Home  »  Company  »  Sterling Tools L  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Sterling Tools Ltd.

Mar 31, 2016

(b) Terms/rights attached to Equity shares

The Company has only one class of equity shares having a par value of '' 10 per share. Each holder of Equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees ('').

During the year ended March 31, 2016, the amount of per share interim dividend recognized as distributions to equity shareholders is '' 15 (March 31, 2015: '' 5).

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.

a) The term loan(s) are secured by first equitable mortgage of certain Land & Building & hypothecation of Plant & Machinery & other fixed assets and personal guarantee by some of the directors of the Company.

b) The term loan(s) carries interest ranging between 10% to 12%.

c) The repayment profile of the term loan(s) is as set out below:

b) Excise demand amounting to '' 189,015,254 for the period June 2006 to Dec 2008, '' 106,987,422 for the period January 2009 to October 2010, '' 3,990,394 for the period February 2010 to March 2010 and '' 5,326,546 for the period Nov 2010 to January 2011 under Central Excise Act raised due to dispute regarding assessable value with reference to MRP against which appeals were filed before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi. Based on the appeals the department has granted the Stay order No. SO/677-678/2012-EX (DB) dated 23 April 2012 against the demand of '' 189,015,254 for the period June 2006 to Dec 2008 & '' 106,987,422 for the period January 2009 to October 2010. Corresponding to these stay orders, the tribunal (CESTAT) vide section 35-C (1) of the Central Excise Act, 1944 has adjudicated and passed final Order No. A/52747-52748/2015/Ex [DB] dated 05/08/2015 in favor of the Company and accordingly, the demand of '' 189,015,254 for the period June, 2006 to December, 2008 and '' 106,987,422 for the period January, 2009 to October, 2010 stands withdrawn. However, the demand orders for the period February, 2010 to March, 2010 and November, 2010 and January,2011 are still in the dispute till final adjudication.

c) Interest amounting to '' 36, 78,036 on the demands raised by Excise authorities has been calculated by the Company based on the fact mentioned in demand cum show-cause notices pending adjudication.

d) The office of the Commissioner of Central Excise Audit- II, Delhi has vide order No. CE/Depp/ADT-11/CIR-12/GR-27/APR-438/379/2015-16/2418/dated 09-02-2016 issued a demand cum show cause notice for '' 22,226,095 pursuant to non compliance of rule 6(3) of Convert Credit Rules, 2004 for the period February 2011 to September 2015.

a) The working capital facilities include working capital demand loan, packing credit facilities, cash credit & buyers/ suppliers credit. The same are secured by hypothecation of all inventories including those in transit, receivables, book debts on pari passu basis, equitable mortgage of land and building situated at Plot No 52, 53 & 54 DLF Industrial Estate, Phase-I, Delhi- Mathura Road and personal guarantee by some of the directors of the Company. The outstanding balance is repayable on demand and the rate of interest ranges between 9% to 11% per annum.

a) As per Schedule III of the Companies Act, 2013 and notification number GSR 719 (E) dated November 16,

2007 , the amount due as at the yearend due to Micro, small & medium enterprises as defined in Industries (Development and Regulation) Act, 1951 is as given below :

b) This information has been compiled in respect of parties to the extent they could be identified as Micro, Small-scale and Medium Enterprises on the basis of information available with the Management as at March 31, 2016.

a) Capital Commitment:

i) Estimated amount of contracts remaining to be executed on the capital account and not provided for in the account (Net of Capital Advances) '' 49,353,507 (March 31, 2015: '' 123,856,356).

ii) The Company in previous year had paid amounts to Senior Town Planner, Faridabad Circle, Faridabad, for the “change in land use” of its part of the land situated at its Prattle unit. As per the agreed terms, there will be certain external development charges which are payable on a future date. However, the quantum of such future liability is not quantified in the said letter.

a) Employee Benefits

The Company has classified the various benefits provided to employees as under:-

(i) Defined Contribution Plan

The Company makes contribution towards provident fund, ESI to a defined contribution retirement benefit plan for qualifying employees. The provident fund plan is operated by the Regional Provident Fund Commissioner and the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. Similarly, the contribution is made in ESI at a specified percentage of payroll cost.

The Company recognized '' 17,425,668 (March 31, 2015: '' 15,224,573) for provident fund contributions and '' 2,121,554 (March 31, 2015: '' 2,729,544) for ESI contribution in the Statement of Profit and Loss. The contribution payable to these plans by the Company is at rates specified in the rules of the schemes.

(ii) Defined Benefit Plan

The employee''s gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determine based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligations. The obligation for Leave Encashment is recognized in the same manner as Gratuity.

Note: The Estimate of rate of escalation in Salary considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors on long term basis including supply and demand in the Employment market.

Note 1: Assets taken on operating leases

a) The details of Leases in compliance of AS 19 are as under:

i) The Company has taken Factory Premises on non-cancellable operating lease from Haryana I spat Private Limited. Agreement of Lease was renewed on 01.01.2012 and is valid till 31.12.2016. Lease rental (including transfer to lease equalization reserve) amounting to '' 6,630,758 (March 31, 2015: '' 6,630,758) has been debited to Statement of Profit and Loss. Future minimum lease rentals as on 31 March 2016 are as under:

ii) The Company has taken Nitrogen Plant on non-cancellable operating lease from Air Liquid North India Private Limited Lease Agreement is valid till 14.02.2017. Lease rental amounting to '' 240,000 (March 31, 2015: '' 240,000) has been debited to Statement of Profit and Loss. Future minimum lease rentals as on 31 March 2016 are as under:

iii) The Company has taken furnished office space on operating cancelable lease. Lease Agreement was valid till 31.10.2017. Lease rental amounting to '' 90,000 (March 31, 2015: '' 143,340) has been debited to Statement of Profit and Loss.

iv) The Company has taken furnished office space on operating cancelable lease. Lease Agreement is valid till 31.03.2016. Lease rental amounting to '' 72,000 (March 31, 2015: '' 72,000) has been debited to Statement of Profit and Loss.

v) The Company has taken two Tricotect Equipments on non-cancellable operating lease from Atotech India Private Limited. Lease Agreements are valid till 28.02.2018. Lease rental amounting to '' 110,000 (March 31, 2015: '' 60,000) has been debited to Statement of Profit and Loss. Future minimum lease rentals as on 31 March 2016 are as under:

v) The provision for contribution to Gratuity, Leave Encashment on retirement and other defined benefits which are made on actuarial valuation on an overall Company basis are not included in the remuneration to Key Managerial Personnel disclosed above.

NOTE 2. DERIVATIVES

a) Derivative instruments outstanding as at balance sheet date: The following contracts are outstanding to hedge the future receipts & payments in the ordinary course of business. These arrangements are designed to address significant exchange exposures and are reviewed/ renewed by the Management on a revolving basis; as required:

Notes:

i) Figures in brackets relate to year ended March 31, 2015.

ii) Share of Contingent liabilities incurred in relation to interests in joint ventures as at March 31, 2016: '' Nil (March 31, 2015: '' Nil)

iii) Share of Capital Commitments incurred in relation to interests in joint ventures as at March 31, 2016: '' Nil (March 31, 2015: '' Nil)

NOTE 31: CSR Expenditure CSR Expenditure

(a) Gross amount required to be spent by the Company during the year (i.e. 2% of Average Net profits u/s 198 of Companies Act, 2013 of last three years):

(b) Amount spent during the year:

Note 3

In view of the management, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet as at March 31, 2016.

