Notes to Accounts of Jay Ushin Ltd.
Mar 31, 2018
1. GENERAL INFORMATION
Jay Ushin Limited (the Company) is a public company domiciled & incorporated under the provisions of the Companies Act, 1956 on August 14, 1986. The addresses of its registered office and principal place of business are disclosed in the introduction to the annual report. The shares of the Company are listed on one stock exchange in India i.e. Bombay Stock Exchange (BSE). The Company is primarily in the business of manufacturing and sale of components such as lock and key sets, combination switches, heater control panels (HVAC), and door latches for automobiles.
The financial statements for the year ended March 31, 2018 were approved by the Board of Directors and authorised for issue on May 26, 2018.
2. BASIS OF PREPARATION AND PRESENTATION
2.1 Statement of Compliance
The financial statements have been prepared in accordance with IND AS notified under the Companies (Indian Accounting Standards) Rules, 2015.
Upto the year ended March 31, 2017, the Company prepared its financial statements in accordance with the requirements of previous GAAP, which includes Standards notified under the Companies (Accounting Standards) Rules, 2006. These are Company''s first IND AS financial statements. The date of transition to IND AS is April 1, 2016. Refer Note 3.12 for the details of first-time adoption exemptions availed by the Company. Financial statement has been prepared in Lakhs
2.2 Accounting convention
The financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
2.3 Operating Cycle
Based on the nature of products/ activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.
Notes:
(i) Contractual commitment towards purchase of property, plant and equipment, refer note No. 40
(ii) Opening balances of gross block and accumulated depreciation have been regrouped / reclassified / rearranged wherever considered necessary.
(iii) For assets charged as security, please refer note Nos. 18, 23
(iv) Borrowing cost capitalized during the period is Nil.
(v) Property, plant & equipment includes following assets which have been leased out under operating lease agreement:-
The Company has only one class of equity shares with a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend. The Company declares and pays dividends in Indian rupees. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts in proportion to their shareholding.
One of the Investor has acquired 54,797 Nos. (1.41%) shares from one of the Indian Promoter shareholder of Promoter group out of which 52,497 Nos. (1.36%) shares are registered in their name within March 31, 2017 with requisite disclosure for 54,797 Nos. (1.41%) shares under SEBI (PIT) Regulation 2015 with Corresponding update in the register of shareholders accordingly.
(iii) No shares have been, allotted as fully paid up, pursuant to any contract(s), without payment being received in cash, allotted as fully paid up by way of bonus shares or bought back during the last 5 years.
2.4 This is item of other comprehensive income arising from remeasurement of defined benefit obligation net of income tax, which is directly recognised in retained earning.
2.5 Nature and purpose of reserves Securities Premium Reserves
The Company can utilize the same for the purpose of buy back of shares or issue of bonus shares as decided by the management.
General Reserve
The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not reclassified subsequently to profit or loss.
Retained Earnings
In respect of the year ended March 31, 2018, the directors propose that a dividend of Rs. 3.00 per share be paid on fully paid equity shares. This equity dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as liability in these financial statements. The proposed equity dividend is payable to all holders of fully paid equity shares. The total estimated equity dividend to be paid is Rs. 139.76 Lakhs (including dividend distribution tax thereon of Rs. 23.83 Lakhs).
Fair Value through Other Comprehensive Income Reserve
This represents the change in the fair value of investments.
a) Foreign Currency Term Loan (FCTL) of Rs. 1000.00 Lakhs and Term Loan Rs. 1500.00 Lakhs from Kotak Mahindra Bank Limited (KMBL) was taken during the financial year 2014-15 is repayable in 60 monthly installments. The loan is secured by way of Exclusive Equitable Mortgage on Immovable Property situated at Plot No. 150, Sector 44, Gurgaon, Haryana and exclusive hypothecation charge on all existing and future movable assets of the Company finance/to be financed out of the facility of Term Loan of Rs. 1500 Lakhs sanctioned by the bank and also secured by way of personal guarantee of directors Viz. Mr.Jaideo Prasad Minda, Mr.AshwaniMinda and Mrs.VandanaMinda.
Foreign Currency Term Loan of Rs. 1500.00 Lakhs from Kotak Mahindra Bank Limited (KMBL) was taken during the financial year 2015-16 and 2016-17 is repayable in 60 monthly installments. The loan is secured by First Equitable mortgage charge on immoveable properties being land and building situated at GP-14, Industrial Estate, Sector-18, Gurgaon, Haryana belonging to the Company. First paripassu charge on all existing and future moveable assets of the Company (excluding movable fixed assets pertaining to Borrower''s Plant situated at Plot No. 67-69 & 70 (Part), Narasapura Industrial Area, District-Kolar-563113, Karnataka which is exclusively charged to Tata Capital Financial Services Limited and vehicle financed by other lenders/banks). Second paripassu hypothecation charge on all existing and future current assets of the Company. Personal Guarantee/s of Mr.Jaideo Prasad Minda, Mrs.VandanaMinda and Mr.AshwaniMinda.
Term Loan of Rs. 800.00 Lakhs from Yes Bank Limited was taken during the financial year 2016-17. The loan is repayable in 60 monthly installments. The loan is secured by way of First charge on hypothecation on Movable and Immovable Assets of the Company Located at Manesar and personal guarantee of Mr.Jaideo Prasad Minda, Mr.AshwaniMinda and Mrs.VandanaMinda.
Foreign Currency Term Loan from Yes Bank Limited was taken during the financial year 2016-17 is repayable in 18 equal quarterly installments. The loan is secured by way of First Charge on movable fixed assets (both present and future) and Immovable Fixed Assets being land and building located at Plot No.4, Sector-3, IMT-Manesar and personal guarantee of directors Viz. Mr.Jaideo Prasad Minda, Mr.AshwaniMinda and Mrs.VandanaMinda.
Term Loan of Rs. 1700.00 Lakhs from Yes Bank Limited was taken during the finanical year 2017-18. The loan is repayable in 60 monthly installments. First PariPassu charge by way of hypothecation of movable and immovable assets of the Company both present and future located at Plot No. 4, Sector-3, IMTManesar. Personal guarantee of directors Viz. Mr.Jaideo Prasad Minda, Mr.AshwaniMinda and Mrs.VandanaMinda.
Term Loan of Rs. 950 Lakhs from Tata Capital Financial services Limited was taken during financial year 2016-17. The loan is repayable in 60 monthly installments with a moratorium of 6 months. The loan is secured by way of exclusive charge over entire immovable and movable property situated at Plot nos. 67,68,69& 70 (part) Narasapura Industrial area, Kolar District and personal guarantee of Mr.Jaideo Prasad Minda, Mr.AshwaniMinda and Mrs.VandanaMinda.
Term Loan from RBL Bank Limited. The loan is repayable in 60 monthly installments. First PariPassu charge by way of hypothecation of movable and immovable assets of the Company at Plot No. 4, Sector-3, IMT Manesar.Personal guarantee of directors Viz. Mr.Jaideo Prasad Minda, Mr.AshwaniMinda and Mrs.VandanaMinda.
b) Vehicle loans are secured by hypothecation of vehicles financed.
3. PROVISION FOR WARRANTY
The provision for warranty claims represents the present value as best estimate of the future economic benefits that will be required under the Companyâs obligations for warranties. The estimate has been made on the basis of historical warranty trends and may vary as a result of new materials, altered manufacturing processes or other events affecting product quality.
* Includes payable to related parties (refer note 43)
Dues payable to entities that are classified as Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 during the year is Rs. Nil (previous year Rs. Nil). Further no interest has been paid or was payable to such parties under the said Act during the year.
4. CORPORATE SOCIAL RESPONSIBILITY
Gross amount required to be spent by the company during the year is Rs.13.04 Lakhs.However the Company spent the sum of Rs. 13.50 Lakhs for the F.Y 2017-18 and Rs. 14.50 Lakhs for the F.Y 2016-17.
The Company has other commitments, for purchase/sales orders which are issued after considering requirements per operating cycle for purchase /sale of goods and services, employee''s benefits including union agreement in normal course of business. The Company does not have any long term commitments or material non-cancellable contractual commitments/contracts, which might have material impact on the financial statements.
5. LEASES
A. Company as a lessee
The Company has taken various residential /commercial premises and plant and machinery under cancellable operating leases. In accordance with Indian Accounting Standard (Ind AS-17) on ''Leases'' the lease rent charged to statement of Profit & Loss for the year is Rs. 374.64 Lakhs (Preivous year Rs. 375.28 Lakhs).
B. Company as a Lessor
The Company has given office space and plant and machinery on cancellable lease terms. Other income includes income from operating lease 1,297.87 Lakhs previous year Rs.1,449.51 Lakhs.
6. SEGMENT INFORMATION
The\ Company primarily operates in one segment which comprises of manufacturing and sale of automobile components identified in accordance with principle enunciated in Indian Accounting Standard AS-108, Segment Reporting. Hence, separate business segment information is not applicable.
The board of directors of the Company, which has been identified as being the chief operating decision maker (CODM), evaluates the Company''s performance, allocate resources based on the analysis of the various performance indicator of the Company as a single unit. Therefore, there is no reportable segment for the Company as per the requirement of IND AS 108 âOperating Segmentsâ.
Geographical Locations: The Geographical segments have been considered for disclosure as the secondary segment, under which the domestic segment includes sales to customers located in India and overseas segment includes sales to customer located outside India.
a) There are no material non-current assets located outside India.
b) The accounting policies adopted for segment reporting are in conformity with the accounting policies adopted for the Company. Revenue from operations have been allocated to segments on the basis of their relationship to the operating activities of the segment.
c) Number of customers individually accounted for more than 10% of the revenue in the year ended March 31, 2018 - 2 (Previous year 2).
Terms and Conditions
The transactions with the related parties are made on term equivalent to those that prevail in arm''s length transactions. The assessment is under taken each financial year through examining the financial position of the related party and in the market in which the related party operates. Outstanding balances are unsecured and the settlement will occur in cash.
* FVTPL - Fair Value Through Profit and Loss
# FVTOCI - Fair Value Through Other Comprehensive Income
(I) Fair Value Hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in financial statements. To provide an indication about the reliability of inputs used in determining fair values, the group has classified its financial instruments into three levels prescribed under the accounting standards.
The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
The following provides the fair value measurement hierarchy of Company''s asset and liabilities, grouped into Level 1 to Level 3 as described below:
Level 1: Quoted prices (unadjusted) in the active markets for identical assets or liabilities
Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
(ii) Valuation techniques used to determine Fair value
The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Specific valuation technique used to value financial instrument includes:
- the use of quoted market prices or dealer quotes for similar financial instruments.
