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Notes to Accounts of Ucal Fuel Systems Ltd.

Mar 31, 2015

1. Rights and restrictions attached to shares

Equity Shares: The company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

(All Amounts in Rs. Lakhs, unless otherwise stated)

As at As at 31st March 31st March 2015 2014

2. Contingent Liabilities, Guarantees and Commitment Contingent Liabilities

Claims against the company not acknowledged as debts :-

i) Sales Tax 88.88 88.88

ii) Excise Duty 223.64 221.69

iii) Service Tax 1.23 8.66

iv) Income Tax 871.40 299.71

v) Stamp Duty 31.37 31.37

Other moneys for which the company is contingently liable

i) In respect of Letter of Credits Outstanding 543.20 458.80

ii) Guarantees given by the company to the banks, with regard to credit facilities extended to M/s.Amtec Precision Products Inc., USA, a wholly owned subsidiary 9,954.23 10,269.04

iii) Guarantees given by Banks on behalf of the company 169.10 123.27 Commitment

Estimated amount of contracts remaining to be executed on capital account, 202 12 49.51 net of advances, not provided for :

3. The company has a) equity investment aggregating to Rs. 15,492.48 lakhs in Amtec Precision Products Inc., USA., a Wholly Owned Subsidiary coupled with b) interest free advance of Rs. 12,244.24 lakhs, (Previous Year Rs. 12,048.81 lakhs) and c) bank guarantees given to banks on its behalf aggregating to Rs. 9,954.23 (Previous year Rs. 10,269.04 lakhs). The operations of this subsidiary have shown marked improvements compared to previous years. Accordingly no provision is considered necessary in respect of investment in it as well as advances due from it as at the year end, though the net worth of the subsidiary has been fully eroded.

4. Sundry debtors includes a sum of Rs. 3,087.56 lakhs (previous year Rs. 2,905.61 lakhs) due from M/s. Amtec Precision Products, Inc., USA a wholly owned subsidiary. The Company is working out a deferred payment plan for the dues from Amtec Precision Products, Inc, USA to be approved by their lenders, according to which the amount is expected to be realised over a period of time. Accordingly these have been classified as short term.

5. Effective from April 1, 2014, the company has charged depreciation based on the revised remaining useful life of the assets as per the requirement of Schedule II of the Companies Act, 2013. Due to above, depreciation charge for the year ended March 31, 2015 is higher by Rs. 571.40 lakhs. Further, based on transitional provisions provided in Note 7(b) of Schedule II, an amount of Rs. 357.46 lakhs (net of deferred Tax) has been adjusted with retained earnings.

The balances outstanding as on 31st March 2015 in respect of Sundry Debtors, Loans and Advances and Sundry Creditors, wherever not confirmed by them, in so far as they have not been subsequently recovered or adjusted are subject to confirmation or reconciliation.

6. Subject to the observation in Note 35 above, in the opinion of the Board, Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated. The provision for depreciation and for all known liabilities is considered adequate and are not in excess of the amounts reasonably necessary.

7.

Research and Development expenditure includes salaries, wages and bonus amounting to Rs. 382.52 lakhs (Previous year Rs. 424.34 lakhs), travel expenses Rs. 25.60 lakhs (Previous year Rs. 30.52 lakhs) and Rent Rs. 198.00 lakhs (Previous year Rs. 198.00 lakhs).

8.

Electricity charges debited to Profit and Loss account is net of Rs. 97.05 lakhs (previous year Rs. 126.62 lakhs) being the electricity generated through company owned Wind Turbine Generators.

B. Defined Benefit Plan:

The Company provides for gratuity, a defined benefit plan, to certain categories of employees. Liability with regard to gratuity plan is accrued based on actuarial valuation, based on projected unit credited method, and carried out by an independent actuary, at the balance sheet date. Actuarial gains and losses comprise experience adjustments and effect of changes in the actuarial assumptions and are recognized immediately in the profit and loss account as income or expense. This defined benefit plan is maintained by the Life Insurance Corporation of India (Funded). But for the Leave Encashment, the liability on the leave encashment is determined on actuarial valuation (Non-funded).