Note 4

Since the Company''s business activity falls within a single primary business segment and also there is no significant reportable geographical segment, hence no disclosure has been made as specified in Accounting Standard (AS-17) “Segment Reporting”.

Note 5

The process of obtaining balance confirmation and account reconciliation is an ongoing process and accordingly the closing balances of certain trade receivables, trade payables and loans and advances are subject to confirmation as at March 31, 2016.

Note 6

The figures are rounded off to nearest rupee.

Note 7

The previous year figures have been regrouped or rearranged wherever considered necessary.


Mar 31, 2015

1. Sterling Tools Limited (the company) is a public limited company incorporated in the year 1979 under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange and National Stock Exchange in India. The Company is engaged in the manufacturing and marketing of high tensile cold forged fasteners. It is one of the progressive Original Equipment Manufacturer (OEM) suppliers in India with a client base that spans automotive companies in India, Europe and USA.

2. Terms/rights attached to Equity shares

The company has only one class of equity shares having a par value of Rs.10 per share. Each holder of Equity shares is entitled to one vote per share. The company declares and pays interim dividend in Indian rupees.

During the year ended March 31,2015, the amount of per share dividend recognized as distributions to equity shareholders is Rs.5 (March 31,2014: Rs.5).

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.

3. CONTINGENT LIABILITIES (Amount in Rs.)

As at As at March 31, 2015 March 31, 2014

S.No. Particulars

i) Disputed Liability under 305,319,675 348,815,314 Central Excise Act*

ii) Interest on disputed liability 132,201,696 112,355,917 under Central Excise Act**

iiI) Letter of Credit 209,814,723 5,586,649

iv) Bank Guarantee 1,535,902 1,535,902

V) Guarantee towards repayment of - 77,539 EMI of car loans taken by the employees from MUL

Vi) EPCG-Duty in relation to Export 34 477 000 - Obligation (Amount of export sales obligation Rs.284,185,317)

Disputed Liability for AY 2009-10 98,594 - vii) under Haryana Value Added Tax Act, 2003 on account Sale of Capital Good (Cars). The same is pending before The Hon''ble Haryana Tax Tribunal at Chandigarh.

Disputed Liability for A.Y 2012-13 46,736 - under Income tax Act,1961 on viii) account of disallowance u/s 14A of Income tax Act, 1961. The same is pending before CIT (Appeals), VIII, New Delhi

Rectification filed u/s 154 for 9,532,772 - assessment year 2012-13 for ix) rectification of asseessment order dt. 15.03.2015 u/s 143(3) of Income Tax Act,1961.

* Excise demand amounting to Rs.189,015,254 for the period June 2006 to Dec 2008,''106,987,422 for the period January 2009 to October 2010, Rs.3,990,394 for the period February 2010 to March 2010, Rs.5,326,546 for the period Nov 2010 to January 2011 under Central Excise Act arised due to dispute regarding assessable value with reference to MRP against which appeals were filed before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi. Based on the appeals the department has granted the Stay order(No. SO/677-678/2012-EX (DB)) dated 23 April 2012 against the demand of Rs.189,015,254 for the period June 2006 to Dec 2008, Rs.106,987,422 for the period January 2009 to October 2010 and Stay Order (No. 53711-53714/2014- EX (DB)) dated 11 November 2014 of Rs.4,658,470 against the demand of Rs.3,990,394 for the period February 2010-March 2010 and Rs.5,326,546 for the period November 2010-January 2011.

Based on the decisions of the Appellate Authorities and the interpretations of other relevant provisions, the company has been legally advised that the demands raised under the above said Acts are likely to be either deleted or substantially reduced and accordingly no provision has been made.

**Interest amounting to Rs.132,201,696 on the demands raised by Excise authorities has been calculated by the Company based on the fact mentioned in demand cum show-cause notices.

4. Capital Commitment:

a) Estimated amount of contracts remaining to be executed on the capital account and not provided for in the account Rs.123,856,356(March 31,2014: Rs.73,505,104).

b) The Company in previous year had paid amounts to Senior Town Planner, Faridabad Circle, Faridabad, for the "change in land use" of its part of the land situated at its Prithla unit. As per the agreed terms, there will be certain external development charges which are payable at future period. However, the quantum of such future liability is not quantified in the said letter.

a) Employee Benefits

The Company has classified the various benefits provided to employees as under:-

5. Defined Contribution Plan

The Company makes contribution towards provident fund to a defined contribution retirement benefit plan for qualifying employees. The provident fund plan is operated by the Regional Provident Fund Commissioner and the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits.

The Company recognized Rs.15,224,573/- (March 31, 2014: Rs.12,809,791/-) for provident fund contributions and Rs.2,729,544 /- (March 31,2014: Rs.3,021,359 /-) for ESI contribution in the statement of profit and loss . The contribution payable to these plans by the Company is at rates specified in the rules of the schemes.

6. Defined Benefit Plan

The employee''s gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determine based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligations. The obligation for leave encashment is recognized in the same manner as gratuity.

7. Name of the Related Parties and description of relationship:

Significant influence of KMP''s

Haryana Ispat Pvt. Ltd. Sterling Technologies Pvt Ltd. Sterling Automobiles Pvt. Ltd. Sterling Mobikes Pvt.Ltd. Jaycee AutomobilesPvt. Ltd.

Key Management Personnel

Mr. M. L. Aggarwal - Chairman Mr. Anil Aggarwal - Managing Director Mr. Atl Aggarwal - Whole Time Director & CFO Ms. Vaishali Singh-Company Secretary Mr. Anish Aggarwal - Relative of Key Management Personnel

8. As per Note No.7 of Part "C" of the Schedule II to the Companies Act, 2013 the carrying amount of the assets as at April 1,2014 has been depreciated as follows:

a) Carrying value of asset has been depreciated over the remaining useful life of assets and recognized in the Statement of Profit & Loss.

b) In case where the remaining useful life of an asset is nil the carrying amount of the assets after retaining the residual value has been recognized in the opening balance of retained earnings.

The Company has wef 1st April 2014, computed depreciation in accordance with the useful life of the Fixed Assets as per schedule II of the Companies Act,2013. Consequently Depreciation charged for the year is higher by Rs.12,614,054 and carrying value of the assets amounting to Rs.4,833,077 (Net of Deferred Tax Rs.2,488,657) after retaining the residual value,whose remaining useful life is nil has been adjusted from the opening balance of Retained Earnings.

9. In view of the management, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet as at 31.03.2015

10. Since the Company''s business activity falls within a single primary business segment and also there is no significant reportable geographical segment, hence no disclosure have been made as specified in Accounting Standard (AS-17) "Segment Reporting"

11. The closing balances of debtors, creditors and loans and advances are subject to confirmation.

12. The figures are rounded off to nearest rupees.

14. Previous year figures have been regrouped/ rearranged wherever considered necessary.


Mar 31, 2014

NOTE 1: CORPORATE INFORMATION

Sterling Tools Limited (the company) is a public limited company incorporated in the year 1979 under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange and National Stock Exchange in India. The Company is engaged in the manufacturing and marketing of high tensile cold forged fasteners. It is one of the progressive Original Equipment Manufacturer (OEM) suppliers in India with a client base that spans automotive companies in India, Europe and USA.

