Mar 31, 2018
1 Note 37(1) of the financial statement Contingent liabilities and commitments (to the extent not provided for)
In respect of items above, future cash outflows in respect of contingent liabilities is determinable only on receipt of judgements pending at various forums / settlement of matter. The management believes, based on internal assessment and / or legal advice, that the probability of an ultimate adverse decision and outflow of resources of the Company is not probable. However as a matter of abundant caution the Company has recognized a provision for contingencies, to take care of any liabilities that may devolve, and included in Note 37(15).
2 Note 37(3) of the financial statements:
The order of the honourable High Court of Karnataka according approval for the scheme of arrangement and amalgamation under sections 391 to 394 of the Companies Act, 1956 (âSchemeâ) was received in September 2008 with April 1, 2007 as the appointed date. This scheme of arrangement and amalgamation interalia involved transfer of the operating business of Kirloskar Power Equipment Limited (âKPELâ) and amalgamation of Kaytee Switchgear Limited (âKSLâ) with the Company. The Scheme was registered with the Registrar of Companies on October 17, 2008. Decree in Form 42 of the Companies (Court) Rules, 1949 is yet to be passed by the honourable High Court of Karnataka.
3 Note 37(5) of the financial statements:
Confirmation of balances from customers, suppliers and service providers with whom the Company had transactions are awaited in certain cases. Accounts with certain parties are under review and reconciliation. Adjustments will be made on completion of review/ reconciliation. In the assessment of the management, effect on revenue if any, is not expected to be material.
4 Note 37(6) of the financial statements:
The customers of the Company had deducted liquidated damages and other charges for delays in delivery of goods as compared to contractual obligations. The Company has made representations to such customers explaining reasons for delays as well as impress upon them that the same were caused by various factors including those not attributable to it and as such being beyond its control. The Company had made necessary provision on an overeall assessment of the likely loss where in its opinion waiver is not likely. The Company is confident that its representations will be accepted by customers and liquidated damages and other charges deducted will be waived. Impact, if any, on the financial statements is not expected to be material.
5 Note 37(7) of the financial statements:
Certain mistakes noticed in the inventory records have been corrected to the extent identified based on physical inventory taken from time to time. The Company is in the process of identifying and analysing the differences adjusted/to be adjusted in the books of account on a comprehensive basis. The management has also formed a task force for liquidation of slow/non moving inventories in respect of which provision for inventories has been estimated and made. Any further adjustments required to the financial statements if any, is not expected to be material.
6 Note 37(8) of the financial statements:
Machinery purchased in prior years but currently held for sale for the past several years have been recognized at realizable value estimated by the management. Such value is consistent with quotations received from prospective buyers after considering the provision made and any shortfall in realisability is not expected to be material.
7 Note 37(10) of the financial statements:
During a previous year, the shareholders of the Company at the Annual General Meeting held on September 30, 2013 have approved an Employee Stock Option Scheme. However, the Company has not issued any options as at March 31, 2018 and accordingly, recognition of expense in this respect and requisite disclosures are not applicable.
(b) Defined Benefit Plan:
The employees'' gratuity fund scheme managed by a trust and leave encashment is a defined benefit plan. The Present value of obligation is determined based on actuarial valuation using the projected unit credit method.
(*) Leave provision for current year includes provision for short term compensated absence as assessed by the actuary.
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.
(c) Sensitivity Analysis:
Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and employee turnover. The sensitivity analysis below, has been determined based on possible effect of changes of an assumption occurring at end of the reporting period , while holding all other assumptions constant.
These plans typically expose the Company to actuarial risks such as: investment risk, interest risk, longevity risk and salary risk.
Investment risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.
Interest risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan assets.
Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.
Salary risk: The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.
8 Note 37 (12) of the financial statements:
SEGMENT REPORTING:
As per Ind AS 108 onâ Operating Segments â, segment information has been provided under the Notes to Consolidated Financial Statements.
KEC North America Inc has been dissolved. The investments in and dues from the said company have not been written off, pending receipt of approvals from Reserve Bank of India. However, full provision has been made for the same. Since the said company has been dissolved, the same has not been considered for related party disclosures.
9 Note 37 (14) of the financial statements:
OPERATING LEASE (Ind AS 17):
The Company has various operating leases for office facilities, guesthouse and residential premises of employees that are renewable on a periodic basis, and cancelable at its option. Rental expenses for operating leases included in the financial statements for the year are Rs. 263.63 Lakhs (Previous Year Rs. 302.66 Lakhs).
10 Note 37 (15) of the financial statements:
The Company has made provisions towards wage arrears, warranty claims from the customers towards sales, short term compensated absences and contingencies. Details of the same are as under:
Foot Note:
Provision in respect of wage settlement has been made on estimated basis and differences if any will be accounted on final settlement. Further as a matter of abundant caution an estimated provision has been made for contingencies as held in respect of ongoing litigations as detailed in note 24 and certain probable liability including in respect of customers.
11 Note 37 (16) of the financial statements:
Financial risk management objectives and policies:
The entity''s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the entity''s operations to support its operations. The entity''s principal financial assets include trade and other receivables, rental and bank deposits and cash and cash equivalents that are derived directly from its operations.
The entity is exposed to market risk/credit and liquidity risks. The entity''s senior management oversee the management of these risks. The board reviews their activities. No significant derivative activities have been undertaken so far.
Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include deposits, FVTOCI investments and derivative financial instruments.
The sensitivity analyses in the following sections relate to the positions as at March 31, 2018, March 31, 2017 and April 1, 2016:
The analyses exclude the impact of movements in market variables on: the carrying values of gratuity and other postretirement obligations; provisions; and the non-financial assets and liabilities of foreign operations.
The following assumption has been made in calculating sensitivity analysis.
The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2018, March 31, 2017 and April 1, 2016 including the effect of hedge accounting.
i. 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''s exposure to the risk of changes in foreign exchange rates relates primarily to the some of the vendor payments and customer receivables.
* Excludes receivable of Euro 11.62 lakhs from Lloyd Dynamowerke GmbH & Co. KG, as the same has been assigned to KELBUZZ Trading Private Limited, a wholly owned subsidiary.
Foreign currency sensitivity:
Every 1 % strengthening in the exchange rate between the Indian rupee and the respective currencies for the above mentioned financial assets/liabilities for the years ended March 31, 2018 and March 31, 2017 would decrease the Company''s loss and increase the Company''s equity by approximately Rs. 3.76 Lakhs and Rs. 0.50 Lakhs respectively where as for April 1, 2016 would increase the Company''s loss and decrease Company''s equity by Rs. 1.84 Lakhs. A 1% weakening of the Indian rupee and the respective currencies would lead to an equal but opposite effect. In management''s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.
12 Note 37 (17) of the financial statements:
Fair Value Measurement ( Ind AS 113):
The Financial Instruments of the Company are initially recorded at fair value and subsequently measured at amortized cost based on the nature and timing of the cash flows.
The Company has not classified any Financial Asset or Liabilities as measured at Fair value through Profit and Loss (FVTPL) or measured at Fair Value through Other Comprehensive Income (FVTOCI).
Fair value of shares held by the Company in ICICI Bank Limited as at the three reporting dates have been computed based on its value traded in an active market and constitutes Level 1 in the fair value hierarchy as set out in Ind AS 113. Shares held by the Company in other entities which are unlisted and not traded in an active market have been valued based on their net asset value per share as per their latest available audited financial statements with the company. The increase / (decrease) is recognized in other comprehensive income as at April 01,2016, March 31,2017 and March 31,2018 on this count is estimated at Rs. 65.48 Lakhs, Rs. (6.61) Lakhs and Rs. 17.23 Lakhs respectively.
The Fair Value of the above financial assets and liabilities are measured at amortized cost which is considered to be approximate to their fair values.
