ltd & Steel Strips Industries Limited (Earlier Known as Steel Strips Leasing Limited).
Defined Benefit Plan
The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. For the funded plan the Company makes contributions to recognised funds in India. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.
During the year 2017-18, the Company has granted 26500 Employee Stock Options to the employees of the Company under "Steel Strips Wheels Limited-Employee Stock Option Scheme, 2016 ("ESOS 2016").Each option would entitle the holder thereof to subscribe one equity shares of Rs. 10/- each at an exercise price of Rs. 200/- per share of the Company.
13. Steel Strips Wheels Limited , Employee Stock Option Scheme 2014
The Company has established an Employee Stock Option Scheme (ESOS) as" Steel Strips Wheels Limited Employee Stock Option Scheme 2014(EsOs 2014)" in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 which was approved by the board of Directors and subsequently by shareholders of the Company in their Extra ordinary General meeting dated 27.02.2015. The Company had granted 1,50,000 options to employees. The exercise price was Rs. 100 per share. Date of grant was 02.03.2015 and vesting period was one year from the date of grant. Exercise period for the option was within 4 years from the date of grant of the options. However during the financial year 2015-16, 50,000 options were forfeited under this "ESOS 2014" and as on 31.03.2018, 87,575 options have been exercised by the option holders and consequently equivalent number of shares have been issued and 12,425 Employee Stock Option were outstanding under "ESOS 2014".
14. Steel Strips Wheels Limited- Employee Stock Option Scheme, 2016 (ESOS 2016)
"During he year 2016-17, shareholders of the company, in their Annual General Meeting held on 30.09.2016, authorized the company to create, offer, issue and grant, in one or more tranches, up to 1,00,000 options to the employees of the company under âSeel Strips Wheels Limited-Employee Stock Option Scheme, 2016 ("ESOS 2016"). Each option would entitle the holder thereof to subscribe one equity share of Rs. 10/each at an exercise price of Rs. 200/- per share of the company. All the options granted on any date shall vest not earlier than 1 (one) year and not later than a maximum of 4 (four) years from the respective date of grant of options as may be determined by Employee Compensation Committee (ECC). Exercise period would commence from the date of vesting and will expire on completion of 5 years from the respective date of grant of options or such other shorter period as may be decided by the ECC from time to time. During the year 2017-18, the Company has granted 26,500 options on 16.05.2017 and 73500 options are yet to be granted as on 31.03.2018.
3 Impact of fair Valuation method on Net Profit under EPS
In March 2005, the Institutes of Chartered Accountants of India has issued a guidance note on " Accounting for Employees Share based payments" applicable to Employee based share plan, the grant date in respect of which falls on or after April 1 2005. The said guidance notes requires the Pro-forma Discloser of the impact of fair value method of accounting of Employee stock Compensation accounting in the financial statements. Applying the fair value based method defined in the said guidance note the impact on the reported net profit and earning per share would be as follows:
ESOS 2016 Method of valuation -Fair value method
The Company has calculated the employee compensation cost using the fair value method of accounting to account for the options granted under ESOS 2016, therefore their will not be any impact on profits and EPS of the company.
ESOS 2014 Method of valuation -Intrinsic value method
a) Difference between the employee compensation cost so computed and the employee compensation cost that shall have been recognized if it had used the fair value of the options.
There is no effect of the above for ESOS 2014.
b) Impact of this difference on profits and on EPS of the Company There is no effect of the above for ESOS 2014.
4. Weighted Average fair value of options granted under ESOS 2016 during the year is 729.87 (Previous year NIL) per option.
The volatility of the options is based on the historical volatility of the share price applicable to the total expected life of each option.
6. No Shares out of the issued , subscribed and paid up Share Capital were allotted as Bonus Shares in the last five years by capitalization of Securities Premium Reserves.
7. No Shares out of the issued , subscribed and paid up Share Capital were allotted in the last five years pursuant to the various scheme of amalgamation without payment being received in cash.
Note:- 48. Financial risk management objectives and policies
The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to support its operations. The Company''s financial assets include loans, trade and other receivables, and cash & cash equivalents that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The company''s senior management ove rsees the management of these risks. The company''s senior management is supported by a Business Risk Management committee that advises on financial risks and the appropriate financial risk governance framework for the Company. This Business Risk Management committee provides assurance to the Company''s senior management that the Company''s financial risk activities are governed by appropriate policies and procedure and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each risk, which are summarised as below:
Market risk
a) Price Risk
Fluctuation in commodity price in global market affects directly and indirectly the price of raw material and components used by the Company in its products. The key raw material for the Company''s business is HR Steel. The Company has arrangements with its major customers for passing on the price impact. The Company is also regularly taking initiatives like VA VE ( value addition, value engineering ) to reduce its raw material costs to meet targets set up by its customers for cost downs.
b) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long term debt obligations with floating interest rates. The Company is carrying its borrowings primarily at variable rate.
Interest rate sensitivity
For the Purpose of computing interest rate sensitivity on the above borrowings, management has estimated a reasonably possible change in interest rate as 50bps based on current as well as expected economic conditions. This analysis is based on Long Term Risk exposures outstanding at the reporting date and assumes that all other variables, in particular foreign currency exchange rates, remains constant. The period and balances are not necessarily representative of the average amounts outstanding during the periods.
c) Foreign currency risks
The company tries to manage the foreign currency risk by attaining natural hedge. The company also does selective hedging to hedge its risk associated with foreign currency and to address the timing difference in foreign currency collections & payments.
d) Credit risk
The credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligations towards the Company and arises principally from the Company''s receivables from customers and deposits with banking institutions. The maximum amount of the credit exposure is equal to the carrying amounts of these receivables. The Company has developed guidelines for the management of credit risk from trade receivables. The Company''s primary customers are major Indian automobile manufacturers (OEMs) with good credit ratings. Non-OEM clients are subjected to credit assessments as a precautionary measure, and the adherence of all clients to payment due dates is monitored on an on-going basis, thereby practically eliminating the risk of default. The Company has deposited liquid funds at various banking institutions. Primary banking institutions are major Indian and foreign banks. In long term credit ratings these banking institutions are considered to be investment grade. Also, no impairment loss has been recorded in respect of fixed deposits that are with recognised commercial banks and are not past due.
Liquidity risk
The liquidity risk encompasses any risk that the Company cannot fully meet its financial obligations. To manage the liquidity risk, cash flow forecasting is performed in the operating divisions of the Company and aggregated by Company finance. The Company''s finance monitors rolling forecasts of the Company''s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities / overdraft facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.
b) Loan covenants
Under the terms of the major borrowing facilities, the Company is required to comply with certain financial covenants and the Company has complied with those covenants throughout the reporting period.
Note:- 50 First Time Adoption as per Ind AS
These a re the Company''s first financial statements prepared in accordance with Ind A S.
These financial statements, for the year ended 31 March 2018, are the first financial statements, the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2016, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2018, together with the comparative period data as at and for the year ended 31 March 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at 1 April 2016, the Company''s date of transition to Ind AS. An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.
Exemptions and exceptions availed
Set out below are the applicable I nd AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to I nd AS.
A. Ind AS Optional exemptions availed.
Deemed Cost
Under Ind AS paragraph D7 AA of Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and for Investment properties covered by Ind AS 40 Investment Properties.
Accordingly, the Company has elected to measure all of its properties, plant and equipment, Investment property and intangible assets at their previous GAAP carrying values.