(Amount in Rs.) CONTINGENT LIABILITIES

S. No. Particulars For the year ended For the year ended March 31, 2014 March 31, 2013

i) Disputed Liability under Central Excise Act* (Including interest) 461,171,231 405,293,695

ii) Letter of Credit (Net of Margin) 5,586,649 49,829,637

iii) Bank Guarantee (Net of Margin) 1,535,902 1,934,106

iv) Guarantee towards repayment of EMI of car loans taken by the employees from MUL 77,539 297,847

v) EPCG –Export Obligation - 60,854,594

*Excise demand amounting to Rs. 189,015,254 for the period June 2006 to Dec 2008 ,Rs. 106,987,422 for the period January 2009 to October 2010, Rs. 3,990,394 for the period February 2010 to March 2010, Rs. 5,326,546 for the period Nov 2010 to January 2011 under Central Excise Act arises due to dispute regarding assessable value with reference to MRP against which appeals were filed before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi. Based on the appeals the department has granted the Stay order(No. SO/677- 678/2012-EX (DB)) dated 23 April 2012 against the demand of Rs. 189,015,254 for the period June 2006 to Dec 2008 ,Rs. 106,987,422 for the period January 2009 to October 2010. During the year, one demand order for Rs. 544,764 including penalty for the period October 2004 to November 2004 was received by the company against which appeals were filed before Commissioner(Appeals),custom & central excise ,Delhi-IV, Faridabad. The said demand was raised due to wrong availment of CENVAT credit w.r.t duty paid on certain inputs viz. Bright Bars which itself are non-excisable. Based on the decisions of the Appellate Authorities and the interpretations of other relevant provisions, the company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

a) Working Capital Facilities include working capital demand loan, packing credit facilities, cash credits & buyers/ suppliers credit for raw material . The same are secured by hypothecation of all inventories including in transit, receivables, book debts, plant and machinery and other fixed assets, equitable mortgage of certain land and building,and personal guarantee by some of the directors of the Company. The oustanding balance is repayable on demand. Cash Credit carries interest ranging from 10% to 11%.

b) Buyers credit for capital goods was secured by first mortgage of certain Land & Building & hypothecation of Plant & Machinery & other fixed assets and personal guarantee by some of the directors of the company.

(a) Employee Benefits

The Company has classified the various benefits provided to employees as under:-

(i) Defined Contribution Plan

The Company makes contribution towards provident fund to a defined contribution retirement benefit plan for qualifying employees. The provident fund plan is operated by the Regional Provident Fund Commissioner and the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits.

The Company recognized Rs. 12,809,791/- (March 31, 2013: Rs. 12,411,691/-) for provident fund contributions and Rs. 3,021,359 /- (March 31, 2013: Rs. 2,880,438/-) for ESI contribution in the statement of profit and loss. The contribution payable to these plans by the Company is at rates specified in the rules of the schemes.

(ii) Defined Benefit Plan

The employee''s gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determine based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligations. The obligation for leave encashment is recognized in the same manner as gratuity.

NOTE 2: RELATED PARTY DISCLOSURES

Name of the Related Parties and description of relationship:

Enterprises over which Key Management Personnel has significant influence

Haryana Ispat Pvt. Ltd. Sterling Technologies Pvt Ltd. Sterling Automobiles Pvt. Ltd. Sterling Mobikes Pvt.Ltd. Jaycee Automobiles Pvt. Ltd.

Key Management Personnel & their relatives

Mr. M. L. Aggarwal - Chairman

Mr. Anil Aggarwal – Managing Director

Mr. Atul Aggarwal – Whole Time Director

Mr. Anish Aggarwal – Relative of Key Management Personnel

Joint Venture Company Sterling Fabory India Pvt. Ltd

i.) Figures in brackets( ) relate to previous year.

ii ) Share of Contingent liabilities incurred in relation to interests in joint ventures as at March 31, 2014: Rs. Nil(March 31, 2013 : Rs. Nil)

iii) Share of Capital Commitments incurred in relation to interests in joint ventures as at March 31, 2014: Rs. Nil(March 31, 2013 : Rs. Nil)

Note 3

In view of the management, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet as at 31.03.2014

Note 4

Since the Company''s business activity falls within a single primary business segment and also there is no significant reportable geographical segment, hence no disclosure have been made as specified in Accounting Standard (AS-17) "Segment Reporting"

Note 5

The closing balances of debtors, creditors and loans and advances are subject to confirmation.

Note 6

The figures are rounded off to nearest rupees.

Note 7

Previous year figures have been regrouped/ rearranged wherever considered necessary.


Mar 31, 2013

NOTE 1: CORPORATE INFORMATION

Sterling Tools Limited (the company) is a public limited company incorporated in the year 1979 under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange and National Stock Exchange in India. The Company is engaged in the manufacturing and marketing of high tensile cold forged fasteners. It is one of the progressive Original Equipment Manufacturer (OEM) suppliers in India with a client base that spans automotive companies in India, Europe and USA.

Note 2 In view of the management, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet as at 31.03.2013."

Note 3 Since the Company''s business activity falls within a single primary business segment and also there is no significant reportable geographical segment, hence no disclosure have been made as specified in Accounting Standard (AS-17) "Segment Reporting"

Note 4 The closing balances of debtors, creditors and loans and advances are subject to confirmation.

Note 5 Previous year figures have been regrouped/ rearranged wherever considered necessary.


Mar 31, 2012

NOTE 1: CORPORATE INFORMATION

Sterling Tools Limited (the company) is a public limited company incorporated in the year 1979 under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The Company is engaged in the manufacturing and marketing of high tensile cold forged fasteners. It is one of the progressive Original Equipment Manufacturer (OEM) suppliers in India with a client base that spans automotive companies in India, Europe and USA.

(a) Terms/rights attached to Equity shares

The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of Equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.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.

NOTE 2 : LONG TERM BORROWINGS Contd.

a) Term loan are secured by first mortgage of certain Land & Building, Plant & Machinery & other fixed assets and hypothication of Movable Assets, and personal guarantee by some of the directors of the company. The vehicle loans are secured by hypothecation of respective vehicles.

b) Working Capital Term Loan is secured by hypothication of Stock in Trade, Receivables, Mortgage of certain Land and Building, plant and machinery and other fixed assets and personal guarantee by some of the directors of the Company.

a) Working Capital Facilities include working capital demand loan and packing credit facilities. The same are secured by hypothication of stock in trade, receivables, mortgage of certain land and building, plant and machinery and other fixed assets and personal guarantee by some of the directors of the Company. The oustanding balance is repayable on demand and carries interest ranging between 10% to 12.5%.

(a) Employee Benefits

The Company has classified the various benefits provided to employees as under:-

(i) Defined Contribution Plan

The Company makes contribution towards provident fund to a defined contribution retirement benefit plan for qualifying employees. The provident fund plan is operated by the Regional Provident Fund Commissioner and the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits.