13 Note 37 (18) of the financial statements:
As reported in earlier years Lloyd Dynamowerke GmbH & Co. KG, Germany (LDW), a step down subsidiary of the Company, incurred substantial losses , thereby eroding its net worth and consequent to the actions of local directors of LDW, insolvency administrator was appointed by the court in Germany during the preceding year. The Company has been given to understand that a South Korean company acquired all significant assets, patents, estates, orders and employees of LDW. However, relevant details of the consideration for this transfer and all other relevant information are not available with the Company, in spite of its best efforts. The Company has already filed its claim for an approximate value of Euro 3.52 million in respect of outstanding towards supplies made to LDW including dues of Kirsons B V (immediate holding company of LDW). The Company has also appointed a local legal counsel to represent its interest and has filed certain claims. The legal proceedings are in progress in Germany. However the Company does not expect any material impact on the financial statements due to the same.
14 Note 37 (19) of the financial statements:
a. Wholly owned subsidiaries of the Company have incurred losses during the year and a part/ whole of their net worth have been eroded. However having regard to the estimated fair value of the assets which these Companies hold, the diminution in value has been considered as temporary and consequently no provision is required to be recognised in the financial statements.
b. Further Investments in Kirsons B V the step down subsidiary has been valued independently which confirms that the fair value of the investment is not materially lower than the carrying amount. According to the management , business activities in Kirsons B V have started and the said step down subsidiary will have regular income thereon. Under these circumstances, the Board of Directors represent that there is no permanent dimunution to the value of investment in Luxquisite Parkland Private Limited and consequently no provision is required to be recognised in the financial statements.
15 Note 37(20) of the financial statements:
a) As a measure of restructuring and with the consent of a Lending Bank and other Lending banks under the Joint Lender Forum (JLF) mechanism, the Company transferred during the year ended March 31, 2015 certain assets comprising of immovable properties, receivables and inventory to its subsidiaries Kelbuzz Trading Private Limited, SKG Terra Promenade Private Limited and SLPKG Estate Holdings Private Limited, which will function as special purpose vehicles to hold such assets, dispose off the same and pay off certain debts (bank dues) transferred by the Company. The amounts outstanding and due from the said subsidiaries as at March 31, 2018 in respect of the transfer of the assets as mentioned above, other expenses relating to the subsidiaries met by the Company and interest charged aggregating to Rs. 14516.72 lakhs (as at March 31, 2017 Rs. 13,504.63 Lakhs). These subsidiaries are taking active steps to repay the dues of the Company from collection of debts (receivables) assigned and from disposal of immovable properties / inventories transferred apart from debts (bank dues) transferred / to be transferred as referred above. These subsidiaries have been sanctioned credit facilities to an aggregate extent of Rs. 500 lakhs (net of amounts drawn). The board of directors of the Company are confident of realisation of the entire amounts due from the said subsidiaries as realisation from the sale of immovable properties / inventories by the subsidiaries is expected to be higher than the transfer value.
b) The sale of the immovable properties referred above shall be carried out under the supervision of the Asset Sale Committee / Approval of Lender Bank. The Lenders forming part of JLF shall constitute the Asset Sale Committee.
16 Note 37(21) of the financial statements:
The net worth (after excluding revaluation reserve) of the group in terms of the Consolidated Financial Statements presented consisting of the Company, its subsidiaries and its associate is eroded. The Company and its components have initiated several measures like identification and active steps being taken for disposal of non-core assets, arrangement under JLF mechanism for restructuring of dues to banks, sanction of further non fund based limits by banks, infusion of capital by the promoters, rationalization of operation, introduction of value added products push for sales, optimization in product mix and enhanced contribution, proposed capital raising plans etc. Accordingly, your directors have prepared the financial statements of the Company on the basis that it is a going concern and that no adjustments are considered necessary to the carrying value of assets and liabilities.
17 Note 37(22) of the financial statements:
a) The Company has filed before the Honourable Supreme Court, special leave petition (SLP) in respect of resale tax and sales tax penalty of Rs. 527 lakhs and Rs. 362 lakhs respectively, on its erstwhile subsidiary Kaytee Switchgear Limited (since merged with the parent company) and confirmed by the Honourable High Court of Karnataka. This SLP has been admitted by the Honorable Supreme Court. The Company also approached the Karnataka Sales tax authorities seeking settlement of the Sales tax penalty referred above under âKarasamadhana Scheme 2017''(Scheme) which involves settlement of the matter by payment of 10% of the amount of penalty and withdrawing the appeal before the Honorable Supreme Court. However, the same could not be resolved due to certain interpretation issues of the Scheme and demand for certain amount as further tax payment without considering the amounts already paid by the Company. Consequently the Company has filed a writ petition in the Honorable High Court of Karnataka challenging the scheme on grounds of discrimination and seeking specific reliefs. Under the above circumstances , the Company believes based on legal advice / internal assessment that the outcome of these contingencies will be favourable, that losses are not probable and no provision is required to be recognized in this respect.
b) The Company received a reassessment order under Karnataka Value Added Tax Act, 2003 (âKVATâ) in an earlier year for the period April 2009 to March 2010 essentially denying input credit and making certain other disallowances and consequently, raised a demand of Rs. 893 lakhs. According to the Company the said order was passed based on incorrect interpretation of law. The Company was legally advised that the said order is not sustainable and consequently a writ petition was filed in the honorable High Court of Karnataka seeking relief from the said order and quashing of the same. The honorable High Court of Karnataka disposed the writ petition made by the company on January 10, 2018 and has passed the order setting aside for passing the fresh order in accordance with the law by the assessing authorities.
18 Note 37(23) of the financial statements:
The Company during an earlier year restructured its loans under Joint Lenders Forum mechanism (âJLFâ). As per the JLF, interest on cash credit accounts for the period October 2014 to September 2015 and on working capital demand loan from October 2014 to March 2016 were converted into Funded Interest Term Loan. Consequently the joint deed and other documentation was duly completed as permitted in the extant guidelines of the JLF mechanism. A Master Restructuring Agreement (âMRAâ) has been entered by the Company and its Lenders, Bank of India being the lead bank on June 30, 2015. In pursuance of the MRA the Company has executed other supplementary agreements including Trust and Retention Agreement (âTRAâ). The agreements contain various terms and conditions in respect of the facilities sanctioned to the Company including setting up and reporting to the Monitoring Committee. The lenders shall have the right to convert at its option the whole of the outstanding amount of the facilities and / or part thereof into fully paid up equity shares of the Company in the manner specified in the notice in writing to be given by the Lenders to the Company (âNotice of Conversionâ) prior to the date on which the conversion is to take effect, which date shall be specified in the notice (âDate of Conversionâ). The said shares shall rank parri-passu with the existing equity shares of the Company. Under the above circumstance, the Company believes based on legal advice / internal assessment that the outcome will be favorable, that losses are not probable and no provision is required to be recognized in this respect.
19 Additional information point 6 to Note 17 of the financial statements:
Delay in repayment of Borrowing (Current and Non Current) and Interest
The Company has delayed in the payment of dues to the banks. The lender wise details are as under:
20 Note 37(24) of the financial statements:
The Income Tax Act, 1961 contains provisions for determination of arm''s length price for international transactions between the Company and its associated enterprises. The regulations envisage taxation of transactions which are not in consonance with the arm''s length price so determined, maintenance of prescribed documents and information including furnishing of a report from an accountant before the due date for filing the return of income. For the year ended March 31, 2018, the Company is in the process of complying with the said regulations. Management believes that such transactions have been concluded on an arm''s length basis and there would be no additional tax liability for the financial year under consideration as a result of such transactions.
21 Note 37(26) of the financial statements:
Previous year''s figures have been regrouped wherever required in conformity with current year presentation.