The Remuneration to the Managing Director was provided, based on the approval of the Shareholders in the AGM held on 30th September, 2011 at Rs. 185.28 Lakhs and Rs. 184.68 Lakhs respectively for the years ended 31st March, 2013 and 2014 which however was in excess of the limits specified under Section-198/309 of the Companies Act, 1956 by a sum of Rs. 51.78 Lakhs and Rs. 75.52 Lakhs respectively for those two years. The excess paid for year ended 31st March, 2013 of Rs. 51.78 lakhs not being approved by the Central Government, had been received during the current year and credited to miscellaneous income. The excess provision of Rs. 75.52 Lakhs for the year ended 31st March, 2014 and the full provision for the current year amounting to Rs. 235.68 Lakhs are subject to the approval of the Central Government.

As the Company's business activity falls within a single primary business segment viz automobile parts and is a single geographical segment, the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting" specifued in the Companies (Accounting Standards) Rules 2006 (as amended) are not applicable.

9. Related Party Disclosures

1 Name of the related parties and Relationship

(i) SUBSIDIARIES OF THE COMPANY

a. Ucal Polymer Industries Limited

b. Amtec Precision Products Inc. USA

c. North American Acquisition Corporation (Wholly owned Subsidiary of Amtec)

d. Amtec Moulded Products Inc. USA (Wholly owned Subsidiary of Amtec)

e. UPIL, USA (Wholly Owned Subsidiary of UPIL)

(ii) KEY MANAGEMENT PERSONNEL

a. Mr. Jayakar Krishnamurthy Chairman and Managing Director

b. Mr. Ram Ramamurthy -Whole Time Director (Appointed with effect from 04.09.2014)

c. Ms. Rekha Raghunathan -Director and Company Secretary

d. Mr. N. Gnanasambandan - Chief Financial Officer

(iii) OTHER RELATED ENTERPRISES

a. Bharat Technologies Auto Components Limited

b. Minica Real Estates Private Limited

c. Minica Services Private Limited

d. Southern Ceramics Private Limited

e. Sujo Land and Properties Private Limited

f. Carburettors Limitted

g. Magnetic Meter Systems (India) Limited

h. Bangalore Union Services Private Limited

i. Culture and Heritage Trust of Karuveli

j. Academy of Higher Education, National College, Trichy

Previous year's figures have been reclassified and regrouped wherever necessary to conform to current year's classification/ disclosure.


Mar 31, 2014

(A) Rights and restrictions attached to shares

Equity Shares: The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

(B) NATURE OF SECURITY AND TERMS OF REPAYMENT FOR SECURED BORROWINGS

NATURE OF SECURITY

Loan amount of Rs.12.16 crores is secured by hypothecation of Plant & Machinery newly acquired during 2010-11 and held at Plants 7, 8 & 9 situate at MMNagar & Puducherry valued at Rs.18.78 crores on exclusive basis.

TERMS OF REPAYMENT

Repayable in monthly instalments of Rs.41.67 lakhs each. The period of maturity with reference to Balance Sheet date is 28 months. Rate of interest-15.25%

Loan amount of Rs.1.65 crores is secured by exclusive charge on the assets, including mortgage over leasehold rights created out of term loan on paripassu basis.

Repayable in quarterly instalments of Rs. 57.50 lakhs each. The period of maturity with reference to Balance Sheet date is 9 months. Rate of interest-14%

Loan amount of Rs.6.83 crores is secured by exclusive charge on the assets ,including mortgage over leasehold rights created out of term loan on paripassu basis.

Repayable in quarterly instalments of Rs.25 lakhs (2 years), Rs.50 lakhs & Rs.90 lakhs (1 year) each. The period of maturity with reference to Balance Sheet date is 3 years. Rate of interest-14.75%

Loan amount of Rs.1.15 crores is secured by first Charge on Fixed assets on pari passu with other banks under Multiple banking arrangement.

Repayable in quarterly instalments of Rs.25 lakhs each. The period of maturity with reference to Balance Sheet date is 1 year. Rate of interest-14.75%

Loan amount of Rs.8.79 crores is secured by first charge on fixed Assets (present & future)on pari passu basis with other term lenders except those assets specifically charged to other banks.

Repayable in quarterly instalments of Rs.100 lakhs each. The period of maturity with reference to Balance Sheet date is 2 years. Rate of interest-14.75%

Loan amount of Rs.4.23 crores is secured by first charge on assets created out of Term Loan.

