Home  »  Company  »  ZF Steering Gear  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of ZF Steering Gear (India) Ltd.

Mar 31, 2015

1. SHARE CAPITAL

i) 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 shares is entitled to one vote per share The Company declares and pays dividend in Indian Rupee. The dividend recommended by the Board of Directors is subject to approval of the members at the ensuing Annual General Meeting. During the Year ended on 31st March,2015,the amount of per share dividend recognised as distribution to equity shareholders is Rs.10 (P.Y 7).

In the event of liquidation of the Company, the holders of each equity share will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts.

2. THE NET EXCHANGE DIFFERENCES ARISING DURING THE YEAR:

Recognised appropriately in the profit and loss account - net gain - Rs. in Million 9.62 (P.Y. - net gain - Rs. in Million 0.49)

3. DETAILS OF EMPLOYEE BENEFITS AS REQUIRED BY THE ACCOUNTING STANDARD 15 (REVISED) EMLPLOYEES BENEFITS ARE AS UNDER:

(A) Defined Contribution Plan

Amount recognized as an expense in the Profit and Loss Account in respect of Defined Contribution Plans is Rs. Million 9.84

(B) Defined Benefit Plan

i) Actuarial gains and losses in respect of defined benefit plans are recognised in the Profit & Loss Account.

ii) The Defined Benefit Plans comprise of Gratuity and Leave Encashment. Gratuity is funded.

Gratuity is a benefit to an employee based on 15 days (depending on the grade/ category of employee and completed year of services) the last drawn salary of each year.

4. Amount of borrowing costs capitalised during the year Rs. In Million NIL (31st March, 2014- Rs. In Million - NIL)

5. RELATED PARTY DISCLOSURES:

A) Name of the related party and nature of relationship where control exists:

Name of Related Party Nature of Relationship

ZF Lenksysteme, GmbH ( Now Known as Foreign Collaborator : Robert Bosch Automotive Steering GmbH )

ZF Shanghai Steering Co.Ltd., China Associated Companies of ZF ZF Sistemas De Direcao Ltd, Brazil Lenksysteme, GmbH ZF Steering Jincheng (Nanjing),China

Varsha Forgings Ltd. Director's interested company KCTR Varsha Automotive Pvt. Ltd.

ZF Lenksysteme India Pvt Ltd. Joint venture company (Company has 26% stake in the company)

Mr. Dinesh Munot - Chaiman & Managing Director Mr. Jinendra Munot - Jt. Managing Director Key Managerial Personnel Mr. Utkarsh Munot - Executive Director

Mrs. Eitika Munot - Manager-Co- ordination-SAP&HR ( Employee upto 31st Aug. 2014 ) Relative of Key Managerial Mrs.Eitika Munot - Non-executive Personnel Director from 15.09.2014

6. EARNINGS PER SHARE

(a) The amount used as the numerator in calculating basic and diluted earnings per share is the net profit after tax for the year disclosed in the Profit and Loss Statement.

(b) The weighted average number of equity shares used as the denominator in calculating both basic and diluted earnings per share is 9,073,300

7. Contingent Liability:

As at As at Particulars 31st March 31st March 2015 2014 Rs. In Rs. In Million Million

Income Tax matters in dispute in respect of penalty matters pending before ITAT, Pune 32.63 32.63

Service Tax matters under Appeal - 0.66

Co-acceptance of Import bills by the 6.31 24.57 bankers

Bill discounted 254.89 360.96

Bank Guarantees by the Company 15.26 12.10

Claims against the company not acknowledged - 0.57 as debts

Any other matter (vat/cst) Sales tax 3.19 - liability under dispute

Total 312.28 431.49

8. Commitments:

a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. In Million - 26.68 (31st March 2014 - Rs. In Million - 59.17).

b) The Company has deferred payment of certain Sales tax Liability under various Package Scheme of Incentives of Government of Maharashtra. The Company is required to comply with conditions of above package Schemes of Incentives,the various Eligibility Certificates granted under such Schemes,stipulations or undertaking as per the Agreements entered into in connection with the grant of incentive under the said Schemes or on the Eligibility Certificates.

