Mar 31, 2016
1. Contingent liabilities not provided for in respect of :
2. Bank guarantees outstanding as at 31st March,2016 for which the Company has given counter guarantees amounting to Rs. 30,299,651/- (Previous year Rs. 5,974,654/-).
3. Income Tax demand of Rs.632,440/- (Previous year Rs. 632,440/-) raised by the Income Tax department at the time of Assessment. The said demand is disputed by the Company. The Company has paid Rs. 632,440/-(Previous year Rs. 316,440/-) against the said demand.
4. Central Excise demand of Rs. 8,260,498/- (Previous year Rs. 399,937/-) raised by the Central Excise department. The said demand is disputed by the company. The company has paid Rs. 642,040/- (Previous year Rs. 22,496/-) against the said demand.
5. In the opinion of the Board of Directors, current assets and loans and advances have a value on realization in ordinary course of business at least equal to the amount at which they are stated.
6. Confirmations of debit/credit balances have not been received and hence these balances are subject to adjustment if any.
7. Amortization of Intangible Assets :
In accordance with the accounting standard 26 "Intangible assets" issued by the Institute of Chartered Accountants of India, intangible assets are amortized as follows:
8. Considering the legal rights are renewable, renewal is virtually certain and economic benefits to be derived, the useful life of 50 years of Trademark is estimated by the Management and hence the Cost of Trademark is amortized over 50 years. For the year Rs. 8,17,220/- (Previous year Rs. 8,17,220/-) is charged to profit & loss account.
9. Derivatives and Foreign Currency exposures :
The Company uses forward contract to mitigate its risks associated with foreign currency fluctuations having underlying transaction in relation to Sale of goods. The company does not enter into any forward contract which is intended for trading or speculative purposes.
10. IMPAIRMENT OF ASSETS :
The Company has adopted the provisions of Accounting Standard - 28 on "Impairment of Assets" as recommended by the Institute of Chartered Accountants of India. On the assessment made by the Management and the Valuation Report of the approved Valuer, there is no impairment of assets and therefore no provisions for impairment of loss is required
11. Lease commitments :
Obligation towards operating leases (As lessee)
The Company has entered into operating lease arrangements for vehicles and office premises. Rent expenses of Rs. 11,42,571 /-( Previous Year Rs. 4,58,274/-) in respect of obligation under non cancellable operating leases have been recognized in the Statement of Profit and Loss.
12. Previous year figures
The company has regrouped / rearranged previous year figures in view of easy comparison with current year figures.
13. Figures rounded off to nearest rupee. All the figures including previous year figures have been rounded off to nearest rupee.
Mar 31, 2015
Notes forming part of the financial statements of the Accounts for the
year ended 31st March, 2015.
1. Corporate Information :
AUSTIN ENGINEERING COMPANY LIMITED is a public Limited Company
domiciled in India and incorporate under the provisions of the
Companies Act,1956, Its shares are listed in one stock exchange in
India. (BSE ) The company is engaged in manufacturing and selling all
type of Bearings and its components under trademark "aec". The company
is also engaged in generating of Power from wind energy. The
Manufacturing unit of the company is situated at village Patla, Taluka
Bhesan, Dist. Junagadh-362 030. The Company is having one fully owned
subsidiary Company at U.S.A.. The company caters to both domestic and
international markets.
2. Basis of Preparation :
The financial statement of the company have been prepared in accordance
with generally accepted accounting principles in India (Indian GAAP)
including accounting standards notified under the relevant provisions
of the Companies Act, 2013. The Financial statements have been prepared
on an accrual basis and under the historical cost convention except
where specifically stated.
3. Use of Estimates :
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, disclosure of
contingent liabilities as of the date of the financial statements and
the reported amount of revenues and expenses during the reporting year.
The Management believes that the estimates used in preparation of the
financial statements are prudent and reasonable. Future results could
differ due to these estimates and the differences between the actual
results and the estimates are recognized in the periods in which the
results are known / materialise.
