Mar 31, 2023
Terms / rights attached to equity shares:-
The company has only one class of equity shares having a par value of Rs. 5/-(previous year - Rs.5/-) per share. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution shall be according to the members right and interest in the Company.
*Note: In terms of order dated 25th April 2018 received on 02nd May 2018, the Competition Commission of India (CCI) had imposed penalty of Rs. 4226.00 lakhs for alleged cartelisation in respect of Zinc carbon dry cell batteries market in india. The Company had filed an appeal against order of CCI before the National Compnay Law Appellate Tribunal (NCLAT) . NCLAT has granted stay on the CCI order on the condition that the Company should deposit 10% of the penalty amounting to Rs.422.00 Lakhs .The company has deposited this amount with the registry (through FD)within the due date as stipulated by NCLAT. Based on the legal opinion and considering the uncertainty relating to the outcome of this matter, no provision has been considered in the books of accounts.
5 The details relating to Micro, Small and Medium Enterprises in terms of the Micro, Small and Medium Enterprises Development Act, 2006 are as follows as provided by the management on the basis of confirmations received from suppliers regarding their status under the said act.Interest has not been provided, as the amount due to these creditors is not overdue for a period of more than 45 days.
Defined contribution plans
In accordance with Indian law, eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees'' salary. The contributions, as specified under the law, are made to the Provident Fund.
The total expense recognised in profit or loss of Rs. 337.60 Lakhs for the year ended March 31,2023: (Last year - Rs.296.96 Lakhs) represents contribution paid to these plans by the Company at rates specified in the rules of the plan.
Defined benefit plans a) Gratuity
Gratuity is payable as per Payment of Gratuity Act, 1972. In terms of the same, gratuity is computed by multiplying last drawn salary (basic salary including dearness Allowance if any) by completed years of continuous service with part thereof in excess of six months and again by 15/26. The payment of Gratuity Act, 1972, provides for a vesting period of 5 years for withdrawal and retirement and a monetary ceiling on gratuity payable to an employee on separation, from time to time.
These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk and salary risk.
Investment risk The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to the market yields on government bonds denominated in Indian Rupees. If the actual return on plan asset is below this rate, it will create a plan deficit.
Interest risk A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase in the return on the plan''s debt investments. Longevity risk The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.
Salary risk The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.
ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS DISCLOSURES UNDER INDIAN ACCOUNTING STANDARDS (CONTD.)
The employees'' gratuity fund scheme is managed by Life Insurance Corporation of India (LIC). The Company makes annual contributions to the plan. Commitments are actuarially determined at year-end. Actuarial valuation is based on "Projected Unit Credit" method.
The company operates a leave encashment scheme, which is an unfunded scheme. The present value of obligation under this schemes is based on an actuarial valuation using the Projected Unit Credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
In view of the fact that the Company for preparing the sensitivity analysis considers the present value of the defined benefit obligation which has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.
The Company has only one reportable segment. The business of the company currently is into manufacture and sale of dry batteries, trading lighting products and other home appliances which comes under a single business segment known as consumer goods. This clasification based on the nature of the products, risks, returns and the internal business reporting system and accordingly there is no other reportable segment in terms of IndAS 108 operating segment.
* The remuneration to the key management personnel does not include provisions made for gratuity and leave benefits, as they are determined on an actuarial basis for the company as a whole and cost accrued for share based payments options provided to KMP
Terms and conditions of transactions with related parties
The sales to related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. For the year ended 31 March 2023, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (31 March 2022 is Rs Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.
28.11 Risk Management framework
The company''s Board of Directors has overall responsibility for the establishment and oversight of the company''s risk management framework. The board has constituted the risk management committee which carries on the following functions:
1. The implementation of Risk management systems and framework;
2. Reviewing the Company''s financial and risk management policies;
3. Assessing risk and minimizing the procedures;
4. Framing, implementing and monitoring the risk management plan.
The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
The Risk management Committee oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Risk management Committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.
The company has exposure to the following risks arising from its financial risk management:
Credit risk Liquidity risk Commodity price risk Foreign currency risk
The Company manages its financial operations with its own accruals and hence is not subject to interest rate risk. The company manages its working capital with its own stock and debtors. However, the overdraft/ cash credit facility from our bankers are utilised to manage the working capital gap as and when required. The company does not forsee any requirement for long term funding in the near future.