9. Dividend amount proposed to be distributed to Shareholders Rs.10 (Rs. 7) per share.

10. Under the Micro, Small and Medium Enterprises Development Act, 2006 certain disclosure are required to be made for enterprises which are covered under the Act. Since the company is in a process of compiling relevant information from its suppliers about their coverage under the said Act, no disclosures have been made. However, in view of the management ,the impact of interest, if any, that may be payable in accordance with the provisions of this Act is not expected to be material.

11. In current year provision for current taxes includes provision for wealth tax of Rs. In Millions - 0.3 (31st March, 2014 - Rs. In Millions - 0.5)

12. The Company has 26% joint venture interest in ZF Lenksysteme India Private Limited (ZFLIPL) , a company incorporated in India. As on March31,2015 the Company has further invested Rs.317.20 Million (previous year Rs. 165.62 Million) in the share capital of this Joint Venture.

The Company's share of each of the assets, liabilities, income and expenses (each without elimination of the effect of transaction between the Company and the Joint Venture ), related to its interest in the joint venture as per AS 27

13. During the year, Company has spent Rs. 10.80 million (Contribution to Prime Minister National Relief Fund) towards Corporate Social Responsibilty (CSR) under Section 135 of the Companies Act, 2013 and rules thereon.As per clarification issued by the Institute of Chartered Accountants of India. CSR expenses have been appropriated from current year profits.

14. The Company based on requirement of schedule II of the Companies Act, 2013 has changed useful life of its fixed assets. In accordance with the transitional provision specified in Schedule II of the the Act , an amount of Rs. 10.40 Million (Net of Deffered Tax) has adjusted in the opening balance of Genral Reserve. If the Company followed earlier method of depreciation then current year's depreciation could have been lower by Rs.18.72 Million.

15. Corresponding Figures of the previous year have been regrouped/ recast, wherever necessary, so as to confirm with the current year's presentation.




Mar 31, 2014

NOTE 1 - THE NET EXCHANGE DIFFERENCES ARISING DURING THE YEAR:

Recognised appropriately in the profit and loss account - net gain - Rs. in Million 0.49 (31st March, 2013 - net loss - Rs. in Million 0.75)

NOTE 2 - DETAILS OF EMPLOYEE BENEFITS AS REQUIRED BY THE ACCOUNTING STANDARD 15 (REVISED) EMLPLOYEES BENEFITS ARE AS UNDER:

(A) Defined Contribution Plan

Amount recognized as an expense in the Profit and Loss Account in respect of Defined Contribution Plans is Rs. Million 9.40

(B) Defined Benefit Plan

i) Actuarial gains and losses in respect of defined benefit plans are recognised in the Profit & Loss Account. ii) The Defined Benefit Plans comprise of Gratuity and Leave Encashment. Gratuity is funded.

Gratuity is a benefit to an employee based on 15 days (depending on the grade/ category of employee and

completed year of services) the last drawn salary of each year.

NOTE 3 -

Amount of borrowing costs capitalised during the year Rs. In Million - NIL (31st March, 2013- Rs. In Million - NIL)

NOTE 4 - EARNINGS PER SHARE

(a) The amount used as the numerator in calculating basic and diluted earnings per share is the net profit after tax for the year disclosed in the Profit and Loss Statement.