Mar 31, 2016
RELATED PARTY TRANSACTIONS;
(a) List of related parties:
Name of the Related Party Relationship
1 Kirsons B V (up to 04 March 2015) Wholly Owned Subsidiary Luxquisite Parkland Private Limited
SLPKG Estate Holdings Private Limited SKG Terra Promenade Private Limited KELBUZZ Trading Private Limited Kesvik Developers Private Limited Swaki Habitat Private Limited
2 Kirsons B V (w.e.f 05 March 2015) Step down subsidiary Lloyd Dynamowerke GmbH & Co. KG (refer Note 49)
Lloyd Beteiligungs GmbH
3 Mr. Vijay R Kirloskar Key Management Personnel and their relatives (âKMPâ) Mrs. Meena Kirloskar
Ms. Janaki Kirloskar Ms. Rukmini Kirloskar Mr. Vinayak Narayan Bapat Mr. Anand B Hunnur
Mr. Soumendra Kumar Mahapatra (from June 30, 2015)
Mr. Chinmoy Pattnaik (from November 28, 2015)
Ms. K S Swapnalatha (up to June 30, 2015)
Mr. Alok Kumar Gupta (up to April 25, 2014)
4 Kirloskar (Malaysia) Sdn. Bhd Associates Electrical Machines Industries (Bahrain) W.L.L (up to April 1, 2014)
(a) List of related parties:
Name of the Related Party Relationship
5 Senapathy Whiteley Private Limited. (up to November 5, 2015)
Senapathy Symons Insulation Pvt Ltd. (up to November 5, 2015)
Transport Corporation of India
Maini Material Movement Private Limited
Best Trading & Agencies Limited (up to November 28, 2014)
Bengaluru Motors Private Limited
Batliboi Limited
Bhagyanagar India Limited
Bhoruka Agro Business Private Limited
Bhoruka Cogen Power Private Limited
Bhoruka Park Private Limited
Bhoruka Power Corporation Limited
Bhoruka Power Investments India Private Limited
Bhoruka Steel And Services Limited
Bhuruka Gases Investments India Private Limited
Bhuruka Gases Limited
Crest Construction Private Limited
Edutech Nttf India Private Limited
Fish-N-Chips Hotels Private Limited
Gove Finance Limited
Hotel Pearls Private Limited
Indian Electrical And Electronics Manufacturers Association
Janaadhar (India) Private Limited
Jubilant Life Sciences Limited
Karnataka Coffee Brokers Private Limited
Keasirobicon Industrial Systems Private Limited
Kirloskar Power Build Gears Limited
Lakshmi Ring Travellers (Coimbatore) Limited Enterprises which are related parties as per section
Mitsubishi Heavy Industries-Vst Diesel Engines Private Limited 2(76) of the Companies Act, 2013. (âOthers-Aâ)
MRF Limited
NCL Industries Ltd
Nettur Technical Training Foundation
Parinaam Foundation
Pearls Estates Private Limited
Pepper Ridge Bio-Solutions Llp
Pharmed Limited
Pinnae Feeds Limited
Prabhu Structures Holdings Private Limited
Prabhu Structures Investment India Private Limited
Quippo Infrastructure Equipment Limited
Reliance Industries Limited
Servion T Global Solutions Limited
Shahapur Power Limited
Sporturf Construction (India) Private Limited
Sundaram -Clayton Limited
TCI Industries Limited
Teleradiology Solutions Private Limited
The Waterbase Limited
V P Mahendra Brothers Investments Private Limited
V.S.T. & Sons Private Limited
V.S.T.Auto Ancilleries Private Limited
V.S.T.Auto Parts Private Limited
V.S.T.Motors Private Limited
VST Holdings Private Limited
VST Tillers Tractors Limited
Lakshmanan Isola Private Limited (up to November 5, 2015)
KEC North America Inc has been dissolved. The investments in and dues from the said company have not been written off, pending receipt of approvals from Reserve Bank of India. However, full provision has been made for the same. Since the said company has been dissolved, the same has not been considered for related party disclosures.
7 Note 46 of the financial statements: OPERATING LEASE:
The Company has various operating leases for office facilities, guest house and residential premises of employees that are renewable on a periodic basis, and cancelable at its option. Rental expenses for operating leases included in the financial statements for the year are Rs, 345.22 Lakhs (Previous Year Rs, 380.14 Lakhs).
8 Note 47 of the financial statements:
The Company has made provisions towards wage arrears, warranty claims from the customers towards sales, short term compensated absences, stamp duty payable and contingencies. Details of the same areas under:
Foot Note:
Provision in respect of wage settlement has been made on estimated basis and differences if any will be accounted on final settlement. Further as a matter of abundant caution an estimated provision has been made for contingencies as held in respect of ongoing litigations as detailed in note 23 and certain probable liability including in respect of customers.
9 Note 50 of the financial statements:
As reported in the previous year Lloyd Dynamowerke GmbH & Co. KG, Germany (LDW), a step down subsidiary of the Company, incurred substantial losses in earlier years, thereby eroding its net worth and consequent to the actions of local directors of LDW, insolvency administrator was appointed by the court in Germany during the preceding year. The Company has been given to understand that a South Korean company acquired all significant assets, patents, estates, orders and employees of LDW. However, relevant details of the consideration for this transfer and all other relevant information are not available with the Company, in spite of its best efforts. The Company has already filed its claim for an approximate value of Euro 3.52 million in respect of outstanding towards supplies made to LDW including dues of Kirsons B V (immediate holding company of LDW). The Company has also appointed a local legal counsel to represent its interest and has filed certain claims. The legal proceedings are in progress in Germany. However the Company does not expect any material impact on the financial statements due to the same.
10 Note 51 of the financial statements:
KTPL, SEHPL and STPPL, wholly owned subsidiaries of the Company have incurred losses during the year and a part/ whole of their net worth have been eroded. However having regard to the estimated fair value of the assets which these Companies hold, the diminution in value has been considered as temporary and no provision has been recognized in the financial statements.
11 Note 52 of the financial statements:
a) As a measure of restructuring and with the consent of the lending banks under the Joint Lender Forum (JLF) mechanism, the Company had transferred in the preceding year certain assets comprising of immovable properties, receivables and inventory to KTPL, STPPL and SEPL, which will function as special purpose vehicles to hold such assets, dispose of the same and pay off certain debts transferred / to be transferred by the Company. The amounts outstanding and due from the said subsidiaries as at March 31, 2016 in respect of the transfer of the assets as mentioned above totally amount to Rs, 14,950.73 lakhs (previous year Rs, 18,452.51 Lakhs). These subsidiaries are taking active steps to repay the dues of the Company, from collection of debts assigned and from disposal of assets transferred apart from debts transferred / to be transferred as referred above. These subsidiaries have been sanctioned credit facilities to an aggregate extent of Rs, 500 lakhs (net of amounts drawn). The board of directors of the Company are confident of recovery of the entire amounts due from the said subsidiaries.
b) The sale of the immovable properties referred above shall be carried out under the supervision of the Asset Sale Committee. The Lenders shall constitute the Asset Sale Committee.
12 Note 53 of the financial statements:
The net worth of the group in terms of the CFS presented consisting of the Company, its subsidiaries and its associate is eroded. The Company and its components have initiated several measures like identification and active steps being taken for disposal of non-core assets, arrangement under JLF mechanism for restructuring of dues to banks, sanction of further non fund based limits by banks, infusion of capital by the promoters, rationalization of operation, introduction of value added products push for sales, optimization in product mix and enhanced contribution, proposed capital raising plans etc. Accordingly, your directors have prepared the financial statements of the Company on the basis that it is a going concern and that no adjustments are considered necessary to the carrying value of assets and liabilities.
13 Note 54 of the financial statements:
The Company has filed before the honorable Supreme Court, special leave petition in respect of resale tax and sales tax penalty of Rs, 527 lakhs and Rs, 362 lakhs respectively, on its erstwhile subsidiary Kaytee Switchgear Limited (since merged with the Company) and confirmed by the honorable High Court of Karnataka. The Company believes based on legal advice / internal assessment that the outcome of these contingencies will be favorable, that losses are not probable and no provision is required to be recognized in this respect.
