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Notes to Accounts of Technocraft Industries (India) Ltd.

Mar 31, 2015

A. The value of Closing Stock of Finished Goods includes Provision of Excise Duty wherever applicable to the products of the company and accordingly Provision of Excise Duty amounting to Rs. 28.42 Lacs has been made in accordance with AS-2 "Inventories". However this has no impact on the Profit for the year.

B. The Company is entitled to receive Subsidy refund of Interest as per the Technology up gradation Fund Scheme of the Government of India, Ministry of Textile and accordingly Rs. 63.85 lacs has been reduced from Interest Paid to Bank.

C. During the Year, the Company has made Provision of Rs. 94.30 Lacs for Capital Subsidy Receivable against Plant & Machinery Purchased under Technology Upgradation Fund Scheme of Government of India. The Capital Subsidy so receivable has been credited to the Cost of Plant & Machinery.

D. Pursuant to the Enactment of Companies Act, 2013 the company has applied the estimated useful life as Specified in Schedule II.The Written Down Value of Fixed Assets (net of Residual Value) whose life has expired as at 1st April 2014 have been adjusted (net of Deferred Tax) against the Opening Surplus balances in the Statement of Profit & Loss under Reserves & Surplus. For other assets the carrying amount as on 1-4-2014 will be depreciated over the remaining useful life of the assets. As a result an amount of Rs. 176.73 Lacs (net of Deferred Tax Asset of Rs. 91.01 lacs) has been charged to the Statement of Profit & Loss. The net Depreciation Charge for the year is higher by Rs. 445.34 Lakhs.

E. Additions to the Computer Software have been capitalized as Intangible Assets & the same has been amortized over the Period of 3 years.

F. RETIREMENT BENEFITS

- In respect of Leave Encashment Benefits as per the Revised Accounting Standard (AS)-15 on ''Retirement Benefits'', the Company has Charged Leave Encashment Expenses of Rs. 94.11 Lacs in the Statement of Profit & Loss.

(H) In compliance with AS-17 "SEGMENT REPORTING", which has become mandatory, the required information are as under:-

G. PRIMARY SEGMENT

The Business Segment has been considered as the primary segment for disclosure. The categories included in each of the reported business segments are as follows:-

i) Drum Closures

ii) Scaffoldings

iii) Cotton Yarn

iv) Garment

v) Power

The above business segments have been identified considering:

i) The nature of the product

ii) The deferring risk and returns

iii) The internal financial reporting systems Revenue and expenses have been accounted for based on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been included under "Unallocable Assets/Liabilities."

Inter segment transfer if any,are accounted for at competitive market prices, charged to unaffiliated customer for similar goods.

H. In compliance with the Accounting Standard 28 - "Impairment of Assets" which has become mandatory, the Company has considered its Fixed Assets at Cost of Acquisition or Cost of construction, less Depreciation as per policies adopted by the Company vide Note No. 1(D), (E) & (F) and none of the Assets has been revalued during the year. Based on the internal and external sources of information available with the Company the recoverable amount of fixed Assets are higher than the carrying amount of Fixed Assets, therefore there is no Impairment of Assets.

I. The Company is Co- Venturer in Technocraft Tabla Formwork System Pvt Ltd. The following

Information is disclosed as per AS-27 – Financial Reporting of Interest in Joint Venture.

1) Details of the Jointly Controlled Entity.

a) Name of the entity : Technocraft Tabla Formwork System Pvt Ltd.

b) Address of the entity : A-25, M.I.D.C, Street No 3, Marol Industrial Area,

Opp. ESIC Hospital, Andheri (E), Mumbai-400093

c) Country of Incorporation : India

d) Proportion Of Ownerships : 65%

2) Aggregate amount of Revenue, Expense, Asset and Liabilities related to the Interest of the company in the Joint- Venture namely Technocraft Tabla Formwork Systems Pvt Ltd

J. Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

K. Value of Imported and Indigenous Raw Materials, packing materials, Stores, Spares etc. Consumed and % there to Total Consumption

L. Trade Receivables/Advances/Trade Payables/Loans etc. have been taken as per books awaiting respective confirmation and reconciliation.

M. Previous Year figures have been regrouped or rearranged where considered necessary to make them Comparable with the Figures of Current Financial Year.

N. Figures in Financial Statements are converted into Lacs and any discrepancies in any total and the sum of the amounts listed are due to Rounding-Off.

O. Additional information pursuant to Part II of Schedule III of the Companies Act, 2013 are either NIL or N.A.


Mar 31, 2014

1 The above Cash flow statement has been prepared under the indirect method setout in AS-3 issued bu the Institute of Chartered Accountants of India.

2 Figures in brackets indicate cash outgo.

3 Previous period figures have been regrouped and recast wherever necessary to conform to the current period classification.

Notes :

1 . Cash Credit From Bank Of India Is Secured Against The Hypothecation Of Stock And Book Debts Both Present & Future And Fixed Assets & Equitable Mortgage Of Companies Specific Immovable Properties.

2. Export Packing Credit Against L/Cs. Confirmed Orders From BOI Are Secured Against The Hypothecation Of Stock & Book Debts Both Present & Future And Fixed Assets & Equitable Mortgage Of The Companies Specific Immovable Properties.

3. Export Packing Credit Against L/Cs. Confirmed Orders From CITI Bank Are Secured Against The Hypothecation Of Stock & Book Debts Both Present & Future And Fixed Assets & Equitable Mortgage Of The Companies Specific Specific Immovable Properties.

4. Export Packing Credit Against L/Cs. Confirmed Orders From HDFC Bank Are Secured Against The Hypothecation Of Stock & Book Debts Both Present & Future And Fixed Assets & Equitable Mortgage Of The Companies Specific Specific Immovable Properties.

5. Overdraft Account With IDBI Bank Are Secured Against The FDR Of The Company.

6. Export Packing Credit Against L/Cs. Confirmed Orders From IDBI Bank Are Secured Against The Hypothecation Of Stock & Book Debts Both Present & Future And Fixed Assets & Equitable Mortgage Of The Companies Specific Immovable Properties.