Credit risk management
Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s trade receivables, deposits and other financial assets.
Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The company has established a strong liquidity damage agreement with its customers. The normal credit period for trade receivables are 15 days / 45 days and any settlement beyond 15 / 45 to 90 days and thereafter the same is compensated by and agreed interest on outstanding amounts.
The company based on internal assessment which is driven by the historical experience and current facts available in relation to default and delays in collection thereof, has decided not to make any provision for the expected credit loss of trade receivables. The company does not forsee any requirement to create the allowance matrix considering the past trend and future operations.
Liquidity risk management
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company''s reputation. The average credit period for purchase of materials and traded products ranges from 30 to 60 days and the company settles the significant portion of the obligation within the aforesaid credit period. The company''s working capital is adequately supported by Stock, Book debts and Bank overdraft/ CC facilities.
Commodity price risk management
The Company is exposed to commodity price risk, mainly in respect of Zinc, which is a key raw material in the manufacture of batteries. The price risk is linked to fluctuations in London Metal Exchange (LME). The Company manages the price risk by entering into a average price agreeement with the vendor.
Foreign currency risk management
The Company undertakes transactions denominated in foreign currencies; consequently, exposure to exchange rate fluctuations arise. The company has the policy of settling the foreign exchange exposure within 5 to 10 days to mitigate the foreign currency risk.
The company has not recognised any financial asset / liability at fair value. The directors consider that the carrying amounts of financial assets and financial liabilities that are recognised at fair value in the financial statements approximate their fair values.
¦ Supreme Court ruling on Provident Fund
With regard to the Supreme Court ruling on the applicability of provident fund on all fixed allowances payable to employees, pending clarity on the matter, no provision is made in the books. Necessary provision will be made once the circular is issued / communication is received by the Company from the Provident Fund Authorities.
28.15 Labour Code - Transition related
The Central Government has published the Code on Social Security, 2020 and Industrial Relations Code,2020 ("the codes") in the Gazette of India, interalia, subsuming various existing labour and industrial laws which deals with employees including post employment period. The Ministry of labour and employment has released draft rules for the Code on Social Security 2020 on November 13, 2020 which are yet to be notified. The company will assess and evaluate the impact once the subject rules are notified and will appropriately consider the same in its financial statements in the period in which the Code becomes effective.
28.16 Loans or advances (repayable on demand or without specifying any terms or period of repayment) to specified persons
During the year ended March 31,2023 the Company did not provide any Loans or advances which remains outstanding (repayable on demand or without specifying any terms or period of repayment) to specified persons (Nil as on March 31,2022).
28.17 Relationship with Struck off Companies
The Company did not have any transaction with companies struck off during the year ended March 31,2023 and also for the year ended March 31,2022.
28.18 Disclosure in relation to undisclosed income
The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year ended March 31,2023 and March 31,2022 in the tax assessments under the Income Tax Act, 1961 (Such as, search or survey and any other relevant provisions of the Income Tax Act, 1961).
28.19 Details of Benami Property held
The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company, during the year ended, March 31,2023 and March 31,2022 for holding any Benami Property.
28.20 Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31,2023 and March 31,2022.
28.21 Utilisation of Borrowed Fund & Share Premium
The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
The Company has not advanced or lent or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
28.22 Registration of charges or satisafaction with register of companies
The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
28.23 Compliance with Number of layers of companies
The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 201 7.
28.25 Fig ures of the previous year have been regrouped/rearranged wherever considered necessary.
28.26 Approval of Financial Statement
The financial statements were approved for issue by the board of directors on May 23, 2023.
Mar 31, 2018
Note: In terms of order dated 19th April 2018 received on 02nd May 2018, the Competition Commission of India (CCI) has imposed penalty of Rs. 4226.00 lakhs for alleged cartelization in respect of Zinc carbon dry cell batteries market in India. The Company had filed an appeal against order of CCI before the National Company Law Appellate Tribunal (NCLAT) . NCLAT has granted stay on the CCI order on the condition that the Company should deposit 10% of the penalty amounting to Rs.422.00 Lakhs .The Company Based on the legal opinion and considering the uncertainty relating to outcome of this matter, no provision has been considered in the books of account.