The Company recognized Rs 12,348,714/- (March 31, 2011: Rs. 9,260,602/-) for provident fund contributions and Rs 3,558,133 /- (March 31, 2011: 3,281,809/-) for ESI contribution in the profit and loss account. The contribution payable to these plans by the Company is at rates specified in the rules of the schemes.

(ii) Defined Benefit Plan

The employee''s gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determine based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligations. The obligation for leave encashment is recognized in the same manner as gratuity.

b) The Company has taken office space on operating cancelable lease. Lease Agreement is valid for the further period of 0.9 years as on March 31,2012. Lease rental amounting to Rs. 120,000 (March 31,2011:120,000) has been debited to Profit and Loss Account.

d) The Company has taken Gas Bullets on non-cancelable operating lease. Lease Agreement is valid for the further period of 4.5 years as on 31 March 2011 however same was terminated during the year with mutual consent of Party. Lease rental amounting to Rs. Nil/- (March 31,2011: Rs. 133,344) has been debited to Profit and Loss Account. .

e) The Company has taken a godown on cancelable operating lease. Lease Agreement is valid up to 31.05.2011. Lease rental amounting to Rs.50,000/- (March 31,2011: Rs. 292,800/-) has been debited to Profit and Loss Account.

f) The Company has taken furnished office space on operating cancelable lease. Lease Agreement is valid for the further period of 1 year as on 31 March 2012. Lease rental amounting to Rs.201,600 (March 31,2011:192,000/-) has been debited to Profit and Loss Account.

(Amount in Rupees)

As At As At

31 March, 2012 31 March, 2011

NOTE 3: CONTINGENT LIABILITIES

S.No. Particulars

I) Bills Discounted 8,549,731.00 74,008,336.00

ii) Disputed Liability under Central Excise Act* 296,338,501.00 299,863,715.00

iii) Letter of Credit (Net of Margin) 77,490,416.00 132,555,964.00

iv) Bank Guarantee (Net of Margin) 3,089,052.00 -

v)Guarantee towards repayment of EMI of car loans taken by the employees from MUL 581,150.00 1,262,625.00

vi) EPCG-Export Obligation 388,178,865.00 153,407,858.00

`Excise demand amounting to Rs. 189,015,254 for the period June 2006 to Dec 2008 and Rs. 106,987,422 for the period January 2009 to October 2010 under Central Excise Act for dispute regarding assessable value with reference to MRP which is pending before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), New Delhi. However, Company is contesting the Demands, and therefore took an Stay order (No. SO/677-678/2Q12-EX (DB)) dated 23 April 2012 against the appeal and demand of Excise Duty.

Note 4 In view of the management, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet as at 31.03.2012.

Note 5 Since the Company''s business activity falls within a single primary business segment and also there is no significant reportable geographical segment, hence no disclosure have been made as specified in Accounting Standard (AS-17) "Segment Reporting".

Note 6 The closing balances of debtors, creditors and loans and advances are subject to confirmation.

Note 7 Till the year ended 31 March, 2011, the company was using pre-revised schedule VI to the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended 31 March, 2012, the revised schedule VI notified under the Companies Act, 1956, has become applicable to the company. The company has reclassified, regrouped or recasted previous year figures to confirm to this year''s classification.


Mar 31, 2011

A. Estimated amount of contracts remaining to be executed on the capital account and not provided for in the account Rs.924,761 (Previous year Rs. 4,827,913).

b. Contingent Liabilities not provided for:

(Amount in Rs.) As At As At 31st March, 2011 31st March, 2010

Bills Discounted 74,008,336 8,715,781

Disputed Liability under Central Excise Act * 299,863,715 24,459,305

Letter of Credit (Net of Margin) 132,555,964 81,649,792

* Against which the Company has filed the appeal.

The Company has provided a guarantee towards repayment of EMI of car loans taken by the employees from MUL for which deductions are made from the salaries of respective employees. The outstanding loan amount at the year end is Rs1,262,625 /- (Previous Year Rs 22,54,593/-).

This information has been compiled in respect of parties to the extent they could be identified as Micro, Small-scale and Medium Enterprises on the basis of information available.

h. Related Party Disclosure - (Accounting Standard -18)

Name of the Related Parties and description of relationship:

I. Associates Sterling Fincap Pvt Ltd.

(Formerly Precision Wire Products Pvt Ltd )

Haryana Ispat Pvt. Ltd.

Sterling Technologies Pvt Ltd.

Prism Global Creative Products Pvt. Ltd.

Sterling Automobiles Pvt. Ltd.

Sterling Mobike Pvt.Ltd.

(Formerly Supreme MetalForms Pvt. Ltd).

Jaycee Automobiles Pvt. Ltd.

Sterling Metal Fabriks Pvt Ltd.

Anuradha Mittal Benefit Trust

M. L. Aggarwal - HUF

Anil Aggarwal - HUF

Atul Aggarwal - HUF

II. Key Management Personnel Mr. M. L. Aggarwal - Chairman

Mr. Anil Aggarwal - Managing Director

Mr. Atul Aggarwal - Whole Time Director

III Joint Venture Company Sterling Fabory India Pvt. Ltd



c) The Company has taken a godown on cancelable operating lease. Lease Agreement is valid up to 31.03.2011. Lease rental amounting to Rs.292,800 /- (Previous Year Rs. 292,800/-) has been debited to Profit and Loss Account.

d) The Company has taken furnished office space on operating cancelable lease. Lease Agreement is valid for the further period of 2 years. Lease rental amounting to Rs.192,000 (Previous Year 16,000/-) has been debited to Profit and Loss Account.

e) The Company has taken office space on operating cancelable lease. Lease Agreement is valid for the further period of 1.9 years as on 31.03.2011. Lease rental amounting to Rs.130,000 (Previous Year NIL) has been debited to Profit and Loss Account.

m. Employee Benefits

(i) Defined Contribution Plan

The Company makes contribution towards provident fund to a defined contribution retirement benefit plan for qualifying employees. The provident fund plan is operated by the Regional Provident Fund Commissioner and the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits.

The Company recognized Rs 9,260,602 (Previous Year: Rs. 8,484,144) for provident fund contributions and Rs 3,281,809/- ( Previous year 1,829,433/-) for ESI contribution in the profit and loss account. The contribution payable to these plans by the Company is at rates specified in the rules of the schemes.

(ii) Defined Benefit Plan

The employees gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determine based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligations. The obligation for leave encashment is recognized in the same manner as gratuity.

n. As the Accounting Standard 30, 31 & 32 (i) Financial Instruments: Recognitions & Measurement (ii) Financial Instruments: Presentation and (iii) Financial Instrument: Disclosures are recommendatory in nature, the details of required disclosures are as under:

p. In view of the management, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet as at 31.03.2011.

q The closing balances of debtors, creditors and loans and advances are subject to confirmation.

r. Previous year figures have been rearranged, regrouped and recast wherever considered necessary.

s. All financial figures have been rounded off to the nearest rupee.