7. Export Packing Credit Against L/Cs. Confirmed Orders From CITI Bank Are Secured Against The Hypothecation of Stock & Book Debts Both Present & Future And Fixed Assets & Equitable Mortgage Of The Companies Specific Immovable Properties.

A. CONTIGENT LIABILITY

(` In Lacs) Sr. Contingent Liabilities and For the Year Ended For the Year Ended No. Commitments not provided For 31.03.2014 31.03.2013

I. 2288.59 1823.13 Stand by Letter of Credit (SBLC) aggregating to Euro 17,50,000 and USD 14,50,000 given to Banks on behalf of subsidiary Company in Poland.

II. Stand by Letter of Credit (SBLC) aggregating to 1190.40 1091.00 USD 20,00,000 given to Banks on behalf of subsidiary Company in China.

III. Corporate Guarantee aggregating to Pounds 2589.50 2069.75 25,00,000 given to Bank on behalf of Subsidiary Company in UK.

IV. 238.08 218.20 Stand by Letter of Credit (SBLC) aggregating to USD 4,00,000 given to Banks on behalf of first step down Subsidiary Company, Impact Engineering Solutions Inc

V. Bank Guarantee issued in favour of various 121.41 124.07 Suppliers/Customers.

VI. Bank Guarantee issued in favour of Commissioner 74.58 97.27 of Customs & Maharashtra Pollution Control Board.

VII. Bank Guarantee issued in favour of Commissioner 57.10 57.10 of Central Excise, Kalyan.

VIII. Income Tax, Penalty and Interest Demands For the - A.Y.2002-03 - 585.24

A.Y.2003-04 79.23 -

A.Y.2007-08 (Penalty) - 40.82

A.Y.2007-08 - 40.13

A.Y.2008-09 - 15.50

A.Y.2008-09 (Penalty) 2.91 -

A.Y.2005-06 - 14.72

A.Y.2009-10 - 65.06

IX 3.04 3.04

Show-Cause Notice for duty issued by Central Excise Department-Rebate of Excise duty paid on Exports goods by utilizing EOU’s duty. Duty Rebate Denied (Order No. SB116&117) (Stay granted by Commissioner (Appeals) from the Pre-Deposit of the dues adjudged during the pendency of these appeals)

X. Show-Cause Notice for duty & Penalty issued by 1115.66 1115.66 Central Excise Department- Clearance of Cotton waste under Exemption Notification No. 6/97 & 23/03 denied & apportioned Duty (30%) demanded. Duty & Penalty Involved in fuel & raw cotton from Financial Year 1999-2002 to Sep 2008 (Stay Granted by CESTAT from Pre – Deposit of the dues adjudged during the pendency of these appeals)

XI. 195.60 195.60 Show-Cause Notice for duty and Penalty issued by Central Excise Department – Rebate of Excise duty paid on Exports goods by utilizing EOU’s Duty. Duty Rebate Denied in Unit I of Yarn Division (Stay Granted by CESTAT from Pre – Deposit of the dues adjudged during the pendency of these appeals)

XII. 266.77 266.77 Show-Cause Notice for duty and Penalty issued by Central Excise Department – Rebate of Excise duty paid on Exports goods by utilizing EOU’s Duty. Duty Rebate Denied in Unit II of Yarn Division. (Stay Granted by CESTAT from Pre – Deposit of the dues adjudged during the pendency of these appeals)

XIII. 3.03 3.03 Demand of Service Tax (including Penalty) on Commission paid to foreign agents for Financial Year 2006-07 & 2007-08.

XIV. 82.48 82.48 Demand Notice for Payment of Royalty on extraction & transportation of mud, stones & sand issued by Tahasildar, Tal. Murbad, Dist. Thane

XV. Seven years Warranty beginning with the Amount Amount Financial year 2011-12 given to Spanco Limited unascertainable unascertainable against the Erection of the Towers

B. The value of Closing Stock of Finished Goods includes Provision of Excise Duty wherever applicable to the products of the company and accordingly Provision of Excise Duty amounting to ` 38.03 Lacs has been made in accordance with AS-2 Inventories”. However this has no impact on the Profit for the year.

C. The Company is entitled to receive Subsidy refund of Interest as per the Technology up gradation Fund Scheme of the Government of India, Ministry of Textile and accordingly 30.45 lacs has been reduced from Interest Paid to Bank.

D. The Company has exposure to National Spot Exchange Limited (NSEL) OF ` 1938.80 Lakhs as on 31st March 2014.NSEL has not been able to adhere to its payment obligation over the past few months. The Company has perused legal action against the NSEL & Others by filing writ petition in Bombay High Court and Criminal Complaint in Economic offences Wing(EOW).Pending Final Outcome which is uncertain ,the Company has decided to write off the amount of ` 1937.04 Lakhs (Net of the Amount recovered till the date of signing the Financial Report) & the same has been disclosed under the head “Bad Debts”

E. Additions to the Computer Software have been capitalized as Intangible Assets & the same has been amortized over the Period of 3 years on Prorated basis from the Date put to use.

F. RETIREMENT BENEFITS

Ø In respect of Leave Encashment Benefits as per the Revised Accounting Standard (AS)-15 on Retirement Benefits the Company has Charged Leave Encashment Expenses of 49.65 Lacs in the Statement of Profit & Loss.

H. DISCLOSURE OF RELATED PARTIES/RELATED PARTY TRANSACTIONS

In compliance with the AS-18 “RELATED PARTY DISCLOSURE”, which has become mandatory, the required information are as under:-

(I) List of Related Parties over which control exists

Sr. Name of the Related Party No.