Repayable in quarterly instalments of Rs.30 lakhs (3 years) & Rs.36.50 lakhs (1 year) each.The period of maturity with reference to Balance Sheet date is 3 years. Rate of interest- 14.75%

Loan amount of Rs. 16 crores is secured by first charge on fixed Assets (present & future) on pari passu basis with other term lenders except those assets specifically charged to other banks.

Repayable in quarterly instalments of Rs.100 lakhs each. The period of maturity with reference to Balance Sheet date is 4 years. Rate of Interest-14.75%

Term loan of Rs.17.72 crores is secured by first charge by way of hypothecation over all moveable fixed assets and mortgage of all immovable properties of UCAL, both present & future, except those assets specifically charged to other banks.

Repayable in step up quarterly instalments of Rs.1.20 crores/1.40 crores & 1.50 crores each. The period of maturity with reference to Balance Sheet date is 3 years. Rate of interest-12.5%

Term loan of Rs.8 crores is secured by paripassu first charge on the entire moveable & immoveable fixed assets of UCAL, present & future, except those assets specifically charged to other banks.

Repayable in quarterly instalments of Rs.50 lakhs (8 instalments) & Rs.75 lakhs (8 instalments). The period of maturity with reference to Balance Sheet date is 3 years. Rate of Interest-12.5%

Term loan of Rs.4 crores is secured by paripassu first charge on the entire moveable & immoveable fixed assets of UCAL, present & future, except those assets specifically charged to other banks.

Repayable in 20 step-up quarterly instalments. The period of maturity with reference to Balance Sheet date is 3 years. Rate of Interest-12.5%

OIF Term loan of USD -6.65 million is secured by Paripassu first charge on the entire moveable & immoveable fixed assets of UCAL, present & future, except those assets specifically charged to other banks.

Repayable in 28 step-up quarterly instalments commencing from 2012-13. The period of maturity with reference to Balance Sheet date is 6 years.

(a) NATURE OF SECURITY AND TERMS OF REPAYMENT FOR SECURED BORROWINGS

NATURE OF SECURITY

Term loan of Rs.23.69 crores is secured by paripassu first charge on the land at Bawal and exclusive charge on the Building, Plant & Machinery at Bawal.

TERMS OF REPAYMENT

Repayable in monthly instalments of Rs.50 lakhs each. The period of maturity with reference to Balance Sheet date is 4 years. Rate of interest-14.75%

(a) NATURE OF SECURITY AND TERMS OF REPAYMENT FOR SHORT TERM BORROWINGS

NATURE OF SECURITY

Working capital facilities from banks are secured by first charge on raw materials, work-in-progress, finished goods and book debts.

TERMS OF REPAYMENT

The facility is renewable on an annual basis and is repayable on demand.

(b) NATURE OF SECURITY AND TERMS OF REPAYMENT FOR UNSECURED BORROWINGS

i) Inter Corporate Deposit Not secured.

Inter Corporate Deposit is repayable within one year. Rate of interest-12%

ii) Short term loan from others Not secured.

Short term loan is repayable within one year. Rate of interest-12.75%

As at 31st As at 31st March 2014 March 2013 Note 1

Contingent Liabilities, Guarantees and Commitment

Contingent Liabilities Claims against the company not acknowledged as debts :-

i) Sales Tax 88.88 88.88

ii) Excise Duty 221.69 221.89

iii) Service Tax 8.66 35.91

iv) Income Tax 299.71 299.71

v) ESI - 1.27

vi) Stamp Duty 31.37 31.37

Other moneys for which the company is contingently liable

i) In respect of Letter of Credits Outstanding 458.80 590.19

ii) Guarantees given by the company to the banks, with regard to credit facilities extended to M/s. Amtec Precision Products Inc., USA, a wholly owned subsidiary 10,269.04 9,446.29

iii) Guarantees given by Banks on behalf of the company 123.27 31.26 Commitment

Estimated amount of contracts remaining to be executed on capital account, net of advances, not provided for : 49.51 72.22

Note 2

The company has a) equity investment aggregating to Rs.15,492.48 lakhs in Amtec Precision Products Inc., USA., a Wholly Owned Subsidiary coupled with b) interest free advance of Rs.12,048.81 lakhs, (Previous Year Rs. 11,647.02 lakhs) and c) bank guarantees given to banks on its behalf aggregating to Rs.10,269.04 (Previous year Rs.9,446.29 lakhs). The operations of this subsidiary have shown improvements compared to previous years. Accordingly no provision is considered necessary in respect of investment in it as well as advances due from it as at the year end, though the net worth of the subsidiary has been fully eroded.