B. Ind AS Mandatory exceptions Estimates
An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.
Ind AS estimates as at 1st April, 2016 and 31st March, 2017 are consistent with the estimates as at the same date made in the conformity with previous GAAP . The Company made estimates for the following in accordance with Ind AS at the date of transition as these were not required under previous GAAP.
C. Transition to Ind AS - Reconciliations
The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS as required under Ind AS 101:
1) Reconciliation of Balance sheet as at 1st April, 2016 (refer note 51)
2) (a) Reconciliation of Balance sheet as at 31st March, 2017 (refer note 51)
(b) Reconciliation of Total Comprehensive Income for the year ended 31st March, 2017 (refer note 52)
3) Reconciliation of Equity as at 1st April, 2016 and as at 31st March, 2017(refer note 53)
4) Reconciliation of Income statement as at 31st March, 2017(refer note 54)
Note:- 15 Effect of Ind AS adoption on the balance sheet as at 01 April, 2016 and 31 March, 2017
The presentation requirements under Previous GAAP differs from Ind AS, and hence, Previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The Regrouped Previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with Previous GAAP.
Mar 31, 2017
1.1 The Company has issued only one class of shares i.e. equity shares of Rs. 10/- per share. All equity shares rank pari passu and carry equal rights with respect to voting and dividend. The dividend proposed by the board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend.
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 pro portion to the number of equity shares held by the shareholders.
1.2 The details of Shareholders holding more than 5% shares.
1.3 Share Reserved for Issue under Options outstanding as at the end of the year on unissued share capital
As on 31st March 2017, 35175 (Previous Year 100,000), Employee Stock Options were outstanding under the âSteel Strips wheels Limited Employee Stock Option Scheme 2014â of the Company. Each option would entitle the holder thereof to subscribe one equity share of Rs. 10/- each at an exercise price of Rs. 100/- per share of the company.
During the year 2016-17, Shareholders of the Company , in their Annual General Meeting held on 30.09.2016, authorized the Company to create, offer, issue and grant, in one or more tranches, upto 1,00,000 options to the employees of the Company under âSteel Strips Wheels Limited-Employee Stock Option Scheme,2016 (âESOS 2016â).Each option would entitle the holder thereof to subscribe one equity shares of Rs. 10/- each at an exercise price of Rs. 200/- per share of the Company. The said options are yet to be granted till 31st march 2017.
Steel Strips Wheels Limited , Employee Stock Option Scheme 2014
The Company has established an Employee Stock Option Scheme (ESOS) asâ Steel Strips Wheels Limited Employee Stock Option Scheme 2014(ESOS 2014)â in accordance withthe Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 which was approved by the board of Directors and subsequently by shareholders of the Company in their Extra ordinary General meeting dated 27.02.2015. The Company had granted 1,50,000 options to employees. The exercise price was Rs.100 per share. Date of grant was 02.03.2015 and vesting period was one year from the date of grant.
Exercise period for the option was within 4 years from the date of grant of the options. However during the financial year 2015-16, 50,000 options were forfeited under this âESOS 2014â and 64825 options have been exercised by the option holders and consequently equivalent number of shares have been issued in 2016-17. As on 31st March 2017, 35,175 Employee Stock Option were outstanding under âESOS 2014â.
Steel Strips Wheels Limited- Employee Stock Option Scheme, 2016 (ESOS 2016)
During the year 2016-17, shareholders of the company, in their Annual General Meeting held on 30.09.2016, authorized the company to create, offer, issue and grant, in one or more tranches, up to 1,00,000 options to the employees of the company under âSteel Strips Wheels Limited- Employee Stock Option Scheme, 2016 (âESOS 2016â). Each option would entitle the holder thereof to subscribe one equity share of Rs. 10/- each at an exercise price of Rs. 200/- per share of the company. All the options granted on any date shall vest not earlier than 1 (one) year and not later than a maximum of 4 (four) years from the respective date of grant of options as may be determined by Employee Compensation Committee (ECC). Exercise period would commence from the date of vesting and will expire on completion of 5 years from the respective date of grant of options or such other shorter period as may be decided by the ECC from time to time The said options are not yet granted till 31st March, 2017.
1. Impact of Fair Valuation Method on Net Profit under EPS
In March 2005, the Institute of Chartered Accountants of India has issued a guidance note on â Accounting for Employees Share based paymentsâ applicable to Employee based share plan, the grant date in respect of which falls on or after April 1, 2005. The said guidance notes requires the Pro-forma Disclosers of the impact of fair value method of accounting of Employee Stock Compensation accounting in the financial statements. Applying the fair value based method defined in the said guidance note the impact on the reported net profit and earning per share would be as follows:
2 Weighted Average fair value of options granted during the year is NIL. (Previous year NIL) per option.
3 The fair Value of the Options, is estimated on the date of grant using the black- scholes model with the following significant assumptions
1.5 No Shares out of the issued , subscribed and paid up Share Capital were allotted as Bonus Shares in the last five years by capitalization of Securities Premium Reserves
1.6 No Shares out of the issued , subscribed and paid up Share Capital were allotted in the last five years pursuant to the various scheme of amalgamation without payment being received in cash.
Securities and Terms of Repayments for Secured Long Term Borrowings
1) Nature of Securities
a) Rupee Term Loans/ Foreign Currency Term Loan/ NBFC
Term Loans from banks, financial institutions and others are secured / to be secured by equitable mortgage created/ to be created by deposit of title deeds of the Companyâs immovable properties for Dappar( In Punjab),Oragadam( In Chennai) & Seraikella(In Jharkhand) in addition to the deed of hypothecation charging Companyâs moveable properties, both present and future and second charge created / to be created on raw materials, semi-finished goods, consumable stores, finished goods and book debts etc on paripassu basis. However in regard to loan taken from HDFC Bank for Mehsana (Gujarat) project, the said loan will be secured (first charge) through equitable mortgage by deposit of title deeds of the Companyâs immovable properties situated at Mehsana (in Gujarat) and Second pari passu charge on all other immovable properties , movable properties and current assets situated at Dappar( In Punjab),Oragadam( In Chennai) unit, & Seraikella (In Jharkhand).
All secured loans are further secured by personal guarantee of Chairman & Director and/ or Managing Director of the Company.
b) Vehicle loans are secured against the Hypothecation of vehicle to lender
2) Terms of Repayments
Maturity Profile of Secured Term Loans are as below :
In compliance with AS 22 on Accounting for the Taxes on Income, a sum of r1 111.66 lacs (previous Year r 1424.83 lacs) has been considered as Net deferred tax liabilities in respect of timing difference for the year under consideration.
Deferred tax Assets will likely to be recovered from future taxable income.
During the year Company has made a provision for accrued liability on account of Gratuity and leave encashment on the basis of actuarial valuation based on projected unit method as required by AS 15 (Revised 2005).
Nature of Securities Loan payable on Demand
1st pari passu charge by way of hypothecation of entire current asset constituted of raw materials, stock in process, finished goods, consumable stores, book debts, bills whether documentary or clean outstanding monies, receivables both present and future of the Company. 2nd pari-passu charge on entire moveable assets forming part of fixed/block assets of the Company both present and future situated at Village Dappar, Tehsil Derabassi, Distt. Mohali (Punjab), Orgadam, Chennai (Tamil Nadu) and Jamshedpur (Jharkhand)
Foreign Currency Loan
Buyer credit loans are secured by way of lien on non-funds based working capital limits and counter indemnity of the Company. All secured loans are further secured by personal guarantee of Chairman and Managing Director of the Company.
