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Notes to Accounts of VST Tillers Tractors Ltd.

Mar 31, 2015

(A) Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares would be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

As per records of the Company, including its register of shareholders/ members, the above shareholding represent legal ownership of shares.

(d) Shares allotted as fully paid up by way of bonus shares (during 5 years preceding March 31, 2015)

Issued, Subscribed and Paid-up Capital includes 28,79,843 equity shares of Rs.10 each, which were allotted as fully paid up by way of bonus shares by capitalisation of Share Premium on 9th Feb, 2010.

2 Contingent Liabilities

a) Cases filed by customers in various consumer courts not acknowledged as debts 43,79,000 43,79,000

b) Appeal filed by company in respect of 2,40,20,873 - income tax matters

c) Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances). 42,42,977 4,22,57,591

d) Bank guarantees issued to Government agencies by way of security 1,15,36,907 56,49,300

The vendor financing facility with M/s AXIS Bank Limited aggregating to Rs.25.00 crores to the vendors of the company is with recourse to the company on the delayed payment at interest rate of 2% p.a. over and above the contracted rate.

3 Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act):

Based on the information available with the company, there are no Micro, Small and Medium enterprises, to which the company owes dues, which are outstanding for more than 45 days as at March 31, 2015. Further, no interest during the year has been paid or payable under the terms of the MSMED Act, 2006.

4 The actuarial value of gratuity liablity as at 31st March 2015 is Rs.7,44,01,266/- (Rs.6,61,58,554) as per the workings under AS 15 (Revised) Employee Benefits, notified by Ministry of Corporate Affairs Under Subsection 3C of Section 211 of the Companies Act, 1956 read with GeneralCircular 8/2014 dated April 04, 2014, issued by the Ministry of Corporate Affairs.

Gratuity report under AS-15 (Revised 2005) for the year ended March 31, 2015

The following table sets out the funded status of the gratuity plans and the amounts recognised in the company's financial statements as at March 31, 2015.

Notes :

1. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

2. The expected return on plan assets is determined considering several applicable factors such as the composition of the plan assets held, assessed risks of asset management, historical results of the return on plan assets and the company's policy for plan assets is expected to vary from year to year reflecting the returns on matching Government bonds.

3. Gratuity liability in case of employees of Precision Components Division, Mysore are unfunded and the gratuity liability for the year was Rs.9,11,997 (31st March, 2014 Rs.3,13,444) and the cumulative liability as on 31st March 2015 was Rs.43,18,763 (31st March, 2014 Rs.34,99,015).

5 Related Party Transactions:

Information given in accordance with the requirements of Accounting Standard 18 - Related Party disclosures notified by Ministry of Corporate Affairs Under sub section (3C) of Section 211 of the Companies Act, 1956 read with General circular 8/2014 dated April 04, 2014, issued by the Ministry of Corporate Affairs

Name of the Party Nature of Relationship

a) India Garage Service Station Associates/Joint Ventures

b) India Garage Petrol Pump Associates/Joint Ventures

c) MHI-VST Diesel Engines Private Ltd Associates/Joint Ventures

d) Anand & Associates Associates/Joint Ventures

e) Automobile Service Centre Associates/Joint Ventures

f) VST & Sons Associates/Joint Ventures

g) Mr.V.P.Mahendra Key Management Personnel

h) Mr.V.V.Pravindra Key Management Personnel

i) Mr.B.C.S.Iyengar Key Management Personnel


Mar 31, 2013

Note 1: Company overview

VSt tillers tractors Limited (VttL) was incorporated on December 18, 1967in Bangalore, India. It was promoted by the VSt Group, a well-known business house in South India, in technical collaboration and joint venture with Mitsubishi Heavy Industries and Mitsubishi Corporation, Japan for the manufacture of Power tillers and Diesel Engines. the plant went into production in the year 1970.

In 1984, an additional technical and financial collaboration with Mitsubishi Agricultural Machinery Company Ltd, Japan for the manufacture of 18.5 HP, 4 wheel drive tractor was entered into. the company was incorporated for the purpose of manufacture and or deal with tractor, tillers, Diesel Engines, Harvestors, Reapers, Binders, transplanters/ planters, trench Cutters, Front end Loaders and all kinds of allied agricultural, plantation and horticultural machinery including attachments, components, accessories, spares implements and other equipments required for the satisfactory functioning of the agricultural equipments.

2 Contingent Liabilities

a) Cases fled by customers in various consumer courts not acknowledged as debts 43,79,000 47,04,000

b) Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances). 8,68,66,454 4,64,44,394

c) Bank Guarantees issued to Government agencies by way of security. 1,33,62,500 63,80,500

the Vendor Financing Facility with M/S. Axis Bank Ltd., aggregating to Rs. 25.00 Crores to the vendors of the Company is with recourse to the Company on the delayed payments at interest rate of 2% p.a over and above the contracted rate.