(b) The weighted average number of equity shares used as the denominator in calculating both basic and diluted earnings per share is 9,073,300

NOTE 5 - Contingent Liability:

As at As at Particulars 31st March, 2014 31st March, 2013 Rs. In Million Rs. In Million

Income Tax matters in respect of ''Penalty'' under Appeal 32.63 32.63

Service Tax matters under Appeal 0.66 3.63

Co-acceptance of Import bills by the bankers 24.57 31.52 Bill discounted 360.96 229.38

Bank Guarantees by the Company 12.10 4.30

Claims against the company not acknowledged as debts 0.57 0.16

Total 431.49 301.62

NOTE 6 - Commitments:

a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. In Million - 59.17 (31st March 2013 - Rs. In Million - 42.97).

b) The Company has deferred payment of certain Sales tax Liability under various Package Scheme of Incentives of Government of Maharashtra. The Company is required to comply with conditions of above package Schemes of Incentives, the various Eligibility Certificates granted under such Schemes, stipulations or undertaking as per the Agreements entered into in connection with the grant of incentive under the said Schemes or on the Eligibility Certificates.

NOTE 7 - Dividend amount proposed to be distributed to Shareholders Rs.7 (Rs. 8) per share.

NOTE 39 - Under the Micro, Small and Medium Enterprises Development Act, 2006 certain disclosure are required to be made for enterprises which are covered under the Act. Since the company is in a process of compiling relevant information from its suppliers about their coverage under the said Act, no disclosures have been made. However, in view of the management ,the impact of interest, if any, that may be payable in accordance with the provisions of this Act is not expected to be material.

NOTE 8 - In current year provision for current taxes includes provision for wealth tax of Rs. In Millions - 0.5 (31st March, 2013 - Rs. In Millions - 0.4)

NOTE 9 - During the year 2011-12,the company was subject to proceedings under Section 132 of the Income Tax Act,1961(''the Act'').As reported earlier, to avoid long protracted litigation, the company filed an application with the Income Tax Settlement Commission (''ITSC'') on 17 September,2012. On November 29, 2013the ITSC has passed an Order u/S 245D(4)of the Act. Pursuant to the said Order, notice of demand u/S 156 of the Act was received on January 3, 2014(date of Order December 28, 2013),wherein the additional tax-liability has been determined at Rs 181.89 million for 7 Assessment Years from 2006-07 to A.Y. 2012-13 . The Company accordingly accounted additional tax-liability in the Profit & Loss Account under the head Tax Expenses

NOTE 10 - Corresponding Figures of the previous year have been regrouped/ recast, wherever necessary, so as to confirm with the current year''s presentation.


Mar 31, 2013

I) 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 shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupee.The dividend proposed by the Board of Directors is subject to approval in the ensuing Annual General Meeting.

During the Year ended on 31st March, 2013, the amount of per share dividend recognised as distribution to equity shareholders was Rs. 8 (P.Y. Rs.10).

In the event of Liquidation of the Company, the holder of each equity shares will 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.

NOTE 1 - THE NET EXCHANGE DIFFERENCES ARISING DURING THE YEAR:

Recognised appropriately in the profit and loss account - net gain - Rs. in Million (0.75) (31st March, 2012 - net gain - Rs. in Million 4.57)

NOTE 2 - DETAILS OF EMPLOYEE BENEFITS AS REQUIRED BY THE ACCOUNTING STANDARD 15 (REVISED) EMLPLOYEES BENEFITS ARE AS UNDER:

(A) Defined Contribution Plan

Amount recognized as an expense in the Profit and Loss Account in respect of Defined Contribution Plans is Rs. Million 10.11.

(B) Defined Benefit Plan

i) Actuarial gains and losses in respect of defined benefit plans are recognised in the Profit & Loss Account.

ii) The Defined Benefit Plans comprise of Gratuity and Leave Encashment. Gratuity is funded.

Gratuity is a benefit to an employee based on 15 days (depending on the grade/ category of employee and the completed years of services) last drawn salary of each year.

NOTE 3 -

Amount of borrowing costs capitalised during the year Rs. In Million -NIL — (31st March, 2012- Rs. In Million 0.46)

NOTE 4 - EARNINGS PER SHARE

(a) The amount used as the numerator in calculating basic and diluted earnings per share is the net profit after tax for the year disclosed in the Profit and Loss Statement.

