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Notes to Accounts of Yuken India Ltd.

Mar 31, 2015

(i) Right, preferences and restrictions attached to shares

The Company has issued only one class of equity share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by Board of Directors is subject to approval by the share holders at the ensuing Annual General Meeting.

(ii) Details of terms of repayment for long-term borrowings and security provided Mizuho Bank Ltd loan - Secured by exclusive first charge on hypothecation of company's movable fixed assets acquired out of this loan and repayable in quarterly installments of Rs.62.50/- lakhs each at an interest of 10.15%.

HDFC Bank Ltd Loan - Paripassu First Charge on the Movable Fixed Assets of Malur plant with Mizuho Bank Ltd, first Charge on the Factory Land and Building at Malur, first Exclusive charge on assets financed by the term Loan at Whitefield plant and repayable in quarterly installments at an interest of 11%

Details of security for the short-term borrowings

(i) SBI Cash Credit - Secured by first pari-passu charge on inventory,receivables and the entire other current assets of the Company (both existing and future) and first charge on unencumbered fixed assets.

(ii) HDFC Bank Limited Overdraft -(a) Pari Parsu First charge on the movable Fixed Assets of Malur plant of the Company with Mizuho Bank Ltd, Bangalore, (b) First charge on Land and Building of Malur Plant of the Company.

Mizuho Bank Ltd loan - Secured by exclusive first charge on hypothecation of company's movable fixed assets acquired out of this loan and repayable in quarterly installments of Rs.62.50/- lakhs each at an interest of 10.15%.

HDFC Bank Ltd Loan - Paripassu First Charge on the Movable Fixed Assets of Malur plant with Mizuho Bank Ltd, first Charge on the Factory Land and Building at Malur, first Exclusive charge on assets financed by the term Loan at Whitefield plant and repayable in quarterly installments at an interest of 11%

As at 31 March, As at 31 March, Particulars 2015 2014 Rs In lakhs Rs In lakhs

2.1 Contingent liabilities and commitments (to the extent not provided for)

(i) Contingent liabilities

(a) Corporate guarantee given by the Company on behalf of subsidiaries. 461.00 359.00

(b) Bills discounted outstanding as at the year end - 45.46

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for

Tangible assets 41.41 9.74

Employee benefit plans

2.2 Defined contribution plan

The Company makes provident fund and superannuation fund contributions which are defined contribution plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 115.47 lakhs (Year ended 31 March, 2014 Rs.107.93 lakhs) for provident fund contributions and Rs.95.76 lakhs (Year ended 31 March, 2014 Rs.88.34 lakhs) for superannuation fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

2.3 Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

(i) Gratuity (included as part of (b) in Note 24 Employee benefits expense)

(ii) Long-term compensated absences (included as part of (a) in Note 24 Employee benefits expense)

The following table sets out the funded status of gratuity and the amount recognised in the financial statements:

3.1 Segment information

The Company has identified business segments as its primary segment. India is the only major geographical segment, constituting over 95% of the company's revenues for the reporting period. Hence geographical segment is not reported. Business segments are primarily Hydraulic Business segment and Other Business segment. Hydraulic Business segment consists of hydraulic pumps, valves and hydraulic systems. Other business segment consists of Cast iron castings. Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses.

Notes:

a. There is no segmentwise bifurcation of Assets & Liabilities for Hydraulic Business and Other Business. Assets & Liabilities of the Company are jointly used by all segments.

b. The segment information is being presented in the manner above, for the first year by the Company, accordingly comparable information relating to the corresponding previous year were not available and hence not presented.

Note:

a) The related party relationships are as identified by the Company, on the basis of information available with the Company and relied upon by the auditors.

b) The above transactions are compiled from the date in which these parties became related and do not include reimbursement of expenses which are accounted in the natural heads of accounts.

c) No amounts in respect of the related parties have been written off /written back or provided for during the year.

d) Figures in brackets relates to the previous year.

4 During the year, pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from April 1, 2014, the Company has revised the estimated useful life of some of its assets to align the useful life with those specified in Schedule II. Further, assets individually costing Rs. 5,000/- or less that were depreciated fully in the year of purchase are now depreciated based on the useful life considered by the Company for the respective category of assets.