Note 2(1)
- Land for Oragadam plant in Chennai is obtained on 99 years of lease basis from State Industrial Promotion corporation of Tamilnadu Limited(SIPCOT), a Government of Tamilnadu enterprises. The total cost of Lease hold land is amortised over a period of 99 years.
Accordingly a sum of Rs. 12.06 Lacs ( Previous year Rs. 12.09 Lacs) is amortised during the period.
Note 2 (2)
Preoperative Expenses/ Interest pending capitalization consist of expenses incurred /being incurred during implementation of project under installation of new fixed Assets. These will be capitalized with other fixed assets when project /fixed assets shall commence commercial production. Interest on term Loan of Rs. 1119.95 Lacs (Previous year 33.69 Lacs) has been captalised during the year.
Note 2 (3)
No Assets of the Company is given on lease hold basis to outsiders.
Note 2 (4)
Addition in assets during the year also includes the reinstatement of Foreign currency term Loans.
Note 5 (5)
Addition in Intangible Assets mainly represents installation of SAP software in the Company & Others softwares.
Note 5 (6)
(i) Pursuant to applicability of Schedule II, of Companies Act 2013, with effect from 1st April 2014, Management has reassessed the useful life of tangible assets based on the internal and external technical evaluation. The Depreciation on fixed assets is provided on straight line method in accordance with applicable Schedule of the Companies Act, 2013.
(ii) Residual values of assets have been considered at 5% of the original cost of the assets.
iii) Depreciation on assets carried at carrying amount as on 01.04.2014 and is depreciated as per Straight line method over the remaining useful life of the assets. Further the assets whose remaining useful life are nil, has been recognized in the opening balance of retained earnings. Refer the same as transitional provision of the Companies Act.
(iv) The depreciation calculation is based on the balance useful lives of assets and shift working. Depreciation on assets used on double shift basis have been increase by 50% for that period and Depreciation on assets used in triple shift basis have been calculated on the basis of 100% for that period, Except for assets in respect of which no extra shift depreciation is permitted (indicated by NESD in Part C of the schedule).
v) Management has reassessed the useful life of plant and machineries based on the internal and external technical evaluation which is different from useful life prescribed under the act. The reassessed useful life is tabulated as:
The Income Tax Assessment of the Company has been completed upto the Assessment year 2014-15 .There is no demand on Company. Therefore no provision has been made by the Company.
The Company has entered into an agreement for purchase of land admeasuring 304 kanals approx at village Bir Farozari, Distt. Panchkula, at cost of Rs.133.00 Lacs for setting up an auto component unit. The Land has not yet been registered in the name of Company . Pending the same , the advance of Rs. 35.00 Lacs paid by the Company has been shown as advances recoverable and being under legal suit, a provision for the same has been made.
150000 No. of options exercisable into equivalent nos of equity shares of the face value of Rs 10 /- per share was granted under ESOS Scheme in FY 2014-15. The date of grant was 02.03.2015. Out of these options, 50000 options have been forfeited during FY 2015-16. Accordingly proportionate shares expenses have been booked for the period as Expenses.
The Company has a defined benefit gratuity and Earned Leave plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service and accumulation of EL for Staff is upto 60days and for Workers is 90 Days.
The Employeeâs gratuity fund scheme managed by a Trust (Life insurance corporation of India) is defined benefit plan. The Present Value of obligation is determined based on acturial valuation using the projected unit credit method which recognises each period of service as giving rise to additional unit of employee benefits entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.
Net employee benefit expenses (recognised in Employee Cost).
The following tables summarize the components of net benefit expense recognised in the Profit and Loss Account and the amounts recognised in the balance sheet.
Note:
The retirement age has been uniformly taken as 60 years( PY 60years).
The discount rates have been determined by reference to market yields as on 31st march 2016 on CG-Secs of currency and term consistent with those of liability obligations.
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. Level of price neutralization likely to be affected through periodic wages increase over the next 5 to 10 years.
NOTE 3(7)
SEGMENT REPORTING
A) PRIMARY SEGMENT (BUSINESS SEGMENT)
A business segment is a distinguishable component of an enterprise that is engaged in providing an individual product or service or a group of related products or services and that is subject to risks and returns that are different from those of other business segments. The Companyâs Operation predominantly comprise of only one segment i.e Automotive Wheels. In view of the same, separate segmental information is not required to be given as per the requirements of Accounting Standard 17.
B) SECONDARY SEGMENT (GEOGRAPHICAL SEGMENT)
The analysis of geographical segment is based on the geographical location of the customers. The Company operates primarily in India and has presence in international markets as well. Its business is accordingly aligned geographically, catering to two markets. The Company has considered domestic and exports markets as geographical segments and accordingly disclosed these as separate segments.
NOTE 4 (1) & (2). Significant Accounting Policies
1) CORPORATE INFORMATION
Steel Strips Wheels Limited (the Company) is a public limited Company registered in India under the Companies Act 2013 (Erstwhile Companies Act 1956). Its Shares are listed on both BSE Limited and National Stock Exchange of India Limited. The Company is a leading manufacturer of Automotive Wheel rims.
2) BASIS OF PREPARATION
The financial statements have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP) and mandatory Accounting Standards of Companies Act, 2013 as amended from time to time. Further, the guidance notes/announcements issued by the Institute of Chartered Accountants of India (ICAI) are also considered wherever applicable except to the extent where compliance with other statutory promulgations overrides the same requiring a different treatment. The financial statements have been prepared under the historical cost convention on accrual basis.
The accounting policies have been consistently applied by the Company and except for the changes in accounting policy discussed more fully below, are consistent with those used in the previous year.
Mar 31, 2016
The previous year figures have been regrouped / reclassified wherever necessary to confirm the current year presentation.
1. The Company has issued only one class of shares i.e. equity shares of Rs. 10/- per share. All equity shares rank pari passu and carry equal rights with respect to voting and dividend. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend.
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 shareholders.
2. The details of Shareholders holding more than 5% shares.
3. a) Share Reserved for Issue under Options outstanding as at the end of the year on unissued share capital
As on 31st March 2016, 1, 00,000 (Previous Year 1, 50,000), Employee Stock Options were outstanding under the Steel Strips Wheels Limited Employee Stock Option Scheme 2014 of the Company. Each option would entitle the holder thereof to subscribe to one equity share of r10/- each at an exercise price of r 100/- per share of the Company,
b) Steel Strips Wheels Limited, Employee Stock Option Scheme 2014
The Company has established an Employee Stock Option Scheme (ESOS) as" Steel Strips Wheels Limited Employee Stock Option Scheme 2014 ("ESOS 2014") in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 which was approved by the Board of Directors and shareholders. The Company had granted 1, 50,000 options to employees. The exercise price was r 100 per share. Date of grant was 02.03.2015 and vesting period was one year. Exercise period for the option was within 4 years from the date of grant of the options. However during the financial year 2015-16, 50,000 options have been forfeited under this ESOS Scheme 2014.