4. Contingent liabilities not provided for in respect of :
[i] The claim of the agent of M/s. Accurate Engineering Company for the
commission on the sales affected by the Company is not accepted. The
matter is under dispute in the court and the amount is not
ascertainable.
[ii] Bank guarantees outstanding as at 31st March,2015 for which the
Company has given counter guarantees amounting to Rs. 59,74,654/-
(Previous year Rs. 72,09,763/-).
[iii] Income Tax demand of Rs.6,32,440/- ( Previous year Rs.
17,77,970/- )raised by the Income Tax department at the time of
Assessment. The said demand is disputed by the company. The company has
paid Rs. 3,16,440/- (Previous year Rs. 11,45,530/-) against the said
demand.
[iv] Central Excise demand of Rs. 3,99,937/- (Previous year Rs. NIL)
raised by the Central Excise department. The said demand is disputed by
the company. The company has paid Rs.22,496/- (Previous year Rs. NIL)
against the said demand.
5. In the opinion of the Board of Directors, current assets and loans
and advances have a value on realization in ordinary course of business
at least equal to the amount at which they are stated.
6. Confirmations of debit/credit balances have not been received and
hence these balance are subject to adjustment if any
7. BUY BACK OF SHARES :
Up to March 31, 2010, the Company had bought back and extinguished
total 53,200 equity shares of Rs. 10 each at an average price of Rs.
54.99 per share, utilizing a sum of Rs. 29,35,463/- (inclusive of
brokerage and applicable taxes total amount Rs.9,869/-. The amount of
Rs.23,93,594/- paid towards buy back of shares, in excess of the face
value, had been charged to General Reserve Account. The Company had
also transferred Rs 5,32,000/-from free reserves to Capital Redemption
Reserve Account, which represents the nominal value of shares bought
back during the previous year.
8. Amortisation of Intangible Assets :
In accordance with the accounting standard 26 "Intangible assets"
issued by the Institute of Chartered Accountants of India, intangible
assets are amortised as follows:
(a) Considering the legal rights are renewable, renewal is virtually
certain and economic benefits to be derived, the useful life of 50
years of Trademark is estimated by the Management and hence the Cost of
Trademark is amortised over 50 years. For the year Rs. 8,17,220./-
(Previous year Rs. 8,17,220/-) is charged to profit & loss account.
9. Derivatives and Foreign Currency exposures :
The Company uses forward contract to mitigate its risks associated with
foreign currency fluctuations having underlying transaction in relation
to Sale of goods. The company does not enter into any forward contract
which is intended for trading or speculative purposes.
10. IMPAIRMENT OF ASSETS :
The Company has adopted the provisions of Accounting Standard - 28 on
"Impairment of Assets" as recommended by the Institute of Chartered
Accountants of India. On the assessment made by the Management and the
Valuation Report of the approved Valuer, there is no impairment of
assets and therefore no provisions for impairment of loss is required.
11. RELATED PARTY INFORMATION :
Disclosures in respect of related parties (as defined in Accounting
Standard 18), with whom transactions have taken place during the year
are given below :
(1) Relationship
(a) Enterprises where control of Key Management Personnel and/or their
relatives exists.
(i) Max Precision Bearings P. Ltd. (iv) Austin Traders
(ii) Accumax Engineering Company (v) Optimum Services Inc.
(iii) Accord Precision Products
(b) Key Management Personnel
(i) Shri S. M. Thanki (ii) Shri N. C. Vadgama
(iii) Shri R. R. Bambhania (iv) Shri J. R. Bhogayta
(v) Shri S. A. Kotal (vi) Ms. Z. M. Talreja
(c) Relative of Key Management Personnel
(i) Shri S. M. Thanki HUF (v) Shri Jignesh S. Thanki
(ii) Shri R. N. Bambhania HUF (vi) Shri Hiren N. Vadgama
(iii) Shri N. C. Vadgama HUF (vii) Shri Chandulal N. Bambhania
(iv) Shri J. R. Bhogayata HUF
(d) Subsidiary Company
(i) Acurate Engineering Inc. - U.S.A.