Mar 31, 2010

A. Estimated amount of contracts remaining to be executed on the capital account and not provided for in the account Rs. 4,827,913/- (Previous year Rs. 9,470,764/-)

b. Contingent Liabilities:

(Amount in Rs.)

As At As At

31st March, 2010 31st March, 2009

Bills Discounted 8,715,781 5,205,323

Disputed Liability under Central Excise Act * 24,459,305 24,464,955

Letter of Credit (Net of Margin) 81,649,792 62,437,575

* Against which the Company has filed the appeal.

The Company has provided a guarantee towards repayment of EMI of car loans taken by the employees from MUL for which deductions are made from the salaries of respective employees. The outstanding loan amount at the year end is Rs 22,54,593/- (Previous Year Rs 3,022,023/-).

b. Related Party Disclosure - (Accounting Standard -18)

Name of the Related Parties and description of relationship:

I. Associates

Sterling Fincap Pvt Ltd.

(Formerly PrecisionWire Products Pvt Ltd )

Haryana Ispat Pvt. Ltd.

Sterling Technologies Pvt Ltd.

Prism Global Creative Products Pvt. Ltd.

Sterling Automobiles Pvt. Ltd.

Sterling Mobike Pvt.Ltd.

(Formerly Supreme MetalForms Pvt. Ltd).

Jaycee Automobiles Pvt. Ltd.

Sterling Metal Fabriks Pvt Ltd.

Anuradha Mittal Benefit Trust

M. L. Aggarwal – HUF

Anil Aggarwal – HUF

Atul Aggarwal - HUF

II. Key Management Personnel

Mr. M. L. Aggarwal - Chairman

Mr. Anil Aggarwal – Managing Director

Mr. Atul Aggarwal – Whole Time Director

III Joint Venture

Sterling Fabory India Pvt. Ltd

IV. Leases

The details of Leases in compliance of AS 19 are as under: i) Assets taken on Operating leases:

c) The Company has taken a godown on cancelable operating lease. Lease Agreement is valid for the further period of 1 years. Lease rental amounting to Rs. 292,800/- (Previous Year Rs. 278,400/-) has been debited to Profit and Loss Account.

d) The Company had taken furnished office space on operating cancelable lease. Lease Agreement was valid for the further period of 4 years as on 31.03.2009. This lease agreement has been cancelled w.e.f July 2009. Lease rental amounting to Rs. 69,000/- ( Previous Year Rs.276,000/-) has been debited to Profit and Loss Account.

e) The Company has taken furnished office space on operating cancelable lease. Lease Agreement is valid for the further period of 3 years. Lease rental amounting to Rs. 16,000/- (Previous Year Nil/-) has been debited to Profit and Loss Account.

f) The Company had taken office space on operating lease for the period from July, 2009 to March, 2010. Lease rental amounting to Rs. 44,032/- (Previous Year Nil) has been debited to Profit & Loss Account.

g. Employee Benefits

(i) Defined Contribution Plan

The Company makes contribution towards provident fund to a defined contribution retirement benefit plan for qualifying employees. The provident fund plan is operated by the Regional Provident Fund Commissioner and the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits.

The Company recognized Rs.8,484,144 (Previous Year: Rs. 7,793,431/-) for provident fund contributions and Rs 1,829,433/- ( Previous year 1,670,121/-) for ESI contribution in the profit and loss account. The contribution payable to these plans by the Company is at rates specified in the rules of the schemes.

(ii) Defined Benefit Plan

The employees gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determine based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligations. The obligation for leave encashment is recognized in the same manner as gratuity.

h. Disclosures in respect of Joint Venture

During the year the company has entered into an agreement with Borstlap Masters in fasteners group B.V (Fabory) to form a joint venture company in India which will be engaged in the business of sourcing, marketing and supply chain management of high quality standard and non- standards fasteners and providing value added services. As per the terms of agreement a joint venture company “Sterling Fabory India (P) Limited” was incorporated on 6th March 2010. The Preliminary & Pre incorporation and other expenses of Rs. 650,439 incurred has been treated as Share Application Money and is inculded under the Schedule Loans & Advances.

i. In view of the management, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet as at 31.03.2010.

j. The closing balances of debtors, creditors and loans and advances are subject to confirmation.

q. Previous year figures have been rearranged, regrouped and recast wherever considered necessary.

r. All financial figures have been rounded off to the nearest rupee.


Mar 31, 2009

1. Notes to Account

a. Estimated amount of contracts remaining to be executed on the capital account and not provided for in the account is Rs. 9,470,764/- (Previous year Rs. 31,636,601/-)

b. Contingent liabilities :

(Amount in Rs.)

As At As At 31st March, 2009 31st March, 2008

Bills Discounted 5,205,323 7,226,406

Disputed Liability under Central Excise Act * 24,464,955 15,923,291

Letter of Credit (Net of Margin) 62,437,575 116,383,630

* Against which the Company has filed the appeal.

The Company has provided a guarantee towards repayment of EMI of car loans taken by the employees from MUL for which deductions are made from the salaries of respective employees. The outstanding loan amount at the year end is Rs 3,022,023/- (RY. Rs 4,115,284/-)

h. Related Party Disclosure - (Accounting Standard -18)

Name of the Related Parties and description of relationship:

I. Associates Sterling Fincap Pvt Ltd.

(Formerly Precision Wire Products Pvt Ltd ) Haryana Ispat Pvt. Ltd. Sterling Technologies Pvt Ltd. Prism Global Creative Products Pvt. Ltd. Sterling Automobiles Pvt. Ltd. Supreme Metalforms Pvt. Ltd. Jaycee Automobiles Pvt. Ltd. Sterling Metal Fabriks Pvt Ltd. Anuradha Mittal Benefit Trust M. L. Aggarwal - HUF Anil Aggarwal - HUF Atul Aggarwal - HUF II. Key Management Personnel Mr. M. L. Aggarwal - Chairman

Mr. Anil Aggarwal - Managing Director Mr. Atul Aggarwal - Whole Time Director

c) The Company has taken a godown on cancellable operating lease. Lease Agreement is valid for the further period of2 years. Lease rental amounting to Rs. 278,400/- (Previous Year Rs. 240,000/-) has been debited to Profit and Loss Account.

d) The Company has taken furnished office space on operating cancellable lease. Lease Agreement

is valid for the further period of 4 years. Lease rental amounting to Rs. 276,000/- (Previous Year Rs.262,560/-) has1 been debited to Profit and Loss Account.

m Retirement Benefits

(i) Defined Contribution Plan

The Company makes contribution towards provident fund to a defined contribution retirement benefit plan for qualifying employees. The provident fund plan is operated by the Regional Provident Fund Commissioner and the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits.

The Company recognized Rs. 7,793,431/- (Previous Year: Rs. 7,921,763/-) for provident fund contributions in the profit and loss account. The contribution payable to these plans by the Company is at rates specified in the rules of the schemes.

(ii) Defined Benefit Plan

The employees gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determine based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligations. The obligation for leave encashment is recognized in the same manner as gratuity.

p) In view of the management, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet as at 31.03.2(309.

q) The closing balances of debtors, creditors and loans and advances are subject to confirmation.

r) Previous year figures have been rearranged, regrouped and recast wherever considered necessary.