- the fair value of financial assets and liabilities at amortised cost is determined using discounted cash flow analysis
The following method and assumptions are used to estimate fair values:
The Carrying amounts of trade receivables, trade payables, capital creditors, cash and cash equivalents, short term deposits etc. are considered to be their fair value , due to their short term nature long fixed-rate and variable-rate receivables / borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. For borrowing fair value is determined by using the discounted cash flow (DCF) method using discount rate that reflects the issuer''s borrowings rate. Risk of non-performance for the company is considered to be insignificant in valuation. Financial assets and liabilities measured at fair value and the carrying amount is the fair value.
7. FINANCIAL RISK MANAGEMENT
The Company''s principal financial liabilities, other than derivatives, comprise borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to manage finances for the Company''s operations. The Company''s principal financial assets include investments in marketable securities, loans , trade and other receivables and cash and short-term deposits that arise directly from its operations. The Company''s activities are expose to Market risk, Credit risk and Liquidity risk.
I. Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments.
The sensitivity analyses in the following sections relate to the position as at March 31 , 2018 and March 31, 2017.
(a) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regard to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of the fixed rate and floating rate financial instruments in its total portfolio .
(b) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company operates internationally and the Company has obtained foreign currency loans and has foreign currency trade payables and receivables and is therefore, exposed to foreign exchange risk.
The Company hedges its exposure to fluctuations by using foreign currency forwards contracts on the basis of risk management policy approved by the Board.
The carrying amounts of the Company''s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period as follows:
Foreign currency sensitivity
1% increase or decrease in foreign exchange rates will have the following impact on profit before tax and other comprehensive income:
The assumed movement in exchange rate sensitivity analysis is based on the currently observable
(c) Price Risk
The company''s exposure to price risk arises from the investment held by the company. To manage its price risk arising from investments in marketable securities, the company diversifies its portfolio and is done in accordance with the company policy. The company''s major investments are actively traded in markets and are held for short period of time. Therefore no sensivity is provided for the same.
II Credit risk
Credit risk arises from the possibility that the counter party will default on its contractual obligations resulting in financial loss to the company. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, current economic trends, and analysis of historical bad debts and ageing of accounts receivable.
The Company considers the probability of default upon initial recognition of assets and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is significant increase in credit risk, it considers reasonable and supportive forward looking information such as:
(i) Actual or expected significant adverse changes in business.
(ii) Actual or expected significant changes in the operating results of the counter party.
(iii) Financial or economic conditions that are expected to cause a significant change to the counter party ability to meet its obligation.
(iv) Significant increase in credit risk and other financial instruments of the same counter party.
(v) Significant changes in the value of collateral supporting the obligation or in the quality of third party guarantees or credit enhancements.
The company''s major exposure is from trade receivables, which are unsecured and derived from external customers. Credit risk on cash and cash equivalents is limited as we generally invest in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies. Investments primarily include investment in liquid mutual fund units, quoted securities and certificates of deposit which are funds deposited at a bank for a specified time period. Other loans are majorly provided to the subsidiaries and employee which have very minimal risk of loss.
The Company uses a provision matrix to determine impairment loss on portfolio of its trade receivable. The provision matrix is based on its historically observed default data over the expected life of the trade receivable and is adjusted for forward- looking estimates. At every reporting date, the historical observed default rates are updated and changes in forward-looking estimates are analysed. However there is no trade receivable which is required to be cover under ECL Model.
III Liquidity Risk
Liquidity risk is defined as the risk that company will not be able to settle or meet its obligation on time or at a reasonable price. The Companyâs objective is to at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risk are overseen by senior management. Management monitors the company''s net liquidity position through rolling, forecast on the basis of expected cash flows. The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date based on contractual undescended payments:
Notes-
(i) Debt is defined as long-term and short-term borrowings including current maturities (excluding derivatives) as described in notes 18 and 23.
(ii) Total equity (as shown in balance sheet) includes issued capital and all other equity.
(b) Loan Covenants
In order to achieve this overall objective, the company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to call loans and borrowings or charge some penal interest. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current year and the previous years.
8. TRANSITION TO IND AS
These financial statements for the year ended March 31, 2018 are the first IND AS financials prepared in accoradnce with IND AS notified under Companies (Indian Accounting Standards) Rules, 2015. The adoption of IND AS was carried out in accordance with IND AS 101, using April 1, 2015 as the transition date. IND AS 101 requires that all IND AS standards and interpretations that are effective for the IND AS financial statements for year ended March 31, 2018, be applied consistently and retrospectively for all fiscal years presented. All applicable IND AS have been applied consistently and retrospectively wherever required.
For the periods upto and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with the accounting standards notified under section 133 of the Companies Act 2013, read together with Paragraph 7 of the Companies(Accounts) Rules,2014(Indian GAAP). Accordingly, the company has prepared its financial statement to comply with the IND AS for the year ending March 31, 2018, together with the comparative date as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, Company''s opening balance sheet was prepared as at April 1, 2016 the date of transition to IND AS. This note explains the principal adjustments made by the company in restating its Indian GAAP financial statements, including the balance sheet as at April 1, 2016 and the financial statements as at and for the year ended March 31, 2017.
8(A) EXEMPTIONS AND EXCEPTIONS OPTED BY THE COMPANY ON THE DATE OF TRANSITION:-
IND AS 101 allows first-time adopters certain exemptions and exceptions from the retrospective application of certain requirements under IND AS. The Company has applied the following exemptions and exceptions:
a) Exemptions and Exceptions from retrospective application
1. The Company has elected not to apply IND AS 103- Business Combinations, retrospectively to past business combinations that occurred before April 1, 2016. Consequent to use of this exemption from retrospective application:
i) The carrying amount of assets and liabilities acquired pursuant to pas business combinations and recognised in the financial statements prepared under Previous GAAP, are considered to be the deemed cost under IND AS, on the date of acquisition. After the date of acquisition, measurement of such assets and liabilities is in accordance with respective IND AS. Also, there is no change in classification of such assets and liabilities;
ii) The company had not recognised assets and Liabilities that neither were recognised in the financial statements prepared under Previous GAAP nor qualify for recognition under IND AS in the Balance Sheet of the acquiree;
iii) The company had excluded from its opening balance sheet (As at April 1, 2015), those assets and liabilities which were recognised in accordance with Previous GAAP but do not qualify for recognition as an asset or liability under IND AS; and
2. For financial instruments, wherein fair market values are not available (viz. interest free and below market rate security deposits or loans) the Company has elected to adopt fair value recognition prospectively to transactions entered after the date of transition.
3. The Company has elected to consider the carrying value of all its items of property, plant and equipment and intangible assets recognised in the financial statements prepared under Previous GAAP and use the same as deemed cost in the opening Ind AS Balance Sheet.
4 Appendix C to IND AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with IND AS 17, this assessment should be carried out at the inception of the contract or arrangement. However, the Company has used IND AS 101 exemption and assessed all arrangements for embedded leases based on conditions in place as at the date of transition
b) Estimates
The estimates as at April 1, 2016 and as at March 31, 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies).
Notes to the first time of adoption to IND AS
1) Fair Value of Investments
Under Indian GAAP current investments are measured at the lower of cost or market price and non-current investments are measured at cost less any permanent diminution in value of investment. Under IND AS investments are designated as Fair Value through Other Comprehensive Income (FVOCI), Fair Value through Profit and Loss (FVTPL) and carried at amortised cost. For investment designated as FVOCI, difference between the fair value and carrying value is recognised in Other Comprehensive Income (OCI). For investment designated as FVTPL, difference between the fair value and carrying value is recognised in profit and loss. For investment designated at amortised cost, accrual of interest is recognised in profit and loss with which value of investment will be equal to maturity date contractual cash flows which includes solely payments of interest and principal.
2) Borrowings
Under Indian GAAP, transaction costs incurred in connection with borrowings are amortised upfront and charged to profit or loss for the period. Under IND AS, transaction costs are included in the initial recognition amount of financial liability and charged to profit or loss using the effective interest method.
3) Dividend
Under Indian GAAP, proposed dividends including DDT are recognised as a liability in the period to which they relate, irrespective of when they are declared. Under IND AS, a proposed dividend is recognised as a liability in the period in which it is declared by the company (usually when approved by shareholders in a general meeting) or paid.In the caseof the Company, the declaration of dividend occurs after period end. Therefore, the liability for the year ended on March 31, 2016 recorded for dividend has been derecognised against retained earnings on April 1, 2016. The proposed dividend for the year ended on March 31, 2017 recognized under Indian GAAP was reduced with a corresponding impact in the retained earnings.
4) Security Deposits
Under previous GAAP, interest free lease security deposits(that are refundable in cash on completion of lease term) are recorded at their transaction value. Under IND AS all financial Assets are required to be recognised at fair value. Accordingly, the company has fair valued these security deposits under IND AS. Difference between fair value and transaction value of the security deposit has been recognised as prepaid rent. Consequent to this change, the amount of security deposits decreased as at the date of transition to IND AS with corresponding increase in prepaid rent.
5) Leasehold land
Under IND AS expense incurred in relation to operating lease has to be charged to P&L A/c on a straight line basis or systematic basis over the period of lease. Accordingly, the company has classified one of its land as operating lease and amount paid has been amortised over the period of lease on the basis of the lease term.
6) Deferred tax
Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. IND AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of IND AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP. In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the company has to account for such differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or a separate component of equity.
7) Defined benefit liabilities
Under Indian GAAP, actuarial gains and losses were recognised in the statement of profit and loss. Under IND AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability/ asset which is recognised in other comprehensive income. Consequently, the tax effect of the same has also been recognised in other comprehensive income under IND AS instead of the statement of profit and loss.
8) Sale of goods
Under Indian GAAP, sale of goods was presented as net of excise duty. However, under IND AS, sale of goods includes excise duty. Excise duty on sale of goods is presented as a part of other expenses in statement of profit and loss. Thus sale of goods under IND AS has increased with a corresponding increase in other expense.
9 STANDARDS ISSUED BUT NOT YET EFFECTIVE
Appendix B to IND AS 21, Foreign currency transactions and advance consideration: On March 28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to IND AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The amendment will come into force from April 1, 2018. The Company is evaluating the effect of this on the financial statements.
IND AS 115- Revenue from Contract with Customers: On March 28, 2018, Ministry of Corporate Affairs ("MCA") has notified the IND AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity''s contracts with customers.
The standard permits two possible methods of transition:
- Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with IND AS 8- Accounting Policies, Changes in Accounting Estimates and Errors
- Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach)
The effective date for adoption of IND AS 115 is financial periods beginning on or after April 1, 2018. The Company will adopt the standard on April 1, 2018 by using the cumulative catch-up transition method and accordingly comparatives for the year ending or ended March 31, 2018 will not be retrospectively adjusted. The company is evaluatng the effect on adoption of IND AS 115.