Note 3

Sundry debtors includes a sum of Rs. 2,905.61 lakhs (previous year Rs. 2,535.41 lakhs) due from M/s. Amtec Precision Products, Inc., USA a wholly owned subsidiary. The Company has worked out a deferred payment plan, according to which these amounts are expected to be realized over a period of time. Accordingly these have been classified as outstanding for less than 6 months.

Note 4

The balances outstanding as on 31st March 2014 in respect of Sundry Debtors, Loans and Advances and Sundry Creditors, wherever not confirmed by them, in so far as they have not been subsequently recovered or adjusted are subject to confirmation or reconciliation.

Note 5

Subject to the observation in Note 34 above, in the opinion of the Board, Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated. The provision for depreciation and for all known liabilities is considered adequate and are not in excess of the amounts reasonably necessary.

Note 6

Research and Development expenditure includes salaries, wages and bonus amounting to Rs. 424.34 lakhs (previous year Rs. 479.12 lakhs), travel expenses Rs. 30.52 Lakhs (Previous year Rs. 22.65 lakhs) and Rent Rs. 198.00 Lakhs (Previous year Rs. 198.00 Lakhs)

Note 7

Electricity charges debited to Profit & Loss account is net of Rs.126.62 lakhs (previous year Rs.148.68 lakhs) being the electricity generated through company owned Wind Turbine Generators.

B. Defined Benefit Plan:

The Company provides for gratuity, a defined benefit plan, to certain categories of employees. Liability with regard to gratuity plan is accrued based on actuarial valuation, based on projected unit credited method, and carried out by an independent actuary, at the balance sheet date. Actuarial gains and losses comprise experience adjustments and effect of changes in the actuarial assumptions and are recognized immediately in the profit & loss account as income or expense. This defined benefit plan is maintained by the Life Insurance Corporation of India (Funded). But for the Leave Encashment, the liability on the leave encashment is determined on actuarial valuation (Non-funded).

Note 8

The managerial remuneration of Rs.260.48 lakhs paid for the year 2012-13 is in excess of the limits specified under Section 198/309 of the Companies Act, 1956, by a sum of Rs.51.78 lakhs, on account of inadequacy of profits. The shareholders have already approved in the AGM held on 30th September 2011, the continuation of payment of remuneration, in case of inadequacy of profit subject to Central Government approval. Accordingly, the company has already applied for Central Government approval.

The managerial remuneration of Rs.260.11 lakhs paid for the year 2013-14 is in excess of the limits specified under Section 198/309 of the Companies Act, 1956, by a sum of Rs.75.52 lakhs, on account of inadequacy of profits. The shareholders have already approved in the AGM held on 30th September 2011, the continuation of payment of remuneration, in case of inadequacy of profit subject to Central Government approval. Accordingly, the Company is in the process of filing the application for approval from the Central Government.

Note 9

As the Company''s business activity falls within a single primary business segment viz automobile parts and is a single geographical segment, the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting" specifised in the Companies (Accounting Standards) Rules 2006 are not applicable.

Note 10

Related Party Disclosures

I Name of the related parties and Relationship (i) SUBSIDIARIES OF THE COMPANY

a. Ucal Polymer Industries Limited

b. Amtec Precision Products Inc. USA

c. North American Acquisition Corporation (Wholly owned Subsidiary of Amtec)

d. Amtec Moulded Products Inc. USA (Wholly owned Subsidiary of Amtec)

e. UPIL, USA (Wholly owned Subsidiary of UPIL)

(ii) Key Management Personnel

a. Mr. Jayakar Krishnamurthy (Chairman and Managing Director)

b. Mr. R. Sundararaman (Joint Managing Director - ceased to director with effect from 01.04.2014)

(iii) OTHER RELATED ENTERPRISES

a. Bharat Technologies Auto Components Limited

b. Minica Real Estates Private Limited

c. Minica Services Private Limited

d. Southern Ceramics Private Limited

e. Sujo Land and Properties Private Limited

f. Carburettors Limited

g. Magnetic Meter Systems (India) Limited h. Bangalore Union Services Private Limited

Figures in brackets represent corresponding amount of previous year

1) There are no transactions exceeding 10% with respect to one related party that are not disclosed.