(b) The weighted average number of equity shares used as the denominator in calculating both basic and diluted earnings per share is 9,073,300

NOTE 5 - Commitments:

a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. In Million -42.97 (31st March 2012 - Rs. In Million - 19.18).

b) The Company has deferred payment of certain Sales tax Liability under various Package Scheme of Incentives of Government of Maharashtra. The Company is required to comply with conditions of above package Schemes of Incentives ,the various Eligibility Certificates granted under such Schemes, stipulations or undertaking as per the Agreements entered into in connection with the grant of incentive under the said Schemes or on the Eligibility Certificates.

NOTE 6 - Dividend amount proposed to be distributed to Shareholders Rs.8 (Rs. 10 per share).

NOTE 7 - Under the Micro, Small and Medium Enterprises Development Act, 2006 certain disclosure are required to be made for enterprises which are covered under the Act. Since the company is in a process of compiling relevant information from its suppliers about their coverage under the said Act, no disclosures have been made. However, in view of the management ,the impact of interest, if any, that may be payable in accordance with the provisions of this Act is not expected to be material.

NOTE 8 - In current year provision for current taxes includes provision for wealth tax of Rs. In Million - 0.4 (31st March, 2012 - Rs. In Million - 0.5)

NOTE 9 - The Company has 26% joint venture interest in ZF Lenksysteme India Private Limited, a company incorporated in India. As on 31st March, 2013 the Company has further invested Rs.179.14 Million (previous year Rs. 179.14 Million) in the share capital of this Joint Venture.

The Company''s share of each of the assets, liabilities, income and expenses (each without elimination of the effect of transaction between the Company and the Joint Venture ), related to its interest in the joint venture as per AS 27 on ''Financial Reporting of interest in Joint Ventures'' ( based on the audited accounts of the Joint Venture for the year ended 31st March, 2013) are as under

NOTE 10 - The Company has settled the matter for delay in Project Execution with Solar Project EPC (Engineering, Procurement and Commissioning) Company. i.e. Moser Baer Solar Ltd and Moser Baer Solar System Pvt. Ltd. Both Companies have paid total compensation of Rs.76.25 Million . The amount is reduced from Solar Fixed Asset. Correspondingly excess depreciation of Rs.1.41 Million pertaining to previous year has been adjusted against Current Year''s Depreciation.

NOTE 11 - During the year 2011-12, the Company was subject to proceedings under Section 132 of the Income Tax Act,1961 (''the Act'').

Subsequently, pending the assessment proceedings under Section 153A of the Act, on 17 September, 2012, the Company has filed an application with Income Tax Settlement Commission (''ITSC'') for settlement of cases under Section 245C of the Act. The ITSC has accepted the Company''s application. The Company has paid Rs.116 Million while filing the said application. The final liability of the Company, if any, is dependent on the outcome of the proceedings and will be quantified only on the completion.

NOTE 12 - Corresponding Figures of the previous year have been regrouped/ recast, wherever necessary, so as to confirm with the current year''s presentation.


Mar 31, 2012

(A) Defined Contribution Plan

Amount recognized as an expense in the Profit and Loss Account in respect of Defined Contribution Plans is Rs. Million 8.61 .

(B) Defined Benefit Plan

i) Actuarial gains and losses in respect of defined benefit plans are recognised in the Profit & Loss Account.

ii) The Defined Benefit Plans comprise of Gratuity and Leave Encashment. Gratuity is funded.

Gratuity is a benefit to an employee based on 15 days (depending on the grade/ category of employee the completed years of services) last drawn salary of each year.

NOTE 1

Amount of borrowing costs capitalised during the year Rs. In Million 0.46 (31st March, 2011- Rs. In Million -Nil)

NOTE 2 - Earning per Share

(a) The amount used as the numerator in calculating basic and diluted earnings per share is the net profit after tax for the year disclosed in the Profit and Loss Statement.