10 : Previous year figures have been regrouped/ rearranged, wherever considered necessary to conform to currentyearâs classification.
Mar 31, 2016
(b) Rights, preferences and restriction attached to equity shares
- The Company has only one class of equity shares with a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend. The Company declares and pays dividends in Indian rupees. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts in proportion to their shareholding.
- During the year ended March 31, 2016, the amount of per share dividend recognized for distributions to equity shareholders is Rs. 2.50 (previous year Rs. 2.00).
* 450,446 shares (11.66%) out of an aggregate of 724,671 shares (18.7 5%) have been transferred/sold to JPM Farms Private Limited (3.30%), Consortium Vyapaar Ltd. (5.50%), Rajesh Kumar Seth ( 1 . 94 %) and Ishwar Lal Agarwal (0. 92%) by these shareholders but share transfer deed in relation to the same has not been yet registered and accordingly the register of shareholders has not been updated by the Company yet. Further, these does not include the shares held by relatives or other companies in which these shareholders have substantial interest as individually these are less than 5 %.
(d) No shares have been, allotted as fully paid up, pursuant to any contract(s), without payment being received in cash, allotted as fully paid up by way of bonus shares or bought back during the last 5 years.
a) Term Loan from ICICI Bank Limited was taken on December 16, 2011 and carries interest linked to Bank base rate 3.25%. The loan is repayable in 18 equal quarterly installments with a moratorium of 2 quarters. The loan is secured by first pari-passu charge on all existing and future movable fixed assets (excluding charge on movable Fixed assets of the company situated at Plot no. 67,68, 69 & 70 (part) Narasapura Industrial Area, Kolar District, Karanataka in favour of Tata Capital Financial Services Limited) of the Company. Second pari-passu charge on all existing and future current assets of the company in sharing with other lenders. Exclusive charge on property located at Plot No. 4, Sector -3 Manesar, Gurgaon, Haryana and is secured by way of personal guarantee of directors Viz. Mr. J. P. Minda and Mr. Ashwani Minda.
Foreign Currency Term Loan from Kotak Mahindra Bank Limited (KMBL) was taken during the financial year 2014-15 and 2015-16 is repayable in 60 monthly installments. The FCTL carries interest Libor 400 bps . The loan is secured by way of Equitable Mortgage on Immovable Property situated at Plot No. 150, Sector 44, Gurgaon, Haryana and exclusive hypothecation charge on all existing and future movable assets of the Company finance/to be financed out of the facility of Term Loan sanctioned by the bank and is secured by way of personal guarantee of directors Viz. Mr. J. P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.
Term loan from Kotak Mahindra Bank Limited (KMBL) was taken during the financial year 2014-15 is repayable in 60 monthly installments. The Term loan carries interest based on Bank base rate 2%. The loan is secured by way of Second Pari passu hypothecation charge on all existing and future assets of the company and first pari passu charge on all existing and future movable assets of the Company (excluding movable fixed assets pertaining to Kolar Plant) finance/to be financed out of the facility of Term Loan sanctioned by the bank and is secured by way of personal guarantee of directors Viz. Mr. J. P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.
Term Loan from Tata Capital Financial services Limited .The loan is repayable in 54 quarterly installments with a moratorium of 6 months. The loan is secured by way of exclusive charge over entire immovable and movable property situated at Plot nos. 67,68,69 & 70(part) Narasapura Industrial area, Kolar District and personal guarantee of Mr. J.P. Minda, Mr. Ashwani Minda and Mrs. Vandana Minda.
b) Vehicle loans are secured by hypothecation of vehicles financed.
*Represents Income Tax demand raised pending in appeals. Based on the interpretation of the provisions of Income tax act with regard to demand raised, the management is of the opinion that the ultimate outcome of the proceeding will not have material adverse effect on the Company financial position and results of operations.
1. Employee benefit obligations
The Company has in accordance with Accounting Standard-15 âEmployee Benefitsâ calculated the various benefits provided to employees as under:
A. Defined contribution plans:
i. Provident Fund
ii. Employee state insurance plan
The provident fund and the employeesâ state insurance defined contribution plan are operated by the Regional Provident Fund Commissioner and Regional Director of ESIC respectively.
The Company has recognized the following amounts in the Statement of profit and loss for the year:
* Included in Contribution to Provident and other funds under Employee benefit expenses (note 25)
# Included in Salaries, wages, bonus and allowances under Employee benefit expenses (note 25)
B. Defined benefits plans Gratuity
Employees are entitled to gratuity computed as fifteen days salary for every completed year of service or part thereof in excess of six months and is payable on retirement/termination. The benefit vests after five years of continuous service. The Company has taken a Group Gratuity Policy from LIC of India and makes contribution to LIC of India to fund its plan.
C. Other long term employee benefits Leave Encashment
Leave Encashment is payable to eligible employees who have earned leaves during the employment and/or on separation as per the Companyâs policy. Liability has been accounted for on the basis of actuarial valuation certificate for the balance of earned leaves at the credit of employees at the end of the year.
The following table sets out the funded status of the defined benefit schemes and the amount recognized in the financial statements:
2. Segment reporting
The Company has identified one reportable business segment as primary segment, namely manufacturing and sale of automobile components. The segment has been identified and reported taking into account the nature of products, the deferring risks and returns, the organization structure and the internal financial reporting systems.
The Company has identified its geographical segments as secondary segments. As the Company sells its products outside India, the secondary segment is based on location of its customers. Information on geographic segments is as follows:
Unallocable assets and liabilities represent the assets and liabilities that relates to the Company as a whole and that cannot be readily allocated to segments.
3. Leases
A. As lessee
The Company has entered into cancellable operating lease arrangements which can be terminated by either party after giving due notice for office space and residential accommodations for company directors . The lease rent expense recognized during the year amounts to Rs.368.51 Lacs (Previous year Rs. 352.55 Lacs)
B. As Lessor
The Company has given office space and plant and machinery on cancellable lease terms. Other income includes income from operating leaseRs.1325.06 Lacs (previous year Rs. 1055.07 Lacs).
* Note :
The significant influence of Key Managerial personnel as director ceased as under:
- Mr. Jaideo Prasad Minda w.e.f. September 29, 2015;
- Mr. Anil Minda w.e.f. May 28, 2015;
- Mr. Ashwani Minda w.e.f. September 29, 2015)
b. Included in the financial statements are the following amounts relating to transactions with related parties read with note 36(a):
4. In accordance with Accounting Standard 22 "Accounting for Taxes on Income" the net increase in deferred tax liability of Rs.40.16 lacs (Previous year Rs.4.01 lacs) has been recognized as expenditure in the Statement of Profit and Loss. The effect of significant timing difference as at March 31, 201 6 that reverse in one or more subsequent years give rise to the following net deferred tax liability:
5. Consequent to the notification issued by the Ministry of Corporate Affairs on December 29, 2011, the Company adopted the option given in paragraph 46a of the Accounting Standard-11 âThe Effects of Changes in Foreign Exchange Ratesâ with effect from April 1, 2011. Accordingly, the exchange difference on foreign currency denominated long term borrowings relating to acquisition of depreciable capital assets are adjusted in the carrying cost of such assets and the exchange difference on other long term foreign currency monetary items is amortized w.e.f. April 1, 2011 over its tenor till maturity.
Consequent to the adoption of the policy, the company has transferred foreign exchange fluctuation loss (net) of Rs Nil(previous year Rs. 10.67 lacs) during the year ended March 31, 2016 to depreciable capital assets and foreign exchange fluctuation loss (net) of Rs Nil(Previous year Rs. 0.33 lacs) to capital work in progress.
6. The company has recognized provision for expected warranty claims on products sold during the last two years as per warranty period on respective models, based on past experience of level of repairs and returns. Assumption used to calculate the provision for warranties are based on current sales level and current information available about returns based on the warranty period for all products sold.
7. Previous year figures have been rearranged/regrouped wherever necessary. As per our report of even date
Mar 31, 2015
(a) Rights, preferences and restriction attached to equity shares
- The Company has only one class of equity shares with a par value of
Rs.10 per share. Each shareholder is eligible for one vote per share
held. The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting,
except in the case of interim dividend. The Company declares and pays
dividends in Indian rupees. In the event of liquidation, the equity
shareholders are eligible to receive the remaining assets of the
Company, after distribution of all preferential amounts in proportion
to their shareholding.
- During the year ended March 31, 2015, the amount of per share
dividend recognized for distributions to equity shareholders is Rs.
2.00 (previous year Rs. 2.50).
* 450,446 shares (11.66%) out of an aggregate of 724,671 shares
(18.75%) have been transferred/sold to JPM Farms Private Limited
(3.30%), Consortium Vapor Ltd. (5.50%), Rajesh Kumar Seth (1.94%) and
Ishwar Lai Agarwal (0.92%) by these shareholders but share transfer
deed in relation to the same has not been yet registered and
accordingly the register of shareholders has not been updated by the
Company yet. Further, these does not include the shares held by
relatives or other companies in which these shareholders have
substantial interest as individually these are less than 5 %.
(b) No shares have been, allotted as fully paid up, pursuant to any
contract(s), without payment being received in cash, allotted as fully
paid up by way of bonus shares or bought back during the last 5 years.
*No default as on the balance sheet date in terms of repayment of loans
and interest.
a) Term Loan from ICICI Bank Limited was taken on December 16, 2011 and
carries interest linked to Bank base rate 3.25%. The loan is repayable
in 18 equal quarterly installments with a moratorium of 2 quarters. The
loan is secured by first pari-passu charge on all existing and future
movable fixed assets (excluding charge on movable Fixed assets of the
company situated at Plot no. 67,68, 69 & 70 (part) Narasapura
Industrial Area, Kolar District, Karanataka in favour of Tata Capital
Financial Services Limited) of the Company. Second pari-passu charge on
all existing and future current assets of the company in sharing with
other lenders. Exclusive charge on property located at Plot No. 4,
Sector -3 Manesar, Gurgaon, Haryana and is secured by way of personal
guarantee of directors Viz. Mr. J. P. Minda and Mr. Ashwani Minda.
Term loan and Foreign Currency Term Loan from Kotak Mahindra Bank
Limited (KMBL) was taken during the financial year 2014-15 and is
repayable in 60 monthly installments. The Term loan carries interest
based on Bank base rate 2% and FCTL carries interest Libor 400 bps .
The loan is secured by way of Equitable Mortgage on Immovable Property
situated at Plot No. 150 admeasuring 2135 Sq. Mire., Sector 44,
Gurgaon, Haryana and exclusive hypothecation charge on all existing and
future movable assets of the Company finance/to be financed out of the
facility of Term Loan sanctioned by the bank and is secured by way of
personal guarantee of directors Viz. Mr. J. P. Minda, Mr. Ashwani Minda
and Mrs. Vandana Minda.