Note : Related party relationship is as identified by the company and
relied upon by the auditors.
12. Depreciation :
Pursuant to the notification of schedule II of the Companies Act, 2013
( "the Act") by the Ministry of Corporate affairs effective 01/04/2014.
The Management has internally reassessed based on technical evaluation
and changed, wherever necessary, the useful lives to compute
depreciation, to confirm to the requirements of the Act. Accordingly,
the carrying amount as at 01/04/2014 is being depreciated over the
revised remaining useful life of the asset. The carrying value of Rs.
25,31,399/- in case of assets with nil revised remaining useful life as
at 01/04/2014 is reduced after tax adjustment from the retained
earnings as at such date.
Further had the company continued with the Straight Line Method at the
rates prescribed in Schedule XIV of the Companies Act, 1956, charge for
depreciation for the year ended 31/03/2015 would have been higher by
Rs. 93,06,146/- and the profit before tax would have been lower by such
amount.
13. Lease commitments :
Obligation towards operating leases (As lessee)
The Company has entered into operating lease arrangements for vehicles
and office premises. Rent expenses of Rs. 4,58,274/-( Previous Year
Rs. 1,90,700/-) in respect of obligation under non cancellable
operating leases have been recognised in the Statement of Profit and
Loss.
14. Previous year figures
The company has regrouped / rearranged previous year figures in veiw of
easy comparision with current year figures.
15. Figures rounded off to nearest rupee. All the figures includig
previous year figures have been rounded off to nearest rupee.
Mar 31, 2014
1. Corporate Information :
AUSTIN ENGINEERING COMPANY LIMITED is a public limited company
domiciled in India and incorporate under the provisions of the
Companies Act, 1956, Its shares are listed in one stock exchange in
India. (BSE ) The company is engaged in manufacturing and selling all
type of Bearings and its components under trademark "aec". The company
is also engaged in manufacturing of Power from wind energy. The
Manufacturing unit of the company is situated at village Patla, Taluka
Bheshan, Dist. Junagadh - 362 030. The company is having one fully
owned subsidiary company at U.S.A.. The company caters to both domestic
and international markets.
2. Basis of Preparation :
The financial statement of the company have been prepared in accordance
with generally accepted accounting principles in India (Indian GAAP).
The company has prepared these financial statements to comply in all
material respects with the accounting standards notified under the
Companies (Accounting standards) Rules, 2006, (as amended) and the
relevant provisions of the Companies Act, 1956 and the provisions of
the Companies Act, 2013 (to the extent notified) and guidelines issued
by the Institute of Chartered Accountants of India (ICAI) and other
regulatory authority. The Financial statements have been prepared on an
accrual basis and under the historical cost convention except where
specifically stated.
3. NOTE: ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS
1 Contingent liabilities not provided for in respect of :
[i] The claim of the agent of M/s. Accurate Engineering Company for the
commission on the sales effected by the Company is not accepted. The
matter is under dispute in the court and the amount is not
ascertainable.
[ii] Bank guarantees outstanding as at 31st March,2014 for which the
Company has given counter guarantees amounting to Rs. 72,09,763/-
(Previous year Rs. 1,62,12,061/-).
[iii] Income Tax demand of Rs. 17,77,970/- ( Previous year Rs.
11,45,530/- ) raised by the Income Tax department at the time of
Assessment. The said demand is disputed by the company. The company has
paid Rs. 11,45,530/- (Previous year Rs. 11,45,530/-) against the said
demand.
2 In the opinion of the Board of Directors, current assets and loans
and advances have a value on realization in ordinary course of business
at least equal to the amount at which they are stated.
3 Confirmations of debit/credit balances have not been received and
hence these balance are subject to adjustment if any.
4 BUY BACK OF SHARES :
Up to March 31, 2010, the Company had bought back and extinguished
total 53,200 equity shares of Rs. 10 each at an average price of Rs.