4) The Number and Weighted average exercise price of Stock Options are as follows:
5. Impact of Fair Valuation Method on Net Profit under EPS
In March 2005, the Institute of Chartered Accountants of India has issued a guidance note on " Accounting for Employees Share based payments" applicable to Employee based share plan, the grant date in respect of which falls on or after April 1, 2005. The said guidance notes require the Pro-forma Disclosers of the impact of fair value method of accounting of Employee Stock Compensation accounting in the financial statements. Applying the fair value based method defined in the said guidance note the impact on the reported net profit and earning per share would be as follows:
6 Weighted Average fair value of options granted during the year is : N. A. (Previous year r 252.36) per option.
7 The fair Value of the Options, is estimated on the date of grant using the black- scholes model with the following significant assumptions
8 No Shares out of the issued, subscribed and paid up Share Capital were allotted as Bonus Shares in the last five years by capitalization of Securities Premium Reserves
9 No Shares out of the issued, subscribed and paid up Share Capital were allotted in the last five years pursuant to the various scheme of amalgamation without payment being received in cash.
Securities and Terms of Repayments for Secured Long Term Borrowings
10) Nature of Securities
a) Rupee Term Loans/ Foreign Currency Term Loan/ NBFC
Term Loans from banks, financial institutions and others are secured / to be secured by equitable mortgage created/ to be created by deposit of title deeds of the Company''s immovable properties for Dappar( In Punjab),Oragadam( In Chennai) & Seraikella(In Jharkhand) in addition to the deed of hypothecation charging Company''s moveable properties, both present and future and second charge created / to be created on raw materials, semi-finished goods, consumable stores, finished goods and book debts etc on paripassu basis. However in regard to loan taken from HDFC Bank for Mehsana (Gujarat) project, the said loan will be secured (first charge) through equitable mortgage by deposit of title deeds of the Company''s immovable properties situated at Mehsana (in Gujarat) and Second pari passu charge on all other immovable properties, movable properties and current assets situated at Dappar( In Punjab),Oragadam( In Chennai) unit, & Seraikella(In Jharkhand).
All secured loans are further secured by personal guarantee of Chairman & Director and/ or Managing Director of the Company.
Nature of Securities Loan payable on Demand
"1st pari passu charge by way of hypothecation of entire current asset constituted of raw materials, stock in process, finished goods, consumable stores, book debts, bills whether documentary or clean outstanding monies, receivables both present and future of the Company.2nd pari-passu charge on entire moveable assets forming part of fixed/block assets of the Company both present and future situated at Village Dappar Tehsil Derabassi, Distt. Mohali (Punjab), Orgadam, Chennai (Tamil Nadu) and Jamshedpur (Jharkhand)"
Foreign Currency Loan
Buyer credit loans are secured by way of lien on non-funds based working capital limits and counter indemnity of the Company. All secured loans are further secured by personal guarantee of Chairman and Managing Director of the Company.
Note 11(1)
-Land for Oragadam plant in Chennai is obtained on 99 years of lease basis from State Industrial Promotion Corporation of Tamilnadu Limited(SIPCOT), a Government of Tamilnadu enterprises. The total cost of Lease hold land is amortized over a period of 99 years. Accordingly a sum of Rs. 12.09 Lacs ( Previous year Rs. 12.19 Lacs) is amortized during the period.
-Addition in Land includes procurement of lands in Seraikella (in Jharkhand) as well as in Mehsana( in Gujarat) for its new upcoming projects of Hot Rolling mills & Alloy wheels. Projects are under implementation stage.
Note 12 (2)
Preoperative Expenses/ Interest pending capitalization consist of expenses incurred /being incurred during implementation of project under installation of new fixed assets. These will be capitalized with other fixed assets when project /fixed assets shall commence commercial production. Interest on term Loan of r 33.69 Lacs (Previous year 68.69 Lacs) has been capitalized during the year.
Note 13 (3)
No Assets of the Company is given on lease hold basis to outsiders.
Note 14 (4)
Addition in assets during the year also includes the reinstatement of Foreign Currency Term Loans.
Note 15 (5)
Addition in Intangible Assets mainly represents installation of SAP software in the Company & others softwares.
Note 16 (6)
(i) Pursuant to applicability of Schedule II, of Companies Act, 2013, with effect from 1st April 2014, Management has reassessed the useful life of tangible assets based on the internal and external technical evaluation. The Depreciation on fixed assets is provided on straight line method in accordance with applicable Schedule of the Companies Act, 2013.
(ii) Residual values of assets have been considered at 5% of the original cost of the assets.
iii) Depreciation on assets carried at carrying amount as on 01.04.2014 and is depreciated as per Straight line method over the remaining useful life of the assets. Further the assets whose remaining useful life are nil, has been recognized in the opening balance of retained earnings. Refer the same as transitional provision of the Companies Act.
(iv) The depreciation calculation is based on the balance useful lives of assets and shift working. Depreciation on assets used on double shift basis have been increase by 50% for that period and Depreciation on assets used in triple shift basis have be calculated on the basis of 100% for that period, Except for assets in respect of which no extra shift depreciation is permitted (indicated by NESD in Part C of the schedule).
v) Management has reassessed the useful life of plant and machineries based on the internal and external technical evaluation which is different from useful life prescribed under the act. The reassessed useful life is tabulated as:
The Income Tax Assessment of the Company has been completed up to the Assessment year 2013-14 .There is no demand on Company. Therefore no provision has been made by the Company.
The Company has entered into an agreement for purchase of land admeasuring 304 kanals approx at village Bir Farozari, Distt. Panchkula, at cost of Rs. 133.00 Lacs for setting up and auto component unit. The Land has not yet been registered in the name of Company . Pending the same , the advance of Rs. 35.00 Lacs paid by the Company has been shown as advances recoverable and being under legal suit, a provision for the same has been made.
NOTE 17
1) Related Party Disclosure
a) Key Managerial Personnel Sh. Dheeraj Garg,(Managing Director)
Sh. A.V Unnikrishnan-(Deputy Managing Director)
Sh. M.L. Jain-(Executive Director)
Sh. Naveen Sorot ( CFO)
Sh. Shaman Jindal ( Company Secretary)
b) Relatives of the KMP Sh. R.K Garg, Chairman
Smt. Sunena Garg
Ms. Priya Garg
Mr. Rahul Jain
c) Enterprises over which key management personnel SAB Industries Limited, SAB Udyog Limited,, Malwa Chemtex Udyog (KMP) are able to exercise significant control Ltd., Steel Strips Financial Pvt. Ltd., Munak International Pvt. Ltd.
S.S. Credits Pvt. Ltd., S.J. Mercantile Pvt. Ltd (Earlier known as S.A.,
Holding Pvt. Ltd.) ., Malwa Holdings Pvt. Ltd., Munak Investments
Pvt. Ltd., Steel Strips Holding Pvt. Ltd. Chandigarh Developer Pvt. Ltd.
DHG Marketing Pvt. Ltd & Hans Raj Trust, Steel Strips Infrastructures
Limited, Munak Financiers P Ltd, Steel Strips Ltd , Steel Strips Ltd.
Industries Limited ( Earlier Known as Steel Strips Leasing Limited)
NOTE 18 (6)
SEGMENT REPORTING
A) PRIMARY SEGMENT (BUSINESS SEGMENT)
A business segment is a distinguishable component of an enterprise that is engaged in providing an individual product or service or a group of related products or services and that is subject to risks and returns that are different from those of other business segments. The Company''s Operation predominantly comprise of only one segment i.e Automotive Wheels. In view of the same, separate segmental information is not required to be given as per the requirements of Accounting Standard 17.