Disclosure as per Regulation 34 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015
28.2 Particulars of Loans, guarantees or investments covered under Section 186(4) of the Companies Act, 2013
28. ADDITIONAL INFORMATION TO THE FINANCIAL STATEMENTS DISCLOSURES UNDER INDIAN ACCOUNTING STANDARDS (CONTD.)
28.3 Employee benefit plans Defined contribution plans
In accordance with Indian law, eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees'' salary. The contributions, as specified under the law, are made to the Provident Fund.
The total expense recognized in profit or loss of Rs. 167.87 Lakhs (for the year ended March 31, 2017: Rs.161.97 Lakhs) represents contribution paid to these plans by the Company at rates specified in the rules of the plan.
Defined benefit plans a) Gratuity
Gratuity is payable as per Payment of Gratuity Act, 1972. In terms of the same, gratuity is computed by multiplying last drawn salary (basic salary including dearness Allowance if any) by completed years of continuous service with part thereof in excess of six months and again by 15/26. The Act provides for a vesting period of 5 years for withdrawal and retirement and a monetary ceiling on gratuity payable to an employee on separation, as may be prescribed under the Payment of Gratuity Act, 1972, from time to time.
These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk and salary risk.
Investment risk The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to the market yields on government bonds denominated in Indian Rupees. If the actual return on plan asset is below this rate, it will create a plan deficit.
Interest risk A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase in the return on the plan''s debt investments. Longevity risk The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.
Salary risk The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.
28.5 Related party transactions 28.5A Details of related parties:
Description of relationship Names of related parties
SUBSIDIARIES Helios Strategic Systems Ltd.
Kineco Limited
Kineco Alte Train Technologies Pvt. Ltd.
Kineco Kaman Composites India Private Limited
ENTERPRISES WITH
SIGNIFICANT INFLUENCE Apex Agencies
Associated Electrical Agencies
Kalpatharu Enterprises Pvt. Ltd
Radiohms Properties Pvt. Ltd
Radiohms Agencies
RAL Consumer Products Limited
Deccan Hospitals (A Unit of Apollo Hospitals Ent. Ltd)
KEY MANAGERIAL PERSON
Executive Directors P Dwaraknath Reddy
R.P Khaitan P Aditya Reddy
28.5B Details of related party transactions during the year ended March 31, 2018 and balances outstanding as at March 31, 2018:
28.10 Risk Management framework
The company''s Board of Directors has overall responsibility for the establishment and oversight of the company''s risk management framework. The board has constituted the risk management committee which carries on the following functions:
1. The implementation of Risk management systems and framework;
2. Reviewing the Company''s financial and risk management policies;
3. Assessing risk and minimizing the procedures;
4. Framing, implementing and monitoring the risk management plan.
The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
The Risk management Committee oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in
28.10 Risk Management framework (Contd.) relation to the risks faced by the Company. The Risk management Committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.
The company has exposure to the following risks arising from its financial risk management:
Credit risk Liquidity risk Commodity price risk Foreign currency risk
The Company manages its financial operations with its own accruals and hence is not subject to interest rate risk. The company manages its working capital with its own stock and debtors. However, the overdraft/ cash credit facility from our bankers are utilized to manage the working capital gap as and when required. The company does not for see any requirement for long term funding in the near future.
Credit risk management
Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s trade receivables, deposits and other financial assets.
Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The company has established a strong liquidity damage agreement with its customers. The normal credit period for trade receivable is 15 days and any settlement beyond 15 to 90 days and thereafter is compensated as per the LD agreement.
The company based on internal assessment which is driven by the historical experience and current facts available in relation to default and delays in collection thereof has decided not to make any expected credit loss of trade receivables. The company does not for see any requirement to create the allowance matrix considering the past trend, future operations and materiality of doubtful/bad debts incurred till now. Refer Note. 8A
Liquidity risk management
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company''s reputation. The average credit period for purchase of materials and traded products ranges from 30 to 60 days and the company settles the significant portion of the obligation within the aforesaid credit period. The company''s working capital is adequately supported by Stock, Book debts and Bank overdraft/ CC facilities.