(b) The weighted average number of equity shares used as the denominator in calculating both basic and diluted earnings per share is 9,073,300

Warranty Provision:

Warranty cost are accrued at the time of products are sold, based on past experience. The provision is discharged over the warranty period of 18 months from the date of sale.

NOTE 3 - Contingent Liability:

As at As at

Particulars 31st March, 2012 31st March, 2011

Rs. In Million Rs. In Million

Income Tax matters in dispute in respect of penalty matters pending before CIT (Appeals), Pune 32.63 32.63

Service Tax matters under Appeal 3.63 3.63

Co-acceptance of Import bills by the bankers 41.63 32.61

Bill discounted 274.22 374.10

Bank Guarantees by the Company 33.67 33.67

Claims against the company not acknowledged as debts 0.16 0.16

Total 385.94 476.80

NOTE 4 - Commitments:

a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. In Million - 19.18. (31st March 2011 - Rs. In Million - 260.70).

b) The Company has deferred payment of certain Sales tax Liability under various Package Scheme of Incentives of Government of Maharashtra. The Company is required to comply with conditions of above package Schemes of Incentives, the various Eligibility Certificates granted under such Schemes, stipulations or undertaking as per the Agreements entered into in connection with the grant of incentive under the said Schemes or on the Eligibility Certificates.

NOTE 5 - Dividend amount proposed to be distributed to Shareholders Rs.5 (Rs. 10 per share).

NOTE 6 - Under the Micro, Small and Medium Enterprises Development Act, 2006 certain disclosure are required to be made for enterprises which are covered under the Act. Since the company is in a process of compiling relevant information from its suppliers about their coverage under the said Act, no disclosures have been made. However, in view of the management ,the impact of interest, if any, that may be payable in accordance with the provisions of this Act is not expected to be material.

NOTE 7 - In current year provision for current taxes includes provision for wealth tax of Rs. In Million - 0.5 (31st March, 2011 - Rs. In Million - 0.43)

NOTE 8 - The Company has 26% joint venture interest in ZF Lenk systeme India Private Limited, a company incorporated in India. As on March31, 2012 the Company has further invested Rs.179.14 Million (previous year Rs. 33.8 Million) in the share capital of this Joint Venture.

The Company's share of each of the assets, liabilities, income and expenses (each without elimination of the effect of transaction between the Company and the Joint Venture ), related to its interest in the joint venture as per AS 27 on 'Financial Reporting of interest in Joint Ventrures' ( based on the audited accounts of the Joint Venture for the year ended march .31, 2012) are as under

None of the company's Raw Material and Components are greater than 10 percent of total sales and consumption of raw material and hence the disclosure under Broad Heads of Materials has not given.

The above figues are inclusive of Excise duty and Education Cess.

9. The Company has made profit of Rs.104.33 Million on sale of Leasehold Land in MIDC Talegaon Industrial Area and same is shown in exceptional item.

10. On 13th October,2011, the Company was subjected to search operation under section 132 of the Income Tax Act,1961. Company has extended full co-operation during the course of this search operation and has provided all necessary details/information as and when asked for by Tax Authorities. The Company has not yet received Notice as per the provisions of Section 153A of the Income Tax Act,1961 for fresh assessment.

11. Till the year ended 31st March,2011, the Company was using pre revised Schedule VI to the Companies Act,1956 for preparation and presentation of its Financial Statement. During the year ended 31st March,2012, the Revised Schedule VI notified under the Companies Act,1956 has become applicable to the Company. The Company reclassified the Previous Year 's figures to confirm to this year's classification. The adoption of Revised Schedule VI does not impact the Recognition and Measurement Principals followed for preparation of Financial Statements. However, it significantly impact Presentation and Disclosure made in Financial Statement, particularly presentation of Balance Sheet.