Pursuant to the transition provisions prescribed in Schedule II to the Companies Act, 2013, the Company has fully depreciated the carrying value of assets, net of residual value, where the remaining useful life of the asset was determined to be nil as on April 1, 2014, and has adjusted an amount of Rs.14.93 lakhs (net of deferred tax of Rs. 6.68 lakhs) against the opening Surplus balance in the Statement of Profit and Loss under Reserves and Surplus. The depreciation expense in the Statement of Profit and Loss for the year is higher by Rs. 17.28 lakhs consequent to the change in the useful life of the assets.

5 (a) Provision for taxes on income

The Company has book profit u/s 115JB of the Income Tax Act 1961 (the "Act") and the minimum alternate tax ( MAT) there on is higher than the tax liability under the normal provisions of the Act. Thus, the provision towards tax liabilities has been made based on MAT. Correspondingly, the Company has also recognised credit for MAT under section 115JAA of the said Act, which is disclosed as MAT credit entitlement in the Statement of Profit and Loss.

6 Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2014

Share capital

Right, preferences and restrictions attached to shares

The Company has issued only one class of equity share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by Board of Directors is subject to approval by the share holders at the ensuing Annual General Meeting.

Short-term borrowings

Details of security for the short-term borrowings

This loan is secured by first pari-passu charge on inventory, receivables and the entire other current assets of the Company (both existing and future) and first charge on unencumbered fixed assets.

Current maturities of long-term debt

This loan is secured by exclusive first charge by hypothecation of Company''s movable fixed assets acquired out of this loan and repayable in quarterly installments of Rs.62.50 Lakhs each at an interest rate of 10.15%.

Current investments

Note - During the previous year, the Company entered in to a joint memorandum of compromise before the Company Law Board dated 4 January,2013 with the minority shareholders of Prism Hydraulics Private Limited, a subsidiary,to transfer its entire investment holding of 60% to the minority shareholders at a consideration of Rs.225 Lakhs on or before 31 December,2013 subject to compliance of certain terms and conditions, which has been realised in full.

Contigent Liabilities

Particulars As at As at 31 March, 2014 31 March, 2013 Rs In lakhs Rs In lakhs

Contingent liabilities and commitments (to the extent not provided for)

(i) Contingent liabilities

(a) Corporate guarantee given by the Company on behalf of subsidiaries 359.00 386.05

(b) Bills discounted outstanding as at the year end 45.46 155.42

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for Tangible assets 9.74 3.38

Disclosure as per Clause 32 of the Listing agreements with the Stock Exchanges

During the year the Company has not given any Loans and advances in the nature of loans given to subsidiaries, associates and others and investment in shares of the Company by such parties. (PY:Nil)

The Company had entered into an arrangement during FY 2010-11 for services with a Private Limited Company in which a Director is interested and paid an advance of Rs.393,116/-. The Company has applied for requisite approval under Section 297 of the Companies Act, 1956 to the appropriate Authority, approval is awaited.

Disclosures under Accounting Standards

Employee benefit plans

Defined contribution plan

The Company makes provident fund and superannuation fund contributions to defined contribution plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs.107.93 lakhs (Year ended 31 March, 2013 Rs.95.03 lakhs) for provident fund contributions and Rs.88.34 lakhs (Year ended 31 March, 2013 Rs.76.73 lakhs) for superannuation fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

(i) Gratuity (included as part of (b) in Note 25 Employee benefits expense)

(ii) Long-term compensated absences (included as part of (a) in Note 25 Employee benefits expense)

Disclosures under Accounting Standards

Note:

a) The related party relationships are as identified by the Company, on the basis of information available with the Company and relied upon by the auditors.

b) The above transactions are compiled from the date in which these parties became related and do not include reimbursement of expenses which are accounted in the natural heads of accounts.

c) No amounts in respect of the related parties have been written off/written back or provided for during the year.

d) Figures in brackets relates to the previous year.

Segment reporting

The Company''s predominant risks and returns are from the segment of Motion, Control and power transmission business, which constituted over 95% of the Company''s revenues for the reporting period. Thus the segment revenue, segment result, total carrying amount of segment assets, total amount of segment liabilities, total cost incurred to acquire segment assets, the total amount of expense incurred for depreciation and amortization during the year are all as reflected in the financial statements for the year ended March 31, 2014 and as on that date. Since this being a single business and India the only major geographical segment, constituting over 95% of the company''s revenues for the reporting period, the segment information as per Accounting Standard 17, "Segment Reporting", is not required to be disclosed.