14 Note 55 of the financial statements:
The Company during the previous year restructured its loans under Joint Lenders Forum mechanism (âJLFâ). As per the JLF, interest on cash credit accounts for the period October 2014 to September 2015 and on working capital demand loan from October 2014 to March 2016 would be converted into Funded Interest Term Loan. Consequently the joint deed and
other documentation was duly completed as permitted in the extant guidelines of the JLF mechanism. A Master Restructuring Agreement (âMRAâ) has been entered by the Company and its Lenders, Bank of India, being the lead bank on June 30, 2015. In pursuance of the MRA the Company has executed other supplementary agreements including Trust and Retention Agreement (âTRAâ). The agreements contain various terms and conditions in respect of the facilities sanctioned to the Company including setting up and reporting to the Monitoring Committee. The lenders shall have the right to convert at its option the whole of the outstanding amount of the facilities and / or part thereof into fully paid up equity shares of the Company in the manner specified in the notice in writing to be given by the Lenders to the Company (âNotice of Conversionâ) prior to the date on which the conversion is to take effect, which date shall be specified in the notice (âDate of Conversionâ). The said shares shall rank parri-passu with the existing equity shares of the Company.
15 Note 56 of the financial statements:
The Income Tax Act, 1961 contains provisions for determination of armâs length price for international transactions between the Company and its associated enterprises. The regulations envisage taxation of transactions which are not in consonance with the arms length price so determined, maintenance of prescribed documents and information including furnishing of a report from an accountant before the due date for filing the return of income. For the year ended March 31, 2016, the Company is in the process of complying with the said regulations. Management believes that such transactions have been concluded on an armâs length basis and there would be no additional tax liability for the financial year under consideration as a result of such transactions.
16 Note 57 of the financial statements:
Previous yearâs figures have been regrouped wherever required in conformity with current year presentation. Figures in brackets relates to previous year.
Mar 31, 2015
1.Note 35 of the financial statements:
(a) The order of the honorable High court of Karnataka according
approval for the scheme of arrangement and amalgamation under sections
391 to 394 of the Companies Act, 1956 ("Scheme") was received in
September 2008 with April 1,2007 as the appointed date. This scheme of
arrangement and amalgamation interalia involved transfer of the
operating business of Kirloskar Power Equipment Limited ("KPEL") and
amalgamation of Kaytee Switchgear Limited ("KSL") with the Company. The
Scheme was registered with the Registrar of Companies on October 17,
2008.
(b) Decree in Form 42 of the Companies (Court) Rules, 1949 is yet to be
passed by the honorable High Court of Karnataka.
(c) Some of the assets and liabilities so transferred to the Company
are continuing in the name of the respective companies. Necessary
action is being taken by the Company.
2. Note 37 of the financial statements:
Confirmation of balances from parties with whom the Company had
transactions are awaited in certain cases. Accounts with certain
parties are under review and reconciliation. Adjustments if any, will
be made on completion of review/reconciliation. In the assessment of
the management, effect on revenue is not expected to be material.
3. Note 38 of the financial statements:
The customers of the Company had deducted liquidated damages and other
charges for delays in delivery of goods as compared to contractual
obligations. The Company has made representations to such customers
explaining reasons for delays as well as impress upon them that the
same were caused by various factors including those not attributable to
it and as such being beyond its control. The Company had made necessary
provision on an overall assessment of the likely loss where in its
opinion waiver is not likely. The Company is confident that its
representations will be accepted by customers and liquidated damages
and other charges deducted will be waived. Impact, if any, on the
financial statements will not be material.
4. Note 39 of the financial statements:
The Company has implemented SAP ECC 6 systems at its units. Certain
mistakes and omissions noticed in the inventory records have been
corrected to the extent identified based on physical inventory taken
from time to time. The Company has made significant progress in
stabilization of the systems, cleansing data and bringing the valuation
in line with accounting standard 2 . The management has also formed a
task force for liquidation of slow/non moving inventories. The Company
is in the process of quantifying the differences adjusted/to be
adjusted in the books of account on a comprehensive basis. Any further
adjustments required to the financial statements is not expected to be
material.
5. Note 40 of the financial statements:
Machinery purchased in prior years but currently held for sale for the
past several years have been recognized at realizable value estimated
by the management. Such value is consistent with quotations received
from prospective buyers and anticipated shortfall in readability has
been provided for in the books of accounts.
6. Note 42 of the financial statements:
During a previous year, the shareholders of the Company at the Annual
General Meeting held on September 30, 2013 have approved an Employee
Stock Option Scheme. However, the Company had not issued any options as
at March 31, 2015 and accordingly, recognition of expense in this
respect and requisite disclosures are not applicable.
7. Notes 43 of the financial statements:
DISCLOSURES AS PER ACCOUNTING STANDARD 15 "EMPLOYEE BENEFITS":
8. Note 44 of the financial statements: SEGMENT REPORTING:
The Company has not furnished segment report since same has been
furnished in the Consolidated financial statements, as referred to para
4 of accounting standard 17 issued by Central Government
9. Note 45 of the financial statements: Related party transactions:
KEC North America Inc has been dissolved. The investments in and dues
from the said company have not been written off, pending receipt of
approvals from Reserve Bank of India. However, full provision has been
made for the same. Since the said company has been dissolved, the same
has not been considered for related party disclosures.
10. Note 46 of the financial statements:
FINANCE LEASE:
Finance lease arrangements relate to Plant & Machinery. The lease
period is for five years with interest rates ranging from 13% to 14%per
annum. The Company pays fixed lease rentals over the period of the
lease whereby the net present value of the minimum lease payments
amount substantially to the cost of the assets.
11. Note 47 of the financial statements:
OPERATING LEASE:
The Company has various operating leases for office facilities,
guesthouse and residential premises of employees that are renewable on
a periodic basis, and cancelable at its option. Rental expenses for
operating leases included in the financial statements for the year are
Rs.380.14 Lakhs (Previous Year Rs.291.66 Lakhs).
12. Note 48 of the financial statements:
The Company has made provisions towards wage arrears, warranty claims
from the customers towards sales, short term compensated absences,
stamp duty payable and contingencies. Details of the same are as under:
Foot Note:
Provision in respect of wage settlement has been made on estimated
basis and differences if any will be accounted on final settlement.
Further as a matter of abundant caution an estimated provision as been
made for contingencies as held in respect of ongoing litigations as
detailed in note 23 and certain probable liability.
13. Note 50 of the financial statements:
During the year under review, the Company promoted the following wholly
owned subsidiaries: KELBUZZ Trading Private Limited ("KTPL"), SLPKG
Estates Holdings Private Limited ("SEHPL"), SKG Terra Promenade Private
Limited ("STPPL"), Luxguisite Parkland Private Limited ("LPPL").
14. Note 51 of the financial statements:
Lloyd Dynamo work GmbH & Co. KG, Germany (LDW), a step down subsidiary
of the Company, incurred substantial losses during the previous two
years, thereby eroding its net worth. The local directors of LDW filed
a preliminary insolvency petition on
September8,2014andonSeptember9,2014 preliminary insolvency was declared
and preliminary insolvency administrator was appointed by the court in
Germany.
15. Note 52 of the financial statements:
The Company has been given to understand that a South Korean company
acquired all significant assets, patents, estates, orders and employees
of LDW. However, relevant details of the consideration for this
transfer and all other relevant information are not available with the
Company, in spite of its best efforts. The Company has already filed
its claim for an approximate value of Euro 3.52 million in respect of
outstanding towards supplies made to LDW including dues of Kirsons B V
(immediate holding company of LDW). The Company has also appointed a
local legal counsel to represent its interest, prepare a case for
recovering damages and file a case against the lenders of LDW and few
other parties.