54.99 per share, utilizing a sum of Rs. 29,35,463/- (inclusive of
brokerage and applicable taxes total amount Rs.9,869/- The amount of
Rs.23,93,594/- paid towards buy back of shares, in excess of the face
value, had been charged to General Reserve Account. The Company had
also transferred Rs 5,32,000/-from free reserves to Capital Redemption
Reserve Account, which represents the nominal value of shares bought
back during the previous year.
4. Amortisation of Intangible Assets :
In accordance with the accounting standard 26 "Intangible assets"
issued by the Institute of Chartered Accountants of India, intangible
assets are amortised as follows:
(a) Considering the legal rights are renewable, renewal is virtually
certain and economic benefits to be derived, the useful life of 50
years of Trademark is estimated by the Management and hence the Cost of
Trademark is amortised over 50 years. For the year Rs. 8,17,220./-
(Previous year Rs. 8,17,220/-) is charged to profit & loss account.
5. Derivatives and Foreign Currency exposures :
The Company uses forward contract to mitigate its risks associated with
foreign currency fluctuations having underlying transaction in relation
to Sale of goods. The company does not enter into any forward contract
which is intended for trading or speculative purposes.
6. IMPAIRMENT OF ASSETS :
The Company has adopted the provisions of Accounting Standard - 28 on
"Impairment of Assets" as recommended by the Institute of Chartered
Accountants of India.
On the assessment made by the Management and the Valuation Report of
the approved Valuer, there is no impairment of assets and therefore no
provisions for impairment of loss is required.
7. RELATED PARTY INFORMATION :
Disclosures in respect of related parties (as defined in Accounting
Standard 18), with whom transactions have taken place during the year
are given below :
(1) Relationship
(a) Enterprises where control of Key Management Personnel and/or their
relatives exists.
(i) Max Precision Bearings P. Ltd. (iv) Austin Traders
(ii) SNR Enterprises (v) Optimum Services Inc.
(iii) Accord Precision Products
(b) Key Management Personnel
(i) Shri S M Thanki (iii) Shri N C Vadgama
(ii) Shri R R Bambhania (iv) Shri J R Bhogayta
(c) Relative of Key Management Personnel
(i) Shri S. M. Thanki HUF (v) Shri Jignesh S. Thanki
(ii) Shri R. N. Bambhania HUF (vi) Shri Hiren N. Vadgama
(iii) Shri N. C. Vadgama HUF (vii) Shri Chandulal
N. Bambhania
(iv) Shri J. R. Bhogayata HUF
(d) Subsidiary Company
(i) Acurate Engineering Inc. - U.S.A.
Note : Related party relationship is as identified by the company and
relied upon by the auditors.
8. Previous year figures
The company has regrouped / rearranged previous year figures in veiw of
easy comparision with current year figures.
9. The Ministry of Corporate Affairs, Government of India, vide
General Circular No. 2 & 3 dated 8th February 2011 and 21st February
2011 respectively has granted a general exemption from compliance with
Section 212 of the companies Act, 1956, subject to fulfillment of
conditions stipulated in the circular. The company has satisfied the
conditions stipulated in the circular and hence is entitled to the
exemption. Necessary information relating to the subsidiary has been
included in the Consolidated Financial statements.
10. Figures rounded off to nearest rupee. All the figures includig
previous year figures have been rounded off to nearest rupee.
Mar 31, 2013
1. Corporate Information :
AUSTIN ENGINEERING COMPANY LIMITED is a public limited Company
domiciled in India and incorporate under the provisions of the
Companies Act, 1956, Its shares are listed in one stock exchange in
India. (BSE ) The company is engaged in manufacturing and selling all
type of Bearings and its components under trademark "aec". The company
is also engaged in manufacturing of Power from wind energy. The
Manufacturing unit of the company is situated at village Patla, Taluka
Bhesan, Dist. Junagadh - 362 030. The Company is having one fully
owned Subsidiary Company at U.S.A. The Company caters to both domestic
and international markets.
2. Basis of Preparation :
The financial statement of the company have been prepared in accordance
with generally accepted accounting principles in India (Indian GAAP).