I. Subsidiary Company/Fellow Subsidiary

1 Technocraft International Ltd, U.K.

2 Technocraft Trading Spolka Z.o.o., Poland

3 Technocraft Australia Pty Limited

4 Technosoft Engineering Projects Ltd (Formerly known as Technosoft Information Technologies (I) Ltd)

5 Anhui Reliable Steel Tec. China

6 Shreyan Infra & Power LLP

II. First Step Down Subsidiaries

1 Impact Engineering Solutions Inc.

2 Swift Engineering Inc.

III. Step Down Subsidiary

1 Swift Projects Inc.

IV. Associates

1 Ashrit Holdings Ltd

2 Ashrit Infrastructure Developers LLP

3 B.M.S.Industries Ltd

4 M.D .Saraf Securities Pvt .Ltd.

V Key Management Personnel (KMP)

1 Sharad Kumar Saraf

2 Sudarshan Kumar Saraf

3 Madhoprasad Saraf

4 Navneet Kumar Saraf

5 Ashish Kumar Saraf

6 Atanu Choudhary

VI Relatives & Enterprises of KMP

1 Shantidevi Saraf

2 Shakuntala Saraf

3 Suman Saraf

4 Nidhi Saraf

5 Ritu Saraf

6 Priyanka Saraf

7 M.T. Information Technologies

VII Joint Venture

1 Technocraft Tabla Formwork System Pvt Ltd

VIII Co- Venture

1 Tabla Construction Systems

(II)Names of the Related Parties with whom transactions were carried out during year and description of relationship

Sr. Related Parties No

I Direct Subsidiaries

1 Technocraft International Ltd, U.K.

2 Technocraft Trading Spolka Z.o.o, Poland

3 Technosoft Engineering Projects Ltd (Formerly known as Technosoft Information Technologies (I) Ltd)

4 Technocraft Australia Pty Limited

5 Anhui Reliable Steel Tec. China

6 Shreyan Infra & Power LLP

II First Step Down Subsidiary

1 Impact Engineering Solutions Inc

III Associates

1 B.M.S.Industries Ltd

2 Ashrit Holdings Ltd

IV Joint Venture

1 Technocraft Tabla Formwork System Pvt Ltd

V Key Management Personnel (KMP)

1 Sharad Kumar Saraf

2 Sudarshan Kumar Saraf

3 Navneet Kumar Saraf

4 Ashish Kumar Saraf

5 Atanu Choudhary

( ) indicates previous year figures

J. In compliance with the Accounting Standard 28 - “Impairment of Assets“ which has become

mandatory, the Company has considered its Fixed Assets at Cost of Acquisition or Cost of construction, less Depreciation as per policies adopted by the Company vide Note No. 1(D), (E) & (F) and none of the Assets has been revalued during the year. Based on the internal and external sources of information available with the Company recoverable amount of fixed Assets are higher than the carrying amount of Fixed Assets, therefore there is no Impairment of Assets.

K. The Company is Co- Venturer in Technocraft Tabla Formwork System Pvt Ltd. The following Information is disclosed as per AS-27 – Financial Reporting of Interest in Joint Venture.

1) Details of the Jointly Controlled Entity.

a) Name of the entity : Technocraft Tabla Formwork System Pvt Ltd.

b) Address of the entity : A-25, M.I.D.C, Street No 3, Marol Industrial Area,

Opp. ESIC Hospital, Andheri (E), Mumbai-400093

c) Country of Incorporation : India

d) Proportion Of Ownerships : 65%

2) Aggregate amount of Revenue, Expense, Asset and Liabilities related to the Interest of the company in the Joint- Venture namely Technocraft Tabla Formwork Systems Pvt Ltd

3) The Company is also having Joint Venture with Gilcheck Management Inc, Canadian company operating as Tabla Construction System as a Joint control operation in respect of production of Tabla Products.

L. Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

R. Trade Receivables/Advances/Trade Payables/Loans etc. have been taken as per books awaiting respective confirmation and reconciliation.

S. Previous Year figures have been regrouped or rearranged where considered necessary.

T. Figures in Financial Statements are converted into Lacs and any discrepancies in any total and the sum of the amounts listed are due to Rounding-Off.

U. Additional information pursuant to Part II of Schedule VI of the Companies Act, 1956 are either NIL or N.A.

(G). In compliance with AS-17 “SEGMENT REPORTING”, which has become mandatory, the required information is as under

A. PRIMARY SEGMENT

The Business Segment has been considered as the primary segment for disclosure. The categories includes in each of the reported business segment are as follow:-

i) Commodity Trading ii) Drum Closure iii) Scaffolding iv) Cotton Yarn v) Garment vi) Power

The above business segments have been identified considering:

i) The nature of the product

ii ) The deferring risk and returns

iii) The internal financial reporting systems

Revenue and expenses have been accounted for based on the basis of their relationship to the operating activities of the Segment. Revenue & Expenses ,which relate to the enterprise as a whole and are not allocable to segment on a reasonable basis, have been included under "Unallocable Assets / Liabilities "Inter segment transfer, if any, are accounted for at competitive market price charged to unaffiliated customer for similar goods.

Notes

1. Previous Year Figure have been regrouped /rearranged where ever considered necessary to make them Comparable with the Current Year Figures

2. Segment Revenue includes only sales of Product & Sales of services.Sales of Products are net of Excise Duty

3. Total Liabilities does not include Shareholders Fund.


Mar 31, 2013

A. Excise duty in respect of finished goods is being accounted at the time of clearance of goods as per the practice followed by the Company. Such Excise duty liability as on 31st March 2013 on goods pending clearance, if accounted for, shall not affect the profit for the year.

B. The Company is entitled to receive Subsidy refund of Interest as per the Technology up gradation Fund Scheme of the Government of India, Ministry of Textile and accordingly Rs 40.33 lakhs has been reduced from Interest to Bank.

C. Additions to the Computer Software have been capitalized as Intangible Assets & the same has been amortized over the Period of 3 years on Prorated basis from the date put to use.

D. RETIREMENT BENEFITS

Ø In respect of Leave Encashment Benefits as per the Revised Accounting Standard (AS)-15 on ''''Retirement Benefits'''', the Company has Charged Leave Encashment Expenses of Rs 79.51 Lacs in the Statement of Profit & Loss.