16. Note 53 of the financial statements:
The Company, after obtaining necessary approvals from its members has
transferred its investments in Kirsons BV to LPPL at a consideration of
Rs.6,063 lakhs (fair value assessed by a firm of Chartered Accountants
appointed by the Company). The resultant loss of Rs.16,384.17 lakhs has
been recognized in the statement of profit and loss, as an exceptional
item.
17. Note 54 of the financial statements:
a) As a measure of restructuring and with the consent of the lending
banks under the Joint Lender Forum (JLF) mechanism, the Company has
transferred certain assets comprising of immovable properties,
receivables and inventory to KTPL, STPPL and SEHPL, which will function
as special purpose vehicles to hold such assets, dispose off the same
and pay off certain debts transferred / to be transferred by the
Company. The assets transferred are as detailed below: i) Assignment of
book debts of Rs.4,759.69 lakhs , sale of certain materials of Rs.45.68
lakhs and sale of certain immovable properties of Rs.5,088 lakhs, to
KTPL. ii) Assignment of books debts of Rs.4,300.07 lakhs and sale of
certain immovable properties of Rs.5,518 lakhs, to SEHPL and iii) Sale
of certain immovable properties amounting to Rs.3,450 lakhs to STPPL.
The fair value of all the properties have been assessed by chartered
engineers appointed by the Company.
b) The above transactions between the Company and its wholly owned
subsidiaries in respect of transfer of immoveable properties are
subject to the approval of the members by way of special resolutions in
terms of section 188 of the Companies Act, 2013, rule 15 (2) of the
Companies (Meetings of Boards and its Powers), Rules, 2014 and other
applicable provisions, if any. Further as a matter of abundant
precaution the Company is taking steps to get the approval of the
members by way of special resolution as referred above in respect of
transfer of assignment of debts to its wholly owned subsidiaries.
c) The deeds conveyance immovable properties referred to earlier were
executed before March 31, 2015 in respect of which, payment of stamp
duty, registration charges and registration with the concerned Sub
Registrars are pending for the properties valued at Rs 13,652.45 lakhs.
The Company has been advised that these properties have already vested
in the relevant subsidiaries on the date of execution of the concerned
deeds, even though payment of stamp duty and registration will be done
subsequently. Necessary provision has been recognized in the financial
statements wherever applicable to the extent registration charges and
stamp duty is payable by the Company.
d) The amounts outstanding and due from the said subsidiaries as at
March 31, 2015 in respect of the transfer of the assets as mentioned in
para 6(a) and 6(b) are KTPL Rs 5,838.48 lakhs, SEHPL Rs 9,305.49 lakhs
and STPPL Rs 3,450 lakhs.
These subsidiaries are taking active steps to repay the dues of the
Company, from collection of debts assigned and from disposal of assets
transferred apart from debts transferred /to be transferred as referred
above. These subsidiaries have been sanctioned credit facilities to an
aggregate extent of Rs. 51.33 crores (net of amounts drawn).
The board of directors of the Company are confident of recovery of the
entire amounts due from the said subsidiaries and accordingly the
resultant profit from transfer of said assets to them aggregating to
Rs. 14,001 lacs has been recognized in the Statement of Profit and Loss
as exceptional income.
18. Note 55 of the financial statements:
The net worth of the group in terms of the Consolidated financial
statements presented consisting of the Company, its subsidiaries and
its associate is eroded. The Company and its components have initiated
several measures like identification and active steps being taken for
disposal of non-core assets, arrangement under JLF mechanism for
restructuring of dues to banks, sanction of further non fund based
limits by banks, infusion of capital by the promoters, rationalization
of operation, introduction of value added products push for sales,
optimization in product mix and enhanced contribution, proposed capital
raising plans etc. Accordingly, your directors have prepared the
financial statements of the Company on the basis that it is a going
concern and that no adjustments are considered necessary to the
carrying value of assets and liabilities.
19. Note 56 of the financial statements:
The Company has recognized the charge for depreciation adopting the
useful life of its fixed assets other than plant and machinery/tools as
prescribed in schedule II of the Companies Act, 2013. However, the
charge for depreciation on plant and machinery/tools has been based on
the re-evaluated useful life technically assessed which are different
from the useful life prescribed in schedule 11 of the said Act. Had the
company continued with the rates of depreciation adopted till March
31,2014, the charge for depreciation and loss for the year ended March
31, 2015 would have been higher by Rs. 87.79 lakhs. Further, based on
transitional provisions provided in clause 7(b) of schedule II of the
Companies Act, 2013, an amount of Rs. 68.87 lakhs representing the
carrying value of those assets whose residual useful life is over, has
been charged to the retained earnings as at April 1,2014.
20. Note 57 of the financial statements:
The company has filed before the honorable Supreme Court, special
leave petition in respect of resale tax and sales tax penalty of Rs.
527 lakhs and Rs. 362 lakhs respectively, on its erstwhile subsidiary
Kaytee Switchgear Limited (since merged with the company) and confirmed
by the honorable High Court of Karnataka. The company believes based
on legal advice / internal assessment that the outcome of this
contingencies will be favorable, that losses are not probable and no
provision is required to be recognized in this respect.
21. Note 58 of the financial statements:
The Income Tax Act, 1961 contains provisions for determination of arm's
length price for international transactions between the Company and its
associated enterprises as well as in respect of certain specified
domestic transactions. The regulations envisage taxation of
transactions which are not in consonance with the arms length price so
determined, maintenance of prescribed documents and information
including furnishing of a report from an accountant before the due date
for filing the return of income. For the year ended March 31, 2015, the
Company is in the process of complying with the said regulations.
Management believes that such transactions have been concluded on an
arm's length basis and there would be no additional tax liability for
the financial year under consideration as a result of such
transactions.
22. Note 59 of the financial statements:
Previous year's figures have been regrouped wherever required in
conformity with current year presentation. Figures in brackets relates
to previous year.
Mar 31, 2014
1. BACKGROUND:
Kirloskar Electric Company Limited ("the Company") was incorporated
in the year 1946 and is a company engaged in the manufacture and sale
of electric motors, alternators, generators, transformers, switchgear,
DG sets etc.
2. Contingent liabilities and commitments: (Note 23 of the financial
statement) (to the extent not provided for)
a) Contingent liabilities: (Rs.in Lakhs)
Sl. Particulars As at As at
No. March 31,2014 March 31,
2013
i) Claims against the Company not
acknowledged as debts 1 367 78 2 684 82
ii) Guarantees 4,324.93 4,973.74
i) Letters of credit 5,634.68 7,026 65
iv) Bills discounted with bank 1,864.81 1,882.36
v) Penal damages levied by the Regional
Provident Fund commissioner.
During the year High Nil 91.54
Court of Karnataka, Bangalore has quashed the demand and referred the
matter to the original authority. An amount of Rs.46.18 lakhs paid has
been included in disputed statutory due.
vi) Central excise and customs authorities have issued notices and
raised certain demands, which 338.62 226.60 are pending in appeal
before various authorities, not acknowledged as debt by the Company.
vii) Sales tax demanded under appeal. The Company has paid an aggregate
amount of Rs.432.56 1 946 03 1 795 00 lakhs (as at March 31,2013
Rs.420.66 lakhs) against the demand which has been included in , .
disputed statutory dues.
viii) The Company has filed before the honorable Supreme Court, special
leave petitions inrespect 889.00 889.00 of resale tax and sales tax
penalty of Rs. 527 lakhs and Rs. 362 Lakhs respectively, on its
erstwhile subsidiary Kaytee Switchgear Limited (since merged with the
Company)and confirmed by the honorable High Court of Karnataka. The
Company believes based on legal advice / internal assessment that the
outcome of these contingencies will be favorable, that losses are not
probable and no provision is required to be recognized in this respect.
