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Notes to Accounts of Texmaco Rail & Engineering Ltd.

Mar 31, 2016

1. In the opinion of the management, current assets, loans and advances have a value on realisation in the ordinary course of business unless otherwise stated, at least to the amount at which they are stated and the provisions for all known and determined liabilities is adequately provided.

2. Balance of debtors and loans and advances are subject to confirmation from respective parties.

3. EMPLOYEES STOCK SCHEME

The Company implemented Texmaco Employee Stock Option Scheme 2014 as approved by the Shareholders of the Company at their meeting held on 4th September, 2014.

4. Escalation, insurance claims and other claims have been accounted for on accrual basis based on latest data available with the Company and where the realization of the amount is reasonably certain.

5. Consumption of raw materials, components, stores and spares parts includes profit/loss on sale thereof and exchange difference arising on Foreign Currency transactions on account of imported Raw Materials/ Stores has been accounted under respective Revenue heads.

6. Previous year figure have been regrouped/ rearranged/ restated/ recast wherever necessary to confirm this year classification.

7. Figures below Rs. 500/- have been omitted for rounding off and Rs. 500/- & above have been rounded off to the next Rs.1000/-.


Mar 31, 2015

Notes:

1. Cash Credit facilities is secured by hypothecation of 1st charge on stocks, book debts and other current assets and 2nd charge on Fixed Assets.

2. Post demerger of Heavy Engineering and Steel Foundry businesses of Texmaco Limited (now known as Texmaco Infrastructure & Holdings Limited), the first charge created on immovable property and corporate guarantee of Texmaco Infrastructure & Holdings Limited continues.

Notes:

1 In the opinion of the management trade receivables have a value on realisation in the ordinary course of business unless otherwise stated, at least to the amount at which they are stated.

2 Trade Receivables includes amount due from Texmaco UGL Rail Private Limited amounting to Rs 724.81 lakhs (Previous Year Rs. 2,786.87 lakhs) a Joint Venture.

3 Trade Receivables includes Retention Money Rs. 4,146.61 lakhs (Previous Year Rs 4,640.81 lakhs)

2014-15 2013-14 (Rs in Lakhs) (Rs in Lakhs)

(a) Commitments

Estimated amount of contracts remaining to be executed on Capital Account and not provided 183.31 804.87 for (Net of advance)

(b) Contingent Liabilities (not provided for) in respect of :

(a) Guarantees given by Banks in the normal course of Business. 32,958.39 24,956.30

(b) Letters of Credit opened by Banks in the normal course of Business. 13,565.16 6,475.81

(c) Bonds issued to Custom Department 92.20 92.20

(d) Claims under dispute (Excise Duty, Service Tax & others) 4,439.53 3,920.50

(e) Claims not acknowledged as debts (Amount unascertainable) - -

(f) Income Tax assessment under appeal (Amount unascertainable) - -

In accordance with the requirement of AS 29 "Provisions, Contingent Liabilities and Contingent Assets" issued by the Companies (Accounting Standard) Rules 2006, the company has provided liability for other expenses amounting to Rs. 162.76 lakhs (Previous Year Rs. 137.99 lakhs).

Site warranty period maintenance: - The Company gives warranties and maintenance on certain products and services, undertaking to repair, replace and maintain the items for satisfactory working during the warranty period. Provision as at 31.03.2015 represents the amount of the expected cost of meeting such obligations of rectification/ replacement/ maintenance. The timing of the outflow is expected to be within a period of two years.

Provision for others: - It represents liabilities related to various site expenses including contractor service charges for sites, administrative charges etc, likely to materialize in the next financial year.

3.

In the opinion of the management, current assets, loans and advances have a value on realisation in the ordinary course of business unless otherwise stated, at least to the amount at which they are stated and the provisions for all known and determined liabilities is adequately provided.

4.

Balance of debtors and loans and advances are subject to confirmation from respective parties.

Notes:

1. Figures in brackets are for previous financial year.

2. Due to inadequate profit during the year 2013-14, the minimum remuneration paid to Executive Directors as approved at the time of their appointment exceeded the limit under the Companies Act, 2013 for which approval of Central Government is awaited. For the current year also due to inadequate profit it has exceeded the limit for which necessary application to the Central Government shall be made, post approval of Shareholders in the ensuing Annual General Meeting.