E. In compliance with the Accounting Standard 28 - "Impairment of Assets" which has become mandatory, the Company has considered its Fixed Assets at Cost of Acquisition or Cost of construction, less Depreciation as per policies adopted by the Company vide Note No. 1(D), (E) & (F) and none of the Assets has been revalued during the year. Based on the internal and external sources of information available with the Company recoverable amount of fixed Assets are higher than the carrying amount of Fixed Assets, therefore there is no Impairment of Assets.

F. The Company is Co-Venture in Technocraft Tabla Form work System Pvt Ltd. The following

Information is disclosed as per AS-27 – Financial Reporting of Interest in Joint Venture.

1) Details of the Jointly Controlled Entity.

a) Name of the entity : Technocraft Tabla Formwork System Pvt Ltd.

b) Address of the entity : A-25, M.I.D.C, Street No 3, Marol Industrial Area,

Opp. ESIC Hospital, Andheri (E), Mumbai-400093

c) Country of Incorporation : India

d) Proportion Of Ownerships : 65%

2) Aggregate amount of Revenue, Expense, Asset and Liabilities related to the Interest of the company in the Joint- Venture namely Technocraft Tabla Formwork System Pvt. Ltd.

G. Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

H. Trade Receivables/Advances/Trade Payables/Loans etc. have been taken as per books awaiting respective confirmation and reconciliation.

I. Previous Year figures have been regrouped or rearranged where considered necessary.

J. Figures in Financial Statements are converted into Lacs and any discrepancies in any total and the sum of the amounts listed are due to Rounding-Off.

K. Additional information pursuant to Part II of Schedule VI of the Companies Act, 1956 are Either NIL or N.A.


Mar 31, 2012

1 A. OVERDRAFT ACCOUNT WITH BANK OF INDIAARE SECURED AGAINST THE FDR OF THE COMPANY

1 B. CASH CREDIT FROM BANK OF INDIA IS SECURED AGAINST THE HYPOTHECATION OF STOCK AND BOOK DEBTS BOTH PRESENT & FUTURE AND FIXED ASSETS & EQUITABLE MORTGAGE OF COMPANIES SPECIFIC IMMOVABLE PROPERTIES.

2. EXPORT PACKING CREDIT AGAINST L/CS. CONFIRMED ORDERS FROM BANK OF INDIAARE SECURED AGAINST THE HYPOTHECATION OF STOCK & BOOK DEBTS BOTH PRESENT & FUTURE AND FIXED ASSETS & EQUITABLE MORTGAGE OF THE COMPANIES SPECIFIC IMMOVABLE PROPERTIES.

3. EXPORT PACKING CREDIT AGAINST L/CS. CONFIRMED ORDERS FROM CITI BANK ARE SECURED AGAINST THE HYPOTHECATION OF STOCK & BOOK DEBTS BOTH PRESENT & FUTURE AND FIXED ASSETS & EQUITABLE MORTGAGE OF THE COMPANIES SPECIFIC IMMOVABLE PROPERTIES.

4. EXPORT PACKING CREDIT AGAINST L/CS. CONFIRMED ORDERS FROM HDFC BANK ARE SECURED AGAINST THE HYPOTHECATION OF STOCK & BOOK DEBTS BOTH PRESENT & FUTURE AND FIXED ASSETS & EQUITABLE MORTGAGE OF THE COMPANIES SPECIFIC IMMOVABLE PROPERTIES.

5. OVERDRAFTACCOUNT WITH IDBI BANK ARE SECURED AGAINST THE FDR OF THE COMPANY.

6. EXPORT PACKING CREDIT AGAINST L/CS. CONFIRMED ORDERS FROM IDBI BANK ARE SECURED AGAINST THE HYPOTHECATION OF STOCK & BOOK DEBTS BOTH PRESENT & FUTURE AND FIXED ASSETS & EQUITABLE MORTGAGE OF THE COMPANIES SPECIFIC IMMOVABLE PROPERTIES.

7. EXPORT PACKING CREDIT AGAINST L/CS. CONFIRMED ORDERS FROM BOI PCFC$ ARE SECURED AGAINST THE HYPOTHECATION OF STOCK & BOOK DEBTS BOTH PRESENT & FUTURE AND FIXED ASSETS & EQUITABLE MORTGAGE OF THE COMPANIES SPECIFIC IMMOVABLE PROPERTIES.

8. EXPORT PACKING CREDIT AGAINST L/CS. CONFIRMED ORDERS FROM SCB PCFC ARE SECURED AGAINST THE HYPOTHECATION OF STOCK & BOOK DEBTS BOTH PRESENT & FUTURE AND FIXED ASSETS & EQUITABLE MORTGAGE OF THE COMPANIES SPECIFIC IMMOVABLE PROPERTIES.

(Rs. In Lakhs)

SR Contingent Liabilities and For the For the Commitments not provided for Year Year Ended Ended

31.03.12 31.03.11

I. Bank Guarantees aggregating to Euro 17,50,000 1552.84 1552.84 and USD 1 1,00,000 to Banks on behalf of subsidiary Company in Poland.

II. Liability in Respect of Trade Finance & 492.04 492.04 Guarantees (UK) aggregating to Pounds 25,00,000 for Technocraft International UK

III. Bank Guarantee aggregating to USD 5,00,000 to 224.47 224.47 Banks on behalf of Fellow Subsidiary Company, Impact Engineering Pvt. Ltd.