The Company has paid an aggregate amount of Rs.530.13 lakhs (as at
March 31,2013 Rs.510.13 lakhs) against the demand which has been
included in disputed statutory dues.
ix) Show cause notices raised by the Income Tax Department for short
and non remittances of tax deduction at source - matter under
examination. 10.22 45.99
x) Sales tax liabilities in respect of pending assessments - C forms
have not been received from Not Not several customers. Continuing
efforts are being made to obtain them. Significant progress has
Ascertainable Ascertainable been made in the matter as compared to the
previous year.
xi) Interest if any, on account of delays in payment to suppliers.
Ascertainable Ascertainable
xii) Certain industrial disputes are pending before various judicial
authorities - not acknowledged Not Not
by the Company. Ascertainable Ascertainable
xiii) Wage settlement of certain units have expired. However provision
has been made on estimated Not Not
basis and differences if any will
be accounted on final Settlement. Ascertainable Ascertainable
xiv) Income tax demands under appeal. The Company has paid an amount
of Rs.48.82 lakhs as at 31 March 2014 (as at March 31,2013 Rs.48.82
lakhs) against the demand which has been 398.13 64.38 included in
advance payment of tax.
xv) Guarantee given to ICICI Bank in consideration of stand by letter
of credit opened by them in favor of ICICI Bank,Canada as security for
loan granted issued by them to Kirsons BV. SBLC 1,399.70 3,573.65 is
secured by mortgage of certain immovable properties of the company and
shares of Kiirsons BV
xvi) The Company had furnished a guarantee for the redemption of
preference shares issued by Kirloskar Investment and Finance Ltd to an
extent of Rs. 200 lakhs (as at March 31, 2012 Rs. 200 lakhs) and had
obtained counter guarantee from the said Company. The preference
shareholder has claimed a sum of Rs.200 lakhs along with dividends in
arrears of Rs.205.60 405.60 405.60 lakhs and interest from the Company.
This claim has been upheld by the Debt Recovery Tribunal (DRT). The
Company has preferred an appeal before the Debt Recovery Appellate
Tribunal (DRAT) to set aside the orders passed by the DRT. The DRAT
directed to deposit sum of Rs.128 lakhs for further hearing the matter.
On waiver of the conditions of depositing any amount, against the
company, Company has filed a writ before Honorable High court of
Karnataka. The Company does not acknowledge this liability.
xvii) Arrears of fixed cumulative dividends on preference shares
(including tax thereon) 1,162.49 1,162.49
3. Note 35 of the financial statements:
(a) The order of the honorable High court of Karnataka according
approval for the scheme of arrangement and amalgamation under sections
391 to 394 of the Companies Act, 1956 ("Scheme") was received in
September 2008 with April 1, 2007 as the appointed date. This scheme of
arrangement and amalgamation interalia involved transfer of the
operating business of Kirloskar Power Equipments Limited ("KPEL")
and amalgamation of Kaytee Switchgear Limited ("KSL") with the
Company. The Scheme was registered with the Registrar of Companies on
October 17, 2008.
(b) Decree in Form 42 of the Companies (Court) Rules, 1949 is yet to be
passed by the honorable High Court of Karnataka, pending payment of
stamp duty assessed by the appropriate authority as directed by the
honorable High Court of Karnataka.
(c) Some of the assets and liabilities so transferred to the Company
are continuing in the name of the respective companies. Necessary
action is being taken by the Company.
4. Note 37 of the financial statements:
Confirmation of balances from parties with whom the Company had
transactions are awaited in certain cases. Accounts with certain
parties are under review and reconciliation. Adjustments will be made
on completion of review/ reconciliation. In the assessment of the
management, effect on revenue is not expected to be material.
5. Note 38 of the financial statements:
The customers of the Company have deducted liquidated damages and other
charges for delays in delivery of goods as compared to contractual
obligations. The Company has made/will make representations to such
customers explaining reasons for delays as well as impress upon them
that the same were caused by various factors including those not
attributable to it and as such being beyond its control. The Company
has made necessary provision on an overeall assessment of the likely
loss where in its opinion waiver is not likely. The Company is
confident that its representations will be accepted by customers and
liquidated damages and other charges deducted will be waived. Impact,
if any, on the financial statements will not be material.
6. Note 39 of the financial statements:
The Company has implemented SAP ECC 6 systems at its units. Certain
mistakes and omissions noticed in the inventory records have been
corrected to the extent identified based on physical inventory taken
from time to time. The Company has made significant progress in
stabilization of the systems, cleansing data and bringing the valuation
in line with accounting standard 2 . The management has also formed a
task force for liquidation of slow/non moving inventories. The Company
is in the process of quantifying the differences adjusted / to be
adjusted in the books of account as a comprahensive basis. Any further
adjustments required to the financial statements is not expected to be
material.
7. Note 40 of the financial statements:
Machinery purchased in prior years but currently held for sale for the
past several years have been recognized at realizable value estimated
by the management. Such value is consistent with quotations received
from prospective buyers.
8. Note 41 of the financial statements:
Current assets, loans and advances include Rs.241.11 Lakhs (as at March
31,2013 Rs.243.32Lakhs) being rescheduled advances from certain
companies in which certain key managerial personnel are interested. The
Company is confident that these companies will fulfill their
obligations and has considered these amounts as good of recovery.
9. Note 42 of the financial statements:
During the previous year, the shareholders of the Company at the Annual
General Meeting held on September 30, 2013 have approved an Employee
Stock Option Scheme. However, the Company had not issued any options as
at March 31, 2014 and accordingly, no recognition of expense in this
respect and requisite disclosures have been made/ furnished.
10. Note 44 of the financial statements:
SEGMENT REPORTING:
(i) The Company has identified the reportable segments as Power
Generation & Distribution, Rotating machine group and others taking
into account the nature of products and services, the different risks
and returns and the internal reporting systems. The accounting policies
for segment reporting are in line with the accounting policies followed
by the Company.
RELATED PARTY TRANSACTIONS;
(a) List of related parties:
Sl.
No. Name of the Related Party Relationship
1. Kirsons B V Wholly Owned Subsidiary
2. Lloyd Dynamowerke GmbH & Co.
KG Step down subsidiary
Lloyd Beteiligungs GmbH
3. Mr. Vijay R Kirloskar Key Management Personnel and
Mrs. Meena Kirloskar their relatives ("KMP")
Ms. Janaki Kirloskar
Ms. Rukmini Kirloskar
Mr. Anuj Pattanaik (Upto February 28, 2013)
Mr. Alok Kumar Gupta (from March 15, 2013)
4. Kirloskar (Malaysia) Sdn. Bhd Associates
Electrical Machines Industries (Bahrain) W.L.L
5. Kirloskar Batteries Private
Limited Enterprises over which key
Kirloskar Power Equipments
Limited management personnel
Ravindu Motors Private Limited and their relatives are able
Vijay Farms Private Limited to exercise significant
Kirloskar Electric Charitable
Trust influence ("Others")
Sri Vijaydurga Investments and Agencies Private Limited
Vijayjyothi Investment and Agencies Private Limited
Abhiman Trading Company Private Limited
Vimraj Investment Private Limited
Vijay Kirthi Investment and Agencies Private Limited
Kirloskar Software Services
KEC Executives & Others Officers Welfare Trust
KEC Officers & Engineers Welfare Trust
KEC Vice Presidents Welfare Trust
KEC Engineers of Mysore Unit Welfare Trust
11. Note 47 of the financial statements:
OPERATING LEASE:
The Company has various operating leases for office facilities, guest
house and residential premises of employees that are renewable on a
periodic basis, and cancelable at its option. Rental expenses for
operating leases included in the financial statements for the year are
Rs.299.66 Lakhs (Previous Year Rs.636.73 Lakhs).
12. Note 49 of the financial statements:
(a) The Company has entered into forward contracts which were
outstanding as at March 31, 2014 for Nil (as at March 31, 2013: $
1,136,045) to hedge certain trade payables.