B) SECONDARY SEGMENT (GEOGRAPHICAL SEGMENT)
"The analysis of geographical segment is based on the geographical location of the customers. The Company operates primarily in India and has presence in international markets as well. Its business is accordingly aligned geographically, catering to two markets. The Company has considered domestic and exports markets as geographical segments and accordingly disclosed these as separate segments. "
Mar 31, 2015
1. The Company has issued only one class of shares i.e. equity shares
of Rs. 10/- per share. All equity shares rank pari passu and carry
equal rights with respect to voting and dividend. The dividend proposed
by the board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting,except in the case
of interim dividend.
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
shareholders.
2. a)Share Reserved for Issue under Options outstanding as at the end
of the Year on unissued share capital Ason31st March 2015, 1,50,000,
Employee Stock Options were Outstanding under the Steel Strips wheels
Limited Employee Stock Option Scheme 2014of the Company. Each option
Wooden title the holder there of to subscribe to one equity share of
Rs. 10/-each tan exercise price of Rs. 100/- per share of the company.
51000 options, outstanding as on 31st march 2014 under the Deputy
Managing Director employee stock option 2013,have been fully exercised
on 02.01.2015 and accordingly 51000 equity sharesofRs.10/- each as
fully paid-up have been allotted at an exercisepriceofRs.10per
share.(Date of grant was 01.01.2014 and vesting period was1year).
(b) Steel Strips wheels Limited ,employee Stock OptionScheme2014
The Company has established an employee Stock Option scheme (ESOS)in
accordance with the Securities and Exchange Board of India(Share Based
Employee Benefits)Regulations, 2014 which has been approved by the
Board of Directors and Shareholders. All Options under ESOS are
Exercisable for Equity shares. The Company has granted 1,50,000 options
to employees. Each option is exercisable for one equity shares of Rs.
10/- each fully paid up on a payment of exercise price. The exercise
price is Rs. 100 per share. Date of grant is 02.03.2015 and vesting
period is one year. Exercise period for the option is within
4yearsfromthe date of grant of the options.
The volatility of the options is based on the historical volatility of
the share price applicable to the total expected life of each option.
3. No Shares out of the issued , subscribed and paid up Share Capital
were alamedas Bonus Shares in the last five years by capitalization of
Securities Premium Reserves.
4. No Shares out of the issued , subscribed and paid up Share Capital
were allotted in the last five years pursuant to the various scheme of
amalgamation without payment being received in cash.
Securities and Terms of repayments for Secured Long-term borrowings 1)
Nature of Securities
a) Rupee Term Loans/Foreign currency loan/Term loans from NBFC
Term Loans from banks, financial institutions and others are secured /
to be secured by equitable mortgage created/ to be created by deposit
of title deeds of the Company's immovable properties for Dappar and Or
Agawam units in addition to the deed of hypothecation charging
Company's moveable properties, both present and future and Second
charge created /to be created on raw materials, semi-finished goods,
consumable stores, finished goods and book debts etc. All secured
loans are further secured by personal guarantee of Chairman Director
and/or Managing Director of the Company.
During the Year Company has made a provision for accrued liability on
account of Gratuity and leave encashment on the basis of actuarial
valuation based on projected unit method as required by AS 15 (Revised
2005).
Nature of Securities
Loan payable on Demand
1st pair passé charge by way of hypothecation of entire current asset
constituted of raw materials, stock in process, finished goods,
consumable stores, book debts, bills whether documentary or clean out
standing monies, receivables both present and future of the company.
2nd pair- pass charge on entire moveable assets forming part of
fixed/block assets of the company both present and future situated at
Village Dappar Tensile Database, Distt. Mohali(Punjab),Orgadam, Chennai
(TamilNadu)and Jamshedpur(Jharkhand).
Foreign Currency Loan
Buyer credit loans are secured by way of linen non-funds based working
capital limits and counter indemnity the Company. All secured loans
are further Secured by personal guarantee of Chairman and Managing
Director of the Company.
- Land for Oragadam plantinChennaiisobtainedon99years of lease basis
from State Industrial Promotion corporation of Tamilnadu
Limited(SIPCOT),a Government of Tamilnadu enterprises. The total cost
of Lease hold land is amortized over a period of 99 years. Accordingly
a sum of Rs. 12.19 Lacs ( Previous year Rs.12.19 Lacs is amortised
during the period).
Preoperative Expenses/Interest pending capitalization consist of
expenses incurred /being incurred during implementation of project
under installation of new fixed Assets. These will be capitalized with
other fixed assets when project/ fixed assets shall commencecommecial
production. Interest onterm Loan of Rs.68.69 Lacs (Previous year 78.59
Lacs) has been capitalized during the year.
No Assets of the Company is given on leasehold basis to outsiders.
Addition in assets during the year also includes there instatement of
Foreign currency term Loans.
Note 5.
Intangible Assets under Development represents installation of SAP
Software in the Company.
Note 6.
(i) Pursuant to applicability of Schedule II, of Companies Act 2013,
with effect from 1st April 2014, Management has reassessed the useful
life of tangible assets based on the internal and external technical
evaluation. The Depreciation on fixed assets is provided on straight
line method in accordance with applicable Schedule of the
CompaniesAct,2013.
(ii Residual value so assets have been considered at 5% of the Original
cost of the assets.
iii) Depreciation on assets carried At carrying amount as on 01.04.2014
and is depreciated as per Straight line method over the remaining
useful life of The assets. Further the assets whose remaining useful
life are nil, has been recognized in the opening balance of retained
earnings. Refer the same as transitional provision of the Companies
Act.
(iv) The depreciation calculation is based on the balance useful lives
of Assets and shift working. Depreciation on assets used on double
shift Basis have been increase by 50% for that period and Depreciation
on assets used in triple shift basis have been calculate don the basis
of100% for that period, Except for assets in respect of which no extra
shift depreciation is permitted (indicated by Neasden Part C of the
schedule).
v) Management has reassessed the useful life of plant and machineries
based on the internal and external technical evaluation which is
different from use full life prescribed under the act.The reassessed
use ful lifeis tabulatedas:
As per the provision of Section 115JAA, MAT Credit receivable has-been
recognized as an asset tithe extent there is convincing evidence that
the Company will pay normal Income tax during the specified period. MAT
credit is recognized as an assets in accordance with the recommendation
contained in guidance note issued by Institute of Chartered Accountants
of India. The said assets is created by the way of credit to the Profit
and Loss account and shown as MAT credit Entitlement. The Company will
Review the same at each balance sheet date and write down the carrying
amount of MAT credit Entitlement to the extent there is no longer
convincing evidence to the effect that the company will pay normal
Income Tax during the specified period.
In the opinion of the Board of Directors, the current assets, loans and
advances are approximately of the value stated if realized in the
ordinary course of business. The provision for all known liabilities is
adequate and not in excess of the amount considered reasonably
necessary.
150000 No. of options exercisable into equivalent nose of equity shares
of the face value of Rs 10 /- per share have been granted under ESOS
Scheme.
The date of grants 02.03.2015 and proportionate shares expenses have
been booked for the period as Expenses.Further out standing Options of
51000 shares, which were granted under "DMD ESOS 2013"have been fully
exercised during the financial year 2014-15 &proportionate expenses
have been accounted for the period as expenses.
The Company has a defined benefit gratuity and Earned Leave plan. Every
employee who has completed five years or more of service gets gratuity
on departure at15 days salary (last drawn salary) for each completed
year of service. And accumulation of EL for Staffisupto60days and for
Workers is 90 Days.
The Employee's gratuity fund scheme managed by a Trust (Life Insurance
corporation of India is defined benefit plan. The Present Value of
obligation is determined based on actuarial valuation using the
projected unit credit method which recognize search period of service
as giving rise to additional unit of employee benefits entitlement and
measures each unit separately to build up the final obligation. The
obligation for leave encashment is recognized in the same manner as
gratuity.