S) All financial figures have bee!n rounded off to the nearest rupee.


Mar 31, 2008

A. Estimated amount of contracts remaining to be executed on the capital account and not provided for in the account Rs. 31,636,601 (Previous year Rs. 82,167,529)

b. Contingent liabilities :

As At As At 31st March, 2008 31st March 2007

Bills Discounted 7,226,406 34,605,501

Disputed Liability under Central Excise Act 15,923,291 1,216,717

Letter of Credit (Net of Margin) 116,383,630 73,900,000

* Against which the company has filed the appeal.

c. Pursuant to amendments to schedule VI to Companies Act, 1956 vide notification number GSR 719 (E) dated November 16, 2007, the amount due as of March 31, 2008 due to micro, small & medium enterprises as defined in Industries (Development and Regulation) Act, 1951 is Rs. 12,140,937.36 (Previous year Rs. 54,669 due to Small Scale & Ancillary Industries undertakings). This information has been compiled in respect of parties to the extent they could be identified as Micro, Small-scale and Medium Enterprises on the basis of information available.

d. The company is in the business of manufacture of high tensile fasteners and as such it is the only reportable segment as per the Accounting Standard 17 on Segment Reporting issued by the ICAI. The geographical segment is not relevant as export turnover is not significant in respect to total turnover.

e. Retirement Benefits

During the year, the Company has adopted Accounting Standard 15 (revised 2005) Employee Benefits. Accordingly, the transitional provision aggregating Rs. 19,896 (Net of deferred tax Rs. 5,344) has been shown as an adjustment from revenue reserves. The Company has classified the various benefits provided to employees as under:-

(i) Defined Contribution Plan

The company makes contribution towards provident fund to a defined contribution retirement benefit plan for qualifying employees. The provident fund plan is operated by the Regional Provident fund commissioner and the company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits.

The company recognized Rs. 7,921,763/- (Previous Year: Rs. 6,945,298/-) for provident fund contributions in the profit and loss account. The contribution payable to these plans by the company are at rates specified in the rules of the schemes.

(ii) Defined Benefit Plan

The employees gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determine based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligations. The obligation for leave encashment is recognized in the same manner as gratuity.


Mar 31, 2007

A. Estimated amount of contracts remaining to be executed on the capital account and not provided for in the accounts Rs. 82,167,529/- (Previous year Rs. 57,614,166/-)

b. Contingent liabilities :

Current year Previous year Rs. Rs.

Bills Discounted 34,605,501 60,929,325 Disputed Excise Duty Liability 1,216,717 against which the company has filed the appeal c. Remuneration to the auditors Audit fee 220,000 220,000 Tax Audit Fee 30,000 30,000 Other Matters 19,500 - Service Tax 32,987 30,600 Out of Pocket expenses 65,224 60,071

c. Remuneration to the Managing Director and Whole-Time Directors

Salary 9,650,000 6,600,000 Medical reimbursement 59,706 33,410 Contribution to Provident Fund 1,188,000 1,188,000

Perquisites:

Residential accommodation 415,350 1,320,000 Other perquisites 246,823 312,642 11,559,879 9,454,052

d. Sundry creditors - Small Scale Undertakings includes Rs. 10,254,471 /- (previous year Rs.3,971,494/-), outstanding for more than 30 days, within the agreed terms (Atop Fasteners, Grip Engineers Pvt. Ltd., Indian Organic Corporation J Engineering Works, MTE Industries Pvt. Ltd., Paras Enterprises, Sarita Chemicals, Shiv Shakti Office Equipment, Skytone Electricals (India) Ltd., Push-up Tools Udyog Pvt. Ltd., Rahul Industries, Real Engineers & Fabricators, Rishi Tools Udyog, Jullundra Engg. Works, Kanika Engg. Works, Naveen Engineering Works, Minku Engg. Works, R K Engg. Company, Salim Engg. Works, S S Industrial Corporation, Standard Fasteners, J S Industries, A T Packaging, Amar Scales, Capital Packaging, Castwell Foundries, Coral Enterprises, Glory Elevators, Premier Products, RNS Containers Pvt. Ltd., Rishi Precision Tools, Sarita Chemicals, Shiv Shakti Office, Indian Organic Corp., Ashoka Enterprises, Chintamani Enterprises, Yash Electroplators, Grip Engineers Pvt., Powercon, ACME Heat Furnaces Pvt. Ltd, Cenlub System, Joneja Bright (P) Ltd., Nirman Industries).

e. The company is in the business of manufacture of high tensile fasteners. Since the company is operating in single line of product and there being no reportable segment, the requirements of Accounting Standard 17 on Segment Reporting are not applicable to the company.

The Provision for deferred tax liability (net) of Rs. 11,313,944/- (Previous year Rs. 9,218,641/-) for the year ended March 31, 2007 has been charged to the Profit and Loss account under the head Provision for Taxes.

f. Expenses / (Income) pertaining to previous year included under different heads: Sales Promotion - Rs 10,756/- and Depreciation - Rs. 128,081/- ; Total : Rs. 138,837 /-(Previous year - (Net : Rs. 3080)).

g. In view of the management, the current assets loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet as at 31.03.2007. The balances of debtors, creditors, loans and advances are subject to confirmation.

h. Previous year figures have been rearranged, regrouped and recast wherever considered necessary.

i. All financial figures have been rounded off to the nearest rupee.


Mar 31, 2006

A. Estimated amount of contracts remaining to be executed on the capital account and not provided for in the accounts Rs. 57,614,166/- (Previous year Rs. 6,934,300/-)

b. Contingent liability

Contingent liability on account of bills discounted is Rs. 60,929,325/- (Previous year. Rs. 99,291,813/-).

Current year Previous year Rs. Rs.

c. Remuneration to the Auditors

Audit fee 220,000 144,000

Tax Audit Fee 30,000 24,000

Other Matters - -

Service Tax 30,600 17,136

Out of Pocket expenses 60,071 50,661

d. Remuneration to the Managing Director and Whole Time Directors

Salary 6,600,000 4,135,500

Commission on net profit - 3,600,000

Medical reimbursement 33,410 19,625

Contribution to Provident Fund 1,188,000 496,260

Perquisites:

Residential accommodation 1,320,000 292,500

Other perquisites 312,642 267,666

9,454,052 8,811,551

Current year Previous year Rs. Rs.

e. Computation of Net Profit as per Section 349 of Companies Act 1956 for calculation of Commission payable to Managing Directors & Whole-Time Directors.