Term loan from Standard Chartered Bank carries interest rate 13.00%
p.a.. The loan is repayable in 18 quarterly installment starting from
August, 2009 with a moratorium of 6 month. Secured by way of First pari
passu charge on all existing & future movable fixed assets & second
pari passu charge on all existing and future current assets (excluding
charge on movable Fixed assets of the company situated at Plot no.
67,68, 69 & 70 (part) Narasapura Industrial Area, Kolar District,
Karanataka in favour of Tata Capital Financial Services Limited) of the
Company. Equitable mortgage by way of second pari passu charge over
following properties owned by the company sharing with Kotak Mahindra
Bank Ltd. and Yes Bank Limited a) Property at GP -14, Industrial
Estate, Sector -18, Gurgaon, Haryana b) Plot no. D-1/2, in the SIPCOTs
Industrial Park at Sriperumbudur. the same has been repaid during the
year and is also secured byway of personal guarantee of directors Viz.
Mr. J. P. Minda, Mr. Anil Minda and Mr. Ashwani Minda.
Term Loan from Tata Capital Financial services Limited carries interest
rate 13.00% p.a.The loan is repayable in 54 quarterly installments with
a moratorium of 6 months. The loan is secured by way of exclusive
charge over entire immovable and movable property situated at Plot nos.
67,68,69 & 70(part) Narasapura Industrial area, Kolar District and
personal guarantee of Mr. J.P. Minda, Mr. Ashwani Minda and Mrs.
Vandana Minda.
b) External Commercial Borrowings (ECB) taken from Standard Chartered
Bank carries fixed rate of interest 6 months Libor 300 bps p.a.. The
Loan was repayable half yearly in 8 equivalent installments with a
moratorium of 18 months from the first draw down date i.e. August 31,
2010 and October 13, 2010. The loan was secured by way of first charge
over movable & immovable fixed assets (excluding charge on movable
Fixed assets of the company situated at Plot no. 67,68, 69 & 70 (part)
Narasapura Industrial Area, Kolar District, Karanataka in favour of
Tata Capital Financial Services Limited) and second pari passu charge
over current assets and further additionally secured by equitable
mortgage over company immovable property at Plot No. 150, Urban Estate,
Sector-44, Gurgaon, Haryana and the same has been repaid during the
year. The loan was secured by way of personal guarantee of directors
Viz. Mr. J. P. Minda, Mr. Anil Minda, Mr. Ashwani Minda & Mrs. Vandana
Minda.
c) Vehicle loans are secured by hypothecation of vehicles financed.
*No default as on the balance sheet date in terms of repayment of loans
and interest.
Short term borrowings have been facilitated by followings banks which
are secured as mentioned below:
Bank Security
ICICI Bank Limited (overall limit Rs. First pari-passu charge on the
current assets of the Company. 60,000,000) Second pari-passu charge
over all present and future moveable
1 Purchase Order/Sales Invoice assets of the company sharing with other
bankers except
2 Cash Credit/ Overdraft Karnataka movable fixed assets and further
secured by second 3' Foreign Currency Buyers Credit parri-passu charge
over the property at Plot No.4, Sector -3, IMT-
Manesar. The borrowings are further secured by the personal guarantee
of directors Viz. Mr. J. P. Minda, Mr. Ashwani Minda and Mrs. Vandana
Minda.
Kotak Mahindra Bank Limited First pari-passu charge on the
current assets of the Company.
(overall limit Rs. 370,000,000) Second pari-passu charge over all
present and future moveable
1 Purchase Order/Sales Invoice assets of the company sharing with other
bankers, second parri-
2 Letter of credit/Foreign Currency passu hypothecation charge on all
existing and future movable Buyers Credit assets of the Company
(excluding Karnataka movable fixed assets) and further secured by
second pari-passu equitable mortgage charge on immoveable properties
being land and building situated at GP-14, Industrial Estate,
Sector-18, Gurgaon, Haryana and Plot No.D-1/2 in the Sipcot's
Industrial Park at Sriperumbudur. The borrowings are further secured by
the personal guarantee of directors Viz. Mr. J. P. Minda, Mr. Ashwani
Minda and Mrs. Vandana Minda.
Standard Chartered Bank First pari-passu charge on the current assets
of the Company.
(overall limit Rs. 130,000,000)* Second pari-passu charge over all
present and future moveable
1. Purchase Order assets including land and building at Gurgaon,
Manesar and
2. Cash Credit/ Overdraft Sriperumbudur. The same has been re-paid
during the year.
Yes Bank Limited (overall limit Rs.First pari-passu charge on the
current assets of the Company.
150,000,000) Second pari-passu charge over all present and future
moveable
1 Purchase Order/Sales Invoice assets (exclusively charged to other
bankers of the company
2 Cash Credit/ Overdraft sharing with other bankers. The borrowings are
further secured by 3' Foreign Currency Buyers Credit the personal
guarantee of directors Viz. Mr. J. P. Minda, Mr. Ashwani Minda and
Mrs. Vandana Minda.
Tangible assets, are subject to first pari passu charge to secure the
company's long term borrowings referred in note 5 as secured term loans
from bank.
- Land has been acquired by the company under a lease agreement from
State Industries Promotion Corporation of Tamil Nadu Limited, Chennai
(6.68 acres commencing from October 10, 2005), Rajasthan State
Industrial Development and Investment Corporation Limited, Bhiwadi
(4.70 acres commencing from September 13, 2011) and Karnataka
Industrial Areas Development Board, Bangalore (7.00 acres commencing
from January 12, 2012) for a lease period of 99 years, 99 years and 10
years respectively. The premium paid and other expenses incidental to
the acquisition are amortize over the period of the lease.
 The estimated useful lives of certain fixed assets have been revised
in accordance with Schedule II to the Companies Act 2013, with effect
from April 1, 2014. Pursuant to the above mentioned changes in useful
lives, the depreciation expense of current year is higher by Rs. 146.88
Lacs and for the assets whose revised useful lives have expired prior
to
# fnclud3es following assets which have been leased out under an
operating lease agreement
Note : Additions to fixed assets includes capital expenditure &
Depreciation on Research & Development amounting to Rs.10.63 Lacs and
Rs. 28.30 Lacs respectively (Previous year Rs. 15.73 Lacs and Rs. 12.37
Lacs) (refer note 48)
* There is no amount due and outstanding to be credited to Investor
Education and Protection Fund.
'Represents Central Excise/Service tax demands pending in appeal/show
cause notice. The Company has deposited Rs. 10.00 Lacs under protest
against such demands/show cause notices. Based on the interpretations
of the provisions of Excise Act and provisions of Service Tax Act with
regard to demand raised, the managements of the opinion that the
ultimate outcome of these proceeding will not have a material adverse
effect on the company's financial position and results of operations.
1. Borrowing cost capitalized during the year
As per Accounting Standard 16 - Accounting, "Borrowing Cost", the
Company has capitalized Rs. Nil (Previous year Rs. NIL) to various
fixed assets including capital work in progress in the year ended March
31,2015.
2. Employee benefit obligations
The Company has in accordance with Accounting Standard-15 "Employee
Benefits" calculated the various benefits provided to employees as
under:
A. Defined contribution plans:
i. Provident Fund
ii. Employee state insurance plan
The provident fund and the employees' state insurance defined
contribution plan are operated by the Regional Provident Fund
Commissioner and Regional Director of ESIC respectively.
* Included in Contribution to Provident and other funds under Employee
benefit expenses (note 25)
# Included in Salaries, wages, bonus and allowances under Employee
benefit expenses (note 25)
B. Defined benefits plans
Gratuity
Employees are entitled to gratuity computed as fifteen days salary for
every completed year of service or part thereof in excess of six months
and is payable on retirement/termination. The benefit vests after five
years of continuous service. The Company has taken a Group Gratuity
Policy from LIC of India and makes contribution to LIC of India to fund
its plan.
C. Other long term employee benefits
Leave Encashment
Leave Encashment is payable to eligible employees who have earned
leaves during the employment and/or on separation as per the Company's
policy. Liability has been accounted for on the basis of actuarial
valuation certificate for the balance of earned leaves at the credit of
employees at the end of the year.
The following table sets out the funded status of the defined benefit
schemes and the amount recognized in the financial statements:
3. Earnings per share
The calculation of Earnings per share has been made in accordance with
Accounting Standard (AS) - 20. Statement on calculation of Basic and
Diluted EPS is as under:
Unallowable assets and liabilities represent the assets and liabilities
that relates to the Company as a whole and not allocable to any
segment.
4. Segment reporting
The Company has identified one reportable business segment as primary
segment, namely manufacturing and sale of automobile components. The
segment has been identified and reported taking into account the nature
of products, the deferring risks and returns, the organization
structure and the internal financial reporting systems.
5. Leases
A. As lessee
The Company has entered into cancellable operating lease arrangements
which can be terminated by either party after giving due notice for
office space and residential accommodations for company directors. The
lease rent expense recognized during the year amounts to Rs.352.55 Lacs
(previous year Rs. 327.73 Lacs).
B. As Less or
The Company has given office space and plant and machinery on
cancellable lease terms. Other income includes income from operating
lease Rs.1055.07 Lacs (previous year Rs. 963.14 Lacs).
6. Related party disclosure
The disclosures as required by the Accounting Standard-18 (Related
Party Disclosure) are given below : a. Names of related parties
(i) Joint Venture Company U-shin Ltd., Japan
(ii) Key Management Personnel ("KMP") and Mr. Jaideo Prasad Minda their
relatives Mr. Anil Minda
Mr. Ashwani Minda
Mrs. Vandana Minda (Director and Relative)
(iii) Enterprise over which Key Managerial Jay FE Cylinders Limited
Personnel and their relatives are able to JNS Instruments Limited
exercise significant influence Modern Engineering Works
Jushin Enterprises Jay Auto components Limited JPM Tools Limited JPM
Automobiles Limited Brillaint Jewels Private Limited JNJ Electronics
Limited
7. In accordance with Accounting Standard 22 "Accounting for Taxes on
Income" the net decrease in deferred tax liability of Rs. 4.01 Lacs
(Previous year Rs.25.24 Lacs) has been recognized as benefit in the
Statement of Profit and Loss. The effect of significant timing
difference as at March 31, 2015 that reverse in one or more subsequent
years give rise to the following net deferred tax liability:
8. Consequent to the notification issued by the Ministry of Corporate
Affairs on December 29, 2011, the Company adopted the option given in
paragraph 46A of the Accounting Standard-11 "The Effects of Changes in
Foreign Exchange Rates" with effect from April 1, 2011. Accordingly,
the exchange difference on foreign currency denominated long term
borrowings relating to acquisition of depreciable capital assets are
adjusted in the carrying cost of such assets and the exchange
difference on other long term foreign currency monetary items is
amortized w.e.f. April 1, 2011 over its tenor till maturity.
