Home  »  Company  »  Circuit Systems (Ind  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Circuit Systems (India) Ltd.

Mar 31, 2015

1. General Company Information.

The Company was incorporated on 08-02-1995, engaged in business of manufacturing printed circuit boards. The Company is having its manufacturing plants at Gandhinagar in the State of Gujarat, INDIA.

2. Terms/right attached to equity share

The company has only one class of equity share 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 pay dividends in Indian rupees. The dividend proposed by the Board of Director is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the holder of equity shares will be entitled to received 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.

3. Buy-back of equity shares:

As per the approval by way of resolution passed in the meeting of the Board of Directors of the Company on 23rd October, 2013 in accordance with the provisions of the Companies Act, 1956 and Securities and Exchange Board of India (Buy Back of Securities) Regulations, 1998 (as amended), the Company offered to buy-back its equity shares of face value of Rs. 10/- each, to the extent of less than 10% of the paid-up equity share capital and free reserves of the Company, upto a maximum amount of Rs. 1,50,00,000/- at a maximum price of Rs. 8/- per share from open market. Pursuant to this, the Company has, during the year ended 31st March, 2014 bought-back 18,30,984 equity share at price of Rs. 8/- per equity share, utilizing a sum of Rs. 1,46,47,872 (excluding other expenses). On account of buy-back of shares, the Company has created :(a) Capital Redemption Reserve of Rs. 1,83,09,840/- towards the face value of 18,30,984 shares of Rs. 10/- each by way of appropriation against General Reserve and (b) Capital Reserves of Rs. 36,61,968/- towards the profit of Rs. 2/- per share on buy back of shares. In terms of the provision of Section 77A of the Companies Act, 1956 and SEBI (Buy Back of Securities) Regulations 1998 (as amended), the Company has completed extinguishment of 18,30,984 shares as on 31st December, 2013.

4. Aggregate number of shares bought back during the period of five years immediately preceding the reporting date is 18,30,984/- (31-03-2014 : 18,30,984/-) equity shares.

4. RELATED PARTY DISCLOSURES

As per Accounting Standard 18, the disclosure of transactions with the related parties as defined in accounting standard are given below:

(i) List of related parties where control exist and related parties with whom transactions have taken place and their relationships

Sr. No. Name of the Party Relationship

1 Paresh N. Vasani Key Managerial Personnel

2 PCB Power (India) Ltd. Subsidiary company

3 PCB Planet (India) Ltd. Company in which Key Managerial 4 Eurocircuits India Ltd. Personnel are Directors

6. CONTINGENT LIABILITIES NOT PROVIDED IN RESPECT OF: (Amount in Rs.)

Year ended Year ended

31-03-2015 31-03-2014

i) Tax matters,

- Disputed liability in respect of Income-tax demands - 2,984,020 (including interest)(Matter under appeal)

- Disputed in respect of time limit for deferment of Sales Tax - - liability (Amount not quantified and Matter under appeal)

7. Details for exceptional items are as follows.

(i) The company has debited Rs. 2,96,27,916/- as write off for obsolete inventories and spares. The company has conducted detailed verification of its inventory during this financial year to find out stock which has become obsolete or whose economic value has become Nil. The company had accumulated significant quantity of stocks and spares which had book value but could not be used by the company for manufacturing and maintenance purpose because of its odd size, shape or other factors. Hence, economic value of such stocks has practically become zero for the company. During the year, company carried out exercise to find such obsolete inventories and discard them, in order to reflect more realistic position of the inventory. Accordingly, the company has reduced value of Rs. 2,96,27,916/-in its closing inventory as on 31 March 2015.

(ii) The Company has debited Rs. 2,30,05,998/- as bed debts in exception items. The company had accumulated balance in receivables which was long overdue but had not received since long. The payments were pending due to various reasons such as quality disputes, rate disputes, receivables being unresponsive and other reasons. The company had made detail assessment of recoverability of each receivable and decided to write off those balances which cannot be recovered even after considerable efforts. During year, the company has written off Rs. 2, 30, 05,998/- for various irrecoverable balances.

(iii) The company has made provisions of Rs. 1, 50, 00,000/- in respect of disputed legal matters of other for which the company was served notice as a second party. The board has assessed likely liability which may arise out of the settlement of this suit. The Board has agreed to create provisions for anticipated liability pending final disposal of matters by court.

Total debits in exceptional items is Rs. 6,77,23,898/- which is of non-recurring nature and is not expected to be repeated in foreseeable future.

8. The Company has considered manufacturing of various grade of PCB as Single Segment and hence Primary Segment Disclosure is not applicable. With respect to second geographical segment management has view that there is no material risk is attached with geographical operation of the Company and hence considered as single segment.

9. Previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

10. Balances in respect of trade receivables, loans and advances and trade payables are subject to confirmation from the respective parties and reconciliation, if any.