Note 11

Previous year''s figures have been reclassified and regrouped wherever necessary to conform to current year''s classification.


Mar 31, 2013

As at 31st As at 31st March 2013 March 2012

Note 1

Contingent Liabilities, Guarantees and Commitment

Contingent Liabilities

Claims against the company not acknowledged as debts :-

i) Sales Tax 88.88 44.14

ii) Excise Duty 221.89 2,390.00

iii) Service Tax 35.91 148.02

iv) Income Tax 299.71 297.62

v) ESI 1.27 1.27

vi) Stamp Duty 31.37 31.37

Other moneys for which the company is contingently liable

i) In respect of Letter of Credits Outstanding 590.19 806.30

ii) In respect of Buyers Credit outstanding - 99.67

iii) Guarantees given by the company to the banks, with regard to credit facilities extended to M/s. Amtec Precision Products Inc., USA, a wholly owned subsidiary 9,446.29 10,334.97

iv) Guarantees given by Banks on behalf of the company 31.26 30.22 Commitment

Estimated amount of contracts remaining to be executed on capital account, net of advances, not provided for: 72.22 676.61

Note 2

The company has a) equity investment aggregating to Rs. 15,492.48 lakhs in Amtec Precision Products Inc., USA., a Wholly Owned Subsidiary coupled with b) interest free advance of Rs. 11,647.02 lakhs, (Previous Year Rs.10,193.27 lakhs) and c) bank guarantees given to banks on its behalf aggregating to Rs.9,446.29 lakhs (Previous year Rs.10,334.97 lakhs). The operations of this subsidiary have shown marked improvements compared to previous years.Accordingly no provision is considered necessary in respect of investment in it as well as advances due from it as at the year end, though the net worth of the subsidiary has been fully eroded.

Note 3

Sundry debtors includes a sum of Rs. 2,057.43 lakhs (previous year Rs. 2,167.00 lakhs) due from M/s. Amtec Precision Products, Inc., USA a wholly owned subsidiary. The Company has worked out a deferred payment plan, according to which these amounts are expected to be realized over a period of time. Accordingly these have been classified as outstanding for less than 6 months.

Note 4

Micro, Small and Medium Enterprises under the Micro, Small & Medium Enterprises Development Act (MSMED) 2006 have been determined based on the information available with the company. The required disclosures under MSMED Act are given below:

Note 5

The balances outstanding as on 31st March 2013 in respect of Sundry Debtors, Loans and Advances and Sundry Creditors, wherever not confirmed by them, in so far as they have not been subsequently recovered or adjusted are subject to confirmation or reconciliation.

Note 6

Subject to the observation in Note 34 above, in the opinion of the Board, Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.The provision for depreciation and for all known liabilities is considered adequate and are not in excess of the amounts reasonably necessary.

Note 7

Research and Development expenditure includes salaries, wages and bonus amounting to Rs.479.12 lakhs (previous year Rs. 446.76 lakhs), travel expenses Rs. 22.65 lakhs (Previous year Rs. 26.14 lakhs) and Rent Rs. 198.00 lakhs (Previous year Rs. 198.00 lakhs)

Note 8

Electricity charges debited to Profit & Loss account is net of Rs. 148.68 lakhs (previous year Rs.99.94 lakhs) being the electricity generated through company owned Wind Turbine Generators.

Note 9

The managerial remuneration of Rs. 260.48 lakhs paid for the year is in excess of the limits specified under Section 198/309 of the Companies Act, 1956, by a sum of Rs. 51.78 lakhs, on account of inadequacy of profits. The shareholders have already approved in the AGM held on 30th September 2011, the continuation of payment of remuneration, in case of inadequacy of profit subject to Central Government approval. Accordingly, Central Government approval is now being sought.

Note 10

As the Company''s business activity falls within a single primary business segment viz automobile parts and in a single geographical segment, the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting" specified in the Companies (Accounting Standards) Rules 2006 are not applicable.