IV. Income Tax and Interest Demands For the

A.Y.2002-2003 15.44/- 15.44/-

A.Y.2001-2008 63.80/- 63.80/-

A.Y.2008-2009 15.50/- NIL

V Show-Cause Notice for duty issued by Central Excise Department-Rebate of Excise duty paid on Exports goods by utilizing EOU's duty. Duty Rebate Denied (Order No. SB116&111) (Stay granted by Commissioner (Appeals) from 3.04/- NIL the Pre-Deposit of the dues adjudged during the pendency of these appeals)

VI. Show-Cause Notice for duty & Penalty issued by Central Excise Department-Clearance of Cotton waste under Exemption Notification No. 6/97 & 23/03 denied & apportioned Duty (30%) demanded. Duty & Penalty Involved in fuel & raw cotton from Financial Year 1999-2002 to 1115.66 NIL Sep 2008 (Stay Granted by CESTAT from Pre- Deposit of the dues adjudged during the pendency of these appeals)

VI. Show-Cause Notice for duty and Penalty issued by Central Excise Department - Rebate of Excise duty paid on Exports goods by utilizing EOU's Duty. Duty Rebate Denied in Unit I of Yarn Division (Stay Granted by 195.60 NIL CESTAT from Pre-Deposit of the dues adjudged during the pendency of these appeals)

VII. Show-Cause Notice for duty and Penalty issued by Central Excise Department - Rebate of Excise duty paid on Exports goods by utilizing EOU's Duty. Duty Rebate Denied in Unit II of Yarn Division. (Stay Granted by CESTAT from Pre-Deposit of the dues adjudged during the 266.77 NIL pendency of these appeals)

IX. Demand of Service Tax (including Penalty) on Commission paid to foreign agents for Financial 3.03 NIL Year 2006-07 & 2007-08.

X. Seven years Warranty beginning with the Amount Financial year 2011-12 given to Spanco Limited unascert- NIL against the Erection of the Towers aionable

B. Excise duty in respect of finished goods is being accounted at the time of clearance of goods as per the practice followed by the Company. Such Excise duty liability as on 31st March 2012 on goods pending clearance, if accounted for, shall not affect the profit for the year.

C. The Company is entitled to receive Subsidy refund of Interest as per the Technology up gradation Fund Scheme of the Government of India, Ministry of Textile and accordingly 52.10 lakhs has been reduced from Interest to Bank.

D. Provision in respect of reduction in Market Value of Quoted Investments amounting to Rs. 46.03 Lacs /- as at 31st March, 2012 is not made as these Investments are held as long term investments and in the perception of the Management there is no permanent diminution in value of such investments.

E. RETIREMENT BENEFITS

The Company has recognizing and accruing the Leave Encashment retirement benefits as per the erstwhile Accounting standard -15 on "Retirement Benefits".

In respect of gratuity as per the Revised Accounting standard (AS)-15 on "Retirement Benefits", the company has charged gratuity liability(net) of Rs. 2,55,66,560/-.

F. In compliance with the Accounting Standard 28 - "Impairment of Assets" which has become mandatory, the Company has considered its Fixed Assets at Cost of Acquisition or cost of construction, less Depreciation as per policies adopted by the Company vide Note No. 1(E), (F) & (G) and none of the Assets has been revalued during the year. Based on the internal and external sources of information available with the Company recoverable amount of fixed Assets are higher than the carrying amount of Fixed Assets, therefore there is no Impairment of Assets.

G. During the year Technocraft Hungary KFT is seized to be subsidiary of the company.

H. The Company is Co-Venturer in Technocraft Tabla Formwork System Pvt Ltd. The following Information is disclosed as per AS-27 - Financial Reporting of Interest in Joint Venture.

1) Details of the Jointly Controlled Entity.

a) Name of the entity : Technocraft Tabla Formwork System Pvt Ltd.

b) Address of the entity : A-25, M.I.D.C, Street No 3, Marol Industrial Area, Opp. ESIC Hospital, Andheri (E), Mumbai-400093

c) Country of Incorporation : India

d) Proportion Of Ownerships : 65%

2) Aggregate amount of Revenue, Expense, Asset and Liabilities related to the Interest of the company in the Joint- Venture namely Technocraft Tabla Formwork System Pvt Ltd

3 The Company is also having Joint Venture with Gilcheck Management Inc, Canadian company operating as Tabla Construction system as a Joint control operation in respect of production of Tabla Products.

I. Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

J. Trade Receivables/Advances/Trade Payables/Bank Balances (Partly)/Loans etc. have been taken as per books awaiting respective confirmation and reconciliation.

K. The financial statements have been prepared as per revised schedule VI to the Companies Act, 1956 which had a significant impact on presentation. Comparative figures have been regrouped or rearranged where considered necessary.

L. Figures in Financial Statements are converted into Lakhs and any discrepancies in any total and the sum of the amounts listed are due to Rounding-Off.

M. Additional information pursuant to Part II of Schedule VI of the Companies Act, 1956 are Either NIL of N.A.

A. PRIMARY SEGMENT

The Business Segment has been considered as the primary segment for disclosure. The categories included in each of the reported business segments are as follows:-

i) Drum Closures

ii) Steel Tubes and Scaffoldings

iii) 100 % Cotton Yarn

iv) Garment

v) Power

The above business segments have been identified considering:

i) The nature of the product

ii ) The deferring risk and returns

iii) The internal financial reporting systems

Revenue and expenses have been accounted for based on the basis of their relationship to the operating activities of the segment.

Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have "included under "Unallocable Assets/Liabilities." Inter segment transfer, if any, accounted for at competitive market prices, charged to unaffillated customers for similar goods"


Mar 31, 2011

A. CONTIGENT LIABILITY

SR Contingent Liabilities and Commitments For the Year Ended For the Year Ended not provided For 31.03.2011 (Rs) 31.03.2010 (Rs.)

I. Bank Guarantees aggregating to Euro 17,50,000 and USD 11,00,000 to Banks Rs. 1552.84 Rs. 1552.84 on behalf of subsidiary Company in Poland.

II. Bank Guarantee aggregating to USD 5,00,000 Rs. 224.47 Rs. 224.47 to Banks on behalf of Fellow Subsidiary Company, Impact Engineering Pvt. Ltd.

III.Income Tax and Interest Demands For the

A.Y.2002-2003 Rs.75.44/- Rs.155.19

A.Y.2005-2006 Rs.63.80 NIL

B. Excise duty in respect of finished goods is being accounted at the time of clearance of goods as per the practice followed by the Company.

C. The company has not received any memorandum (as required to be filled by the supplier with the notified authority under the Micro Small & Medium Enterprises Development Act-2006) claiming their status as Micro Small & Medium Enterprises, Accordingly the amount paid/payable together with the interest, if any, have not been given.