3 Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act):

Based on the information available with the company, there are no Micro, Small and Medium enterprises, to which the company owes dues, which are outstanding for more than 45 days as at 31st March, 2013. Further, no interest during the year has been paid or payable under the terms of the MSMED Act, 2006.

4 The actuarial value of gratuity liability as at 31st March 2013 is Rs.5,74,97,126/- (Rs.5,11,09,025) as per the workings under AS 15(Revised) issued by the institute of charted accountants of India.

Gratuity Report under AS-15 (Revised 2005) for year ended March 31, 2013

the following tables sets out the funded status of the gratuity plans and the amounts recognized in the Company''s fnancial statements as at March 31, 2013.

5 Previous year fgures have been regrouped/reclassifed to conform to the classifcation of the current year.


Mar 31, 2012

Note 1: Company overview

V.S.T. Tillers Tractors Limited (VTTL) was incorporated on December 18, 1967 in Bangalore, India. It was promoted by the V.S.T Group, a well-known business house in South India, in technical collaboration and joint venture with Mitsubishi Heavy Industries and Mitsubishi Corporation, Japan for the manufacture of Power Tillers and Diesel Engines. The plant went into production in the year 1970.

In 1984, an additional technical and financial collaboration with Mitsubishi Agricultural Machinery Company Ltd, Japan for the manufacture of 18.5 HP, 4 wheel drive Tractor was entered into.

The company was incorporated for the purpose of manufacture and or deal with Tractor, Tillers, Diesel Engines, Harvestors, Reapers, Binders, Transplanters/ planters, Trench Cutters, Front end Loaders and all kinds of allied agricultural, plantation and horticultural machinery including attachments, components, accessories, spares implements and other equipments required for the satisfactory functioning of the agricultural equipments.

2 Share Capital

(a) Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares would be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(c) Details of shareholders holding more than 5% shares in the Company

(1) includes all schemes under their management

As per records of the Company, including its register of shareholders/members, the above shareholding represent legal ownership of shares.

(d) Shares allotted as fully paid up by way of bonus shares (during 5 years preceding March 31, 2012)

Issued, Subscribed and Paid-up Capital includes 28,79,843 equity shares of Rs. 10 each, which were allotted as fully paid up by way of bonus shares by capitalisation of Share Premium on Feb 9, 2010.

3 Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act):

Based on the information available with the company, there are no Micro, Small and Medium enterprises, to which the company owes dues, which are outstanding for more than 45 days as at 31st March, 2012. Further, no interest during the year has been paid or payable under the terms of the MSMED Act, 2006.

Notes :

1. The estimates of future salary increases considered in actuarial valuation take into consideration for inflation, seniority, promotion and other relevant factors

2. The expected return on plan assets is determined considering several applicable factors such as the composition of the plan assets held, assessed risks of asset management, historical results of the return on plan assets and the company's policy for plan assets is expected to vary from year to year reflecting the returns on matching Government bonds.

3. Gratuity liability in case of employees of Precision Components Division, Mysore are unfunded and the gratuity liability for the year was Rs. 8,60,525 and the cumulative liability as on 31 March, 2012 was Rs. 25,84,555.

4 Related Party Transactions:

Information given in accordance with the requirements of Accounting Standard 18 on related party disclosures issued by the Institute of Chartered Accountants of India

Name of the Party Nature of Relationship

i. Vinay Industries Associates/Joint Ventures

ii. India Garage Service Station Associates/Joint Ventures

iii. India Garage Petrol Pump Associates/Joint Ventures

iv. MHI-VST Diesel Engines Private Associates/Joint Ventures Limited

v. Anand & Associates Associates/Joint Ventures

vi. Rama Infotech Associates/Joint Ventures

vii. Mr. V.P.Mahendra Key Management Personnel

ix. Mr. V.V.Pravindra Key Management Personnel

x. Mr. B.C.S.Iyengar Key Management Personnel

4 These financial statements have been prepared in the format prescribed by the Revised Schedule VI to the Companies Act 1956. Previous period figures have been recast/restated to conform to the classification of the current year.


Mar 31, 2011

BACK GROUND

V.S.T. Tillers Tractors Limited (VTTL) was incorporated on December 18, 1967 in Bangalore, India. It was promoted by the V.S.T Group, a well known business house in South India, in technical collaboration and joint venture with Mitsubishi Heavy Industries and Mitsubishi Corporation, Japan for the manufacture of Power Tillers and Diesel Engines. The plant went into production in the year 1970.

In 1984, an additional technical and financial collaboration with Mitsubishi Agricultural Machinery Company Ltd, Japan for the manufacture of 18.5 H P, 4 wheel drive Tractor was entered into.

The company was incorporated for the purpose of manufacture and or deal with Tractor, Tillers, Diesel Engines, Harvesters, Reapers, Binders, Transplanters/ planters, Trench Cutters, Front end Loaders and all kinds of allied agricultural, plantation and horticultural machinery including attachments, components, accessories, spares implements and other equipments required for the satisfactory functioning of the agricultural equipments.