5. EMPLOYEE BENEFITS OBLIGATION

The Company accounts for Gratuity, Leave and Provident Fund Liability at actuarial valuation at the end of the year i.e. 31st March.

Accordingly these Liabilities have been computed by the actuary as at 31st March, 2015.

Note:

(i) Figures in bracket are audited previous year figure.

(ii) Figures for current year are un-audited

6.

Escalation, insurance claims and other claims have been accounted for on accrual basis based on latest data available with the Company and where the realization of the amount is reasonably certain.

7.

Consumption of raw materials, components, stores and spares parts includes profit/loss on sale thereof and exchange difference arising on Foreign Currency transactions on account of imported Raw Materials/ Stores has been accounted under respective Revenue heads.

8.

Previous year figure have been regrouped/ rearranged/ restated/ recast wherever necessary to conform this year classification.

10.

Figures below Rs. 500/- have been omitted for rounding off and above Rs. 500/- have been rounded off to the next Rs.1000/-


Mar 31, 2014

1 In the opinion of the management trade receivables have a value on realisation in the ordi nary course of business unless otherwise stated, at least to the amount at which they are stated

2 Trade Receivables includes amount due from Texmaco UGL Rail Private Limited amounting to Rs 2,786.87 lakhs (Previous Year Rs 2,153.94 lakhs) a Joint Venture.

3 Trade Receivables includes Retention Money Rs. 4,640.81 lakhs (Previous Year Rs 4,044.58 lakhs)

2013-14 2012-13 (Rs in Lacks) (Rs in Lacks) (a)Commitments

Estimated amount of contracts remaining to be executed on Capital Account and not provided 804.87 3,672.44 for (Net of advance)

(b) Contingent Liabilities (not provided for) in respect of:

(a) Guarantees given by Banks in the normal course of Business. 24,956.30 33,127.06

(b) Letters of Credit opened by Banks in the normal course of Business. 6,475.81 5,808.28

(c) Bonds issued to Custom Department 92.20 92.20

(d) Claims under dispute (Excise Duty, Service Tax &others) 3,920.50 2,199.50

(e) Claims not acknowledged as debts (Amount unascertainable) - -

(f) Income Tax assessment re-opened (Amount unascertainable) - -

Movement of Provisions during the year as required under AS 29 prescribed by the Companies (Accounting Standard) Rules 2006

In accordance with the requirement of AS 29 "Provisions, Contingent Liabilities and Contingent Assets" issued by the Companies (Accounting Standard) Rules 2006, the Company has provided liability for other expenses amounting to Rs. 137.99 lakhs (Previous Year Rs 17.57 lacs).

Site warranty period maintenance: - The Company gives warranties and maintenance on certain products and services, undertaking to repair, replace and maintain the items for satisfactory working during the warranty period. Provision as at 31.03.2014 represents the amount of the expected cost of meeting such obligations of rectification/ replacement/ maintenance. The timing of the outflow is expected to be within a period of two years

Provision for others: - It represents liabilities related to various site expenses including contractor service charges for sites, administrative charges etc, likely to materialize in the next financial year

In the opinion of the management, current assets, loans and advances have a value on realisation in the ordinary course of business unless otherwise stated, at least to the amount at which they are stated and the provisions for all known and determined liabilities is adequately provided

Balance of debtors and loans and advances are subject to confirmation from respective parties

(a) Name of the related parties and relationship as per Accounting Standard 18

Relationship

A. Key Management Personnel Shri S. K. Poddar Executive Chairman

Shri Ramesh Maheshwari

Executive Vice Chairman

Shri D. H. Kela

Executive Director & CEO (SF)

Shri Sandeep Fuller,

Executive Director & CEO (HED)

B. Associate Company Texmaco Infrastructure & Holdings Ltd.

Kalindee Rail Nirman (Engineers) Ltd.

C. Joint Venture Texmaco UGL Rail Pvt. Ltd.

Touax Texmaco Railcar Leasing Pvt. Ltd.

D. Group Company Zuari Investments Ltd where transaction Duke Commerce Ltd.

existSi Adventz Securities Enterprises Ltd.

Zuari Global Ltd.