* The Company has entered into lease agreements for vehicles and office facilities which are cancellable. The lease payments recognised in the Statement of Profit and Loss for the year against these agreements is Rs. 103.43 Lakhs (Rs.89.69 Lakhs) which has been grouped under ''Rent'' under note 27. There are no contingent rents payable.

Provision for taxes on income

The Company has book profit u/s 115JB of the Income Tax Act 1961 (the "Act") and the minimum alternate tax ( MAT) there on is higher than the tax liability under the normal provisions of the Act. Thus, the provision towards tax liabilities has been made based on MAT. Correspondingly, the Company has also recognised credit for MAT under section 115JAA of the said Act, which is disclosed as MAT credit entitlement in the Statement of Profit and Loss.

* Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2013

1. Corporate Information

Yuken India Limited (YIL) was established in 1976 in technical and financial collaboration with Yuken Kogyo Company Limited, Japan. The registered office and the manufacturing units of the Company are located in Bangalore and the sales and distribution network is spread across India. YIL manufactures wide range of vane pumps, piston pumps, gear pumps, pressure controls, directional controls, modular control valves, servo valves, custom built/standard hy- draulic systems and chip compactor. YIL established the foundry division in 1984 to cater to entities in the hydraulics, automobile, machine tools, textile machinery, earth moving, agriculture and material handling industries.

2.1 The Company had entered into an arrangement during FY 2010-11 for services with a Private Limited Company in which a Director is interested and paid an advance of Rs.393,116/-. The Company has applied for requisite approval under Section 297 of the Companies Act, 1956 to the appropriate Authority, approval is awaited.

3 As per the requirements of AS 16:" Borrowing Cost", the Company has capitalised the borrowing cost incurred during the year to the tune of Rs.Nil ( Rs.74.20 Lakhs/-) to the fixed assets / capital work-in-progress.

4 Segment reporting

The Company''s predominant risks and returns are from the segment of Motion,Control and power transmission business, which constituted over 95% of the Company''s revenues for the reporting period. Thus the segment revenue, segment result, total carrying amount of segment assets, total amount of segment liabilities, total cost incurred to acquire segment assets, the total amount of expense incurred for depreciation and amortization during the year are all as reflected in the financial statements for the year ended March 31, 2013 and as on that date. Since this being a single business and India the only major geographical segment, constituting over 95% of the company''s revenues for the reporting period, the segment information as per Accounting Standard 17, "Segment Reporting", is not required to be disclosed.

5 The Company has entered into lease agreements for vehicles and office facilities which are cancellable. The lease payments recognised in the Statement of Profit and Loss for the year against these agreements is Rs. 89.69 Lakhs ( Rs.91.22 Lakhs) which has been grouped under ''Rent'' under note 27. There are no contingent rents payable.

6 Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2012

Notes:

(i) Balances with banks include margin monies amounting to Rs. 6.91 Lakhs (As at 31 March, 2011 Rs.13.08 Lakhs) which have an original maturity of more than 12 months.

Note 1 Additional information to the financial statements

As at 31 March, As at 31 March,

Particulars 2012 2011 Rs In lakhs Rs In lakhs

1.1 Contingent liabilities and commitments (to the extent not provided for)

(i) Contingent liabilities

(a) Corporate Guarantee on behalf of Subsidiary Company given by the 359.00 350.00

Company.

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for

Tangible assets 174.06 201.40

1.2 Details on derivatives instruments and unheeded foreign currency exposures

(a) Forward exchange contracts which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.

(i) Outstanding forward exchange contracts entered into by the Company as on 31 March, 2012 27.10 The Company had entered into an arrangement during FY2010-11 for services with a Private Limited Company in which a Director is interested and paid an advance of Rs.393,116/-. The Company has applied for requisite approval under section 297 of the Companies Act, 1956 to the appropriate Authority, Approval is awaited.