Net employee benefit expenses(recognized in Employee Cost).
The Following table summarizes components of net benefit expenses
recognized in the profit and loss account and amount recognized in the
balance sheet.
Note: 7
The retirement age has been uniformly taken as 60 years( PY58years).
The discount rates have been determined by reference to market yields
as On 31st march 2015 on CG-Secs of currency and term consistent with
those of liability obligations.
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.
Level of price neutralization likely to be affected through periodic
wages increase over thenext5 to 10 years.
Pursuant to SEBI (Share based employee benefits) Regulation, 2014 the
Board of Directors of the Company had approved to issue up to 150,000
Options exercisable into equivalent nos. of Equity Shares of the face
value of Rs. 10/- each at Rs 100/- each Date of grant is02.03.2015. For
Diluted EPS, the effect of this 150,000Option have been considered.
NOTE 8
A) Related Party Disclosure
a) Key Managerial Personnel Sh. Dheeraj Garg, (Managing Director)
Sh. Andra Veetil Unnikrishnan-(Deputy Managing Director)
Sh. Naveen Sorot ( CFO)
Sh. Shaman Jindal ( Company Secretary)
Sh. Rajender Kumar Garg, Chairman
b) Relatives of the KMP
Smt. Sunena Garg Ms. Priya Garg
SAB Industries Limited, SAB Udyog Limited, Malwa Chemtex
c) Enterprises over which key management
personnel (KMP) are able to exercise Udyog Ltd., Steel Strips Financial
Pvt. Ltd., Munak International
significant control
Pvt. Ltd., S.S. Credits Pvt. Ltd., S.J. Mercantile Pvt. Ltd., Malwa
Holdings Pvt. Ltd., Munak Investment Pvt. Ltd., Steel Strips Holdings
Pvt. Limited, Chandigarh Developers Pvt. Limited, DHG Marketing Pvt.
Ltd & Hans Raj Trust.
NOTE 9.
SEGMENT REPORTING
A)PRIMARY SEGMENT(BUSINESS SEGMENT)
A business segment is a distinguishable component of an enterprise that
is engaged in providing an individual product or service or a group of
related products or services and that is subject to risks and returns
that are different from those of other business segments. The Company's
Operation predominately comprise of only one segment i.e Automotive
Wheels. In view of the same, separate segmental information is not
Required to be given as per the requirements of Accounting Standard 17.
Mar 31, 2014
Note 1(1)
- Land for Oragadam plant in Chennai is obtained on 99 years of lease
basis from State Industrial Promotion corporation of Tamilnadu Limited
(SIPCOT), a Governmentof Tamilnadu enterprises. The total cost of Lease
hold land is amortised over a period of 99years. Accordingly a sum of
Rs. 12.19 Lacs (Previous year Rs.12.19Lacs) is amortised during the
period.
Note 1(2)
Preoperative Expenses/ Interest pending capitalizationconsist of
expenses incurred/being incurred during implementation of project under
installation of new fixedAssets. These will be capitalized with other
fixed assets when project /fixed assets shall commence commercial
production. Interest on term Loan of Rs. 78.59 Lacs (Previous year
191.52 Lacs) has been captalised during the year.
Note 1(3)
No Assets of the Company is given on lease hold basis to out siders.
Note 1(4)
Addition in assets during the year also includes there in statement of
Foreign Currency Term Loans.
Note 1(5)
Intangible Assets under Development represents installation of SAP software
in the Company.
Note 1(6)
Straight Line Method of Depreciation on Plant and Machineries is
provided as under:
- In case of Oragadam ( Tamilnadu) unit on double shift basis
exceptmachineries of Phase IInd, which is on single shift basis.
- Incase of Dappar (Punjab) unit on tripple shift basis.
- Incaseof Jamshedpur( Jharkhand)unit on Double Shiftbasis
exceptutility plant and paint plantwhichis on single shift basis.
Note 1(7)
Depriciation ofassetsCosting Rs.5000 or Lessis provided 100%on
proratabasis fordaysput in use.
The Income Tax Assessment of the Company has been completed upto the
Assessment year 2006-07. There is no demand on company. Therefore no
provision has been made by the company.
The Company has entered intoanagreement for purchaseof land admeasuring
304 kanals approxatvillage Bir Farozari, Distt. Panchkula, at costof
Rs. 133.00 Lacs for settingupa auto component unit. The land has not
yet been registeredinthe name of Company .Pending the same,the advance
ofRs.35.00 Lacspaid bythe Companyhas beenshown asadvances recoverable
and being under legal suit, a provisionforthe same has been made. The
lower court has passed decree in favour of company and now the appeal
have been filedinHigh Court byboth the parties.
Note :
a) Key Managerial Personnel :
Sh R.K Garg, Chairman & Sh. Dheeraj Garg, Managing Director, Ms. Ute
Mayr, WholeTime Director, Sh. A.V. Unnikrishnan, Deputy Managing
Director.
b) Enterprises over which key management personnel (KMP) are able to
exercise significant control with which transactions have taken place
duringtheyear.
SAB Industries Limited, SAB Udyog Limited, Malwa Chemtex Udyog Ltd.,
Steel Strips Financial Pvt. Ltd., Munak International Pvt. Ltd., S.S.
Credits Pvt. Ltd., S.J. Mercantile Pvt. Ltd., Malwa Holdings Pvt. Ltd.,
Munak Investment Pvt. Ltd., Steel Strips Holding Pvt. Ltd. & Chandigarh
Developer Pvt. Limited, DHG Marketing Pvt. Ltd. & Hans Raj Trust.
c) Relatives of the KMP with whom transactions have taken place :Smt.
Sunena Garg and Ms. Priya Garg.
NOTE 2
CONTINGENT LIABILITIES NOT PROVIDED FOR ON ACCOUNT OF : Rs. in Lacs
PARTICULARS AS AT March31,2014 AS AT March 31, 2013
A. Letter of Credit/
Bank of Guarantee
Outstanding for Import/ 2,565.22 885.12
Purchase of Raw
Materials, Spares
and Plant and Machinery
B. Estimated amount of
Contracts remaining to
be executed 1,953.87 1,325.25
on account of Capital
account and not provided
for (net of advances)
Mar 31, 2013
Note 1(1)
- Land for Oragadam plant is obtained on 99 years of lease basis from
State Industrial Promotion corporation of Tamilnadu Limited(SIPCOT), a
Government of Tamilnadu enterprises. The total cost of Lease hold land
is mortised overa period of99 years. Accordingly a sum of Rs. 12.19
Lacs( Previous year Rs. 12.19 Lacs) is amortized during the period.
Note 1 (2)
Preoperative Expenses/ Interest pending capitalization consist of
expenses incurred /being incurred during implementation of project
under installation of new fixed Assets. These will be capitalized with
other fixed assets when project /fixed assets shall commence commercial
production. Interest on term Loan of Rs. 191.52 Lacs (Previous year
295.97 Lacs) has been capitalized during the year.
Note 1 (3)
No Company is given on lease hold basis to outsiders.
Note 1 (4)
Addition in assets during the year also includes the reinstatement of
Foreign Currency Term Loans.
Note 1 (5)
Intangible Assets under Development represents installation of SAP
software in the Company.