Consequent to the adoption of the policy, the company has transferred
foreign exchange fluctuation loss (net) of Rs. 10.67 Lacs (previous
year Rs. 1.91 Lacs) during the year ended March 31, 2015 to depreciable
capital assets and foreign exchange fluctuation loss (net) of Rs. 0.33
Lacs (Previous year Rs. 0.06 Lacs) to capital work in progress.
9. The company has recognized provision for expected warranty claims
on products sold during the last two years as per warranty period on
respective models, based on past experience of level of repairs and
returns. Assumption used to calculate the provision for warranties are
based on current sales level and current information available about
returns based on the warranty period for all products sold.
10. Previous year figures have been rearrange/regrouped wherever
necessary.
Mar 31, 2014
1. BACKGROUND
Jay Ushin Limited (CIN No.L52110DL1986PLC025118) was established in
1986. The Company started commercial production in 1989 in Joint
Venture and technical collaboration with U-shin Limited, Japan. The
Company is primarily in the business of manufacturing and sale of
automotive components of Automobiles for two wheeler and four wheeler.
The Company is listed on Bombay stock exchange.
The financial statements reflects the results of the activities
undertaken by the Company during the year April 1, 2013 to March
31,2014.
(a) Terms/ rights attached to equity shares
* The Company has only one class of equity shares having par value of
Rs.10 per share. Each holder of equity shares is entitled to one vote
per share. The Company declares and pays dividends in Indian rupees.
The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting
except in the case where interim dividend is distributed.
* During the year ended March 31,2014, the amount of per share dividend
recognised for distributions to equity shareholders is Rs. 2.50
(previous year Rs. 2.00).
* 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 will
be in proportion to the number of equity shares held by the
shareholders.
* 450,446 shares (11.66%) out of an aggregate of 724,671 shares
(18.75%) have been transferred/sold to JPM Farms Private Limited
(3.30%), Consortium Vyapaar Ltd. (5.50%), Rajesh Kumar Seth (1.94%) and
Ishwar Lal Agarwal (0.92%) by these shareholders but share transfer
deed in relation to the same has not been yet registered and
accordingly the register of shareholders has not been updated by the
Company yet. Further, these does not include the shares held by
relatives or other companies in which these shareholders have
substantial interest as individually these are less than 5 %.
(b) No shares have been, alloted as fully paid up, pursuant to any
contract(s) without payment being received in cash, allotted as fully
paid up by way of bonus shares or bought back.
*No default as on the balance sheet date in terms of repayment of loans
and interest.
c) Term Loan from ICICI Bank Limited was taken on December 16, 2011 and
carries interest linked to Bank base rate 3.25%. The loan is repayable
in 18 equal quarterly instalments with a moratorium of 2 quarters. The
loan is secured by first pari-passu charge on all existing and future
movable fixed assets (excluding charge on movable Fixed assets of the
company situated at Plot no. 67,68, 69 & 70 (part) Narasapura
Industrial Area, Kolar District, Karanataka in favour of Tata Capital
Financial Services Limited) of the Company. Second pari-passu charge on
all existing and future current assets of the company in sharing with
other lenders. Exclusive charge on property located at Plot No. 4,
Sector -3 Manesar, Gurgaon, Haryana.
Term loan from Kotak Mahindra Bank Limited (KMBL) was taken during the
financial year 2007-08 and is repayable in 60 monthly instalments with
a moratorium of 6 months. The loan carries interest based on 12 months
Benchmark Prime Lending Rate (PLR) of KMBL less 4.75% p.a.. The loan is
secured by way of First pari passu charge on all existing & future
movable fixed assets & second pari passu charge on all existing and
future current assets (excluding charge on movable Fixed assets of the
company situated at Plot no. 67,68, 69 & 70 (part) Narasapura
Industrial Area, Kolar District, Karanataka in favour of Tata Capital
Financial Services Limited) of the Company. Equitable mortgage by way
of second pari passu charge over following properties owned by the
company sharing with Standard Chartered Bank (SCB) and Yes Bank Limited
(YBL) ( a) Property at GP -14, Industrial Estate, Sector -18, Gurgaon,
Haryana b) Plot no. D-1/2, in the SIPCOT''s Industrial Park at
Sriperumbudur).Term loan from Standard Chartered Bank carries interest
rate 13.00% p.a.. The loan is repayable in 18 quarterly instalment
starting from August, 2009 with a moratorium of 6 month. Secured by way
of First pari passu charge on all existing & future movable fixed
assets & second pari passu charge on all existing and future current
assets (excluding charge on movable Fixed assets of the company
situated at Plot no. 67,68, 69 & 70 (part) Narasapura Industrial Area,
Kolar District, Karanataka in favour of Tata Capital Financial Services
Limited) of the Company. Equitable mortgage by way of second pari passu
charge over following properties owned by the company sharing with
Kotak Mahindra Bank Ltd. and Yes Bank Limited a) Property at GP -14,
Industrial Estate, Sector -18, Gurgaon, Haryana b) Plot no. D-1/2, in
the SIPCOT''s Industrial Park at Sriperumbudur.
(All above loans are secured by way of personal guarantee of directors
Viz. Mr. J. P. Minda, Mr. Anil Minda & Mr. Ashwani Minda).
Term Loan from Tata Capital Financial services Limited carries interest
rate 13.00% p.a..The loan is repayable in 54 quarterly installments
with a moratorium of 6 months.The loan is secured by way of exclusive
charge over entire immovable and movable property situated at Plot nos.
67,68,69 & 70(part) Narasapura Industrial area, Kolar District and
personal guarantee of Mr. J.P. Minda, Mr. Ashwani Minda and Mrs.
Vandana Minda.
d) External Commercial Borrowings (ECB) taken from a bank carries fixed
rate of interest 6 months Libor 300 bps p.a.. The Loan is repayable
half yearly in 8 equivalent instalments with a moratorium of 18 months
from the first draw down date i.e. August 31, 2010 and October 13,
2010. The loan is secured by way of first charge over movable &
immovable fixed assets (excluding charge on movable Fixed assets of the
company situated at Plot no. 67,68, 69 & 70 (part) Narasapura
Industrial Area, Kolar District, Karanataka in favour of Tata Capital
Financial Services Limited) and second pari passu charge over current
assets and further additionally secured by equitable mortgage over
company immovable property at Plot No. 150, Urban Estate, Sector-44,
Gurgaon, Haryana.
The above loans are secured by way of personal guarantee of directors
Viz. Mr. J. P. Minda, Mr. Anil Minda & Mr. Ashwani Minda.
c) Vehicle loans are secured by hypothecation of vehicles financed.
2. Commitments and contingent liabilities
(Amount in Rs.)
Particulars March 31, 2014 March 31,2013
i. Estimated amount of contracts
remaining to be executed on capital
account and not provided for
(net of capital advances) 25,300,566 104,242,546
ii. Contingent liabilities
a. Claim against the Company not
acknowledged as debts*
b. Guarantees issued on behalf of
the Company outstanding at the
end of the year 5,629,983 4,866,000
*Represents Central Excise/Service tax demands pending in appeal/show
cause notice. The Company has deposited Rs.1,000,000 under protest
against such demands/show cause notices. Based on the interpretations
of the provisions of Excise Act and provisions of Service Tax Act with
regard to demand raised, the managementis of the opinion that the
ultimate outcome of these proceeding will not have a material adverse
effect on the company"s financial position and results of operations.
There are no other material commitments.
3. Borrowing cost capitalized during the year
As per Accounting Standard 16-"Borrowing Cost", the Company has
capitalized Rs. Nil (Previous year Rs.15,853,656) to various fixed
assets including capital work in progress in the year ended March
31,2014.
4. Employee benefit obligations
The Company has in accordance with Accounting Standard-15 "Employee
Benefits" calculated the various benefits provided to employees as
under:
A. Defined contribution plans:
i. Provident Fund
ii. Employee state insurance plan
The provident fund and the employees" state insurance defined
contribution plan are operated by the Regional Provident Fund
Commissioner and Regional Director of ESIC respectively.
B. Defined benefits plans
Gratuity
Employees are entitled to gratuity computed as fifteen days salary for
every completed year of service or part thereof in excess of six months
and is payable on retirement/termination. The benefit vests after five
years of continuous service. The Company has taken a Group Gratuity
Policy from LIC of India and makes contribution to LIC of India to fund
its plan.
C. Other long term employee benefits
Leave Encashment
Leave Encashment is payable to eligible employees who have earned
leaves during the employment and/or on separation as per the Company''s
policy. Liability has been accounted for on the basis of Actuarial
valuation certificate for the balance of earned leaves at the credit of
employees at the end of the year.
The following table sets out the funded status of the defined benefit
schemes and the amount recognized in the financial statements:
5. Segment reporting
The Company has identified one reportable business segment as primary
segment, namely manufacturing and sale of automobile components. The
segment has been identified and reported taking into account the nature
of products, the deferring risks and returns, the organisation
structure and the internal financial reporting systems.
6. Leases
A. As lessee
The Company has entered into cancellable operating lease arrangements
which can be terminated by either party after giving due notice for
office space and residential accommodations for company directors. The
lease rent expense recognised during the year amounts
toRs.32,773,286/-(previous year Rs. 29,888,275).
B. As Lessor
The Company has given office space and plant and machinery on
cancellable lease terms.Other income includes income from operating
leaseRs.96,313,674/-(previous year Rs. 87,804,808).
7. Consequent to the notification issued by the Ministry of Corporate
Affairs on December 29, 2011, the Company adopted the option given in
paragraph 46A of the Accounting Standard-11 "The Effects of Changes in
Foreign Exchange Rates" with effect from April 1, 2011. Accordingly,
the exchange difference on foreign currency denominated long term
borrowings relating to acquisition of depreciable capital assets are
adjusted in the carrying cost of such assets and the exchange
difference on other long term foreign currency monetary items is
amortised w.e.f. April 1, 2011 over its tenor till maturity.
Consequent to the adoption of the policy, the company has transferred
foreign exchange fluctuation loss (net) of Rs. 197,129 (previous year
Rs. Nil) during the year ended March 31, 2014 to depreciable capital
assets and foreign exchange fluctuation loss (net) of Rs. Nil (Previous
year Rs.Nil) to capital work in progress.
8. The company has recognized provision for expected warranty claims
on products sold during the last two years as per warranty period on
respective models, based on past experience of level of repairs and
returns. Assumption used to calculate the provision for warranties are
based on current sales level and current information available about
returns based on the warranty period for all products sold.
9. Previous year figures have been reclassified/regrouped wherever
necessary.
