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Notes to Accounts of Wheels India Ltd.

Mar 31, 2014

Rs. in Lakhs

As at As at 31.03.2014 31.03.2013

1 CONTINGENT LIABILITIES AND COMMITMENTS

i) Contingent Liabilities

a) bills discounted with banks 10,766.53 9,400.81

b) Disputed amounts in respect of sales tax, service tax, customs duty and Value Added tax which are contested in appeal and not provided for (of which a sum of Rs.4.63 lakhs (previous year Rs.11.96 lakhs) paid under protest appears under Long term Loans and Advances in the balance Sheet) 122.28 115.31

c) Contingent Liability towards demand for enhanced compensation for Land at bawal, Haryana not provided for 83.73 172.10

ii) Commitments

Estimated contracts remaining to be executed on capital account and not provided for 687.88 1,931.06

2 TERMS OF REPAYMENT OF TERM LOANS AND OTHER LOANS

The term loans and other loans are repayable over a period of 1 to 5 years as per the terms of agreement entered into with the banks / others.

3 The Company opted for accounting the exchange differences arising on reporting Foreign Currency monetary Items in line with the Companies (Accounting Standards) Amendment Rules, 2009 on AS11 notifcation dated 31st march, 2009 read with notifcation dated 11th may, 2011 and notifcation dated 29th december 2011 issued by the ministry of Corporate Affairs.

Consequently, exchange differences relating to Long term Foreign Currency monetary Items (other than Fixed assets) amounting to Rs 153.39 Lakhs loss {net of amortization Rs 1,107.48 Lakhs} [Previous year Rs 409.72 Lakhs loss {net of amortization Rs 202.15 lakhs}] are adjusted to Foreign currency monetary translation difference Account.

4 Employee benefits

The Company has followed the Accounting Standard 15 (AS-15 revised) "employee benefits".

Brief Description of the plans:

The Company has various schemes for long term benefits such as Provident Fund, Superannuation, Gratuity and earned Leave encashment. In case of funded schemes, the funds are recognized by the Income tax Authorities and administered through trustees / Life Insurance Corporation of India. the Company''s Defined contribution plans are Provident Fund and employees Pension Scheme (under the provisions of the employee''s Provident Funds and miscellaneous Provisions Act, 1952) and Superannuation Fund. the Company has no further obligation beyond making the contributions.

In respect of the employees Provident Fund Scheme, the interest payable by the trust to the benefciaries as per the rate notifed by the government is met by the trust with Contribution from the Company and hence the company has no obligations towards this interest contribution. the liability in respect of leave encashment benefit to staff is determined on the basis of actuarial valuation and provided for accordingly.

5 Segment information for the year ended 31st March, 2014 in accordance with AS 17 issued by ICAI

(i) Primary segments:

Automotive components is the only reportable segment of the company (ii) Revenue by Geographical Segment:

6 Derivative instruments

Foreign Currency exposures that are not hedged by a derivative instrument or otherwise Rs.5,994.11 lakhs (Previous year - Rs.136.14 lakhs).

7 Previous year''s figures have been regrouped wherever necessary to conform to this year''s classification.


Mar 31, 2013

1 TERMS OF REPAYMENT OF TERM LOANS AND OTHER LOANS

The term loans and other loans are repayable over a period of 1 to 4 years as per the terms of agreement entered into with the Banks / others and over a period of 5 years in respect of Deferred Payable Liabilities

2 The Company opted for accounting the exchange differences arising on reporting Foreign Currency Monetary Items in line with the Companies (Accounting Standards) Amendment Rules, 2009 on AS11 notification dated 31st March, 2009 read with Notification dated 11th May, 2011 and Notification dated 29th December 2011 issued by the Ministry of Corporate Affairs.

Consequently,

i. Exchange differences relating to Long Term Foreign Currency Monetary Items, in so far related to acquisition of depreciable capital assets arising during the year amounting to Rs.Nil [Previous year Rs. 87.53 lakhs (loss) {net of depreciation Rs. 9.54 lakhs}] are (deducted) / added respectively to the cost of assets and depreciated over the balance life of the assets.

ii. Exchange differences relating to Other Long Term Foreign Currency Monetary Items amounting to Rs.409.72 lakhs loss {net of amortization Rs.202.15 lakhs} [Previous year Rs. 133.30 lakhs loss {net of amortization Rs. 537.30 lakhs}] are adjusted to Foreign Currency Monetary Item Translation Difference Account.