Commodity price risk management
The Company is exposed to commodity price risk, mainly in respect of Zinc, which is a key raw material in the manufacture of batteries. The price risk is linked to fluctuations in London Metal Exchange (LME). The Company manages the price risk by entering into a average price agreement with the vendor.
Foreign currency risk management
The Company undertakes transactions denominated in foreign currencies; consequently, exposure to exchange rate fluctuations arise. The company has the policy of settling the foreign exchange exposure within 5 to 10 days to mitigate the foreign currency risk.
28.12 Fair value measurements
The company has not recognized any financial asset / liability at fair value. The directors consider that the carrying amounts of financial assets and financial liabilities that are recognized at fair value in the financial statements approximate their fair values.
28.13 Approval of Financial Statements
The financial statements were approved for issue by the Board of Directors on May 23, 2018.
Mar 31, 2016
1. The Company has invested in Helios Strategic Systems (I) Ltd. as its wholly owned subsidiary company which was incorporated on 1st July, 2015. The said Company has made investments in the equity shares of M/s. Kineco Limited and has acquired controlling interest in this company. Consequent to this the following companies have become sub-subsidiaries of the company. The particulars of these sub-subsidiaries are given separately.
2. Kineco Kaman Composites India (P) Ltd.
3. Kineco Alte Train Technologies (P) Ltd.
4. There being no indication of impairment of assets determined by the Company, no loss has been recognized on impairment of assets.
5. Figures have been given in lakhs of rupee''s . Figures for the previous year (including those within brackets) have been regrouped wherever necessary to conform to those of the current year.
Mar 31, 2015
1. SHARE CAPITAL
The Company has issued only one class of equity shares having at par
value of Rs.10/- each. Each holder of equity share is entitled to one
vote per share. The dividend proposed by the Board of Directors is
subject to the approval of the share holders in the Annual General
Meeting and is declared on approval.
2. SHORT-TERM BORROWINGS
Secured Loan from a Bank
The aggregate working capital limits of Rs.1,300 (Rs.1,300) sanctioned
by Banks are secured against equitable mortgage by deposit of title
deed of factory property situtated at Nellore, Andhra Pradesh and
hypothecation of imported and indigenous raw materials, components,
spares, goods in process and finished goods and the loan of Rs.300
availed from banks against fixed deposits
3. TRADE PAYABLES
There are no outstanding dues to Micro, Small and Medium Enterprises as
per the information contained in the vendor list maintained by the
Company and to whom the Company had no outstanding dues exceeding forty
five days as on 31st March 201 5. The additional disclosures as
required under the Micro, Small and Medium Enterprises Development Act,
2006 are not furnished.
4. No Provision has been made for
a) Differential Sales Tax of Rs.111.09 Lakhs (111.09 Lakhs) levied by
APGST authorities for the period from April 2001 to March 2005, based
on sales turnover of Company's Authorised whoelsale Dealer, treating
them as related persons under the amended provisions of the Sales Tax
Act. The company has so far paid Rs.110.42 lakhs (Rs.110.42Lakhs)
towards the said disputed sales tax "under protest" is included in
Loans & Advances.
5. Related party disclosures : Are disclosed as per Accounting
Standards 18 Associates :
a) Apollo Hospitals & Enterprises Ltd
b) Apex Agencies
c) Associated Electrical Agencies
d) Kalpatharu Enterprises Pvt. Ltd
e) Radiohms Properties Pvt. Ltd
f) Radiohms Agencies
g) RAL Consumer Products Limited
Key Managerial Personnel Mr. P Dwaraknath Reddy
Mr. R.P Khaitan
Relative of Key Managerial Personnel Mr. P Aditya Reddy
6. There being no indication of impairment of assets determined by the
Company, no loss has been recognised on impairment of assets.
7. Effective from 01.04.2014 depreciation on tangible fixed assets has
been provided as per the 'Useful life' specified in Part C of Schedule
II of the Companies Act, 2013. The carrying amount as on 01.04.2014 is
accordingly depreciated over the remaining useful life. Due to this
change, the impact on depreciation for the Year ended 31st March, 2015
is higher by Rs.49.93 lakhs. The carrying value of Rs.180.58 Lakhs
relating to assets whose useful life is nil as on 31st March 2014 has
been adjusted against the opening of retained earnings in terms of
Schedule - II of the Act.