The company has prepared these financial statements to comply in all
material respects with the accounting standards notified under the
Companies (Accounting standards) Rules, 2006, (as amended) and the
relevant provisions of the Companies Act, 1956. The Financial
statements have been prepared on an accrual basis and under the
historical cost convention. except where specifically stated.
NOTE 3 ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS
1. Contingent liabilities not provided for in respect of :
[i] The claim of the agent of M/s. Accurate Engineering Company for the
commission on the sales effected by the Company is not accepted. The
matter is under dispute in the court and the amount is not
ascertainable.
[ii] Bank guarantees outstanding as at 31st March,2013 for which the
Company has given counter guarantees amounting to Rs. 1,62,12,061/-
(Previous year Rs. 1,15,41,801/-).
[iii] Income Tax demand of Rs. 11,45,530/- (Previous year Rs.
72,34,520/- ) raised by the Income Tax department at the time of
Assessment. The said demand is disputed by the company. The company has
paid Rs. 11,45,530/- (Previous year Rs. 21,70,400/- ) against the said
demand.
2. In the opinion of the Board of Directors, current assets and loans
and advances have a value on realization in ordinary course of business
at least equal to the amount at which they are stated.
3. Confirmations of debit/credit balances have not been received and
hence these balance are subject to adjustment if any.
4. BUY BACK OF SHARES
Up to March 31, 2010, the Company had bought back and extinguished
total 53,200 equity shares of Rs. 10 each at an average price of Rs.
54.99 per share, utilizing a sum of Rs. 29,35,463/- (inclusive of
brokerage and applicable taxes total amount Rs.9,869/- The amount of
Rs.23,93,594/- paid towards buy back of shares, in excess of the face
value, had been charged to General Reserve Account. The Company had
also transferred Rs 5,32,000/-from free reserves to Capital Redemption
Reserve Account, which represents the nominal value of shares bought
back during the previous year.
4. IMPAIRMENT OF ASSETS :
The Company has adopted the provisions of Accounting Standard - 28 on
"Impairment of Assets" as recommended by the Institute of Chartered
Accountants of India.
On the assessment made by the Management and the Valuation Report of
the approved Valuer, there is no impairment of assets and therefore no
provisions for impairment of loss is required.
5. RELATED PARTY INFORMATION :
Disclosures in respect of related parties (as defined in Accounting
Standard 18), with whom transactions have taken place during the year
are given below:
(1) Relationship
(a) Enterprises where control of Key Management Personnel and/or their
relatives exists.
(i) Max Precision Bearings P. Ltd.
(ii) SNR Enterprises
(iii) Accord Precision Products
(iv) Austin Traders
(v) Optimum Services Inc.
(b) Key Management Personnel
(i) Shri S M Thanki
(ii) Shri R R Bambhania
(iii) Shri N C Vadgama (iv) Shri J R Bhogayta
(c) Relative of Key Management Personnel
(i) Shri S. M. Thanki HUF (ii) Shri R. N. Bambhania HUF (iii) Shri N.
C. Vadgama HUF (iv) Shri J. R. Bhogayata HUF
(v) Shri Jignesh S. Thanki (vi) Shri Hiren N. Vadgama (vii) Shri
Chandulal N. Bambhania
(d) Subsidiary Company
(i) Acurate Engineering Inc. - U.S.A. Note : Related party
relationship is as identified by the company and relied upon by the
auditors.
6. Previous year figures
The company has regrouped / rearranged previous year figures in veiw of
easy comparision with current year figures.
7. The Ministry of Corporate Affairs, Government of India, vide
General Circular No. 2 & 3 dated 8th February 2011 and 21st February
2011 respectively has granted a general exemption from compliance with
Section 212 of the companies Act, 1956, subject to fulfillment of
conditions stipulated in the circular. The company has satisfied the
conditions stipulated in the circular and hence is entitled to the
exemption. Necessary information relating to the subsidiary has been
included in the Consolidated Financial statements.