Note 2 Disclosures under Accounting Standards

Employee benefit plans

2.1 Defined contribution plans

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs.87.34 lakhs (Year ended 31 March, 2011 Rs.78.03 lakhs) for Provident Fund contributions and Rs.69.66 lakhs (Year ended 31 March, 2011 Rs. 56.99 lakhs) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

2.2 Defined benefit plans

The Company offers the following employee benefit schemes to its employees:

(i) Gratuity

(ii) long-term compensated absences

Note:

@ Payment made to relative of Key Management Personnel

a) The related party relationships are as identified by the Company, on the basis of information available with the company and relied upon by the auditors.

b) The above transactions are compiled from the date in which these parties became related and do not include reimbursement of expenses which are accounted in the natural heads of accounts.

c) No amounts in respect of the related parties have been written off / back or provided for during the year.

d) Figures in bracket relates to the previous year.

3 The company has entered into lease agreements for vehicles and office facilities which are cancellable. The lease payments recognized in the statement of profit and loss account for the year against these agreements is Rs. 80.16 Lakhs ( Rs.61.60 Lakhs) which has been grouped under 'Rent' under note 26.There are no contingent rents payable.

4 Segment reporting

The company's predominant risks and returns are from the segment of Motion, Control & power transmission business, which constituted over 95% of the company's revenues for the reporting period. Thus the segment revenue, segment result, total carrying amount of segment assets, total amount of segment liabilities, total cost incurred to acquire segment assets, the total amount of expense incurred for depreciation and amortization during the year are all as reflected in the financial statements for the year ended March 31, 2012 and as on that date. Since this being a single business and India the only major geographical segment, constituting over 95% of the company's revenues for the reporting period, the segment information as per Accounting Standard 17, "Segment Reporting", is not required to be disclosed

5 As per the requirements of AS 16: Borrowing Cost, the company has capitalized the borrowing cost incurred during the year to the tune of Rs.74.20 Lakhs ( Rs. 15.77 Lakhs/-) to the fixed assets / capital work-in-progress.

6 The revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped/ reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2011

1. Estimated amount of contracts remaining to be executed on capital account [net of advances Rs.20,140,257/- (Rs. 1,609,838/-).] and not provided for is Rs. Nil (Rs. 1,599,196/-).

2. Corporate Guarantee give by the Company to Bankers for Yuflow Engineering Pvt Ltd towards Cash Credit limit of Rs. 15,000,000/-, and Non fund based limit of Rs.2,500,000/-. For Coretec Engineering India Pvt Ltd towards Term Loan of Rs. 15,000,000/- and Cash Credit limit of Rs. 2,500,000/-.

3. Employee Benefits :

The company has classified various benefits provided to employees as under :- Defined Contribution Plans

a. Provident Fund

b. Superannuation Fund

c. State Defined Contribution Plans

i. Employers' Contribution to Employee's State Insurance

ii Employers' Contribution to Employee's Pension Scheme, 1995.

II Defined Benefit Plan

a) Contribution to Gratuity Fund

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.

4. RELATED PARTY DISCLOSURE

a) Names of Related Parties and description of relationship:

i Subsidiaries -1 YuFlow Engineering Pvt. Ltd

-2 Coretec Engineering India Pvt Ltd.

-3 Prism Hydraulics Pvt Ltd

ii Associates -1 Sai India Limited

-2 Bourton consulting (India) Pvt Ltd

iii Entity having significant - Yuken Kogyo Company Ltd influence

iv. Key Management Personnel - Managing Director - C P Rangachar and Relative of Key Management Wife of Managing Director - Vidya personnel Rangachar Whole time Director - S Yamanoi

5. The Company has entered into lease agreements for vehicles and office facilities which are cancellable. The lease payments recognized in the statement of profit and loss account for the year against these agreements is Rs. 6,160,313 /- (Rs.5,202,463/-) which has been grouped under 'Rent' under Schedule-11. There are no contingent rents payable.

6. Segment Report:

The company's predominant risks and returns are from the segment of Motion, Control & power transmission business, which constituted over 95% of the company's revenues for the reporting period. Thus the segment revenue, segment result, total carrying amount of segment assets, total amount of segment liabilities, total cost incurred to acquire segment assets, the total amount of expense incurred for depreciation and amortization during the year are all as reflected in the financial statements for the year ended March 31,2011 and as on that date. Since this being a single business and India the only major geographical segment, constituting over 95% of the company's revenues for the reporting period, the segment information as per Accounting Standard 17, "Segment Reporting", is not required to be disclosed.