Mar 31, 2013
1. BACKGROUND
Jay Ushin Limited was established in 1986. The Company started
commercial production in 1989 in Joint Venture and technical
collaboration with U-shin Limited, Japan. The Company is primarily in
the business of manufacturing and sale of automotive components of
Automobiles for two wheeler and four wheeler. The Company is listed on
Bombay stock exchange.
The financial statements reflect the results of the activities
undertaken by the Company during the year April 1, 2012 to March 31,
2013.
2. Leases
A. As lessee:
The Company has entered into cancellable operating lease arrangements
which can be terminated by either party after giving due notice for
office space and residential accommodations for company directors. The
lease rent expense recognised during the year amounts to
Rs.29,888,275(previous year Rs. 10,966,284).
B. As Lessor:
The Company has given office space and plant and machineryon
cancellable lease terms.Other income includes income from operating
lease Rs.87,804,808(previous year Rs. 72,086,518).
3. In accordance with Accounting Standard 22 "Accounting for Taxes on
Income" the net decrease in deferred tax liability of Rs.7,589,039
(Previous year Rs. 8,638,811)has been recognized as benefit in the
Statement of Profit and Loss. The effect of significant timing
difference as at March 31, 2013 that reverse in one or more subsequent
years give rise to the following net deferred tax liability.
4. Consequent to the notification issued by the Ministry of Corporate
Affairs on December 29, 2011, the Company dopted the option given in
paragraph 46A of the Accounting Standard-11 ''The Effects of Changes in
Foreign Exchange Rates" with effect from April 1, 2011. Accordingly,
the exchange difference on foreign currency denominated long term
borrowings relating to acquisition of depreciable capital assets are
adjusted in the carrying cost of such assets and the exchange
difference on other long term foreign currency monetary items is
amortised w.e.f. April 1, 2011 over its tenor till maturity.
Consequent to the adoption of the policy, the company has transferred
foreign exchange fluctuation loss (net) ofRs. Nil(previous year Rs.
21,281,448) during the year ended March 31, 2013 to depreciable capital
assetsand foreign exchange fluctuation loss (net) of Rs.Nil(Previous
year Rs. 5,976,743 to capital work in progress.
5. The company has recognized provision for expected warranty claims
on products sold during the last two years as per warranty period on
respective models, based on past experience of level of repairs and
returns. Assumption used to calculate the provision for warranties are
based on current sales level and current information available about
returns based on the warranty period for all products sold.
6. The expenditure incurred by in-house R&D center located at Plot No-
282, Phase-6, Sectof-37, Gurgaon and approved by Ministry of Science &
Technology (Department of Scientific and Industrial Research) vide
letter No. TU-IV/RD/3558/2012 dated December 31, 2012 are as under:
7. Previous year figures have been recast/regrouped wherever
necessary.
Mar 31, 2012
1. BACKGROUND
Jay Ushin Limited was established in 1986. The company started
commercial production in 1989 in Joint Venture and technical
collaboration with U-shin Limited, Japan. The Company is primarily in
the business of manufacturing and sale of automotive components of
Automobiles for two wheeler and four wheeler. The Company is listed on
Bombay stock exchange.
The financial statements reflect the results of the activities
undertaken by the Company during the year April 1, 2011 to March 31,
2012.
2. Commitments and contingent liabilities
(A mount in Rs.)
March 31, March 31,
2012 2011
i. Estimated amount of contracts
remaining to be executed on capital
account and not provided for 83,707,190 14,726,679
(net of capital advances)
ii. Contingent liabilities
a. Claim against the Company not
acknowledged as debts* 19,913,199 11,560,417
b. Guarantees issues on behalf
of the Company 20,000 20,000
outstanding at the end of the year
*Represents Central Excise/Service tax demands pending in appeal/show
cause notice. The Company has deposited Rs. 1,000,000 under protest
against such demands/show cause notices. Based on the interpretations
of the provisions of Excise Act and provisions of Service Tax Act with
regard to demand raised, the management is of the opinion that the
ultimate outcome of these proceeding will not have a material adverse
effect on the company's financial position and results of operations.
There are no other material commitments.
3. Borrowing cost capitalized during the year
As per Accounting Standard 16 - Accounting, "Borrowing Cost", the
Company has capitalized Rs. 11,962,744 (Previous year Rs. 4,112,443) to
various fixed assets including capital work in progress in the year
ended March 31, 2012.
4. Employee benefit obligations
The Company has in accordance with Accounting Standard-15 "Employee
Benefits" calculated the various benefits provided to employees as
under:
A. Defined contribution plans:
i. Provident Fund
ii. Employee state insurance plan
The provident fund and the employees' state insurance defined
contribution plan are operated by the Regional Provident Fund
Commissioner and Regional Director of ESIC respectively.
* Included in Contribution to Provident and other funds under Employee
benefit expenses (note 26)
# Included in Salaries, wages, bonus and allowances under Employee
benefit expenses (note 26)
B. Defined benefits plans
Gratuity
Employees are entitled to gratuity computed as fifteen days salary for
every completed year of service or part thereof in excess of six months
and is payable on retirement/termination. The benefit vests after five
years of continuous service. The Company has taken a Group Gratuity
Policy from LIC of India and makes contribution to LIC of India to fund
its plan.
C. Other long term employee benefits
Leave Encashment
Leave Encashment is payable to eligible employees who have earned
leaves during the employment and/or on separation as per the Company's
policy. Liability has been accounted for on the basis of Actuarial
valuation certificate for the balance of earned leaves at the credit of
employees at the end of the year.
5. Leases
A. As lessee :
The Company has entered into cancellable operating lease arrangements
which can be terminated by either party after giving due notice for
office space and residential accommodations for company directors. The
lease rent expense recognised during the year amounts to Rs. 10,966,284
(previous year Rs. 2,779,637).
B. As Lessor :
The Company has given office space and plant and machinery on
cancellable lease terms. Other income includes income from operating
lease Rs. 72,086,518 (previous year Rs. 62,610,79 8).
6. Related party disclosure
The disclosures as required by the Accounting Standard-18 (Related
Party Disclosure) are given below:-
a. Names of related parties
Relationship Name of related party
(i) Joint Venturer Company : U-shin Limited, Japan
(ii) Key Management Personnel : Mr. Jaideo Prasad Minda (Chairman)
('KMP') and their
relatives Mr. Anil Minda (Whole Time Director)
Mr. Ashwani Minda (Managing
Director)
Mr. Satoru Gokuda (Whole Time
Director)
(iii) Enterprise over which
Key Managerial : Jay FE Cylinders Limited
Personnel and their
relatives are able to JNS Instruments Limited
exercise significant
influence Modern Jushin Enterprises
Engineering Works
Jaycon Engineers
Kaashvi Industries
Jay Autocomponents Limited
7. Consequent to the notification issued by the Ministry of Corporate
Affairs on December 29, 2011, the Company adopted the option given in
paragraph 46A of the Accounting Standard-11 "The Effects of Changes in
Foreign Exchange Rates" with effect from April 1, 2011. Accordingly,
the exchange difference on foreign currency denominated long term
borrowings relating to acquisition of depreciable capital assets are
adjusted in the carrying cost of such assets and the exchange
difference on other long term foreign currency monetary items is
amortised w.e.f. April 1, 2011 over its tenor till maturity.
Consequent to the adoption of the policy, the company has transferred
foreign exchange fluctuation loss (net) of Rs. 21,281,448 (previous
year nil) during the year ended March 31, 2012 to depreciable capital
assets and foreign exchange fluctuation loss (net) of Rs. 5,976,743 to
capital work in progress.
Had the Company continued with the earlier policy of charging exchange
difference on long term borrowings, the impact of the same on the
current year financial statements would be as follows:
a) The foreign exchange fluctuation loss, net would have been higher by
Rs. 27,258,191
b) Depreciation for the year would have been lower by Rs. 1,894,996
c) Current tax would have been lower by Rs. 3,539,544
d) Deferred tax benefit would have been higher by Rs. 970,266
e) Profit after tax would have been lower by Rs. 20,853,385
8. The financial statements for the year ended March 31, 2012 had been
prepared as per the applicable, pre-revised Schedule VI to the
Companies Act, 1956 ('the Act'). During the year, the revised Schedule
VI notified under the Act has become applicable to the Company.
Accordingly, the Company has reclassified previous year figures to
conform to the current year's classification. The adoption of revised
Schedule VI does not impact recognition and measurement principle
followed for preparation of financial statements. However, it has a
significant impact on presentation and disclosures made in the
financial statements.
Mar 31, 2011
1. Commitments & Contingencies
March 31, March 31,
2011 2010
(Rs.) (Rs.)
ii. Contingent Liabilities
a) Claims made against Company not
acknowledged as NIL 587,966
debts.
b) Guarantees issued on behalf of
the Company 20,000 1,233,183
outstanding at the end of the year.
c) Central Excise/Service tax
demands pending in appeals/ 11,560,417 9,150,715
show cause notice (The Company
has deposited Rs. 1,000,000
(Previous Year Rs. 1,000,000) under
protest against such demands/
show cause notice).
Based on the interpretations of the provisions of Excise Act and
provisions of Service Tax Act with regard to demands as referred to in
serial no (c), the company has been advised that the above demands are
likely to be deleted or substantially reduced and accordingly no
provision has been made.
2. Securities against Loan
The facilities (P.O. Discounting, Overdraft, Guarantee, Term Loan,
Issue of Letter of Credit , ECB Loan, Buyers Credit, Short Term
Revolving Loan, Working Capital Demand Loan) provided by Kotak Mahindra
Bank Limited, Standard Chartered Bank and Yes Bank Limited are secured
under the multiple banking arrangement by:
Bank Security
Kotak Mahindra Bank - First pari passu charge on all existing
Limited (Term Loan) and future movable fixed assets of the
company in sharing with Standard Chartered
Bank.
- Equitable mortgage by way of first pari
passu charge over following properties
owned by the company a) Property at GP -14,
Industrial Estate, Sector -18, Gurgaon,
Haryana b) Plot no. D-1/2, in the SIPCOTÃs
Industrial Park at Sriperumbudur.
- Second Pari Passu charge on all existing
& future current assets of the company in
sharing with Standard Chartered Bank.
- Personal guarantee of Mr. J.P. Minda,
Mr. Anil Minda and Mr. Ashwani Minda,
Directors of the Company.
Standard Chartered - First charge on all movable fixed assets
Bank (Term Loan) including plant & machinery both present
& future of the company.
- Second pari passu charge over all current
assets of the company stored or to be
stored at the companyÃs godowns or premises
or wherever else the same may be.
- Equitable mortgage and first pari passu
charge on land & building at Gurgaon and
Chennai.
- Personal guarantee of Mr. J.P. Minda,
Mr. Anil Minda and Mr. Ashwani Minda,Directors of the
Company.