3 Employee Benefits

The Company has followed the Accounting Standard 15 (AS-15 revised) "Employee Benefits".

Brief Description of the plans:

The Company has various schemes for long term benefits such as Provident Fund, Superannuation, Gratuity and Earned Leave Encashment. In case of funded schemes, the funds are recognized by the Income Tax Authorities and administered through trustees / Life Insurance Corporation of India. The Company''s defined contribution plans are Provident Fund and Employees Pension Scheme (under the provisions of the Employee''s Provident Funds and Miscellaneous Provisions Act, 1952) and Superannuation Fund. The Company has no further obligation beyond making the contributions.

In respect of the Employees Provident Fund Scheme, the interest payable by the trust to the beneficiaries as per the rate notified by the government is met by the trust with Contribution from the Company and hence the company has no obligations towards this interest contribution. The liability in respect of leave encashment benefit to staff is determined on the basis of actuarial valuation and provided for accordingly.

4 Segment information for the year ended 31st March, 2013 in accordance with AS 17 issued by ICAI

(i) Primary segments:

Automotive components is the only reportable segment of the company

(ii) Revenue by Geographical Segment:

5 Previous year''s figures have been regrouped wherever necessary to conform to this year''s classification.


Mar 31, 2012

A) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

There is no change in the holding pattern of the Share Capital during the year 2011-12.

b) Rights, Preferences and restrictions

The Company has only one class of equity shares having a par value of Rs.10/- per share. Each member is entitled to one vote by show of hands and while on poll, every shareholder is entitled to vote in proportion to their holdings.

1 CONTINGENT LIABILITIES AND COMMITMENTS

i) Contingent Liabilities

a) Bills discounted with Banks 10,213.14 13,014.98

b) Disputed amounts in respect of sales tax, service tax, customs duty and Property tax which are contested in appeal and not provided for (of which a sum of Rs. 9.57 lakhs - previous year Rs. 7.17 lakhs paid under protest appears under Long term Loans and Advances in the Balance Sheet) 112.58 114.17

c) Contingent Liability towards demand for enhanced compensation for Land at Bawal, Haryana along with interest is not provided for, since the quantum has not yet been determined. Further, the eligible rebate on land cost as per conditions of allotment amounting to Rs.32.40 lakhs from the HSIDC has not been taken into consideration and the same will be accounted on cash basis.

ii) Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for 5,134.27 720.06

2 TERMS OF REPAYMENT OF TERM LOANS AND OTHER LOANS

The term loans and other loans are repayable over a period of 1 to 4 years as per the terms of agreement entered into with the Banks / others and over a period of 5 years in respect of Deferred Payable Liabilities.

3 During the year the Company has changed its accounting policy to provide excise duty on closing stock of finished goods at the factory amounting to Rs. 83.41 lakhs (previous year Rs. 55.25 lakhs) as against not providing for the same in the previous year. The change has no impact on Profit/Loss for the current year, however inventory and current liabilities are higher by that amount.

4 The Company opted for accounting the exchange differences arising on reporting Foreign Currency Monetary Items in line with the Companies (Accounting Standards) Amendment Rules, 2009 on AS11 notification dated 31st March, 2009 read with Notification dated 11th May, 2011 issued by the Ministry of Corporate Affairs.

Consequently,

i. Exchange differences relating to Long Term Foreign Currency Monetary Items, in so far related to acquisition of depreciable capital assets arising during the year amounting to Rs. 87.53 lakhs (loss) {net of depreciation Rs. 9.54 lakhs} (Previous year Rs. 15.41 lakhs (loss) {net of depreciation Rs. 3.15 lakhs} are (deducted) / added respectively to the cost of assets and depreciated over the balance life of the assets.

ii. Exchange differences relating to Other Long Term Foreign Currency Monetary Items amounting to Rs.133.30 lakhs loss {net of amortization Rs. 537.30 lakhs} (Previous year Rs. 78.54 lakhs (gain) [net of amortization Rs. (113.86 lakhs)]) are adjusted to Foreign Currency Monetary Item Translation Difference Account.