D. The Company is entitled to receive Subsidy refund of Interest as per the Technology up gradation Fund Scheme of the Government of India, Ministry of Textile and accordingly entitled to receive Rs Rs 73.18 lakhs which are credited to Profit & Loss account under "Other Income".

E. RETIREMENT BENEFITS

- The Company has recognizing and accruing the Leave Encashment retirement benefits as per the erstwhile Accounting standard -15 on "Retirement Benefits".

- In respect of gratuity as per the Revised Accounting standard (AS)-15 on "Retirement Benefits", the company has reversed gratuity liability(net) of Rs 63,64,843/-.

I. DISCLOSURE OF RELATED PARTIES/RELATED PARTY TRANSACTIONS

In compliance with the AS-18 "RELATED PARTY DISCLOSURE", which has become mandatory, the required information is as under:- (I) List of Related Parties over which control exists

Sr.No Name of the Related Party

I. Subsidiary Company/Fellow Subsidiary

Technocraft International Ltd, U.K.

Technocraft Trading Spolka Z.o.o., Poland

Technocraft (Hungary) Kft

Technocraft Australia Pty Limited

Technosoft Information Technologies (India) Ltd

Technocraft Tabla Formwork System Pvt Ltd

Impact Engineering Inc.

CAE Systems GMBH

Anhui Reliable Steel Tec. China

II. Associates

Ashrit Holdings Ltd

B.M.S.Industries Ltd

M.D .Saraf Securities Pvt .Ltd.

III. Key Management Personnel (KMP)

Sharad Kumar Saraf Sudarshan Kumar Saraf Madhoprasad Saraf Navneet Kumar Saraf Ashish Kumar Saraf

IV. Relatives & Enterprises of KMP

Shantidevi Saraf

Shakuntala Saraf

Suman Saraf

Nidhi Saraf

Ritu Saraf

Priyanka Saraf

M.T. Information Technologies

V. Co- Venturer

Tabla Construction Systems

(II)Names of the Related Parties with whom transactions were carried out during year and description of relationship

Sr.No Related Parties

I Subsidiaries/Fellow Subsidiary

Tfechnoa-aft International Ltd, U.K.

Technocraft Trading Spolka Z.o.o, Poland

Technosoft Information Technology Ltd

Technocraft Tabla Formwork System Pvt. Ltd

Technocraft Australia Pty Limited

Anhui Reliable Steel Tec. China

Impact Engineering Inc

II Associates

B>I.S.Industries Ltd

Ashrit Holdings Ltd

III Key Management Personnel (KMP)

Sharad Kumar Saraf

Sudarshan Kumar Saraf

Navneet Kumar Saraf

Ashish Kumar Saraf

IV Co-Venturer

Tabla Construction Systems

J. In compliance with the Accounting Standard22 "Accounting for Taxes on Income" which has become mandatory, the company has charged Deferred Tax Assets (net) amounting to Rs168.28 lakhs in the Current year and the same has been charged to profit and loss account.

K. In compliance with the Accounting Standard 28 - "Impairment of Assets" which has become mandatory, the Company has considered its Fixed Assets at Cost of Acquisition or cost of construction, less Depreciation as per policies adopted by the Company vide Note No. 1(E), (F) & (G) and none of the Assets has been revalued during the year. Based on the internal and external sources of information available with the Company recoverable amount of fixed Assets are higher than the carrying amount of Fixed Assets, therefore there is no Impairment of Assets.

L. The Company has set up Power Plant for its Captive consumption and the Trial run generation of Power has been made upto 31st March, 2010 & Pre-operative Expenses during the said period after adjustment of realization from trial run Power generation and also Expenditure thereof for period has been capitalized. The Realization from generation of power (captive consumption) & cost of power consumed is charged to profit & loss Account in respective division.

M. I) Pursuant to a Scheme of Amalgamation approved by the Board of Directors of the Company at meeting held on 18th January, 2010 and approved by the Hon'ble High Court, of Judicature at Bombay under section 391 read with section 394 of the Companies Act, 1956 by its order dated 6th May. 2011 which became effective on 7th June, 2011 on receipt of certificate of Registration of order of court from the Registrar of Companies, Mumbai, all the Assets and liabilities of Technocraft Export Pvt Ltd Ltd. were transferred to the Company with effect from the appointed date; i.e. 01st April, 2009 Accordingly the scheme has been given effect to in these accounts.

II) The Amalgamation is in the nature of Merger and the same has been accounted for under the

"The Pooling of Interest Method" as prescribed under Accounting Standards 14 issued by the Institute of Chartered Accountants of India and accordingly all the Assets and liabilities of Technocraft Export Pvt Ltd were transferred to the Company at their existing carrying amount. The company has also recognized Deferred Tax Asset amounting to Rs.2, 23, 40, 740, /- on brought forward Business loss and unabsorbed depreciation under Income Tax Act which have been credited to profit & Loss Appropriation.

III) As per the Scheme of Amalgamation, the Company's investments in Equity share Capital amounting to Rs 1, 75, 00,000/- & the unsecured Loan of Rs 99,912,529/- to Technocraft Export Pvt Ltd. stands cancelled.

IV) All losses incurred by the Technocraft Exports Pvt Ltd with effect from the appointed day, i.e., 01st April, 2009 to 31st March, 2010 has been Adjusted from Profit & Loss Appropriation A/c and Profit & Loss from 01st April, 2010 to effective date and subsequent period has been treated as the Profit & losses of the Company and accordingly the effect has been given to in these accounts for such transactions.

V) As per the Scheme of Amalgamation, the Authorized Share capital of the TECHNOCRAFT export pvt. LIMITED has been merged with the Company and accordingly the authorized capital of the company is increased by Rs 5, 00, 00,000/- i. e. 50, 00,000 Equity shares of Rs 10 each.

N. During the year Technocraft Export Pvt Ltd is seized to be subsidiary of the company.

O. The Company is Co- Venture in Technocraft Tabla Formwork System Pvt Ltd. The following a information are disclosed as per AS-27 Financial Reporting of Interest in Joint Venture.