8. Figures rounded off to nearest rupee. All the figures includig
previous year figures have been rounded off to nearest rupee.
Mar 31, 2012
1. Corporate Information :
AUSTIN ENGINEERING COMPANY LIMITED is a public limited Company
domiciled in India and incorporated under the provisions of the
Companies Act, 1956. Its shares are listed in one stock exchange in
India. (BSE) The company is engaged in manufacturing and selling of all
type of Bearings and its components under the trademark "aec". The
company is also engaged in manufacturing of Power from wind energy. The
Manufacturing unit of the company is situated at village Patla, Taluka
Bheshan, Dist. Junagadh - 362 030 (Gujarat). The Company is having one
fully owned subsidiary Company in U.S.A.. The Company caters to both
domestic and international markets.
2. Basis of Preparation.
The financial statement of the Company have been prepared in accordance
with the generally accepted accounting principles in India (Indian
GAAP). The company has prepared these financial statements to comply in
all material respects with the accounting standards notified under the
Companies (Accounting standards) Rules, 2006, (as amended) and the
relevant provisions of the Companies Act, 1956. The Financial
statements have been prepared on an accrual basis and under the
historical cost convention except where specifically stated.
3. Contingent liabilities not provided for in respect of:
(i) The claim of the agent of M/s. Accurate Engineering Company for the
commission on the sales effected by the Company is not accepted. The
matter is under dispute in the court and the amount is not
ascertainable.
(ii) Bank guarantees outstanding as at 31st March, 2012 for which the
Company has given counter guarantees amounting to Rs. 115 lacs
(Previous year Rs. 106 lacs).
(iii) Income Tax demand of Rs. 72 lacs (Previous year Rs. NIL) raised
by the Income Tax department at the time of Assessment. The said
demand is disputed by the company. The company has paid Rs.22 lacs
(Previous year Rs. NIL) against the said demand.
Based on the facts, the company has been legally advised that the
demand is likely to either deleted or substantially reduced and
accordingly no provision has been made.
4. In the opinion of the Board of Directors, current assets and loans
and advances have a value on realization in ordinary course of business
at least equal to the amount at which they are stated.
5. Confirmations of debit/credit balances have not been received and
hence these balance are subject to adjustment if any.
6. BUY BACK OF SHARES:
Up to March 31, 2010, the Company had bought back and extinguished
total 53,200 equity shares of Rs. 10 each at an average price of Rs.
54.99 per share, utilizing a sum of Rs. 29 lacs (inclusive of brokerage
and applicable taxes total amount Rs.9,869/- The amount of Rs.24 lacs
paid towards buy back of shares, in excess of the face value, had been
charged to General Reserve Account. The Company had also transferred Rs
5 lacs from free reserves to Capital Redemption Reserve Account, which
represents the nominal value of shares bought back during the previous
year.
7. Amortisation of Intangible Assets :
In accordance with the accounting standard 26 "Intangible assets"
issued by the Institute of Chartered Accountants of India, intangible
assets are amortised as follows:
(a) Considering the legal rights are renewable, renewal is virtually
certain and economic benefits to be derived, the useful life of 50
years of Trademark is estimated by the Management and hence the Cost of
Trademark is amortised over 50 years. For the year Rs. 8 lacs (Previous
year Rs. 8 lacs ) is charged to profit & loss account.
8. Derivatives and Foreign Cuurency exposures :
The Company uses forward contract to mitigate its risks associated with
foreign currency fluctuations having underlying transaction in relation
to Sale of goods. The company does not enter into any forward contract
which is intended for trading or speculative purposes.
9. IMPAIRMENT OF ASSETS:
The Company has adopted the provisions of Accounting Standard - 28 on
"Impairment of Assets" as recommended by the Institute of Chartered
Accountants of India. On the assessment made by the Management and the
Valuation Report of the approved Valuer, there is no impairment of
assets and therefore no provisions for impairment of loss is required
10. RELATED PARTY INFORMATION:
Disclosures in respect of related parties (as defined in Accounting
Standard 18), with whom transactions have taken place during the year
are given below:
(1) Relationship
(a) Enterprises where control of Key Management Personnel and/or their
relatives exists.