8. Figures have been given in lakhs of rupee's . Figures for the
previous year (including those within brackets) have been regrouped
wherever necessary to conform to those of the current year.
Mar 31, 2014
Other Contingent Liabilities
(Rs. Lakhs)
2013-2014 2012-2013
Estimated amount of - 24.00
contracts remaining
to be executed on
Capital Accounts and
not provided for
(Net of Advances)
Letters of Credit - -
Bills Discounted 2,806.87 2,837.14
with Bankers and
others
Sales Tax disputed 2.15 2.15
in Appeals
Income Tax disputed 23.11 17.51
in Appeals
Mar 31, 2013
1. No Provision has been made for
a) Differential Sales Tax of Rs.111.09 Lakhs (111.09 Lakhs) levied by
APGST authorities for the period from April 2001 to March 2005, based
on sales turnover of Company''s Authorised whoelsale Dealer, treating
them as related persons under the amended provisions of the Sales Tax
Act. The company has so far paid Rs.110.42 lakhs (Rs.110.42Lakhs)
towards the said disputed sales tax "under protest".
b) Part of Gratuity payable to Managing Director estimated at Rs.37
Lakhs (37 Lakhs).
2. Figures have been given in lakhs of rupee''s. Figures for the
previous year (including those within brackets) have been regrouped
wherever necessary to conform to those of the current year.
Mar 31, 2012
1. TRADE PAYABLES
There are no outstanding dues to Micro, Small and Medium Enterprises as
per the information contained in the vendor list maintained by the
Company and to whom the Company had no outstanding dues exceeding forty
five days as on 31st March 2012. The additional disclosures has
required under the Micro, Small and Medium Enterprises Development
Act, 2006 are not furnished.
2. Defined Benefit Plan:
Defined benefit plan as per actuarial valuation as on 31st March, 2012
and recognised in the financial statements in respect of Employee
Benefit Scheme: (AS-15)
3. The Company received Show Cause Notices in the year 1996 from the
Commissioner of Commercial Taxes for the Years from 1978-79 to 1985-86
and 1987-88 seeking to revise the orders of Sales Tax Appellate
Tribunal / Appellate Deputy Commissioner, allowing exemption on stock
transfers made to the Depots for the above years in the appeals filed
by the Company. The Sales Tax Department also filed Tax Revision Cases
for the years from 1978-79 to 1980-81, which were set-aside by the High
Court.
For the years 1981-82 to 1985-86 and 1987-88 however, on a reference on
the question of Revisional Jurisdiction, to a larger Bench of A.P. High
Court, order was passed in October 2001 in favour of the Company,
quashing the Revisional Notices issued by the Commissioner of
Commercial Taxes.
The Andhra Pradesh Sales Tax authorities filed Special Leave Petitions
(SLPs) before the Supreme Court of India for the relevant years. The
Supreme Court of India has however dismissed the SLPs filed by the A.P.
sales Tax dept while upholding the order of the larger Bench of the A.P
High Court. In view of this, no liability is to be provided in the
books for sales tax as against of Rs. 20.62 crores shown as disputed
and not provided for in the earlier years.
4. No Provision has been made for
a) Differential Sales Tax of Rs.111.09 Lakhs levied by APGST
authorities for the period from April 2001 to March 2005, based on
sales turnover of Company's Authorised whoelsale Dealer, treating them
as related persons under the amended provisions of the Sales Tax Act.
The company has so far paid Rs.110.42 lakhs (Rs.110.42Lakhs) towards
the said disputed sales tax "under protest".
b) Part of Gratuity payable to Managing Director estimated at Rs.37
Lakhs (37 Lakhs).
5. The unamortised payment of ESS has been charged to the opening
balance of surplus.