Note 11

Related Party Disclosures

I Name of the related parties and Relationship (i) SUBSIDIARIES OF THE COMPANY

a. Ucal Polymer Industries Limited

b. Amtec Precision Products Inc. USA

c. North American Acquisition Corporation (Wholly owned Subsidiary of Amtec)

d. Amtec Moulded Products Inc. USA (Wholly owned Subsidiary of Amtec)

e. UP1L, USA (Wholly owned Subsidiary of UPIL)

(ii) Key Management Personnel

a. Mr. Jayakar Krishnamurthy (Chairman and Managing Director)

b. Mr. R. Sundararaman (Joint Managing Director)

(iii) OTHER RELATED ENTERPRISES

a. Bharat Technologies Auto Components Limited

b. Minica Real Estates Private Limited

c. Minica Services Private Limited

d. Southern Ceramics Private Limited

e. Sujo Land and Properties Private Limited

f. Carburettors Limited

g. Magnetic Meter Systems (India) Limited h. Bangalore Union Services Private Limited

(iv) RELATIVES OF KEY MANAGEMENT PERSONNEL

a. Dr. V. Krishnamurthy

b. Mrs. Meenakshi Jayakar

Note 12

Previous year''s figures have been reclassified and regrouped wherever necessary to conform to current year''s classification.


Mar 31, 2012

1. As at As at 31.03.2012 31.03.2011

Note 1

Contingent Liabilities,Guarantees and Commitment

Contingent Liabilities

Claims against the company not acknowledged as debts :-

i) Sales Tax 44.14 Nil

ii) Excise Duty 2,390.00 2,420.82

iii) Service Tax 148.02 246.99

iv) Income Tax 297.62 54.89

v) ESI 1.27 1.27

vi) Stamp Duty 31.37 31.37

Other moneys for which the company is contingently liable

i) In respect of Letter of Credits Outstanding 806.30 504.06

ii) In respect of Buyers Credit outstanding 99.67 -

iii) Guarantees given by the company to the banks, with regard to credit facilities extended to M/s. Amtec Precision Products Inc., USA, a wholly owned subsidiary 10,334.97 9,325.77

iv) Guarantees given by Banks on behalf of the company 30.22 19.80

Commitment

Estimated amount of contracts remaining to be executed on capital account, net of advances, not provided for: 676.61 671.93

Note 2

The company has equity investment aggregating to Rs. 15,492.48 lakhs in Amtec Precision Products Inc., USA., a Wholly Owned Subsidiary coupled with interest free advance of Rs. 10,193.27 lakhs, (Previous Year Rs. 9,540.27 lakhs) and bank guarantees given to bank on its behalf aggregating to Rs. 10,334.97 Lakhs (Previous year Rs 9,325.77 lakhs). The operations of this subsidiary have shown marked improvements compared to previous years. Accordingly no provision is considered necessary in respect of investment in it as well as advances due from it as at the year end, though the net worth of the subsidiary has been fully eroded.

Note 3

The company has during the year purchased land and building for Rs. 18.21 crores vide agreement to sell dt.29th March 2012 which was re-validated again vide agreement dt.29th fune 2012,which is pending registration in the name of the company.

Note 4

Sundry debtors includes a sum of Rs.2,167.00 lakhs (previous year Rs. 1,885.26 lakhs) due from M/s. Amtec Precision Products, Inc., USA a wholly owned subsidiary. The Company has worked out a deferred payment plan, according to which these amounts are expected to be realized over a period of time. Accordingly these have been classified as outstanding for less than 6 months.

Note 5

Other current liabilities include Rs. 80.13 lakhs (previous year Rs. 49.78 lakhs) due to Directors on current account.

Note 6

The balances outstanding as on 31st March 2012 in respect of Sundry Debtors, Loans and Advances and Sundry Creditors, wherever not confirmed by them, in so far as they have not been subsequently recovered or adjusted are subject to confirmation or reconciliation.

Note 7

Subject to the observation in Note 36 above, in the opinion of the Board, Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated. The provision for depreciation and for all other known liabilities is considered adequate and are not in excess of the amount reasonably necessary.