Note 1 (6)
Straight Line Method of Depreciation on Plant and Machineries is
provided as under:
- In case of Oragadam (Tamilnadu) uniton double shift basis except
machineries of Phase llnd, which is on single shift basis.
- In case of Dappar ( Punjab) unit on tripple shift basis.
- In case of Jamshedpur (Jharkhand) uniton Double Shift basis except
utility plant and paint plant which is on single shift basis.
The Income Tax Assessment of the Company has been completed up to the
Assessment year 2009-10. The Income tax Demand of Rs. 23.09 Lac has
been raised on the Company for the Assessment Year 2010-11 under Summary
Assessment. The company had filed an appeal before CIT (A) as well as
a rectification application against the aforesaid demand which is
pending to be disposed. Therefore no provision has been made by the
company.
The Company has entered into an agreement for purchase of land
admeasuring 304 kanals approx at village Bir Farozari, Distt.
Panchkula, at cost of Rs. 133.00 Lacs for setting up and auto component
unit. The land has not yet been registered in the name of Company .
Pending the same , the advance of Rs. 35.00 Lacs paid by the Company
has been shown as advances recoverable and being under legal suit, a
provision for the same has been made. The lower court has given decree
in favour of company and now the appeal have been filed in High Court.
As per the provision of Section 115JAA, MAT Credit receivable has been
recognized as an asset to the extent there is convincing evidence that
the Company will pay normal Income tax during the specified period. MAT
credit is recognized as an assets in accordance with the recommendation
contained in guidance note issued by Institute of Chartered Accountants
of India. The said assets is created by the way of credit to the Profit
and Loss account and shown as MAT credit Entitlement. The Company will
review the same at each balance sheet date and write down the carrying
amount of MAT credit Entitlement to the extent there is no longer
convincing evidence to the effect that the company will pay normal
Income Tax during the specified period.
In the opinion of the Board of Directors, the current assets, loans and
advances are approximately of the value stated if realized in the
ordinary course of business. The provision for all known liabilities is
adequate and not in excess of the amount considered reasonably
necessary.
The Company has a defined benefit gratuity and Earned Leave plan. Every
employee who has completed five years or more of service gets a
gratuity on departure at 15 days salary (last drawn salary) for each
completed year of service. And accumulation of EL for Staff is up to
60days andforWorkersis90Days
The following tables summarize the components of net benefit expense
recognized in the Profit and Loss Account and the amounts recognized in
the balance sheet.
The Employee''s gratuity fund scheme managed bya Trust (Life insurance
corporation of India) is defined benefit plan. The Present Value of
obligation is determined based on actuarial valuation using the
projected unit credit method which recognizes each period of service as
giving rise to additional unit of employee benefits entitlement and
measures each unit separately to build up the final obligation. The
obligation for leave encashment is recognized in the same manner as
gratuity.
Note : 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 discount rates have been determined by reference to market
yields as on 31st March 2013onCG Secs of currency and terms consistent
with those of liability obligations.
Note:
a) Key Managerial Personnel: Sh R.K Garg, Chairman & Sh. Dheeraj Garg,
Managing Director, Ms. Ute Mayr, Whole Time Director, Sh. A.V.
Unnikrishnan, Deputy Managing Director.
b) Enterprises over which key management personnel (KMP) are able to
exercise significant control with which transactions have taken place
during the year.
SAB Industries Limited, SAB Udyog Limited, Malwa Chemtex Udyog Ltd.,
Steel Strips Financial Pvt. Ltd., Munak International Pvt. Ltd., S.S.
Credits Pvt. Ltd., S.J. Mercantile Pvt. Ltd., Malwa Holdings Pvt. Ltd.,
Munak Investment Pvt. Ltd., Steel Strips Holding Pvt. Ltd. & Chandigarh
Developer Pvt. Limited .
c) Relatives of the KMP with whom transactions have taken place: Smt.
SunenaGarg and Ms. PriyaGarg.
Mar 31, 2012
NOTE 1
CONTINGENT LIABILITIES NOT PROVIDED FOR ON ACCOUNT OF :
Rs. in Lacs
March 31,2012 March 31,2011
A. Letter of Credit Outstanding for
Import/Purchase of 2,532.61 1,444.78
Raw Materials, Spares and Plant
and Machinery
B. Estimated amount of Contracts
remaining to be executed 1,708.16 4,582.68
on account of Capital account
and not provided for
(net of advances)
Mar 31, 2011
CONTINGENT LIABILITIES NOT PROVIDED FOR ON ACCOUNT OF:
(Rupees in Lacs)
31.03.2011 31.03.2010
b) Estimated amount of 4,582.68 5,108.39
executed oZ3 account and not provided for
(net or advances)
2. In the opinion of the Board of Directors, the current assets, loans
and advances are approximately of the value stated if realized in the
ordinary course of business. The provision for all known liabilities is
adequate and not in excess of amount considered reasonably necessary.
3. Depreciation on plant and machineries is provided as under
a. In case of Oragadam (Tamil Nadu) unit on double shift basis as the
unit functioned on double shift.
b. In case of Dappar unit on triple shift basis as the unit functioned
on triple shift.
c. In case of Jamshedpur (Jharkhand) unit on single shift basis as the
unitfunctioned on single shift.
4. Debit and Credit Balances in the accounts of suppliers and others
are subject to confirmation and reconciliation.
5. The Income Tax assessment of the Company has been completed upto
Assmt Year 2008-09. The Income Tax demand of Rs.99.56 lakhs for the
Assmt. Year 2008-09, out of which Rs.25.00 Lacs has been deposited and
Rs.74.56 Lacs is pending, the same has been stayed by Chief
Commissioner of Income Tax. The appeal of the Company is pending before
Commissioner of Income Tax (Appeals), Chandigarh. In the opinion of the
Company the demand is likely to be deleted in view of the decision of
various appellate authorities and interpretation of other relevant
provisions of the Income Tax Act, 1961. Accordingly, no provision has
been made.
6. The Company had been granted exemption from Sales Tax under the
Punjab Industrial Policies, 1989 and 1996 for its Dappar unit. The said
exemption is available upto March, 2012 orsuch period when amount of
exemption is fully utilized, whichever is earlier. From 01.06.2010 part
of VAT liability is being set off under exemption and part is being
paid as per applicable rules and regulations of the Punjab VAT Act,
2005. In respect of Chennai & Jamshedpur unit all sales tax liabilities
are being paid as per applicable rules and provisions. Any liability on
account of Sales Tax, if arises, shall be accounted for at the time of
assessment.
7. Sundry Creditors include a sum of Rs. 367.45 Lakhs (Previous year
209.27 lakhs) due to Micro and Small Scale Undertakings. This
information is required to be disclosed under the Micro, Small and
Medium Enterprises development Act 2006, as determined to the extent
the parties have been identified on the basis of information with the
company.
8. During the year the Company has made a provision for accrued
liability on account of Gratuity and leave encashment on the basis
actuarial valuation based on projected unit method as required by AS 15
(Revised 2005) - Employee Benefits issued by The Institute of Chartered
Accountant of India, New Delhi.
9. In compliance with AS 22 issued by ICAI on Accounting for the
Taxes on Income, a sum of Rs. 541.50 lakhs (Previous Year Rs. 51.70
lakhs) has been considered as deferred tax liability in respect of
timing difference for the year under consideration and the same has
been charged to profit & loss account.
10. The company had entered into an agreement for purchase of land
admeasuring 304 kanals approx at village Bir Farozari, Distt.