Adventz Investments and Holdings Ltd New Eros Tradecom Ltd. Master Exchange & Finance Ltd. Adventz Investments Co. Pvt. Ltd. Adventz Securities Trading Pvt. Ltd. Adventz Finance Pvt. Ltd. Eureka Traders Pvt. Ltd. Abhishek Holdings Pvt. Ltd. Greenland Trading Pvt. Ltd. Indrakshi Trading Company Pvt. Ltd. Zuari Management Services Ltd. High Quality Steels Ltd. Lionel India Ltd. Macfarlane & Co. Ltd.

Parties Where Control Exist 2012-13

Shri S. K. Poddar

Executive Chairman

Shri Ramesh Maheshwari

Executive Vice Chairman

Shri D. H. Kela

Whole Time Director, President & CEO

Texmaco Infrastructure & Holdings Ltd

Texmaco UGL Rail Pvt. Ltd.

Touax Texmaco Railcar Leasing Pvt. Ltd

Zuari Investments Ltd

Duke Commerce Ltd

Adventz Securities Enterprises Ltd | Zuari Global Ltd.

Adventz Investments and Holdings Ltd

New Eros Tradecom Ltd

Master Exchange & Finance Ltd

Adventz Investments Co. Pvt. Ltd

Adventz Securities Trading Pvt. Ltd

Adventz Finance Pvt. Ltd

Eureka Traders Pvt. Ltd | Abhishek Holdings Pvt. Ltd.

Greenland Trading Pvt. Ltd

Indrakshi Trading Company Pvt. Ltd

Zuari Management Services Ltd

High Quality Steels Ltd.

Lionel India Ltd | Macfarlane & Co. Ltd.

*Remuneration paid to the Whole Time Directors has exceeded the prescribed limit under Section 198 of the Companies Act 1956, for which requisite application has been made by the Company to the Central Government and the approval is awaited"

The Company accounts for Gratuity & Leave Liability at actuarial valuation at the end of the year i.e. 31st March. Accordingly these Liabilities have been computed by the actuary as at 31st March, 2014,

* Number of shares held by Texmaco Rail & Engineering Limited in Touax Texmaco Railcar Leasing Pvt. Ltd is 12649999 equity shares, whereas number of equity shares held by Touax Rail Limited is 12650001

Note: (i) Figures in bracket are audited previous year figure (ii) Figures for current year are un-audited

Escalation, insurance claims and other claims have been accounted for on accrual basis based on latest data available with the Company and where the realization of the amount is reasonably certain

Consumption of raw materials, components, stores and spares parts includes profit/loss on sale thereof and exchange difference arising on Foreign Currency transactions on account of imported Raw Materials/ Stores has been accounted under respective Revenue heads

As a part of Company''s risk management policy, the financial risks mainly relating to changes in the exchange rates are hedged by using a combination of forward contracts, besides the natural hedges

Note : The Company operates predominantly within the geographical limits of India and accordingly secondary segments have not been considered

Previous year figures have been regrouped/ rearranged/ restated/ recast wherever necessary to confirm this year classification Figures below Rs. 500/- have been omitted for rounding off and above Rs. 500/- have been rounded off to the next Rs. 1,000/-,


Mar 31, 2013

1.1

In the opinion of the management, current assets, loans and advances have a value on realisation in the ordinary course of business unless otherwise stated, at least to the amount at which they are stated and the provisions for all known and determined liabilities is adequately provided.

1.2

Balance of debtors and loans and advances are subject to confirmation from respective parties.

1.3 EMPLOYEE BENEFITS OBLIGATION

The Company accounts for Gratuity & Leave Liability at actuarial valuation at the end of the year i.e. 31st March. Accordingly these Liabilities have been computed by the actuary as at 31st March, 2013.

1.4

Sales include inter departmental transfers Rs.15,857.58 lakhs. (Previous Year Rs 13,592.62 lakhs)

1.5

Escalation, insurance claims and other claims have been accounted for on accrual basis based on latest data available with the Company and where the realization of the amount is reasonably certain.

1.6

Consumption of raw materials, components, stores and spares parts includes profit/loss on sale thereof and exchange difference arising on Foreign Currency transactions on account of imported Raw Materials/ Stores has been accounted under respective Revenue heads.

1.7

Figures below Rs. 500/- have been omitted for rounding off and above Rs. 500/- have been rounded off to the next Rs.1,000/-.