7. Unclaimed Dividend: The unclaimed dividend of Rs.783,344/- (Rs.725,185/-) represents Rs. 63,1957-relating to the year 2004, Rs.96,250/- relating to the year 2005, Rs.116,699/- relating to the year 2006, Rs.179,305/- relating to the year 2007, Rs. 200,3537- relating to the year 2008, and Rs.127,542/- relating to the year 2010. No part thereof has remained unpaid or unclaimed for a period of seven years from the date they became due for payment requiring a transfer to the Investor Education and Protection Fund.

8. Sale of mobile Hydraulics business:

The Company has entered into a shareholders' agreement dated January 20, 2010 with a party, for sale of its mobile hydraulics business. As a consideration for this transfer the company received a total amount of Rs. 9,413,300, out of which Rs. 7,000,000 is towards transfer of Know-how, IP rights, cus tomer/vendor contracts etc. (goodwill) and balance of Rs. 2,413,300 towards book value of fixed assets sold. The total purchase consideration receivable has been shown under "Sundry Debtors" in Schedule 6 and the amount receivable towards goodwill has been shown under "Miscellaneous Income" in Sched ule 9 of the financial statements in the previous year. This year company has been allotted 941,330 shares of Rs.10 each at par.

The mobile Hydraulics activity does not constitute a major line of business of the Company.

9. The Company has entered into an arrangement for services with a Private Limited Company in which a Director is interested and paid, an advance of Rs.393,116/-. The Company has applied for requisite approval to the appropriate Authority.

10. Figures relating to previous year have been reclassified wherever necessary to conform to current year classification. Figures in brackets relate to previous year.


Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital account [net of advances Rs. 1,609,838/- (Rs. 986.327/-).] and not provided for is Rs. 1,599,196/- (Rs. 1,371,791/-).

2. RELATED PARTY DISCLOSURE

a) Names of Related Parties and description of relationship:

i Subsidiaries -1 YuFbw Engineering Pvt LB -2 Coretsc Engineering India Pvt Ltd. ¦3 Prism Hydraulics Pvt LB

ii Associates -1 Sailndia Limited

-2 Bourton consulting (India) Pvt LB

iii Entity having significant influence - Yuken Kogyo Company Ltd

iv. Key Management Personnel

Wife of Managing Director - Vidya Rangachar Relative of KeyManagement personnel y^e Time Director- S Yamanoi

3. Segment Report:

The companys predominant risks and returns are from the segment of Motion, Control & power transmis- sion business, which constituted over 95% of the companys revenues for the reporting period. Thus the segment revenue, segment result, total carrying amount of segment assets, total amount of segment liabilities, total cost incurred to acquire segment assets, the total amount of expense incurred for depreciation and amortization during the year are all as reflected in the financial statements for the year ended March 31, 2010 and as on that date. Since this being a single business and India the only major geographical segment, constituting over 95% of the companys revenues for the reporting period, the segment information as per Accounting Standard 17, "Segment Reporting", is not required to be disclosed.

4. Unclaimed Dividend

The unclaimed dividend of Rs.725,185/- (Rs.754,311/-) represents Rs.59,078/- relating to the year 2003, Rs.63,435/-, relating to the year 2004, Rs.96,610/- relating to the year 2005, Rs. 123,159/- relating to the year 2006, Rs.180,555/- relating to the year 2007 and Rs. 202,348/- relating to the year 2008. No part thereof has remained unpaid or unclaimed for a period of seven years from the date they became due for payment requiring a transfer to the Investor Education and Protection Fund.

5. Sale of mobile Hydraulics business:

The Company has entered into a shareholders agreement dated January 20, 2010 with a party, for sale of its mobile hydraulics business. As a consideration for this transfer the company would be receiving a total amount of Rs. 9,413,300, out of which Rs. 7,000,000 is towards transfer of Know-how, IP rights, customer/vendor contracts etc. (goodwill) and balance of Rs. 2,413,300 towards book value of fixed assets sold. The total purchase consid- eration receivable has been shown under "Sundry Debtors" in Schedule 6 and the amount receivable towards goodwill has been shown under "Miscellaneous Income" in Schedule 9 of the financial statements. This amount of receivable shall be settled by way of allotment of 941,330 shares at par value of Rs. 10/- each.

The mobile Hydraulics business does not constitute a major line of business of the Company. 27.Figures relating to previous year have been reclassified wherever necessary to conform to current year classification. Figures in brackets relate to previous year.

 
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