1) Details of the Jointly Controlled Entity.

a) Name of the entity : Technocraft Tabla Formwork System Pvt Ltd.

b) Address of the entity : A-25, M.I.D.C, Street No 3, Marol Industrial Area,

Opp. ESIC Hospital, Andheri (E), Mumbai-400093

c) Country of Incorporation : India

d) Proportion Of Ownerships : 65%

2) Aggregate amount of Income, Expense, Asset and Liabilities related to the Interest of the company in the Joint- Venture namely Technocraft Tabla Formwork System Pvt Ltd

3 The Company is also having Joint Venture with Gilcheck Management Inc,Canadian company operating as Tabla Construction system as a Joint control operation in respect of production of Tabla Products.

P. Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

Q. Books Debts/Advances/Creditors/Bank Balances (Partly)/Loans etc. have been taken as per books awaiting respective confirmation and reconciliation.

R. The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Accordingly, amount and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

S. Figures in Financial Statements are converted into Lacs and any discrepancies in any total and the sum of the amounts listed are due to Rounding-off.

T. In compliance with AS-17 "SEGMENT REPORTING", which has become mandatory, the required information are as under:

A. PRIMARY SEGMENT

The Business Segment has been considered as the primary segment for disclosure. The categories included in each of the reported business segments are as follows:- i) Drum Closures ii scaffoldings iii) Yarn iv) Garment v) Power

The above business segments have been identified considering:

i) The nature of the product

ii )The deferring risk and returns

iii)The internal financial reporting systems

Revenue and expenses have been accounted for based on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have included under "Unallocable Assets/Liabilities."


Mar 31, 2010

A.CONTIGENT LIABILITY (Rs.in Lacs)

SRl Contingent Liabilities and Commitments For the Year Ended For the Year Ended not provided For 31.03.2010 (Rs.) 31.03.2009 (Rs.)

I Claims made against the Company in respect of Electricity Demand (net of NIL Rs. 4.02 advance) not acknowledged as debts.

II. Bank Guarantees aggregating to Euro 17,50,000 and USD 11,00,000 to Banks Rs. 1552.84 Rs 1686.73 on behalf of subsidiary Company in Poland.

III. Bank Guarantee aggregating to USD 5,00,000 Rs. 224.475 NIL to Banks on behalf of Fellow Subsidiary Company, Impact Engineering Pvt. Ltd.

IV. Income Tax and Interest Demands For the A.Y.2001-2002 NIL Rs.1.93 A.Y.2002-2003 Rs.155.19 Rs.352.05 A.Y.2005-2006 NIL Rs. 68.48

B. To comply with the provision of Accounting Standard-2 (Revised), the company has changed its Accounting Policy in respect of Valuation of Raw Material and Stores & Spares (including Packing Material) and the valuation of the same have been made as per the Provision of Accounting Standard -2 (Revised), whereas in earlier year the same has been valued at cost or net realizable value whichever is Lower considering the Cenvat & MVat Credit element as a cost of the stock and accordingly stock of raw material & stores is lower by Rs 530.56 Lacs. However , there is no impact on the profit of the Company because of such deviation.

C. Excise duty in respect of finished goods is being accounted at the time of clearance of goods as per the practice followed by the Company.

D. The company has not received any memorandum (as required to be filled by the supplier with the notified authority under the Micro Small & Medium Enterprises Development Act-2006) claiming their status as Micro Small & Medium Enterprises, Accordingly the amount paid/payable together with the interest, if any, have not been given.

E. The Company is entitled to receive Subsidy refund of Interest as per the Technology upgradation Fund Scheme of the Government of India, Ministry of Textile and accordingly entitled to receive Rs 89.18 lakhs which are credited to Profit & Loss account under"Other Income".

F. RETIREMENT BENEFITS

- The Company has recognizing and accruing the Leave Encashment retirement benefits as per the erstwhile Accounting standard -15 on "Retirement Benefits".

- In respect of gratuity as per the Revised Accounting standard (AS)-15 on "Retirement Benefits", the company has recognized gratuity liability of Rs 40,18,788/-.

* Includes Adjustment of Rs 4282181 of earller Years ** Includes Adjustment of Rs113865 of earller Years

G. DISCLOSURE OF RELATED PARTIES/RELATED PARTY TRANSACTIONS

In compliance with the AS-18 "RENTED PARTY DISCLOSURE", which has become mandatory, the required information are as under:-

(I) List of Related Parties over which control exists

Sr.No Name of the Related Party

I. Subsidiary Company/Fellow Subsidiary

Technocraft International Ltd, U.K.

Technocraft Trading Spolka Z.o.o., Poland

Technocraft (Hungary) Kft

Technocraft Australia Pty Limited

Technosoft Information Technologies (India) Ltd

Technocraft Exports Pvt Ltd

Impact Engineering Inc.

CAE Systems GMBH

Anhui Reliable Steel Tec. China



II. Associates

Ashrit Holdings Ltd

Technocraft Global Holding Ltd

B.M.S.Industries Ltd

M.D.Saraf Securities Pvt .Ltd.