13. Note 50 of the financial statements:
LDW has incurred substantial losses for the current and immediate
previous years, thereby eroding its networth. However, LDW has
sufficient orders in hand and is confident of earning profits in the
subsequent years. The Company has formulated a turn around strategy for
the said company, which has been progressing well. The diminution in
the carrying value of the investments held by the Company in Kirsons BV
(immediate holding company of LDW) is considered temporary and no
provision is considered necessary. The Company had obtained an
independent valuation report in August 2013 in terms of which the
carrying value as at March 31, 2014 is less than the fair value
assessed by the valuer.
14. Note 50 of the financial statements:
The Income Tax Act, 1961 contains provisions for determination of arm''s
length price for international transactions between the Company and its
associated enterprises as well as in respect of certain specified
domestic transactions. The regulations envisage taxation of
transactions which are not in consonance with the arms length price so
determined, maintenance of prescribed documents and information
including furnishing of a report from an accountant before the due date
for filing the return of income. For the year ended March 31, 2014, the
Company is in the process of complying with the said regulations.
Management believes that such transactions have been concluded on an
arm''s length basis and there would be no additional tax liability for
the financial year under consideration as a result of such
transactions.
15. Previous year''s figures have been regrouped wherever required in
conformity with current year presentation. Figures in brackets relates
to previous year.
Mar 31, 2013
1 BACKGROUND:
Kirloskar Electric Company Limited ("the Company") was incorporated in
1946 and is a company engaged in the manufacture and selling of
electric motors, alternators, generators, transformers, switchgear, DG
sets etc.
2. (a) The order of the honorable High court of Karnataka according
approval for the scheme of arrangement and amalgamation under sections
391 to 394 of the Companies Act, 1956 ("Scheme") was received in
September 2008 with April 1, 2007 as the appointed date. This scheme of
arrangement and amalgamation interalia involved transfer of the
operating business of Kirloskar Power Equipment Limited ("KPEL") and
amalgamation of Kaytee Switchgear Limited ("KSL") with the Company. The
Scheme was registered with the Registrar of Companies on October 17,
2008.
(b) Decree in Form 42 of the Companies (Court) Rules, 1949 is yet to be
passed by the honorable High Court of Karnataka, pending assessment and
payment of stamp duty. The Company has provisionally accounted for
stamp duty liability estimated at Rs.597.06, pending finalization of
the matter. Further adjustments, if any will be made as and when
correct assessment of stamp duty is made.
(c) Some of the assets & liabilities so transferred to the Company are
continuing in the name of the respective companies. Necessary action is
being taken by the Company.
3. The Company has preferred a suit for various claims against
Deutsche Bank, one of the members of the consortium of bankers for
breach of trust for withholding of monies belonging to the Company and
freezing sanctioned working capital limits.
4. (a) Confirmation of balances from trade receivables is awaited.
Review of certain trade receivables account and advance from
customer accounts is under progress and corrections have been carried
out to the extent mistakes were identified. Against aggregate trade
receivables outstanding as at March 31, 2013 for more than 2 years of Rs.
2,613.52 lakhs, the Company holds allowance for doubtful debts of Rs.
673.07 lakhs. Adjustments, if any will be made on completion of
review/reconciliation/ identification of further doubtful debts. In the
assessment of the management, effect on revenue is not expected to be
material.
(b) The Company has made significant progress in reconciling balances
relating to trade payables, other current liabilities and loans &
advances. However, confirmation of balances from few parties is awaited
and/or is under review/ reconciliation. In the assessment of the
management, effect on revenue is not expected to be material.
(c) Further, on completion of above review an amount of Rs. 614.73 lakhs
representing net difference in KSL and KPEL account has been written
off under bad trade receivables written off in note 31 of the financial
statements and an amount of Rs. 590 lakhs has been withdrawn and shown
under unclaimed credit balances written back and reported under note 25
of the financial statements.
5. The Company has implemented SAP ECC 6 systems at its units.
Certain mistakes and omissions noticed in the inventory records have
been corrected to the extent identified based on physical inventory
taken from time to time. Further, work in progress at certain units
with aggregate carrying value of Rs. 5,658.81 lakhs as at March 31, 2013
includes non moving/old inventories in respect of which physical
identification/ reconciliation/assessment of net realizable value is
under progress. Further, the procedures for determination of cost or
net realizable value in respect of work in progress is to be
streamlined to bring the same in line with Accounting Standard (AS) - 2
as referred to in section 211 (3) (C) of the Companies Act, 1956.
Management is taking continuing steps to cleanse data, stabilize
systems, identify all old/ non moving materials and refine the
procedures for determination of cost or net realizable value of work in
progress in line with AS - 2. In the assessment of the management,
impact on revenue for the year is not expected to be material.
6. (a) During the year, the Company has implemented SAP ECC 6 systems
software in certain units. Inventory at these units as at March 31,
2013 have been based on moving weighted average and labour/ overheads
absorption methods configured in the said system as against other cost
basis used in the previous year. Effect of such change on the revenue
for the year is not ascertained.
(b) Depreciation on additions has been calculated on monthly prorata
basis instead of quarterly basis, in certain units where SAP ECC 6
system has been implemented. Effect of such change on the revenue for
the year is not ascertained.
7. Assets held for sale have been recognized at realizable value
estimated by the management. No external valuation or quotations from
prospective buyers have been obtained.
8. Current Assets, Loans & Advances include Rs. 243.32 (as at March 31,
2012 Rs. 431.93) being rescheduled advances from certain companies in
which certain key managerial personnel are interested. The Company is
confident that these companies will fulfill their obligations and has
considered these amounts as good of recovery. * Includes Purchases of
goods/ services from Kirloskar Batteries Private Limited Rs. Nil
(Previous year Rs. 51.75), Vijay Farms Private Limited Rs. 77.30 (Previous
year Rs. 70.58), Sri Vijayadurga Investments and Agencies Private Limited
Rs. 109.30 (Previous year Rs. 143.29), Vijayjyothi Investments and Agencies
Private Limited Rs. 1.69 (Previous year Rs. 2.73), Ravindu Motors Private
Limited Rs. 1.30 (Previous year Rs. 0.97), Vijaykirti Investments Private
Limited Rs. 0.48 (Previous year Rs. 1.20), Abhiman Trading Company Private
Limited Rs. 70.60 (Previous year Rs. 60.65) and Kirloskar Electric
Charitable Trust Rs. 5.74 (Previous year Rs. 13.98).
* Represents transaction with Kirloskar (Malaysia) Sdn. Bhd.
* Includes sales to Kirloskar Power Equipments Limited Rs. 5.77 (Previous
year Rs. 2.55) and Kirloskar Electric Charitable Trust Rs. Nil (Previous
year Rs. 0.08).
## Includes rent paid to Kirloskar Power Equipments Limited Rs. 251.00
(Previous year Rs. 240.00) and Vijayjyothi Investments and Agencies
Private Limited Rs. 156.00 (Previous year Rs. 156.00).
Investments in Kirloskar Power Equipments Limited Rs. 28.17(as at
March 31, 2012 Rs. 28.17)
! Includes due from Kirloskar Power Equipments Limited Rs. 450.59 (as at
March 31, 2012 Rs. 432.34), Vijay Farms Private Limited Rs. 181.87 (as at
March 31, 2012 Rs. 181.90), Vijayjyothi Investments and Agencies Private
Limited Rs. 111.51 (as at March 31, 2012 Rs. 111.34), Abhiman Trading
Company Private Limited Rs. 69.05 (as at March 31, 2012 Rs. 69.05),
Vijayadurga Investments and Agencies Private Limited Rs. 31.88 (as at
March 31, 2012 Rs. 29.26), Kirloskar Batteries Private Limited Rs. 5.46 (as
at March 31, 2012 Rs. 218.77) and Ravindu Motors Private Limited Rs. 2.11
(as at March 31, 2012 Rs. 4.79).
$$ includes amount due to Kirloskar Batteries Private Limited Rs. 25.89
(as at March 31, 2012 Rs. 14.36), Kirloskar Electric Charitable Trust Rs.