Standard Chartered - First equitable mortgage, by depositing
Bank (ECB Loan) of original title deeds of the immovable
property of the company
together with all the buildings,
structures thereon, to be constructed
thereon and all plant and machinery
attached to the earth or permanently
fastened to anything attached to the earth
both present and future, lying, being
and situated at Plot no. 150, Sector-44,
Gurgaon, Haryana.
- First equitable mortgage, on a pari
passu basis, by depositing of original
title deeds of the immovable property of
the company together with all the buildings,
structures thereon, to be constructed
thereon and all plant and machinery
attached to the earth or permanently
fastened to anything attached to the earth
both present and future, lying, being and
situated at Plot no. GP -14, Sector -18,
Gurgaon,Haryana.
- Second pari passu hypothecation charge
over all current assets both present and
future now stored at or being stored or
at present installed at or or which may
be brought into or stored at or will be
installed at the factory premises of the
company or wherever else situated.
- First pari passu hypothecation charge
over all movable plant and machinery
including all movable assets both present
and future now stored at or being stored
or at present installed at or which may be
brought into or stored at or will be
installed at the factory premises of the
company or wherever else situated.
Kotak Mahindra Bank - First pari passu charge over all present
Limited (Working and future current assets of the company
Capital Loan/ PO in sharing with Standard Chartered Bank
Discounting/ Over (SCB) and Yes Bank Limited (YBL).
draft)
- Second pari passu charge over all present
& future movable fixed assets of the
company in sharing with SCB and YBL.
- Equitable mortgage by way of second pari
passu charge over following properties
owned by the company sharing with SCB and
YBL a) Property at GP -14, Industrial
Estate, Sector -18, Gurgaon, Haryana
b) Plot no. D-1/2, in the SIPCOTÃs
Industrial Park at Sriperumbudur.
- Personal guarantee of Mr. J.P. Minda,
Mr. Anil Minda and Mr. Ashwani Minda,
Directors of the Company.
Standard Chartered - First pari passu charge on the current
Bank assets of the Company.
(Working Capital
Loan)
- Second pari passu charge over the whole
of the fixed assets including land &
building of the Company Situated at
Gurgaon, Manesar & Chennai, including its
Movable Plant & Machinery, M/Spares, Tools
& Access & other movables both Present
& Future whether installed or not and
whether now lying loose or in cases or
which are now lying or stored in or open
or shall hereafter from time to time.
- Personal guarantee of Mr. J.P. Minda,
Mr. Anil Minda and Mr. Ashwani Minda,
Directors of the Company.
YES Bank Limited - First Pari Passu charge on current
(Working Capital assets both present & future of the company.
Loan/ PO Discounting/
Buyers Credit) - Second Pari Passu charge on movable fixed
assets (excluding those exclusively
charged to other bankers) both present &
future of the company.
- Personal guarantee of Mr. J.P. Minda,
Mr. Anil Minda and Mr. Ashwani Minda,
Directors of the Company.
ICICI Bank Ltd. Vehicle Loan
- First Charge on Vehicle under finance
Kotak Mahindra Prime Vehicle Loan
Bank Security
Limited - First Charge on Vehicle under finance
HDFC Bank Ltd. Vehicle Loan
- First Charge on Vehicle under finance
Others Vehicle Loan - Hypothecation on Vehicle under finance
3. Sundry Creditors include
a) Rs. Nil/- due to creditors registered under the Micro, Small and
Medium Enterprises Development Act, 2006 (MSME); and
b) Rs. Nil/- is payable for interest during the year to Micro, Small
and Medium Enterprises.
c) The above information has been determined to the extent such parties
could be identified on the basis of the information available with the
Company regarding the status of creditors.
4. Certain Balances under Sundry Debtors, Loans and advances, and
Creditors are subject to confirmation/ reconciliation and consequential
adjustment thereof, if any.
5. In the opinion of the Board, sundry debtors, loans and advances and
other current assets are approximately of the value stated if realized
in the ordinary course of business. The provisions for all known
liabilities are adequate and not in excess of the amount.
7. The Company has provided excise duty on finished goods amounting to
Rs.3,225,098 (Previous year Rs. 2,542,300) in respect of goods
remaining unsold at the year end.
9. The Company has in accordance with the Accounting Standard 15 on
Employee Benefits has calculated the various benefits provided to
employees as under:
(A) Defined contribution plans
a. Provident Fund
b. Employersà Contribution to Employeesà State Insurance
The provident fund and the state defined contribution plan are operated
by the Regional Provident Fund Commissioner & Regional director of ESIC
respectively.
(B) Defined Benefit Plans
a) Leave Encashment
Leave Encashment is payable to eligible employees who have earned
leaves during the employment and/or on separation as per the companyÃs
policy. Liability has been accounted for on the basis of Actuarial
valuation certificate for the balance of Earned leaves at the credit of
employeeÃs at the end of the year.
b) Gratuity
Employees are entitled to gratuity computed as fifteen days salary for
every completed year of service or part thereof in excess of six months
and is payable on retirement/termination. The benefit vests after five
years of continuous service. The company has taken a Group Gratuity
Policy from LIC of India and makes contribution to LIC of India to fund
its plan.
10. Borrowing cost amounting to Rs.4,112,443 (Previous Year Rs.
2,453,861) attributable to the Fixed Assets under construction and
shown in capital work in progress has been capitalized as per
Accounting Standard 16. Other borrowing costs are recognized as an
expense in the period in which they are incurred.
11 . Segment Information
The disclosures as required by Accounting Standard 17 on Segment
Reporting has not been provided as the Company deals in one business
segment, namely manufacturing of automobile components. Currently there
are no reportable Geographic segments.
12. Related Parties
In the normal course of business, the company enters into transactions
with various affiliated companies. The names of related parties of the
company as required to be disclosed under Accounting Standard 18 are as
follows:
Joint Venturer Company U-shin Limited, Japan
Enterprises over which key Anu Industries Limited management
Personnel and their JNS Instruments Limited
relatives exercise significant JPM Tools Limited
influence JPM Automobiles Limited
Jay Autocomponents Limited
JNJ Electronics Limited
Janasis Infotech Limited
Jay Iron & Steels Limited
Jay Fe Cylinders Limited
Jay Nikki Industries Limited
Jay Smelter Limited
Nalhati Food Products Pvt. Limited
JPM Farms Pvt. Limited
Brilliant Jewels Pvt. Limited
Anu Auto Industries, Delhi
Moulder & Fabricators, Delhi
Modern Engg. Works, Delhi
Jushin Enterprises
Jaycon Engineers
Kaashvi Industries
Key Management Personnel and Mr.J.P.Minda
their Relatives Mr. Anil Minda
Mr. Ashwani Minda
Mr. Satoru Gokuda
Disclosure in respect of transaction which are more than 10% of the
total transactions under same head as referred above with related
parties during the year.
I. Purchase of Raw material, components, consumables & fixed assets
during the year includes Rs. 772,167,620 from JPM Automobiles Limited,
Rs. 512,871,311 from Jay Autocomponents Limited (Previous Year Rs.
616,769,554 from JPM Automobiles Limited, Rs. 390,538,106 from Jay
Autocomponents Limited).
II. Job work during the year includes Rs. 32,926,498 from JPM
Automobiles Limited, Rs. 35,634,204 from Modern Engg. Works and Rs.
20,286,960 from Jay Autocomponents Limited (Previous Year Rs.
37,353,498 from JPM Automobiles Limited and Rs. 30,974,148 from Modern
Engg. Works and Rs. 17,713,953 from Jay Autocomponents Limited).
III. Sales during the year includes Rs. 2,704,777 to U-shin Limited,
Japan, Rs. 97,144,560 to Jay Autocomponents Limited & Rs. 17,727,217 to
JNJ Electronics Limited (Previous Year Rs. 1,383,640 to U-shin Limited,
Japan & Rs. 102,958,659 to Jay Autocomponents Limited).
IV. Sales of fixed assets & others during the year include
Rs.19,455,429 to Ushn Limited, Rs.19,902,766 to Jay Autocomponents
Limited & Rs. 1,162,360 to JPM Automobiles Limited (Previous Year Rs.
23,029 to Jay Autocomponents Limited & Rs.43,574 to JPM Automobiles
Limited).
V. Payment of technical fees & expenses during the year includes
Rs.13,374,710 to U-shin Limited, Japan (Previous Year Rs. 20,638,915 to
U-shin Limited, Japan).
VI. Payment of Royalty during the year includes Rs.22,467,084 to U-shin
Limited, Japan (Previous Year Rs. 22,394,789 to U-shin Limited,
Japan).
VII. Rent received during the year includes Rs. 58,777,462 from JNS
Instruments Limited. (Previous Year Rs. 47,067,899 from JNS
Instruments Limited.)
VIII. Lease rent received during the year includes Rs. 1,029,912 from
JPM Automobiles Limited and Rs. 587,952 from JPM Tools Limited
(Previous Ye ar Rs. 1,029,912 from JPM Automobiles Limited and Rs.
587,952 from JPM Tools Limited).
IX. Rent paid during the year includes Rs. 300,000 to Anu Industries
Limited (Previous Year Rs. 300,000 to Anu Industries Limited and
Rs.600,000 to J A Builders Limited).
X. Other Includes Rs. 4,791,900 to JNS Instruments Limited & Rs.721,095
to JPM Automobiles Limited (Previous Year Rs.13,23,977 to JNS
Instruments Limited).
15. Leases
A. Operating Lease
i. The company has entered into cancellable operating lease
transactions for office space and residential accommodations for
company directors. Lease rental expenses recognized in the profit and
loss account for the year in respect of such leases is Rs.2,779,637
(previous year Rs.2,963,977).
ii. The company has given office space and plant & machinery to
enterprises over which key management personal and their relatives
exercise significant influence on cancellable lease terms.
Other Income includes income from operating lease Rs.62, 610,798
(previous year Rs.50, 699,795).
B. Finance Lease
In compliance of the Accounting Standard AS19, during the current year
the interest on lease financing and depreciation on these assets
amounting to Rs.Nil (Previous Year Rs. Nil) and Rs. 566,086 (Previous
Year Rs.2,389,067) respectively have been charged to Profit & Loss
Account.
18. In compliance with the Accounting Standard AS 28-Impairment of
Assets, based on the internal and external sources of information
available with the Company, there are no indicators that any of the
fixed assets are impaired. The Company has considered its Fixed Assets
at cost of acquisition / cost of construction, less depreciation as per
policy adopted by the Company and none of the assets have been
revalued.
19. The raw material & components inventory includes inventory lying
with third party belonging to the Company amounting to Rs.20,835,404
(Previous year Rs. 23,021,028).
20. Term loan re-payable within one year amounted to Rs.76,654,562
(Previous year Rs. 75,717,644).