Panchkula, at a cost of Rs. 133.00 lacs for setting up an auto
component unit. The land has not yet been registered in the name of the
company. Pending the same, the advance of Rs. 35.00 lacs paid by the
company has been shown as 'Advances Recoverable' in the Schedule of
'Loans & Advances' and being Under Legal suit, a provision for the same
has been made.
11. Related Party Disclosures
Detail of transactions entered into with related parties during the
year as required by Accounting Standard 18 on "Related Party
Disclosures" issued by the Institute of Chartered Accountants of India
are as under:-
12. As per the provision of Section 115JAA, MAT Credit receivable has
been recognized as an asset to the extent there is convincing evidence
that the Company will pay normal Income Tax during the specified
period. MAT credit is recognized as an asset in accordance with the
recommendation contained in guidance note issued by the Institute of
Chartered Accountants of India. The said assets is created by the way
of credit to the Profit and Loss Account and shown as MAT Credit
Entitlement. The company will review the same at each balance sheet
date and write down the carrying amount of MAT credit entitlement to
the extent there is no longer convincing evidence to the effect that
the company will pay normal Income Tax during the specified period.
13. Pre-operative expenses pending capitalization (as per schedule 25)
consists of expenses incurred/ being incurred during implementation of
project or installation of new fixed assets. These will be capitalized
with other fixed assets when project/ fixed assets shall commence
commercial production.
14. Previous year figures have been re-grouped and rearranged wherever
considered necessary to make them comparable with those of current
year. Figures have been rounded off to the nearest rupee.
15. The company is in the business of manufacture and sale of wheel
rims and there is no other segment as per Accounting Standard (AS -17)
dealing with the segment reporting.
16. Land for Oragadam plant is obtained on 99 years lease basis from
State Industries Promotion Corporation of Tamilnadu Limited (SIPCOT), a
Govt of Tamilnadu enterprise. Total cost of leasehold land is amortized
over a period of 99 years. Accordingly a sum of Rs. 12.19 lakh
(previous year Rs. 42.68 lakh) is amortized during the year.
17. Schedule 1 to 26 form an integral part of the Balance Sheet, Profit
& Loss Account and Cash Flow Statement.
Mar 31, 2010
1. CONTINGENT LIABILITIES NOT PROVIDED FOR ON ACCOUNT OF:
(Rupees in Lacs)
As at As at
31.03.2010 31.03.2009
a) Letters of Credit 1,556.88 2145.00
outstanding for import/Purchase
of Raw Material, Spares and
Plant & Machinery.
b) Estimated amount of 5,108.39 4334.51
contracts remaining to be
executed on capital account
and not provided for (net of advances)
2. In the opinion of the Board of Directors, the current assets, loans
and advances are approximately of the value stated if realized in the
ordinary course of business. The provision for all known liabilities is
adequate and not in excess of amount considered reasonably necessary.
3. Depreciation on plant and machineries is provided as under:
a. In case of Oragadam (Tamil Nadu) unit on single shift basis as the
unit functioned on single shift.
b. In case of Dappar unit
- Paint plant, except for Truck line, on double shift basis upto
30/09/2009 and triple shift basis after that as the plant functioned
accordingly.
- Paint plant for Truck line on single shift basis as the plant
functioned on single shift basis.
- Other plant and machineries on double and/ or triple shift basis
depending on use.
4. Debit and Credit Balances in the accounts of a few suppliers and
others are subject to confirmation and reconciliation.
5. The Income Tax assessment of the Company has been completed upto
Asstt Year 2007-08. The Income Tax demand of Rs. 99.44 lakhs for the
Asstt. Year 2007-08 is pending and the same has been stayed by Chief
Commissioner of Income Tax. The appeal of the Company is pending
before Commissioner of Income Tax (Appeals), Chandigarh. In the opinion
of the Company the demand is likely To be deleted in view of the
decision of various appellate authorities and interpretation of other
relevant provisions of the Income Tax Act, 1961. Accordingly, no
provision has been made.
6. The Company had been granted exemption from Sales Tax under the
Punjab Industrial Policies, 1989 and 1996 for its Dappar unit. The said
exemption is available upto March, 2012 or such period when amount of
exemption is fully utilized, whichever is earlier. In respect of
Chennai unit all sales tax liabilities are being paid as per applicable
rules and provisions. Any liability on account of Sales Tax, if
arises, shall be accounted for at the time of assessment.
7. Sundry Creditors include a sum of Rs. 209.27 Lakhs (Previous year
91.72 lakhs) due to Micro and Small Scale Undertakings. This
information is required to be disclosed under the Micro, Small and
Medium Enterprises development Act 2006, as determined to the extent
the parties have been identified on the basis of information with the
company.
8. During the year the Company has made a provision for accrued
liability on account of Gratuity and leave encashment on the basis
actuarial valuation as required by AS 15 (Revised 2005) - Employee
Benefits issued by The Institute of Chartered Accountant of India, New
Delhi.
9. In compliance with AS 22 issued by ICAI on Accounting for the
Taxes on Income, a sum of Rs. 51.70 lakhs (Previous Y ear Rs. 318.00
lakhs) has been considered as deferred tax liability in respect of
timing difference for the year under consideration and the same has
been charged to profit & loss account.
10. The company had entered into an agreement for purchase of land
admeasuring 304 kanals approx at village Bir Farozari, Distt.
Panchkula, at a cost of Rs. 133.00 lacs for setting up an auto
component unit. The land has not yet been registered in the name of the
company. Pending the same, the advance of Rs. 35.00 lacs paid by the
company has been shown as Advances Recoverable in the Schedule of
Loans & Advances and being Under Legal suit, a provision for the same
has been made.
Note:
a) Key Management personnel: Sh. Dheeraj Garg, Managing Director
b) Enterprises over which Key Management Personnel (KMP) are able to
exercise significant control with whom transactions have taken place
during the year: SAB Industries Ltd.
c) Relatives of the Key Management Personnel (with whom transactions
have taken place):
Sh. R. K. Garg, Chairman ana Director
11. Events after Balance Sheet date
The company issued and allotted 5,50,000 Equity Shares of Rs. 10/- each
for cash, at a price of Rs. 105/- (Rupees One hundred five only) per
equity shares i.e. at a premium of Rs. 95/- each per share to Sh.
Dheeraj Garg on Preferential allotment basis on 6 April, 2010.
12. Pre-operative expenses pending capitalization (as per schedule 25)
consists of expenses incurred/ being incurred during implementation of
project or installation of new fixed assets. These will be capitalized
with other fixed assets when project/ fixed assets shall commence
commercial production. During the year the Company incurred such
expenses on implementation of Jamshedpur project which shall be
capitalized on commencement of commercial production. Accordingly these
are carried to Capital work-in-process.
13. Previous year figures have been re-grouped and rearranged wherever
considered necessary to make them comparable with those of current
year. Figures have been rounded off to the nearest rupee.
14. The company is in the business of manufacture and sale of wheel
rims and there is no other segment as per Accounting Standard (AS -17)
dealing with the segment reporting.
15. Land for Oragadam plant is obtained on 99 years lease basis from
State Industries Promotion Corporation of Tamilnadu Limited (SIPCOT), a
Govt of Tamilnadu enterprise. Total cost of leasehold land is amortized
over a period of 99 years. Accordingly a sum of Rs. 42.68 lakh is
amortized during the year.
16. Schedule 1 to 26 form an integral part of the Balance Sheet,
Profit & Loss Account and Cash Flow Statement.