Mar 31, 2011

Rs. 1. CONTINGENT LIABILITY ( Not provided for ) : 2010-2011 2009-2010

i) Income Tax matters in dispute in respect of penalty matters pending before ITAT, Pune 32,631,743 32,631,743

ii) Co-acceptance of Import bills by the bankers 32,609,860 61,312,462

iii) Bank Guarantees on behalf of the Company 33,667,799 4,225,625

iv) Bills discounted 374,103,634 488,087,261

v) Claims against the Company not acknowledged as debts 156,790 156,790

vi) Service Tax matters under Appeal 3,634,012 3,634,012

2. The operations of the Company primarily relate to automotive components, hence there is no seperate reportable segment as per Accounting Standard (AS) 17 Segment Reporting.

3. Related Party Disclosures as per AS18:

a) List of Related Parties with whom transactions have taken place and relationships :

Foreign Collaborator :

ZF Lenksysteme, GmbH

Associate Companies :

- ZF Shanghai Steering Co.Ltd., China. - ZF Boge Elastmettal GmbH

- ZF Sistemas De Direcao Ltd, Brazil. - ZF Great Briton

- ZF Steering Jincheng (Nanjing),China - Varsha Forgings Ltd

Joint venture company : ZF Lenksysteme India Pvt. Ltd. (Company has 26% stake in the company)

Key Managerial Personnel :

- Mr. Dinesh Munot - Chairman & Managing Director

- Mr. Jinendra Munot - Jt. Managing Director

- Mr. Utkarsh Munot - Executive Director

4. Employee Benefits as per AS 15 (Revised 2005)

a) Defined Contribution Plans : Contribution to Provident Fund of Rs.6,716,443 (previous year Rs.5,175,775) is recognized as expense and included in Contribution to Provident Fund and Other Funds in the Profit and Loss Account. b) Defined Benefit Plans : The amounts recognized in respect of Gratuity and Leave Encashment, based on Acturial valuation is as per Annexure.

5. Under the Micro, Small and Medium Enterprises Development Act, 2006 certain disclosures are required to be made for enterprises which are covered under the Act. Since the company is in a process of compiling relevant information from its suppliers about their coverage under the said Act, no disclosures have been made. However, in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of this Act is not expected to be material.

6. In current year provision for current taxes includes provision for wealth tax of Rs.429,722 (P.Y. - Rs. 400,000)

7. The Company has 26% joint venture interest in ZF Lenksysteme India Private Limited, a company incorporated in India.

As on March 31, 2011, the Company has invested Rs. 33,800,000 (previous year Rs. 2,600,000) in the share capital of this Joint Venture.

8 Foreign Exchange difference(Net) credited to Profit & Loss Account Rs.8,637,914 (Previous year : Credit Rs. 7,565,950)

9. Figures relating to the previous year have been regrouped , rearranged wherever it is necessary.


Mar 31, 2010

Rs.

1. CONTINGENT LIABILITY ( Not provided for ): 2009-2010 2008-2009

i) Income Tax matters in dispute in respect of penalty matters pending before CIT(A), Pune 32,631,743 32,631,743

ii) Co-acceptance of Import bills by the bankers 61,312,462 2,964,542

iii) Bank Guarantees on behalf of the Company 4,225,625 4,225,625

iv) Bills discounted 488,087,261 258,964,460

v) Sales Tax matter under Appeal - 1,439,044

vi) Claims against the Company not acknowledged as debts 156,790 413,684

vii) Service Tax matters under Appeal 3,634,012 2,566,264

3. Estimated amount of contracts remaining to be executed on capital account 64,494,200 4,867,500 and not provided for 4. The operations of the Company relate to only one segment i.e. automotive components, hence there is no seperate reportable segment as per Accounting Standard (AS) 17 Segment Reporting.