11. In the opinion of the management, the Current Assets, Loans and advances are realizable at the values stated in the financial statements in the ordinary course of business and adequate provision for all known liabilities has been made in the accounts.


Mar 31, 2014

General Company Information.

The Company was incorporated on 08-02-1995, engaged in business of manufacturing printed circuit boards. The Company is having its manufacturing plants at Gandhinagar in the State of Gujarat, INDIA.

1. Terms/right attached to equity share

The company has only one class of equity share 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 pay dividends in Indian rupees. The dividend proposed by the Board of Director is subject to the approval of the shareholders in the ensuing Annual General Meeting.In the event of liquidation of the company, the holder of equity shares will be entitled to received 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.

2. Buy-back of equity shares:

As per the approval by way of resolution passed in the meeting of the Board of Directors of the Company on 23rd October, 2013 in accordance with the provisions of the Companies Act, 1956 and Securities and Exchange Board of India (Buy Back of Securities) Regulations, 1998 (as amended), the Company offered to buy-back its equity shares of face value of Rs. 10/- each, to the extent of less than 10% of the paid-up equity share capital and free reserves of the Company, upto a maximum amount of Rs. 1,50,00,000/- at a maximum price of Rs. 8/- per share from open market. Pursuant to this, the Company has, during the year ended 31st March, 2014 bought-back 18,30,984 equity share at price of Rs. 8/- per equity share, utilizing a sum of Rs. 1,46,47,872 (excluding other expenses). On account of buy-back of shares, the Company has created :(a) Capital Redemption Reserve of Rs. 1,83,09,840/- towards the face value of 18,30,984 shares of Rs. 10/- each by way of appropriation against General Reserve and (b) Capital Reserves of Rs. 36,61,968/- towards the discount of Rs. 2/- per share. In terms of the provision of Section 77A of the Companies Act, 1956 and SEBI (Buy Back of Securities) Regulations 1998 (as amended), the Company has completed extinguishment of 18,30,984 shares as on 31st December, 2013.

3. Aggregate number of shares bought back during the period of five years immediately preceding the reporting date is 1830984(31-03-2013 : Nil) equity shares.

4. Notes:

1. Loan from Bank carries interest @ 10.66% p.a. The loan is repayable in 36 monthly instalments of Rs. 22805/- each along with interest, from the date of loan viz. 12-10-2013. The loan is secured by hypothecation of motor-car of the company. Current maturity of long-term borrowings is Rs. 218502 (31.03.2013: Rs. Nil)

Notes:Cash credit and buyer''s credit from bank is primarily secured by way of hypothecation on inventory, charge on book debts and current assets of the company(both present and future). Further it is secondarily secured by way of equitable mortgage of land situated at GIDC, Gandhinagar and hypothecation of plant and machinery and other movable assets of the company excluding vehicles(both present and future). Further it is secured by way of personal guarantee of a director and a relative of a director. Further buyer''s credit is secured by way of margin money deposits.

5. CONTINGENT LIABILITIES NOT PROVIDED IN RESPECT OF:

(Amount in Rs.)

Year ended Year ended 31-03-2014 31-03-2013

i) Tax matters,

* Disputed liability in respect of Income-tax demands (including interest) 2984020 2984020 (Matter under appeal)

* Disputed in respect of time limit for deferment of Sales Tax liability - - (Amount not quantified and Matter under appeal)

ii) Disputed labour matters of others for which company was served notice as a secondary party (Amount not quantified)

6. Exceptional item of Rs. 1443709/- pertains to expenditure incurred on Buy-back of equity shares during the year.

7. The company has hedged its foreign exchange exposure on imports through appropriate derivative contracts.

8. The Company has considered manufacturing of various grade of PCB as Single Segment and hence Primary Segment Disclosure is not applicable. With respect to second geographical segment management has view that there is no material risk is attached with geographical operation of the Company and hence considered as single segment.

9. Previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

10. Balances in respect of trade receivables, loans and advances and trade payables are subject to confirmation from the respective parties and reconciliation, if any.

11. In the opinion of the management, the Current Assets, Loans and advances are realizable at the values stated in the financial statements in the ordinary course of business and adequate provision for all known liabilities has been made in the accounts.


Mar 31, 2013

General Company Information.

The Company was incorporated on 08-02-1995, engaged in business of manufacturing printed circuit boards. The Company is having its manufacturing plants at Gandhinagar in the State of Gujarat, INDIA.

1. Discontinuing operations (Work In Progress Assets)

During the year under review, The Board of Directors had announced a plan to dispose of Company''s SEZ unit located SEZ Gandhinagar. The Company has a project work-in-progress comprising of Land, Building and Machinery at the SEZ unit, Gandhinagar to enhance the business and focus on export market. Due to global business recession and slow down, the Company could not implement the project in due time frame and the company has concentrated on domestic market. It is in the company''s interest to sell the above assets at SEZ, Gandhinagar. The company foresight good opportunities in the domestic market and would like to utilize its resources to strengthen its position in the Indian market.