(i) Max Precision Bearings P. Ltd. (iv) Austin Traders
(ii) SNR Enterprises (v) Optimum Services Inc.
(iii) Accord Precision Products
(b) Key Management Personnel
(i) Shri S M Thanki (iii) Shri N C Vadgama
(ii) Shri R R Bambhania (iv) Shri J R Bhogayta
(c) Relative of Key Management Personnel
(i) Shri S. M. Thanki HUF (v) Shri Jignesh S. Thanki
(ii) Shri R. N. Bambhania HUF (vi) Shri Hiren N. Vadgama
(iii) Shri N. C. Vadgama HUF (vii) Shri Chandulal N. Bambhania
(iv) Shri J. R. Bhogayata HUF
(d) Subsidiary Company
(i) Acurate Engineering Inc. - U.S.A.
Note: Related party relationship is as identified by the company and
relied upon by the auditors.
11. Previous year figures
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 statements. 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 has
reclassified previous year figures to conform to this year's
classification. The adoption of revised Schedule VI dose not impacts
recognition and measurament principles followed preparation of
Financial statements. However, it significantly impacts presentation
and disclosures made in the financial statements particularly
presentation of balance sheet.
12. The Ministry of Corporate Affairs, Government of India, vide
General Circular No. 2 and 3 dated 8th February 2011 and 21st February
2011 respectively has granted a general exemption from compliance with
Section 212 of the companies Act, 1956, subject to fulfillment of
conditions stipulated in the circular. The company has satisfied the
conditions stipulated in the circular and hence is entitled to the
exemption. Necessary information relating to the subsidiary has been
included in the Consolidated Financial statements.
13. Figures rounded off to nearest lacs. All the figures including
previous year figures have been rounded off to nearest lacs. Where the
rounding off has become zero, actual figures have been shown in
brackets.
Mar 31, 2010
1 In the opinion .of the Board of Directors, current assets and loans
and advances have a value on realization in ordinary course of business
at least equal to the amount at which they are stated. *
2 Confirmations of debit/credit balances have not been received and
hence these balance are subject to adjustment if any.
3 Buy Back Of Shares :
The Board of Directors of the Company at its meeting held on January 8,
2009, had approved the Buy-back of the equity shares of Rs.10 each, not
exceeding 4,50,000/- number of equity shares from the existing owners,
at a maximum price of Rs.65 per equity share, for an aggregate amount
not exceeding Rs. 2,92,50,000/-, from the open market through stock
exchange(s) in terms of the SEBI (Buy Back of Securities) Regulations,
1998 and subsequent amendments thereof, pursuant to the first proviso
to clause (b) of sub-section (2) of Section 77A, 77AA and 77B of the
Companies Act, 1956. Consequently, the Company made a public
announcement dated January 19,2009 regarding Buy- back of equity
shares.
As of March 31, 2010, the Company has bought back 33450 (Previous Year
19,750) equity shares of Rs. 10 each at an average price of Rs. 58.86
(Previous Year Rs. 48.45) per share, utilizing a sum of Rs.
19,75,152/-(inclusive of brokerage and applicable taxes total amount
Rs. 6,422/-) ( Previous Year Rs. 9,60,311/-(inclusive of brokerage and
applicable taxes total amount Rs. 3,448/-). Out of this, 33450
(Previous year 17,075 ) equity shares of Rs. 10 each have been
extinguished till the year end The amount of Rs. 16,34,230 /- (Previous
year Rs. 7,59,364/-) paid towards buy back of shares, in excess of the
face value, has been charged to General Reserve Account. The Company
has also transferred Rs. 3,34,500/- ( Previous year Rs 1,97,500/-) from
free reserves to Capital Redemption Reserve Account, ,Ã which
represents the nominal value of shares bought back during the year
4 AMORTISATION OF INTANGIBLE ASSETS :
In accordance with the accounting standard 26 "Intangible assets"
issued by the Institute of Chartered Accountants of India intangible
assets are amortised as follows :
(a) Considering the legal rights are renewable, renewal is virtually
certain and economic benefits to be derived, the useful life of 50
years of Trademark is estimated by the Management and hence the Cost of
Trademark is amortised over 50 years. For the year Rs. 8,17,220/-
(Previous year Rs. 8,17,220/-) is charged to profit & loss account.