III. Key Management Personnel (KMP) Sharad Kumar Saraf

Sudarshan Kumar Saraf

Madhoprasad Saraf

Navneet Kumar Saraf

Ashish Kumar Saraf

IV. Relatives & Enterprises of KMP

Shantidevi Saraf

Shakuntala Saraf

Suman Saraf

Nidhi Saraf

Ritu Saraf

Priyanka Saraf

Executor to the estate of Late Rukmani Devi Saraf

M.T. Information Technologies



(II) Names of the Related Parties with whom transactions were carried out during year and description of relationship

Sr.No Related Parties

I Subsidiaries/Fellow Subsidiary

Technocraft International Ltd, U.K

Technocraft Trading Spolka Z.o.o, Poland

Technocraft (Hungary) Kft

Technosoft Information Technologies (India) Ltd

Technocraft Exports Private Limite

Technocraft Australia Pty Limited

Anhui Reliable Steel Tec.China

Impact Engineering Inc

II Associates

B.M.S.Industries Ltd

Ashrit Holdings Ltd

Technocraft Global Holding Ltd



III Key Management Personnel (KMP)

Sharad Kumar Saraf

Sudarshan Kumar Saraf

Navneet Kumar Saraf

Ashish Kumar Saraf

S.K.SarafHuf

H. In compliance with the Accounting Standard 28 - "Impairment of Assets" which has become mandatory, the Company has considered its Fixed Assets at Cost of Acquisition or cost of construction, less Depreciation as per policies adopted by the Company vide Note No. 1(E), (F) & (G) and none of the Assets has been revalued during the year. Based on the internal and external sources of information available with the Company recoverable amount of fixed Assets are higher than the carrying amount of Fixed Assets, therefore there is no Impairment of Assets.

I i) Pursuant to a Scheme of Amalgamation approved by the Board of Directors of the Company at meeting held on 24th October, 2008 and approved by the Honble High Court, of Judicature at Bombay under section 391 read with section 394 of the Companies Act, 1956 by its order dated 14th Oct. 2009 which became effective on December, 2009 on receipt of certificate of Registration of order of court from the Registrar of Companies, Mumbai, all the Assets and liabilities of Mulox Sacks Pvt Ltd. were transferred to the Company with effect from the appointed date; i.e. 01st April, 2008 Accordingly the scheme has been given effect to in these accounts.

ii) The Amalgamation has been accounted for under the "The Purchase Method" as prescribed under Accounting Standards 14 issued by the Institute of Chartered Accountants of India and accordingly all the Assets and liabilities of of Mulox Sacks Pvt Ltd. were transferred to the Company at their existing carrying amount. The Company has also Identify Deferred Tax Assets amounting to Rs. 18,819/- On brought forward Business losses and unabsorbed Depreciation underthe Income Tax.

iii) As per the Scheme of Amalgamation, the Companys investments in Equity share Capital amounting to Rs. 49,61,499/- & the unsecured Loan of Rs 3,46,73,119/- to Mulox Sacks Pvt Ltd. stands cancelled.

iv) Pursuant to a Scheme of Amalgamation and after considering the extinguishments of Companys investments in Equity share Capital &the unsecured Loan in of Mulox Sacks Pvt Ltd. an amount of Rs. 48,82,103/- Arising as goodwill, being the difference between the value of investments in Equity share Capital & the unsecured Loan and the net value of all the Assets and liabilities of Mulox Sacks Pvt Ltd. on the appointed date; i.e. 01st April, 2008.

v) The goodwill arising out of the Amalgamation is amortized over a period of 5 years and accordingly Rs.9,76,421/- is amortized during the year.

vi) All losses incurred by the Mulox Sacks Pvt Ltd. with effect from the appointed day, i.e., 01st April, 2008 to 31st March, 2009 has been Adjusted from Profit & Loss Appropriation and losses from 01st April, 2009 to effective date i.e., 15th December, 2009 and subsequent period has been treated as the Profit or losses of the Company and accordingly the effect has been given to in these accounts for such transactions.

vii) Rs. 1,87,946/- has been debited to Amalgamation Expenses Mulox Sacks Pvt Ltd Accounts as an expenditure relating to the carrying out and implementing the above scheme of Amalgamation.

J During the year Mulox Sacks Pvt Ltd is seized to be subsidiary of the company.

K Pursuant to a Scheme of Amalgamation approved by the Board of directors of the Company at meeting held on 18th January, 2010, TECHNOCRAFT EXPORT PRIVATE LTD is to be amalgamated with the Company with effect from 01st April, 2009. The relevant Scheme is yet to be approved by the Honourable High court of Judicature at Bombay, pending such approval no effect has been given to the said scheme in these accounts. Consequently, the accounts do not include figures of Assets and Liabilities and Income & Expenditure of TECHNOCRAFT EXPORT PRIVATE LTD for the period 01st April, 2009 to 31st March, 2010. However Rs 75000/- Paid as amalgamation expenses during the year has been charged to profit and loss A/c.

L The company has not recognised Interest Income amounting to Rs. 63,44,816/- receivable from TECHNOCRAFT EXPORT PRIVATE LTD, a Subsidiary Company since the Company has filed the Scheme of Amalgamation in the High Court of Judicature at BOMBAY and accordingly TECHNOCRAFT EXPORT PRIVATE LTD shall be merged with Technocraft Industries India with Appointed date i.e. 01/04/2009. Consequently Profit for the year is lower by Rs. 63,44,816/-.

M No Provision in respect of reduction in Market Value of Quoted Shares (including investments in Mutual Funds) by an aggregate amount of Rs 214.07 Lakhs as at 31st March 2010, is made as these investments are held as long term investments and in the perception of the management there is no permanent diminution in value of such investments.

N Provisions involving substantial degree of estimation in measurement are recognised when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

O Books Debts/Advances/Creditors/Bank Balances (Partly)/Loans etc. have been taken as per books awaiting respective confirmation and reconciliation.

P The previous years figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Accordingly, amount and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

Q Figures in Financial Statements are converted into Lacs and any discrepancies in any total and the sum of the amounts listed are due to Rounding-off.

R. In compliance with AS-17 "SEGMENT REPORTING", which has become mandatory, the required information are as under

A. PRIMARY SEGMENT

The Business Segment has been considered as the primary segment for disclosure. The categories included in each of the reported business segments are as follows: -

i) Drum Closures

ii) Steel Tubes and Scaffoldings

iii) 100% Cotton Yarn

iv) Garment

v) Power

The above business segments have been identified considering:

i) The nature of the product

ii) The deferring risk and returns

iii) The internal financial reporting systems

Revenue and expenses have been accounted for based on the basis of their relationship to the operating activities of the segment. Revenue and expenses which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been included under "Unallocable Assets/Liabilities

Inter segment transfer if any,are accounted for at competitive market prices, charged to unaffiliated customer for similargoods

 
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