5 Employee Benefits

The Company has followed the Accounting Standard 15 (AS-15 revised) "Employee Benefits".

Brief Description of the plans:

The Company has various schemes for long term benefits such as Provident Fund, Superannuation, Gratuity and Earned Leave Encashment. In case of funded schemes, the funds are recognized by the Income Tax Authorities and administered through trustees / Life Insurance Corporation of India. The Company's defined contribution plans are Provident Fund and Employees Pension Scheme (under the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952) and Superannuation Fund. The Company has no further obligation beyond making the contributions.

In respect of the Employees Provident Fund Scheme, the interest payable by the trust to the beneficiaries as per the rate notified by the government is met by the trust with Contribution from the Company towards shortfall in interest Nil (previous year - Rs.12.83 lakhs). The liability in respect of leave encashment benefit to staff is determined on the basis of actuarial valuation and provided for accordingly.

6 Segment information for the year ended 31st March, 2012 in accordance with AS 17 issued by ICAI

(i) Primary segments:

Automotive components is the only reportable segment of the company.

The geographical segments considered for disclosure are as follows: Sales within India include Sales to customers located within India. Sales outside India include Sales to customers located outside India.

a. Foreign Currency exposures that are not hedged by a derivative instrument or otherwise Rs.560.01 lakhs (Previous year - Rs.7,869.18 lakhs)


Mar 31, 2011

As at As at 31.03.2011 31.03.2010

1 Contingent Liability towards bills discounted with banks 13,014.98 14,330.33

2 ii) Contingent Liability towards demand for enhanced compensation for Land along with interest is not provided for since the quantum has not yet been determined. Further the eligible rebate on land cost as per conditions of allotment amounting to Rs.32.40 lakhs from the HSIDC has not been taken into consideration and the same will be accounted on cash basis.

3 The Company has not provided for excise duty on closing stock of finished goods at the factory and customs duty on raw materials in bonded warehouse amounting to Rs.55.25 lakhs (previous year Rs.55.31 lakhs) and accordingly not included the same in the value of said inventories. However, this has no impact on the net profit for the year.

4 The Company opted for accounting the exchange differences arising on reporting Foreign Currency Monetary Items in line with the Companies (Accounting Standards) Amendment Rules, 2009 on AS11 notification dated 31st March, 2009 read with Notification dated 11th May, 2011 issued by the Ministry of Corporate Affairs. Consequently,

i. Exchange differences relating to Long Term Foreign Currency Monetary Items, in so far related to acquisition of depreciable capital assets arising during the year amounting to Rs.15.41 lakhs (loss) {net of depreciation Rs. 3.15 lakhs} (Previous year Rs. 441.43 lakhs (gain) {net of depreciation Rs.17.88 lakhs}) are (deducted) / added respectively to the cost of assets and depreciated over the balance life of the assets.

ii. Exchange differences relating to Other Long Term Foreign Currency Monetary Items amounting to Rs. 78.54 lakhs (gain) {net of amortization Rs (113.86 lakhs)} (Previous year Rs. 36.19 lakhs (gain) {net of amortization Rs. (225.75 lakhs)}) are adjusted to Foreign Currency Monetary Item Translation Difference Account.

5 Employee Benefits:

The Company has followed the Accounting Standard 15 (AS-15 revised) "Employee Benefits".

Brief Description of the plans:

The Company has various schemes for long term benefits such as Provident Fund, Superannuation, Gratuity and Earned Leave Encashment. In case of funded schemes, the funds are recognized by the Income Tax Authorities and administered through trustees / Life Insurance Corporation of India. The Companys defned contribution plans are Provident Fund and Employees Pension Scheme (under the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952) and Superannuation Fund. The Company has no further obligation beyond making the contributions.