Mar 31, 2011

2010-11 2009-10 (Rs. in Lakhs) (Rs. in Lakhs)

1 Estimated amount of contracts remaining to be executed on Capital Account and not provided for (Net of advance) 2,120.12 -

2010-11 2009-10 (Rs. in Lakhs) (Rs. in Lakhs)

2 Contingent Liabilities (not provided for) in respect of:

(a) Guarantees given by Banks 38,933.43 -

(b) Letters of Credit opened by Banks 13,584.09 -

(c) Claims under dispute (excise duty & service tax) 4,323.41 -

(d) Claims not acknowledged as debts (Amount unascertainable) - -

(e) Income Tax assessment re-opened (Amount unascertainable) - -

3. The Company accounts for gratuity liability equivalent to the premium amount paid/ payable to Life Insurance Corporation of India (LIC).

4. a) Pursuant to the Scheme of Arrangement approved by the Hon'ble High Court, Calcutta, all the Assets, Liabilities, Capital

Investment Subsidy, Equity QIP Share Premium and Revaluation Reserve of Heavy Engineering and Steel Foundry businesses of Texmaco Ltd as on 1st April 2010 have been transferred to the Company at their book values and accordingly, Rs 14,008.65 lacs being the surplus of Assets over the Liabilities of the Business so demerged, after adjusting Share Capital issued by the Company, has been credited to General Reserve in terms of the Order.

b) Pursuant to the Scheme, the Company has issued 12,71,83,090 Equity Shares of Re 1 each aggregating to Rs 1,271.83 lacs to the existing shareholders of Texmaco Limited as on the record date, in the ratio of 1 fully paid up Equity Share of Re 1 each of the Company for each share of Re 1 each held in Texmaco Limited.

c) The results for the current year ended 31st March, 2011 are for "TexRail" after giving effect to the Scheme of Arrangement with Texmaco Limited as approved by the Hon'ble High Court, Calcutta whereby Heavy Engineering and Steel Foundry businesses of Texmaco Limited was demerged to the Company with appointed date of 1st April, 2010 and accordingly its previous year's figures are not comparable with the current year.

5. In the opinion of the management, current assets, loans and advances have a value on realisation in the ordinary course of business unless otherwise stated, at least to the amount at which they are stated and the provisions for all known and determined liabilities is adequately provided.

6. Balance of debtors and loans and advances are subject to confirmation from respective parties.

7. Employee Benefits Obligation :

The Company accounts for Gratuity & Leave Liability at actuarial valuation at the end of the year i.e. 31st March. Accordingly these Liabilities will be computed by the actuary as at 31st March, 2011.

8. Employees Stock Option Scheme

In respect of Stock options granted pursuant to Texmaco's Employees Stock Option Schemes 2007, on exercise of such option, the Equity Shares in Texmaco Limited and Texmaco Rail & Engineering Limited (TREL) shall be issued to the optionees in the same ratio, i.e., 1 (One) Equity Share of Re.l each in Texmaco Limited and 1 (One) Equity Share of Re.l each in TREL for every 1 (One) stock option of Re.l each held by them as on the Effective Date. The total exercise price of the options shall be split between TREL and Texmaco Limited in proportion to the net book value of the assets (i.e assets minus liabilities) transferred to TREL and retained by Texmaco Limited.

9. As per the valuation report submitted by the external valuer appointed for the purpose, the company has revalued some of its fixed assets i.e. certain Land, Building, Road, Railway siding and Plant & Machinery, of its engineering units as at 31.12.1985, after considering depreciation for the year, at net replacement cost. As a result, there has been a net increase in the book value of assets as at 31.12.1985 of Rs. 3,484.58 lakhs which has been transferred to Revaluation Reserve Account. The umamortised balance as 31st March 2011 is Rs. 1,242.01 lakhs.

10. Sales include inter departmental transfers Rs. 13,959.54 lakhs, Tax deducted at source Rs.967.86 lakhs, excess/(short) realisation of bills (net) Rs.(17.53) lakhs.

11. Escalation, insurance claims and other claims have been accounted for on accrual basis based on latest data available with the Company and where the realisation of the amount is reasonably certain.

12. Consumption of raw materials, components, stores and spares parts includes profit/loss on sale thereof.

13. Issued, Subscribed and Paid up Share Capital of the company is excluding 9960 No's of Equity Shares lying in abeyance - NSDL - Transit case

14. Figures below Rs.500/- have been omitted for rounding off and above Rs.500/- have been rounded off to the next Rs. 1,000/.

 
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