Note 8

Research and Development expenditure includes salaries, wages and bonus amounting to Rs.446.76 lakhs (previous year Rs. 483.42 lakhs), travel expenses Rs. 26.14 Lakhs (Previous year Rs. 35.25 lakhs) and Rent Rs 198.00 Lakhs (Previous year Rs 198.00 Lakhs)

Note 9

B. Defined Benefit Plan:

The Company provides for gratuity, a defined benefit plan, to certain categories of employees. Liability with regard to gratuity plan is accrued based on actuarial valuation, based on projected unit credited method, and carried out by an independent actuary, at the balance sheet date. Actuarial gains and losses comprise experience adjustments and effect of changes in the actuarial assumptions and are recognized immediately in the profit & loss account as income or expense. This defined benefit plan is maintained by the Life Insurance Corporation of India (Funded). But for the Leave Encashment, the liability on the leave encashment is determined on actuarial valuation (Non-funded).

Note 10

As the Company's business activity falls within a single primary business segment viz automobile parts and is a single geographical segment, the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting" specified in the Companies (Accounting Standards) Rules 2006 are not applicable.

Note 11

Related Party Disclosures

I Name of the related parties and Relationship (i) SUBSIDIARIES OF THE COMPANY

a. Ileal Polymer Industries Limited (LIPIL)

b. Amtec Precision Products Inc. USA

c. North American Acquisition Corporation (Wholly owned Subsidiary of Amtec)

d. Amtec Moulded Products Inc. USA (Wholly owned Subsidiary of Amtec)

e. UPIL, USA (Wholly owned Subsidiary of UPIL)

(ii) Key Management Personnel

a. Mr. Jayakar Krishnamurthy (Chairman and Managing Director)

b. Mr. P.P.R. Rao (Executive Director - upto 25.9.2011)

c. Mr. R. Sundararaman (Joint Managing Director - w.e.f 8.09.2011)

(iii) OTHER RELATED ENTERPRISES

a. Bharat Technologies Auto Components Limited

b. Minica Real Estates Private Limited

c. Minica Services Private Limited

d. Southern Ceramics Private Limited

e. Sujo Land and Properties Private ltd

f. Carburettors Limitted

g. Magnetic Meter Systems (India) Limited h. Bangalore Union Services Private Limited i. Ucal Consultants Private Limited

(iv) RELATIVES OF KEY MANAGEMENT PERSONNEL Dr. V. Krishnamurthy Mrs. Meenakshi Jayakar

Note : Related party relationship is identified by the company and relied upon by the auditors.

Note 12

Previous year's figures have been reclassified and regrouped wherever necessary to conform to current year's classification according to revised Schedule VI Format.

Note 13

Figures have been rounded off to the nearest lakhs.


Mar 31, 2011

1. The company has equity investment aggregating to Rs. 15, 492.48 lakhs in Amtec Precision Products Inc., USA., a Wholly Owned Subsidiary coupled with interest free advance of Rs.9,540.27 lakhs, (Previous Year Rs 9733.17 lakhs) and bank guarantees given to bank on its behalf aggregating to Rs.9,325.77 Lakhs (Previous year Rs 11,240 lakhs). The operations of this subsidiary have shown marked improvements compared to previous years. Accordingly no provision is considered necessary in respect of investment in it as well as advances due from it as at the year end, though the net worth of the subsidiary has been fully eroded.

2. Amount due from the officers of the company Rs.-Nil lakhs (Previous year Rs.0.69 lakhs). Maximum amount due at any time during the year was Rs 0.69 lakhs (Previous year Rs.1.05 lakhs).

3. Sundry debtors includes a sum of Rs.1885.26 lakhs (previous year Rs. 1914.79 lakhs) due from M/s. Amtec Precision Products, Inc., USA a wholly owned subsidiary. The Company has worked out at a deferred payment plan, according to which these amounts are expected to be realized over a period of time. Accordingly these have been classified as outstanding for less than 6 months.

4. Sundry creditors include Rs. 49.78 Lakhs (previous year Rs.21.37 lakhs) due to Directors on current account.

5. Balance of sundry debtors and creditors are subject to confirmation, reconciliation and adjustments, if any. The management does not expect any material adjustment on receipt of confirmation/reconciliation of such balances.

6. Research and Development expenditure includes salaries, wages and bonus amounting to Rs.483.42 lakhs (previous year Rs. 486.58 lakhs), travel expenses Rs. 35.25 Lakhs (Previous year Rs. 25.77 lakhs) and Rent Rs 198.00 Lakhs (Previous year Rs 198.00 Lakhs).