2. The Company has considered manufacturing of various grade of PCB as Single Segment and hence Primary Segment Disclosure is not applicable. With respect to second geographical segment management has view that there is no material risk is attached with geographical operation of the Company and hence considered as single segment.

3. Previous year‘s figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

4. Balances in respect of trade receivables, loans and advances and trade payables are subject to confirmation from the respective parties and reconciliation, if any.

5. In the opinion of the management, the Current Assets, Loans and advances are realizable at the values stated in the financial statements in the ordinary course of business and adequate provision for all known liabilities has been made in the accounts.


Mar 31, 2012

1. Company Information.

(i) The company was incorporated on 08-02-1995

(ii) The company has having two manufacturing plants at

- B/24 Electronoc Estate, GIDC, Gandhinagar.

- Plot No. 11-12 &. 36-37 at: SEZ, Gandhinagar.

(iii) The Plant at SEZ was set up in F.Y.2007-08 & commercial production in SEZ unit has not commenced. (iv) The company is in business of manufacturing printed circuit boards

2. During the year under review, company has capitalized preoperative expenses of Rs. 31.65 lacs considered as attributable to SEZ project by the management as under:-

I Interest on Bank Term Loan 3.53

II Non fianancial expenses capitalised 28.12

31.65

Add: Expenses capitalized up to 31/03/2011 319.06

Total Expenses Pending Allocation 350.71

3. The company has capitalized loss of Rs. 16.14 lacs on sale of plant & machinery of SEZ project instead of charging same to the profit & loss account against the procedure followed in the accounting year 10-11 in which the profit of Rs. 18.43 lacs on sale of partial part of the building of SEZ project was considered as revenue income after obtaining expert opinion for the matter.

4. Due to technical problems in accounting software utilized earlier, there are number of credit & debit balances in accounts of account receivables, other receivables, trade payables & other payables, which are in opinion of management are neither receivable nor payable. Accordingly the management has written off such balances by considering other income of Rs. 49.09Lacs (credit balances of Rs. 123.43 Lacs less debit balances of Rs. 74.34 Lacs) being net difference between such balances through prior period adjustment and for such writing off, we have relied upon the declaration of the management.

5. Based on the information available with the Company, there are no suppliers who are registered under Micro, Small and Medium Enterprises Development Act, 2006 as at 31st March, 2011. Hence the disclosure relating to amounts unpaid as at the year end together with interest paid/ payable under this Act has not been given.

6. Though there is a second shift working, machineries used for second shift are exclusively used for second shift only; no depreciation, in view of management, is required to be provided for second shift working.

7. The company has considered manufacturing of various grade of PCB as Single Segment and consequently has not made Primary Segment Disclosure. With Respect to Secondary Segment Information (Geographical Segment), in view of management, the company is operating in single segment though company is carrying out Domestic and Export Sales.

8. Previous year's figures have been reworked, regrouped, re-arranged & re-classified wherever necessary in order to confirm to this year's presentation.

9. In the opinion of the Board of Directors, the current assets, loan and advances are approximately of the value stated, if realized, in the ordinary course of business; the provisions for all known liabilities & depreciation are adequate and not in excess of the amount reasonably considered necessary; no personal expenses have been charged to revenue.

10. Statement of Cash flow for the year 2012.


Mar 31, 2011

(Rs. In Lacs)

2010-2011 2009-2010

1) CONTINGENT LIABILITIES:

Guarantee given 11.30 10.00

Forward Contracts 460.93 447.81

472.23 457.81

b) SALES & EXPORTS:

i) Quantity of finished goods (PCB) shown in sq. meter is not precise indication of quantity, as it includes PCB's of different sizes and thickness.

ii) Actual sales are made in Nos. which are converted into quantity for disclosure.

iii) Quantitative figures and conversion thereof in Sq. Meters being technical matter, is taken as certified by the management.

c) Raw material Consumption:

Notes:

i. Consumption of raw material does not include goods received free of cost.

ii. Consumption is exclusive of excise cenvat adjusted against excise collected on sales.

iii. VAT to the extent of availment of set off is also not included in cost of consumption.

iv. Quantity of copper sheets shown in number is not precise indication of quantity, as it includes copper sheets of different sizes and thickness.

v. Quantitative disclosures, taken as certified by the Management.

2. Based on the information available with the Company, there are no suppliers who are registered under Micro, Small and Medium Enterprises Development Act, 2006 as at 31st March, 2011. Hence the disclosure relating to amounts unpaid as at the year end together with interest paid/payable under this Act has not been given.