1. Share capital

i) Issued, Subscribed and Paid-up Capital includes 1,50,000 (Previous year: 1,50,000) equity shares of Rs.10 each, which were allotted as fully paid pursuant to a contract for consideration other than cash.

ii) issued, Subscribed and Paid-up Capital includes 28,79,843 (Previous year: 28,79,843) equity shares of Rs.10 each, which were allotted as fully paid up by way of bonus shares by capitalisation of share premium.

2. Secured Loans

Working Capital loans sanctioned by Commercial Banks are secured by way of first charge on hypothecation of inventories, bills receivable and other current assets and a second charge on all fixed assets of the company, ranking pari passu basis with other members of the consortium.

3. Receivables

Sundry debtors includes amount due from firms in which Directors of the company are partner of Rs.56,57,207 (previous year Rs. 39,15,592) (Maximum balance outstanding at any time during the year Rs.90,71,338/- (P.Y. Rs.83,00,967/-).

4. Central Government approval under section 297 of the Companies Act, 1956

The Company has applied to Central Government on 3rd July 2009, 2nd April 2010 and 2nd November 2010 for approval under section 297 of the Companies Act, 1956 for the execution of contracts in which Directors are interested, pending approval from Central Government the company has executed the contracts with such parties. The Company is confident of getting the approval from the concerned authorities from the date of filing of application.

5. Cash and Bank balance

Bank balance with others on deposit account includes deposit with West Bengal State Rural Cooperative Bank Limited of Rs. 1,50,000 (previous year Rs. 1,00,000). Maximum amount outstanding at any time during the year was Rs. 1,50,000 (previous year Rs. 1,00,000). None of the Directors are interested in the Bank and none of the Directors are relatives of the Directors of the Bank.

6. Micro, Small and Medium Enterprises Development Act, 2006(MSMED Act)

7. Depreciation on Research and Development assets and Revalued assets

i. Depreciation on Research and Development assets amounting to Rs.7,37,178 (Previous year Rs.8,68,754) has been charged off during the current year. Capital expenditure on Research and Development Rs.Nil (Previous year Rs.Nil) is shown as addition to fixed assets.

ii. Depreciation on the revalued assets amounting to Rs.64,575 (Previous year Rs. 64,575) has been deducted from the Revaluation Reserve.

8. Contingent Liabilities not provided for

I. Cases filed by the customers in various consumer courts not acknowledged as debt Rs.42,37,000 (Previous year Rs. 41,85,000)

II. Bank Guarantee Outstanding with Canara Bank Rs.62,22,000/- as at March 31, 2011 (Previous year 1,07,74,500/-)

III. Foreign Letter of Credit (FLC) Outstanding with Canara Bank Rs. 2,08,74,488/- as at March 31, 2011 (Previous year Nil)

IV. Input Cenvat claim not admitted by the department of Customs, Central Excise and Service Tax is Rs.l 1,56,440. Company has appealed to the Commissioner (Appeals) of Customs, Central Excise and Service Tax.

9. Capital Commitments

Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances) Rs.169,16,720 (previous year Rs. 112,34,822).

10. RELATED PARTY TRANSACTIONS

a) Names of related parties and description of relationship :

Description of relationship Names of Related Parties

i) Associates :

VST Auto Ancilliaries Pvt. Limited

Vinay Industries

India Garage Service Station

India Garage Petrol Pump

MHI-VST Diesel Engines Private Limited

Anand & Associates

Rama Infotech

ii) Joint Ventures MHI-VST Diesel Engines Pvt. Limited

iii) Key Management Personnel :

Managing Director Mr. V. P. Mahendra

Whole Time Directors Mr. V. V. Pravindra

Mr. B.C.S. Iyengar

b) Defined Benefit Plan:

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

11. DETAILS OF JOINT VENTURE

1. Name of Joint Venture MHI-VST Diesel Engines Private Limited

2. Description of Interest Jointly Controlled Entity

3. Financial Interest in Jointly Controlled Entity (*)

Amount in Rs.

a Assets 46,90,00,000

b Liabilities 46,90,00,000

c Income 21,38,25,936

d Expenditure 31,68,21,829

e Capital Commitments -

f Contingent Liabilities -

(*) The above are as per the unaudited information furnished by the Joint Venture Company as on 31st March, 2011.

12. Figures for the previous year have been re-grouped wherever necessary for comparison purposes.






Mar 31, 2010

1) Contingent Liabilities not provided for

A) Cases filed by the customers in various consumer courts not acknowledged as debt Rs.41,85,000 (previous year Rs.37,12,000).

B) Demands raised by Central Excise Department not acknowledged as debt Rs.4,18,564. The Company has filed appeals before The Revision Authority, Department of Revenue, Ministry of Finance, New Delhi challenging the demands raised by the department.

2) Estimated amount of contracts remaining to be executed on capital accounts and not provided for (net of advances) Rs. 1, 12,34,822 (previous year Rs.34,05,617)

3) Figures for the previous year have been re-grouped wherever necessary for comparison purposes.

 
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