21. Previous yearÃs figures have been regrouped and/or re-arranged
wherever necessary to conform to the current yearÃs groupings and
classifications and the figures in brackets are those in respect of the
previous year.
Mar 31, 2010
1. Commitments & Contingencies
March 31, 2010 March 3 1,2009
(Rs.) (Rs.)
ii. Contingent Liabilities
a) Claims made against Company not
acknowledged as debts (suits 587,966 1,497,966
filed against the company).
b) Letters of credit issued by bank
on behalf of the Company outstanding. 34,458,503 27,339,789
at the end of the year.
c) Guarantees issued on behalf of the
Company outstanding at the end 1,233,183 -
of the year.
d) Central Excise/Service tax deman
pending in appeals/ show cause 9,150,715 11,670,644
notice (The Company has
deposited Rs. 1,000,000 under
protest against such demands/ show
cause notice)
2. Securities against Loan
a) The facilities (P.O. Discounting, Overdraft, Guarantee, Term Loan,
Issue of Letter of Credit) provided by Kotak Mahindra Bank Limited and
Standard Chartered Bank are secured under the multiple banking
arrangement by:
Bank Security
Kotak Mahindra
Bank Limited
(Term Loan) . Equitable mortgage by way of first pari
passu charge over companys immovable property
i.e. plot no. D-l/2, in the SIPCOT Industrial
Park at Sriperumbudur within the village
limits of Irungulam taluk of Sriperumbudur,
sub Ragn.district of Chengalpattu of
Kancheepuram in revenue district admeasuring
6.35 acres together with all buildings,
structures and plant & machinery if any,
affixed to the earth.
. Personal guarantee of Mr. J.P.
Minda, Mr. Anil Minda and Mr. Ashwani
Minda, Directors of the Company.
Standard Chartered
Bank (Term Loan) . First pari passu charge on movable fixed
assets including plant & machinery both
present & future and of the company.
. Second pari passu charge over all current
assets of the company stored or to be
stored at the companys godowns or premises
or wherever else the same may be.
. Personal guarantee of Mr. J.P. Minda,
Mr. Anil Minda and Mr. Ashwani
Minda, Directors of the Company.
Kotak Mahindra Bank
Limited (Working
Capital Loan/ PO
Discounting/
Overdraft) . First pari passu charge over all present
and future current assets ofthe company.
. Second pari passu charge over all
present & future fixed assets.
. Personal guarantee of Mr. J.P. Minda,
Mr. Anil Minda and Mr. Ashwani
Minda, Directors of the Company.
Bank` Security
Standard Chartered
Bank (Working
Capital Loan) . First pari passu charge on the current
assets of the Company.
. Second pari passu charge over the
whole of the fixed assets of the
Company Situated at Gurgaon, Manesar
& Chennai, including its Movable
Plant & Machinery, M/Spares, Tools &
Access & other movables both
Present & Future whether installed or
not and whether now lying loose
or in cases or which are now lying or
stored in or open or shall
hereafter from time to time.
. Personal guarantee of Mr. J.P. Minda,
Mr. Anil Minda and Mr. Ashwani
Minda, Directors of the Company.
IC1C1 Bank Ltd. Vehicle Loan
. First Charge on Vehicle under finance
Kotak Mahindra
prime Limited Vehicle Loan
. First Charge on Vehicle under finance
HDFC Bank Ltd. Vehicle Loan
. First Charge on Vehicle under finance
Others
Vehicle Loan
. Hypothecation on Vehicle under finance
3. Sundry Creditors include
a) Rs. Nil/- due to creditors registered under the Micro, Small and
Medium Enterprises Development Act, 2006 (MSME); and
b) Rs. Nil/- is payable for interest during the year to Micro, Small
and Medium Enterprises.
c) The above information has been determined to the extent such parties
could be identified on the basis of the information available with the
Company regarding the status of creditors.
4. Certain balances under Sundry Debtors, Loans and advances, and
Creditors are subject to confirmation/ reconciliation and consequential
adjustment thereof, if any.
5. In the opinion of the Board, sundry debtors, loans and advances and
other current assets are approximately of the value stated if realized
in the ordinary course of business. The provisions for all known
liabilities are adequate and not in excess of the amount.
6. The Company has in accordance with the Accounting Standard 15 on
Employee Benefits has calculated the various benefits provided to
employees as under:
(A) Defined contribution plans
a. Provident Fund.
b. Employers Contribution to Employees State Insurance.
The provident fund and the state defined contribution plan are operated
by the Regional Provident Fund Commissioner & Regional director of ESIC
respectively.
The Company has recognized the following amounts in the Profit and Loss
Account for the year:
(B) Defined Benefit Plans
a) Leave Encashment
Leave Encashment is payable to eligible employees who have earned
leaves during the employment and/or on separation as per the companys
policy. Liability has been accounted for on the basis of Actuarial
valuation certificate for the balance of Earned leaves at the credit of
employees at the end of the year.
7. Segment Information
The disclosures as required by Accounting Standard 17 on Segment
Reporting has not been provided as the Company deals in one business
segment, namely manufacturing of automobile components. Currently there
are no reportable Geographic segments.
8. Related Parties
In the normal course of business, the company enters into transactions
with various affiliated companies. The names of related parties of the
company as required to be disclosed under Accounting Standard 18 is as
follows:
Joint Venturer Company : U-shin Limited, Japan
Enterprises over which
key management
Personnel and their
relatives exercise
significant influence : Anu Industries Limited
JNS Instruments Limited
JPM Tools Limited
JPM Automobiles Limited
Jay Autocomponents Limited
JNJ Electronics Limited
Janasis Infotech Limited
Jay Iron & Steels Limited
J A Builders Limited
Jay FE Cylinders Limited
Jay Nikki Industries Limited
Jay Smelter Limited
Nalhati Food Products Pvt. Limited
JPM Farms Pvt. Limited
Brilliant Jewels Pvt. Limited
Anu Auto Industries, Delhi
Moulder & Fabricators, Delhi
Modern Engg. Works, Delhi
Jushin Enterprises
Jaycon Engineers
Kaashvi Industries
Key Management Personnel Mr. J. P. Minda
Mr. Anil Minda
Mr. Ashwani Minda
Mr. Satoru Gokuda
a) Disclosure in respect of transaction which are more than 10% of the
total transactions of the same type with a related party during the
year.
I. Purchase of Raw material, components, consumables & fixed assets
during the year includes Rs. 616,769,554 from JPM Automobiles Limited,
Rs. 390,538,106 from Jay Autocomponents Limited (Previous Year Rs.
465,071,130 from JPM Automobiles Limited, Rs. 197,679,992 from Jay
Autocomponents Limited).
II. Job work during the year includes Rs.37,353,498 from JPM
Automobiles Limited, Rs.30,974,148 from Modern Engg. Works and Rs.
17,713,953 from Jay Autocomponents Limited (Previous Year Rs.42,121,035
from JPM Automobiles Limited and Rs. 24,510,715 from Modern Engg.
Works and Rs. 14,052,000 from Jay Autocomponents Limited).
III. Sales during the year includes Rs. 1,383,640 to U-shin Limited,
Japan & Rs. 102,958,659 to Jay Autocomponents Limited (Previous Year
Rs. 8,546,055 to U-shin Limited, Japan & Rs. 75,649,178 to Jay
Autocomponents Limited).
IV. Sales of fixed assets, goods & others during the year include Rs.
23,029 to Jay Autocomponents Limited & Rs.43,574 to JPM Automobiles
Limited (Previous Year Rs.75,649,178 to Jay Autocomponents Limited).
V. Payment of technical fees & expenses during the year includes Rs.
20,638,915 to U-shin Limited, Japan (Previous Year Rs. 16,696,986 to
U-shin Limited, Japan).
VI. Payment of Royalty during the year includes Rs. 22,394,789 to
U-shin Limited, Japan (Previous Year Rs. 8,050,096 to U-shin Limited,
Japan).
VII. Payment of dividend during the year includes Rs. 1,506,968 to
U-shin Limited, Japan, Rs. 321,039 to Mr. J.P. Minda, Rs. 319,569 to
Mr. Anil Minda and Rs. 373,638 to Mr. Ashwani Minda. (Previous Year Rs.
2,009,290 to U-shin Limited, Japan Rs.428,052 to Mr. J.P. Minda,
Rs.426,092 to Mr. Anil Minda and Rs. 498,184 to Mr. Ashwani Minda).
VIII. Rent received during the year includes Rs. 47,067,899 from JNS
Instruments Limited. (Previous Year Rs. 30,234,822 from JNS Instruments
Limited).
IX. Lease rent received during the year includes Rs. 1,029,912 from
JPM Automobiles Limited and Rs. 587,952 from JPM Tools Limited
(Previous Year Rs. 1,029,912 from JPM Automobiles Limited and Rs.
587,952 from JPM Tools Limited).
X. Rent paid during the year includes Rs. 300,000 to Anu Industries
Limited and Rs.600,000 to J A Builders Limited (Previous Year Rs.
300,000 to Anu Industries Limited and Rs.600,000 to J A Builders
Limited).
XI. Other Includes Rs.13,23,977 to JNS Instruments Limited (Previous
Year Rs.599,662 to Jay Autocomponents Limited and Rs.73,621 to JPM
Automobiles Limited).
9. Leases
In compliance of the Accounting Standard AS-19, during the current year
the interest on lease financing and depreciation on these assets
amounting to Rs. Nil (Rs. Nil) and Rs.2,389,067 (Previous Year
Rs.2,389,067) respectively have been charged to Profit & Loss Account.
10. Fringe Benefit tax provision includes additional demand of Fringe
Benefit tax amounting to Rs. NIL (Previous year Rs. 356,000) pertaining
to earlier years.
11. In compliance with the Accounting Standard AS-28-Impairment of
Assets, based on the internal and external sources of information
available with the Company, there are no indicators that any of the
fixed assets are impaired. The Company has considered its Fixed Assets
at cost of acquisition / cost of construction, less depreciation as per
policy adopted by the Company and none of the assets have been
revalued.
12. The material lying with third party belonging to the Company
amounting to Rs. 23,021,028 (Rs. 19,456,852).
13. Secured loan re-payable within one year amoun to Rs. 75,717,644
(Previous year Rs.68,674,396)
14. Previous years figures have been regrouped and/or re-arranged
wherever necessary to conform to the current years groupings and
classifications and the figures in brackets are those in respect of the
previous year.
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More Information on Jay Ushin Ltd.
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Jay Ushin Ltd. Tools
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Jay Ushin Ltd. Company Details
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Company History
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Jay Ushin Ltd. Key Financial Ratios
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Jay Ushin Ltd. Results
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- Nine Months Results
- Annual Results
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Jay Ushin Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
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Jay Ushin Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
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Jay Ushin Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