6. Related party disclosures : Are disclosed as per Accounting
Standards 18 Enterprises under Common Control :
a) Panasonic Corporation
b) Panasonic Asia Pacific Pte Ltd
c) Panasonic Carbon India Co. Ltd
d) Panasonic Home Appliances India Co. Ltd
e) Panasonic Energy India Company Limited Associates :
f) Apollo Hospitals & Enterprises Ltd
g) Sindoori Travels
h) Apex Agencies
i) Associated Electrical Agencies
j) P. Obul Reddy & Sons
k) Kalpatharu Enterprises Pvt. Ltd
l) Radiohms Properties Pvt. Ltd
m) Radiohms Agencies
n) Radiohms Agencies Ltd
o) R. P. Electronics
Key Managerial Personnel Mr. P. Dwaraknath Reddy
Mr. R.P. Khaitan
7. Other Contingent Liabilities
Estimated amount of contracts remaining to be executed on
2011 - 2012 2010 - 2011
Capital Account and not
provided for (Net of Advances) 37.87 24.00
Letters of Credit 233.89 95.43
Bills Discounted With Bankers 2,375.39 1,191.54
Sales Tax disputed in Appeals 2.15 2.15
Income Tax disputed in Appeals 15.20 33.82
8. The Revised Schedule VI has become effective from 1st April 2011
for the preparation of Financial Statement. This has significantly
impacted the disclosure and presentation made in the Financial
statement. Figures have been given in lakhs of rupee's. Figures for
the previous year (including those within brackets) have been
regrouped wherever necessary to conform to those of the current
year.
Mar 31, 2010
1) Fixed Deposits Rs.19,88,77 (Rs.15,70,59) with Scheduled Banks
include those pledged to Sales Tax Department Rs.3,82 (Rs.3,28).
2) National Savings Certificates included under Loans & Advances
(Schedule 5d) have been lodged as under Central Excise Department Rs.1
(Rs.1), Sales Tax Department Rs.7 (Rs.7) and Transport Authorities
Rs.11 (Rs.11).
3) Tax deducted at source on interest Rs. 1,19,87 (1,68,43)
4) Interest received from Banks (under other income) is net of Interest
paid Rs. 1,07 (Rs.14,65)
5) The aggregate working capital limit of Rs.11,00,00 (Rs.11,00,00)
sanctioned by Banks are secured by hypothecation of imported and
indigenous Raw Materials, Components, Spares, Goods in process and
Finished Goods.
6. Defined Benefit Plan:
Defined benefit plan as per actuarial valuation as on 31st March, 2010
and recognised in the financial statements in respect of Employee
Benefit Scheme: (AS - 15)
7. The Company received Show Cause Notices in the year 1996 from the
Commissioner of Commercial Taxes for the Years from 1978-79 to 1985-86
and 1987-88 seeking to revise the orders of Sales Tax Appellate
Tribunal / Appellate Deputy Commissioner, allowing exemption on stock
transfers made to the Depots for the above years in the appeals filed
by the Company. The Sales Tax Department also filed Tax Revision Cases
for the years from 1978-79 to 1980-81, which were set-aside by the High
Court.
For the years 1981-82 to 1985-86 and 1987-88 however, on a reference on
the question of Revisional Jurisdiction, to a larger Bench of A.P. High
Court, order was passed in October 2001 in favour of the Company,
quashing the Revisional Notices issued by the Commissioner of
Commercial Taxes.
Against this, A.P. Salestax Authorities have filed Special Leave
Petitions before the Supreme Court for the above years, which have been
admitted. The Apex Court however did not grant the departmentÃs request
for stay of operation of High CourtÃs order.
The disputed sales tax liability in respect of these years viz. from
1981-82 to 1985-86 and 1987-88 is Rs.20.62 Crores which remains to be
provided for.
In respect of the completed assessments for the subsequent years viz.,
1988-89 to 2007-08 no such liability arose as the Assessing Authority
himself has allowed exemption of sales-tax on the stock transfers made
by the company.
8. No Provision has been made for
a) Differential Sales Tax of Rs.62.68 Lakhs levied by APGST authorities
for the period from April 2001 to September 2002, based on sales
turnover of CompanyÃs Authorised Wholesale Dealer, treating them as
related persons under the amended provisions of the Sales Tax Act. The
collection of tax has been stayed by the High Court of Andhra Pradesh
on a Writ Petition filed by the Company. The company has so far paid
Rs.75.59 lakhs, as per the directions of the High Court Ãunder
protestÃ.
b) Part of Gratuity to Managing Director pending approval by LIC Group
Gratuity Scheme estimated at Rs.60 Lakhs.
9. Provision of current Tax includes Provision for Fringe benefit Tax
of Rs. Nil (Rs.14,00).
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