Profit as per Profit and Loss Account 85,955,189 111,366,279

Add : Depreciation charged to the 36,064,064 30,949,401

Profit and Loss Account Loss on sale of fixed assets debited to 654,502 391,556

Profit and Loss Account Managerial Remuneration 9,454,052 8,811,551

Less: Depreciation Charged to Profit & Loss A/c 36,064,064 30,949,401

Net Profit as per Section 349 of the 96,063,743 120,569,386 Companies Act, 1956

g. Sundry creditors - Small Scale Undertakings includes Rs. 3,971,494/- (previous year Rs.3,383,804/-), outstanding for more than 30 days, within the agreed terms (Atop Fasteners, Trident Packaging Pvt. Ltd., Paras Lamipacks Pvt. Ltd., Nuage Tools Pvt. Ltd., Premier Products, Rohan Industries, Thermotech Ceramics, Sidhant India Pvt. Ltd., Dropco Multilub Systems Pvt. Limited, Pushup Thread Dies Pvt. Ltd., J.S. Industries, Khubros Automotive Industries, Aggarwal Sales Corp., Anand Prayag Udyog, ASB India Pvt. Ltd., Bon Don Products, Indian Organic Corp., Mullowal Industries).

h. The company is in the business of manufacture of high tensile fasteners. Since the company is operating in single line of product and there being no reportable segment, the requirements of Accounting Standard 17 on Segment Reporting are not applicable to the company.

j. Earning per Share - (Accounting Standard -20)

Current Year Previous Year

Profit after Tax (Rs.) 54,326,863 72,990,808

Weighted average equity Shares outstanding (Nos) 68,44,600 68,44,600

Earning per Share - basic/diluted (Rs) 7.94 10.66

l. Expenses/(Income) pertaining to previous year included under different heads : Printing & Stationery - Rs.36,374 ; Repairs - others - Rs.27,000 ; Miscellaneous expenses - Rs. 11,157 ; Consumable stores & tools - Rs. (72,511) and Charity & Donation Rs. (5,100) - Net Rs. (3,080), (Previous year - Nil).

m. In view of the management, the current assets loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet as at 31.03.2006. The balances of debtors, creditors, loans and advances are subject to confirmation.

n. Previous year figures have been rearranged, regrouped and recast wherever considered necessary.

o. All financial figures have been rounded off to the nearest rupee.


Mar 31, 2004

1. Notes to Accounts

a. Estimated amount of contracts remaining to be executed on the capital account and not provided for in the accounts is Rs. 62,947,537/- (Previous year Rs. 8,174,441/-)

b. Contingent liability :

i) Contingent liability on account of bills discounted is Rs. 60,793,918/-. (Previous year: Rs.28,130,962/-)

ii) Appeal against the demand of Rs. 3,318,784/- from the Income Tax Authorities has been decided by the ITAT. As per the order of ITAT, the demand of Rs. 1,586,310/- has been deleted and Department has filed appeal against the order with the High Court of Delhi. Company has already deposited Rs 1,950,132/- against the balance demand.

c. Sundry creditors-Small Scale Undertakings includes Rs.2,446,379/- (previous year Rs. 1,344,5687), outstanding for more than 30 days, within the agreed terms (Atop Fasteners, Spectro Analytical Labs Pvt. Ltd., Trident Packaging Pvt. Ltd., Maina Engineering Works, Paras Lamipacks Pvt. Ltd., Super Dies Mfg. Co.,Khurbros Automotive Industries, Nuage Tools Pvt. Ltd., Premier Products , Rohan Industries, Thermotech Ceramics, Sidhant India Pvt. Ltd., Dropco Engineers, Pushup Thread Dies Pvt. Ltd.)

The Provision for deferred tax liability (net) of Rs. 12,929,975/- (Previous year Rs. 9,129,513/-) for the year ended March 31, 2004 has been charged to the Profit and Loss account under the head Provision for Taxes.

d. `Other Income' includes the income of Rs. 4,26,100/- which pertain to previous year.

e. Previous year figures have been rearranged, regrouped and recast wherever considered necessary.

f. All financial figures have been rounded off to the nearest rupee.


Mar 31, 2003

1. Notes to Accounts

a. Estimated amount of contracts remaining to be executed on the capital account and not provided for in the accounts Rs. 8,174,4417- (Previous year Rs.15,143,131/-)

b. Contingent liability:

i) Contingent liability on account of bills discounted is Rs.28,130,9627- (Previous year : Rs.8,974,522/-)

ii) The company has received a demand for Rs 3,218,7847- from the income tax Authorities in 1996-97 on completion of Block Income Tax Assessment, against which appeal of the Company is pending before I T A T. Company has already deposited Rs 1,950,1327- against the above demand, under protest .

g. Sundry creditors-Small Scale Undertakings includes Rs.13,44,5687- (previous year Rs.9,03,655/-), outstanding for more than 30 days, within the agreed terms ( Atop Fasteners, Spectro Analytical Labs Pvt. Ltd., Trident Packaging Pvt. Ltd., Maina Engineering Works, Paras Lamipacks Pvt. Ltd., Super Dies Mfg. Co.)

The Provision for deferred tax liability (net) of Rs.91,29,513/- (Previous year Rs. 29,19,495) for the year ended March 31, 2003 has been charged to the Profit and Loss account under the head Provision for Taxes.

k. Previous year figures have been rearranged, regrouped and recast wherever considered necessary.

l. All financial figures have been rounded off to the nearest rupee.


Mar 31, 2002

Share Capital:

22,80,000 equity shares have been allotted as fully paid up bonus shares by capitalisation of general reserves in financial year 94-95

Secured Loans:

1. Working Capital Limits

Secured by hypothecation of Stock in Trade, Receivables and equitable mortgage of Land and Building.

2. Term Loans

- Secured by hypothecation of Plant & machinery, Movable assets, other fixed assets and guaranteed by Directors.

- Repayable within one year Rs. 12439432/- (Previous year: Rs. 6700200/-)

Other Notes:

a. Estimated amount of contracts remaining to be executed on the capital account and not provided for in the accounts Rs. 1,51,43,131/- (Previous year Rs. 20,06,479/-)

b. Contingent liability:

i) Contingent liability on account of bills discounted is Rs. 89,74,522/- (Previous year: Rs. Nil)

ii) The company has received a demand for Rs 3218784/- from the income tax Authorities in 1996-97 on completion of Block Income Tax Assessment, against which appeal of the Company is pending before I T A T. Company has already deposited Rs 1950132/- against the above demand, under protest.

c. Sundry creditors - Small Scale Undertakings includes Rs. 9,03,655/- (previous year Rs. 20,60,514/-, exceeding Rs. 1 Lacs, each outstanding for more than 30 days, within the agreed terms (Atop Fasteners, Spectro Analytical Labs Pvt. Ltd., Trident Packaging Pvt. Ltd., Mani Engineering Works, Paras Lamipacks Pvt Ltd., Super Dies Mfg. Co.)

d. Previous year figures have been rearranged, regrouped and recast wherever considered necessary.

e. Ail financial figures have been rounded off to the nearest rupee.


Mar 31, 2001

SHARE CAPITAL

Of the above, 22,80,000 equity shares have been allotted as fully paid up bonus shares, by capitalisation of general reserves in financial year 1994-95.

SECURED LOANS

1. Working Capital Limits

Secured by hypothecation of Stock in Trade, Receivables and equitable mortgage of Land and Building.

2. Term Loans

Secured by hypothecation of Plant & machinery, Movable assets, other fixed assets and guaranteed by Directors. Repayable within one year Rs. 6700200/- (Previous year : Rs. 6618614/-)

OTHER NOTES

1. Estimated amount of contracts remaining to be executed on the capital account and not provided for in the accounts Rs. 2006479/- (Previous year Rs. 1,02,96,441/-)

2. Contingent liability :

i) Contingent liability on account of bills discounted is Rs. Nil (Previous year: Rs. 586705/-)

ii) The company has received a demand for Rs. 3218784/- from the Income Tax Authorities in 1996-97 on completion of Block Income Tax Assessment, against which appeal of the Company is pending before ITAT.