5. Related Party Disclosures as per AS18:

a) List of Related Parties with whom transactions have taken place and relationships : Foreign Collaborator :

ZF Lenksysteme, GmbH Associate Companies :

ZF Shanghai Steering Co.Ltd., China ZF Boge Elastmettal GmbH ZF Sistemas De Direcao Ltd, Brazil. ZF Great Briton ZF Steering Jincheng (Nanjing),China Varsha Forgings Ltd

Joint venture company : ZF Lenksysteme India Pvt. Ltd. (Company has 26% stake in the company)

Key Managerial Personnel : Mr. Dinesh Munot - Managing Director Mr. Jinendra Munot - Jt. Managing Director Mr. Utkarsh Munot - Executive Director

6. Auditors Remuneration :

a) Audit Fees b) Tax Audit Fees c) Vat Audit Fees d) For Certification and other releted work.

7. C.I.F. Value of imports :

i) Raw Materials, Components and consumables ii) Capital Goods

8. Expenditure in Foreign Currency

Travelling and other expenses

9. Earnings per Share as per AS 20 :-

a) Net Profit (Numerator used for calculation) b) Weighted Average number of Equity Shares used as denominator c) Basic and Diluted Earnings per Share (Equity Share of face value of Rs. 10/- each)

10.Employee Benefits as per AS 15 (Revised 2005)

a) Defined Contribution Plans : Contribution to Provident Fund of Rs.5,175,775 (previous year Rs.4,828,044) is recognized as expense and included in Contribution to Provident Fund and Other Funds in the Profit and LossAccount. b) Defined Benefit Plans : The amounts recognized in respect of Gratuity and Leave Encashment, based on Acturial valuation is as perAnnexure.

11. Under the Micro, Small and Medium Enterprises Development Act, 2006 certain disclosures are required to be made for enterprises which are covered under the Act. Since the company is in a process of compiling relevant information from its suppliers about their coverage under the said Act, no disclosures have been made. However, in view of the management ,the impact of interest, if any, that may be payable in accordance with the provisions of this Act is not expected to be material.

12. In current year provision for current taxes includes provision for wealth tax of Rs. 400,000 (P. Y. - Rs. 320,000)

13. The Company has 26% joint venture interest in ZF Lenksysteme India Private Limited, a company incorporated in India.

As on March 31, 2010, the Company has invested Rs. 2,600,000 (previous year Rs. 2,600,000) in the share capital of this Joint Venture.

14. The Company has recognized following provision as per AS 29 Provisions, Contingent Liabilities and Contingent Assets in respect of obligations arising from past events, the settlement of which is expected to result in an outflow embodying economic benefits:

15. Exceptional item- change in depreciation policy for assets acquired prior to April 1,2000

As per Company policy depreciation on Fixed Assets acquired prior to April 1 ,2000 was provided as per the Written Down Value (w.d.v.) method at the following rates:

Building @ 10%, Plant & Machinery @ 25%, Furniture & Fixtures @15%, Office Equipments @25% , Computer @60%, Cars @20%, Two Wheelers @25%

From the current year, depreciation on above assets is provided on Written Down Value at the rates and in manner specified in the Schedule XIV to the CompaniesAct, 1956, to be in tune with the current policy of charging depreciation on assets acquired on or after April 1, 2000. This has resulted in uniform policy of providing depreciation in respect of all fixed assets.

The above change has resulted in a surplus of Rs.4,291,682 for earlier years, which has been credited to Profit & Loss Account .Due to change in method, depreciation for the current year is higher by Rs.2,221,837. Consequently, profit after tax and net block of fixed assets is higher by Rs.2,825,047.

16.The Company has revised its VAT -Returns for the period 2005-06 to 2009-10 by paying Rs. 39 Million (approx.) based on search carried out by Sales Tax Authorities.

17. Figures relating to the previous year have been regrouped , rearranged wherever it is necessary.

 
Subscribe now to get personal finance updates in your inbox!