In respect of the Employees Provident Fund Scheme, the interest payable by the trust to the beneficiaries as per the rate notified by the Government is met by the trust with contribution from the Company towards short fall in interest Rs. 12.83 lakhs (last year - Nil). The liability in respect of leave encashment benefit to staff is determined on the basis of actuarial valuation and provided for accordingly.

6 Segment information for the year ended 31st March, 2011 in accordance with AS 17 issued by ICAI:

i) Primary segments:

Automotive components is the only reportable segment of the Company.

ii) Revenue by Geographical Segment:

The geographical segments considered for disclosure are as follows:

Sales within India include Sales to customers located within India.

Sales outside India include Sales to customers located outside India.

7 Related Party disclosures in accordance with AS18 issued by ICAI Associates:-

T.V.Sundram Iyengar & Sons Ltd.

Axles India Ltd.

Titan Europe Plc.

Sundaram Hydraulics Ltd.

Key Managerial Personnel:

Mr S Ram

Mr Srivats Ram

8 Derivative instruments:

a. Category-wise quantitative data about derivative instruments that are outstanding at the Balance Sheet date

The purpose for which such derivative instruments were acquired, was to hedge export receivables and interest cash flows.

b. Foreign Currency exposures that are not hedged by a derivative instrument or otherwise Rs. 7,869.18 lakhs (Previous year - Rs. 5,256.15 lakhs)

9 Previous Years figures have been regrouped wherever necessary to conform to this years classification.




Mar 31, 2010

Rs. in Lakhs 2009-10 2008-09

ii) Contingent Liability towards demand for enhanced compensation for Land along with interest is not provided for since the quantum has not yet been determined. Further the eligible rebate on land cost as per conditions of allotment amount ing to Rs.32.40 lacs from the HSIDC has not been taken into consideration and the same will be accounted on cash basis.

1 The Company has not provided for excise duty on closing stock of finished goods at the factory and customs duty on raw materials in bonded warehouse amounting to Rs.55.31 Lakhs (previous year Rs.44.52 lakhs) and accordingly not included the same in the value of said inventories. However, this has no impact on the net profit for the year.

2 The Company opted for accounting the exchange differences arising on reporting Foreign Currency Monetary Items in line with the Companies (Accounting Standards) Amendment Rules, 2009 on AS11 notification dated 31st March 2009 issued by the Ministry of Corporate Affairs.

Consequently,

i. Exchange differences relating to Long Term Foreign Currency Monetary Items, in so far related to acquisition of depreciable capital assets arising during the year amounting to Rs.441.43 lakhs (gain) {net of depreciation Rs. 17.88 lakhs} (Previous year Rs. 971.44 lakhs (loss) {net of depreciation Rs. 40.33 lakhs} are (deducted) / added respectively to the cost of assets and depreciated over the balance life of the assets.

ii. Exchange differences relating to Other Long Term Foreign Currency Monetary Items amounting to Rs.36.19 lakhs (gain) {net of amortization Rs. 225.75 lakhs} (Previous year Rs. 461.22 lakhs (loss) {net of amortization Rs. 625.35 lakhs} are adjusted to Foreign Currency Monetary Item Translation Difference Account.

3 Employee Benefits:

The Company has followed the Accounting Standard 15 (AS-15 revised) "Employee Benefits".

Brief Description of the plans:

The Company has various schemes for long term benefits such as Provident Fund, Superan- nuation, Gratuity and Earned Leave Encashment. In case of funded schemes, the funds are recognized by the Income Tax Authorities and administered through trustees / Life Insurance Corporation of India. The Companys defined contribution plans are Provident Fund and Employees Pension Scheme (under the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, 1952) and Superannuation Fund. The Company has no further obligation beyond making the contributions.

In respect of the Employees Provident Fund Scheme, the interest rate payable by the trust to the beneficiaries as notified by the government is met by the trust and hence the Company has no obligations towards this interest contribution. The liability in respect of leave encashment benefit to staff is determined on the basis of actuarial valuation and provided for accordingly.

4 Segment information for the year ended 31st March, 2010 in accordance with AS 17 issued by ICAI:

(i) Primary segments:

The Company operates in only one segment viz., automotive components.

5 Previous Years figures have been regrouped wherever necessary to conform to this years classification.

 
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