7. Electricity charges debited to Profit & Loss account is net of Rs.95.26 lakhs (previous year Rs. 102.90 lakhs) being the electricity generated through company owned Wind Turbine Generators.

8. Working capital facilities from banks are secured by first charge on raw materials, work-in-progress, finished goods and book debts, outstanding monies, receivable claims, bills contracts, engagements and securities on pari passu basis and are also secured by pari passu second charge on the immovable properties of the company.

The term loan and working capital loan from Financial Institutions are secured by first charge by way of mortgage of immovable properties and hypothecation of all movable fixed assets of the company. In respect of the term loan availed for the construction of the some specific facility at Maraimalai Nagar, exclusive charge on the Assets including mortgage over the lease hold rights has been offered to the Banks funding the term loan.

9. Expenditure incurred on project for manufacture of two/three wheeler injection parts is carried forward as product development expenses and amortised over a period of five years from the month of commencement of production. Of this, an amount of Rs.417.00 lakhs (previous year Rs.417.70 lakhs) has been written off during the year.

10. Warranties which were accounted for on cash basis till last year have been accounted for on accrual basis in this year. Accordingly, year end provision has been made towards warranties on the basis of past experience. As a result of this change in accounting, the profit for the year has gone down by Rs 40.81 Lakhs with corresponding increase in liabilities.

11. Details of Employee Benefits as required by the Accounting Standard 15 (revised) Employee Benefits are as under:

A. Defined contribution plan:

Contribution to defined contribution plans are charged in the Profit & Loss Account for the year: Employers Contribution to Provident Fund:- Rs. 106.22 Lakhs (Previous year Rs. 106.35 lakhs) Employers Contribution to Pension Scheme:- Rs. 46.80 Lakhs (Previous year Rs. 53.44 lakhs) Employers Contribution to Superannuation Scheme:- Rs. 19.17 Lakhs (Previous year Rs. 34.37 lakhs)

B. Defined Benefit Plan:

The Company provides for gratuity, a defined benefit plan, to certain categories of employees. Liability with regard to gratuity plan is accrued based on actuarial valuation, based on projected unit credited method, and carried out by an independent actuary, at the balance sheet date. Actuarial gains and losses comprise experience adjustments and effect of changes in the actuarial assumptions and are recognized immediately in the profit & loss account as income or expense. This defined benefit plan is maintained by the Life Insurance Corporation of India (Funded). But for the Leave Encashment, the liability on the leave encashment is determined on actuarial valuation (Non-funded).

Notes:

1) It is not feasible to give installed capacity as there are numerous in volume having complex composition

2) Figures in brackets are in respect of previous financial year.

12. As the Company's business activity falls within a single primary business segment viz automobile parts and is a single geographical segment, the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting" specified in the Companies (Accounting Standards) Rules 2006 are not applicable.

13. Related Party Disclosures

I Name of the related parties and Relationship

(i) SUBSIDIARIES OF THE COMPANY

a. UCAL Polymer Industries Limited (UPIL)

b. Amtec Precision Products Inc. USA

c. North American Acquisition Corporation (Wholly owned Subsidiary of Amtec)

d. Amtec Moulded Products Inc. USA (Wholly owned Subsidiary of Amtec)

e. UPIL, USA (Wholly owned Subsidiary of UPIL)

(ii) Key Management Personnel

a. Mr.Jayakar Krishnamurthy Chairman and Managing Director and Chief Financial Officer

b. Mr.PP.R. Rao, Executive Director

c. Details of remuneration to directors is disclosed in note 5 of Schedule - 19 (iii) OTHER RELATED ENTERPRISES

a. Bharat Technologies Auto Components Limited

b. Minica Real Estates Private Limited

c. Minica Services (P) Limited

d. Southern Ceramics Private Limited

e. Sujo Land and Properties P Ltd

f. Carburettors Limited

(v) RELATIVES OF KEY MANAGEMENT PERSONNEL Dr. V. Krishnamurthy

1) There are no transactions exceeding 10 % with respect to one related party that are not disclosed

* included as capital work in progress.

* * Change due to year end exchange fluctuation adjustment

14 Previous year's figures have been regrouped wherever necessary to conform to current year's classification.

 
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