3. Segment Reporting :The company has considered manufacturing of various grade of PCB as Single Segment and consequently has not made Primary Segment Disclosure. With Respect to Secondary Segment Information (Geographical Segment), in view of management, the company is operating in single segment though company is carrying out Domestic and Export Sales.

4. Associates :

(a) PCB Planet (India) Ltd.

(b) Global Tech India (Pvt) Ltd.

(c) Apollo Industries & Projects Ltd.

(d) PCB Power (India) Ltd.

(e) Accumeg Circuits Ltd.

(f) Gujarat Apollo Industries Ltd.

Key Managerial Personnel :

Mr. Anilbhai T. Patel - Director

Mr. Magan H. Patel - Director

Mr. Paresh N. Vasani - Managing Director

Mr. Sharad R. Shah - Whole Time Director

Mr. Somabhai Patel - Director

5. Previous year's figures have been reworked, regrouped, re-arranged & re-classified wherever necessary in order to confirm to this year's presentation.

6. In the opinion of the Board of Directors, the current assets, loan and advances are approximately of the value stated, if realized, in the ordinary course of business; the provisions for all known liabilities & depreciation are adequate and not in excess of the amount reasonably considered necessary; no personal expenses have been charged to revenue.


Mar 31, 2010

(Rs. In Lacs) 2009-2010 2008-2009

1) CONTINGENT LIABILITIES:

Guarantee given 10.00 10.00

Forward Contracts 447.81 -

457.81 10.00



2) ADDITIONAL INFORMATION:

a) Additional information required to be given as per para 3 & 4 of Schedule-VI of the Companies Act, 1956

i) INSTALLED CAPACITY : NA

ii) LICENCED CAPACITY : NA

iii) ACTUAL PRODUCTION

i) Quantity of finished goods (PCB) shown in sq. meter is not precise indication of quantity, as it includes PCBs of different sizes and thickness.

ii) Actual sales are made in Nos. which are converted into quantity for disclosure.

iii) Quantitative figures and conversion thereof in Sq. Meters being technical matter, is taken as certified by the management.

Notes:

i. Consumption of raw material does not include goods received free of cost.

ii. Consumption is exclusive of excise cenvat adjusted against excise collected on sales.

iii. VAT to the extent of availment of set off is also not included in cost of consumption.

iv. Quantity of copper sheets shown in number is not precise indication of quantity, as it includes copper sheets of different sizes and thickness.

v. Quantitative disclosures, taken as certified by the Management.

i) The amount of exchange difference (net) credited to the profit & loss account for the year is Rs. 80.50 Lacs. (P Y debited Rs. 99.66 lacs)

(j) Based on the information available with the Company and on the basis of information made available to us, there are no suppliers who are registered under Micro, Small and Medium Enterprises Development Act, 2006 as at 31st March, 2010. Hence the disclosure relating to amounts unpaid as at the year end together with interest paid/payable under this Act has not been given.

(3) Though there is a second shift working, machineries used for second shift are exclusively used for second shift only; no depreciation, in view of management, is required to be provided for second shift working.

(4) The company has been in process of reconciliation of claims of Excise modvat & DEPB receivable recorded in the books from time to time after implementing new accounting software with effect from 01/04/2008 with their actual claims with government authorities. The company has to make additional claim of Rs. 73.43 lacs towards excise modvat & Rs. 20.98 lacs towards DEPB claims with the authorities to match their accounts records and claims submitted to the authorities. Since all additional claims, in view of management, to be made are fully realizable, no provision is required to be made for future shortfall which may occur during such reconciliation.

(5) Segment Reporting :

The company has considered manufacturing of various grade of PCB as Single Segment and consequently has not made Primary Segment Disclosure. With Respect to Secondary Segment Information (Geographical Segment), in view of management, the company is operating in single segment though company is carrying out Domestic and Export Sales.

(6) Associates Companies:

(a) PCB Planet (India) Ltd.

(b) Global Tech India (Pvt) Ltd.

(c) Apollo Industries & Projects Ltd.

(d) PCB Power (India) Ltd.

(e) Accumeg Circuits Ltd.

(f) Gujarat Apollo Equipments Ltd.

Key Managerial Personnel:

Mr. Anilbhai T. Patel - Director

Mr. Magan H. Patel - Director

Mr. Paresh N. Vasani - Managing Director

Mr. Sharad R. Shah - Whole Time Director

Mr. Somabhai Patel - Director

(7) Previous years figures have been reworked, regrouped, re-arranged & re-classified wherever necessary in order to confirm to this years presentation.

(8) In the opinion of the Board of Directors, the current assets, loan and advances are approximately of the value stated, if realized, in the ordinary course of business; the provisions for all known liabilities & depreciation are adequate and not in excess of the amount reasonably considered necessary; no personal expenses have been charged to revenue.

Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X