5 FORWARD CONTRACT IN FOREIGN CURRENCIES - HEDGING AND DERIVATIVES :
TThe Company uses foreign exchange forward contracts to hedge its
exposure to movement in foreign exchange rates for cash flow. The use
of these foreign exchange forward contracts reduce the risk or cost to
the company and the company does not use those for trading or
speculation purposes .
Effective from June 1, 2008, the Company adopted AS - 30," Financial
Instruments : Recognition and Measurement", to the extent that the
adoption did not conflict with existing accounting standards and other
authoritative pronouncements of the Company Law and other regulatory
requirements.
The Company records the gain or loss on effective hedges, if any, in
the Hedging Reserve Account until the transaction are complete. On
completion,the gain or loss is transferred to the Profit and Loss
Account of that period. To designate a forward contract as an effective
hede, the management objectively evalutes evidence with appropriate
supporting documents at the inception of each contract whether the
contract is effective in achieving offsetting cash flows attributable
to the hedged risk. In the absence of a designation as effective hedge,
a gain or loss is recognized in the Profit and Loss Account. Currently
hedge undertaken by the Company are all ineffective in nature and the
resultant gain or loss consequent to fair valuation is recognized in
the profit and Loss Account at each reporting date. The company has
outstanding foreign exchange forward contract aggregating Rs. 3.59
(Previous year Rs. 16.23) Crores. Although this contract is effective
as hedge from an economic perspective , they do not qulify for hedge
accounting due to ineffectiveness in nature and accordingly these are
accounted as derivatives instruments at fair value with changes in fair
value recorded in the Profit and Loss Account.
Exchange Loss of Rs.1,35,98,654/- ( Previous Year Exchange Loss Rs.
94,52,914/-) on foreign exchange forward contracts has been recognized
in the year ended March 31, 2010.
6 IMPAIRMENT OF ASSETS :
The Company has adopted the provisions of Accounting Standard - 28 on
"Impairment of Assets" as recommended by the Institute of Chartered
Accountants of India during the financial year. On the assessment made
by the Management and the Valuation Report of the approved Valuer,
there is no impairment of assets and therefore no provisions for
impairment of loss is required.
7 RELATED PARTY INFORMATION :
Disclosures in respect of related parties (as defined in Accounting
Standard 18), with whom transactions have taken place during the year
are given below:
(1) Relationship
T(a) Enterprises where control of Key Management Personnel and/or their
relatives exists.
(1) Max Precision
Bearings Pvt. Ltd. (2) Austin Traders (3) SNR Enterprises
(4) Optimum
Services Inc. (5) Accord Precision
Products (6) Keyur Enterprises
(b) Key Management Personnel
(1) Mr. S Iv^Thanki (2) Mr. N C Vadgama (3) Mr. R. R Bambhania (4) Mr.
J R Bhogayta
(c) Relative of Key Management Personnel
(1) Mr. S. M. Thanki HUF (2) Mr. N. C. Vadgama HUF (3) Mr. R. N.
Bambhania HUF (4) Mr. J. R. Bhogayata HUF
(5) Mr. Jignesh S. Thanki (6) Mr. Hiren N. Vadgama (7) Mr. Rajan R.
Bambhania (8) Mr. Chandulal N. Bambhania
(d) Subsidiary Company:
Acurate Engineering Inc. - U.S.A.
Note : Related party relationship is as identified by the company and
relied upon by the auditors.
8 Previous year figures have been regrouped/ rearranged in view of the
easy comparision with current year figures.
9 The paises have been eliminated to the nearest rupees for convenience.