Company has already deposited Rs. 1850132/- against the above demand, under protest.

3. Sundry creditors-Small Scale Undertakings includes Rs. 2060514/- (previous year Rs. 743831/-, exceeding Rs. 1 Lacs, each outstanding for more than 30 days, within the agreed terms (Atop Fasteners, Spectro Analytical Labs Pvt. Ltd., Trident Packaging Pvt. Ltd., Mani Engineering Works, Paras Lamipacks Pvt Ltd., Super Dies Mfg. Co.)

4. Previous year figures have been rearranged, regrouped and recast wherever considered necessary.

5. All financial figures have been rounded off to the nearest rupee.


Mar 31, 2000

A. Estimated amount of contracts remaining to be executed on the capital account and not provided for in the accounts Rs. 10296441/- (Previous year Rs. 1,31,47,338/-)

b. Contingent liability:

i) Contingent liability on account of bills discounted is Rs.5,86,705/- (Previous year :Rs.29,99,472/-).

ii) Block Assessment :The Block Income Tax Assessment of the Company was done during the year 1996-97 by Assessing Authority. The total demand raised by the Assessing Officer was Rs.32,18,784/-, which was disputed and contested in appeal.


Mar 31, 1999

1. Working Capital Limits

Secured by hypothecation of Stock in Trade, Receivables and equitable mortgage of Land and Building.

2 Term Loans

Secured by hypothecation of Plant & machinery, movable assets, other fixed assets and guaranteed by Directors.

Repayable within one year Rs. 8742120/- (Previous year : Rs. 1,03,00,374/-)

a. Estimated amount of contracts remaining to be executed on the capital account and not provided for in the accounts Rs. 13147338/- (Previous year Rs. 26,49,888/-)

b. Contingent liability :

i) Contingent liability on account of bills discounted is Rs. 2999472/- (Previous year : Rs. 29,18,170/-).

ii) Block Assessment : The Block Income Tax Assessment of the Company was done during the year 1996-97 by Assessing Authority. The total demand raised by the Assessing Officer is Rs. 32,18,784/-, which was disputed and contested in appeal. c. Remuneration to the Auditors Current year Previous year Rs. Rs. Audit fee 90000 90000 Tax Audit Fee 10000 10000 For Income Tax matters -- 11000 Fees for other services -- 20000 Out of Pocket expenses 28034 34688

Current year Previous year Rs. Rs. d. Remuneration to the Managing Director and Whole time directors Salary 2400000 2085000 Commission on net profit 300000 300000 Medical reimbursement 28617 32150 Contribution to Provident Fund 288000 231960 Taxable value of perquisites : Residential accommodation 30000 30000 Other perquisites 102528 82958 3149145 2762068


Mar 31, 1998

No significant notes to accounts.


Mar 31, 1997

1. Working Capital limits

Secured by hypothecation of stock in Trade, Receivables and equitable mortgage of land and building.

2. Term loans

Secured by hypothecation of Plant & machinery, movable assets, other fixed assets, FDR and guaranteed by Directors.

3. Term loan instalments payable within one year

Rs. 86,58,248/- (Previous year Rs. 87,60,000/-)


Mar 31, 1996

2. Notes to accounts

a. Estimated amount of contracts remaining to be executed on the capital account and not provided for in the accounts Rs. 97,99,169/- (Previous year Rs. 34,58,760/-)

b. Contingent liabilities

i) Bills/cheques discounted Rs. 58,77,594/- (Previous year : Rs. 22,56,384/-)

ii) Claim not acknowledged as debt by the company : Rs. 18,28,000/- (Previous year : Nil)


Mar 31, 1995

Contingent Liabilities : A counter guarantee for Rs. 455285/- given to Oriental Bank of Commerce, Faridabad in connection with a guarantee furnished to the Government of India in respect of export obligation of the company.

Estimated amount of contracts remaining to be executed on the capital accounts and not provided for in the accounts Rs. 34,58,760/- (Previous year Rs. 8,14,860/-).

Inventories have been taken, verified and valued by the management and the same have been accepted by the auditors, being a technical matter.

Expansion project

The company is implementing an expansion project, partly financed by a public issue of equity shares made in April, 1995. The capital expenditure incurred on the said project is disclosed as Capital work in progress in Schedule 55. The revenue expenditure incurred on the said project is also disclosed in the same schedule, and would be apportioned to the fixed assets and capitalised, on the completion of the project.

The Chairman & Managing Director, and the two whole time Directors were reappointed for a period of five years with effect from 01.11.1994, in an extra ordinary general meeting held on the said date. The terms of employment of each of the said persons provide for payment of commission at the rate of 1% of the net profits of the financial year, subject to a ceiling of the annual salary, and subject further to the overall ceiling for managerial remuneration as laid down in Section 198 of the Companies Act, 1956. The terms of employment applicable to the period prior to 01.04.1994, did not, however, provide for payment of commission, and further as the company became a public company only on 21.10.1994, the computation of net profits for the year ended 31.03,1994 has not been furnished.

Additional information pursuant to Para 3 & 4 of Part-II of Schedule VI to the Companies Act, 1956, is as under.


Mar 31, 1994

1. Estimated amount of contracts remaining to be executed on capital account Rs. 8,14,860/- (Previous year Rs. 1,85,000/-).

Contingent Liabilities - NIL (Previous year - NIL)

Inventories have been taken, verified and valued by the management and the same have been accepted by the auditors, being a technical matter.

For and upto the financial year ended 31.03.1993, depreciation was being charged on Written Down Value basis of rates which were different and/or higher than those prescribed in Schedule XIV to the Companies Act, 1956.

During the year ended 31.03.1994, the accounting policy of the Company on depreciation has been reviewed, and it has been decided to change the basis of charging depreciation to Straight Line Method.

Consequent upon the amendment to Schedule XIV to the Companies Act, 1956, vide notification dated 16.12.1993 of the Department of Company Affairs, the useful life of the depreciable assets has also been reviewed, and on the basis of the said review, it has been decided to adopt the rates prescribed in the said Schedule.

The change, in the method and the rates of depreciation, has been carried out as it is considered that the change would result in a more appropriate presentation of the accounts of the Company.

The depreciation charged for the year ended 31.03.1994 has been computed in the said manner. Further the aggregate depreciation charged upto 31.03.1993 has also been re-computed in the manner described above, and as prescribed in the Accounting Standard-VI issued by the Institute of Chartered Accountants of India, the net excess depreciation determined on the basis of the said recomputation, amounting to Rs 84,45,287, has been written back and credited to the Profit and Loss Account for the year ended 31.03.1994.

Additional information pursuant to para 3 & 4 of Part - II of Schedule Vi to the Companies Act, 1956, is as under:

Total working days during the year: 305 days (previous yea: 305 days)

Previous year's figures have been rearranged and recast where ever necessary.

All financial figures have been founded off upto nearest rupee.

 
Subscribe now to get personal finance updates in your inbox!