0.57 (as at March 31, 2012 Rs. 1.76), Kirloskar Power Equipments Limited
Rs. 113.95 (as at March 31, 2012 Rs. 124.20), Vijay Farms Private Limited Rs.
11.12 (as at March 31, 2012 Rs. 8.51), Vijayjyothi Investments and
Agencies Private Limited Rs. 79.84 (as at March 31, 2012 Rs. 13.06),
Abhiman Trading Company Private Limited Rs. 18.64 (as at March 31, 2012 Rs.
28.25), Vijaydurga Investments and Agencies Private Limited Rs. 9.72 (as
at March 31, 2012 Rs. 15.93) and Vijaykirti Investments and Agencies
Private Limited Rs. Nil (as at March 31, 2012 Rs. 0.12).
$$$ Includes expenses incurred in connection of acquisition of
subsidiary Rs. 909.13.
AAA Includes paid to Vijay R Kirloskar Rs. 180.79 (Previous year Rs.
208.00), Anuj Pattanaik Rs. 108.66 (Previous year Rs. 129.24), Alok Kumar
Gupta Rs. 4.54 (Previous year Rs. Nil), but does not include accrued
gratuity, compensated absence (since liability has been recognized for
the Company as a whole) free use of company car and communication
facilities. Janaki Kirloskar Rs. 2.78 (Previous year Rs. 2.72) and Rukmini
Kirloskar Rs. 5.72 (Previous year Rs. 5.49), Meena Kirloskar (sitting fees)
Rs. 1.22 (Previous year Rs. 0.90).
** Represents deposits renewed from Meena Kirloskar Rs. 25 (Previous year
Rs. 25) and Rukmini Kirloskar Rs. 20 (Previous year Rs. 20)
*** Represents interest paid to Meena Kirloskar Rs. 2.87 (Previous year Rs.
2.88) and Rukmini Kirloskar Rs. 2.29 (Previous year Rs. 1.62)
@ Includes from KEC Executives & Other Officers Welfare Trust Rs. 10.00
(Previous year Rs. 10.00), KEC Officers & Engineers Welfare Trust Rs. 10.00
(Previous year Rs. 10.00), KEC Vice Presidents Welfare Trust Rs. 15.00
(Previous year Rs. 15.00) and KEC Engineers of Mysore Unit Welfare Trust
Rs. 5.00 (Previous year Rs. 5.00)
@@ Includes paid to KEC Executives & Other Officers Welfare Trust Rs.
1.15 (Previous year Rs. 0.95), KEC Officers & Engineers Welfare Trust Rs.
1.15 (Previous year Rs. 0.95), KEC Vice Presidents Welfare Trust Rs. 1.72
(Previous year Rs. 1.32) and KEC Engineers of Mysore Unit Welfare Trust Rs.
0.57 (Previous year Rs. 0.37)
£ Recast
9. FINANCE LEASES:
Finance lease arrangements relate to Plant & Machinery. The lease
period is for five years with interest rates ranging from 13% to 14%
per annum. The Company pays fixed lease rentals over the period of the
lease whereby the net present value of the minimum lease payments
amounts substantially to the cost of the assets.
10. The Company has various operating leases for office facilities,
guesthouse and residential premises of employees that are renewable on
a periodic basis, and cancelable at its option. Rental expenses for
operating leases included in the financial statements for the year are
f 636.73 (Previous Year f 656.06).
11. The Company has paid/provided as payable remuneration to the Joint
Managing Director amounting to Rs.4.54 lakhs for the period from March
15, 2013 to March 31, 2013. His appointment and remuneration so
paid/provided is subject to approval of the members of the Company at
the ensuing general meeting.
12. During the year, the Board of Directors of the Company has
approved an Employee Stock option scheme. However, the Company had not
issued any options as at March 31, 2013 and accordingly, no recognition
of expense in this respect and requisite disclosures have been made/
furnished.
13. LDW has incurred substantial losses for the year even though there
is a significant increase in its turnover. However, LDW has sufficient
orders in hand and is confident of earning profits in the subsequent
years. The diminution in the carrying value of the investments held by
the Company in Kirsons BV (immediate holding company of LDW) is
considered temporary and no provision is considered necessary.
14. The Income Tax Act, 1961 contains provisions for determination of
arm''s length price for international transactions between the Company
and its associated enterprises as well as in respect of certain
specified domestic transactions. The regulations envisage taxation of
transactions which are not in consonance with the arms length price so
determined, maintenance of prescribed documents and information
including furnishing of a report from an accountant before the due date
for filing the return of income. For the year ended March 31, 2013, the
Company is in the process of complying with the said regulations.
Management believes that such transactions have been concluded on an
arm''s length basis and there would be no additional tax liability for
the financial year under consideration as a result of such
transactions.
15. Previous year''s figures have been regrouped wherever required in
conformity with presentation this year. Figures in brackets relates to
previous year.
Mar 31, 2012
I. PREFERENCE SHARES:
a. The Company had issued cumulative preference shares of Rs 100/-
each. The preference shareholders did not have voting rights.
b. Nil (as at March 31, 2011: 4,00,000) preference shares carry a
cumulative dividend of 7% p.a. w.e.f October 1, 2001 payable
cumulatively out of the profits of the Company. The rate of dividend
can be increased to 9% p.a. by way of redemption premium subject to
profitability and cashflows of the Company. These shares have been
redeemed on November 9, 2011 without any premium.
c. Nil (as at March 31, 2011: 179,855) preference shares carry a
cumulative dividend of 6.5% & Nil (as at March 31, 2011: 1,93,737)
preference shares carry a cumulative dividend of 8%. These preference
shares have been redeemed on March 31, 2012.
d. 1,176,746 Preference shares (Value Rs 1,176.75 lakhs) were allotted
pursuant to a contract without consideration being received in cash.
These preference shareholders were alloted to preference share holders
of Kaytee Switchgear Limited as fully paid up pursuant to the Scheme of
arrangement apporved by the Honourable High Court of Karnataka under
sec 391 -394 of the Companies Act, 1956 without payment received in
cash.
1) Terms of repayment of term loans and others
a) Finance lease
Finance lease relate to Plant & Machinery taken for a period of five
years. Interest on such lease is ranging between 13% to 14% p.a.
Average equated monthly instalment is Rs.18.40 lakhs per month.
b) Car Loans:
Car loans are for a period of three to five years and interest rate is
ranging from 9% to 10% p.a. Average equated monthly instalment is about
Rs.2.52 lakhs per month
2) Unsecured Loans:
a) Fixed deposits are taken for a period of 24 and 36 months with
interest rates ranging from 11.5% to 13.5%
b) Term loan taken was with a interest rate of 12 % p.a repayable in 25
monthly instalments of Rs 1 crore each.
1 CONTINGENT LIABILITIES AND COMMITMENTS:
(to the extent not provided for)
(a) CONTINGENT LIABILITIES:
i) Claims against the Company not acknowledged
as debts. The Company has made counter 2,683.09 2,564.91
claim against one of the parties amounting
to Rs 129 (as at the end of the previous
reporting period Rs 129)
ii) Guarantees 5,617.58 3,724.29
iii) Letters of credit 3,026.35 8,685.00
iv) Bills discounted with Bank 2,030.72 2,615.12
v) Penal damages levied by the Regional
Provident Fund commissioner and subject to writ 91.54 91.54
before the High Court of Karnataka,
Bangalore. An amount of Rs 46.18 lakhs paid
has been included in loans and advances
vi) Central excise and customs authorities
have issued notices and raised certain demands, 183.52 62.09
which are pending in appeal before
various authorities, not acknowledged as
debt by the Company
vii) Sales tax demanded under appeal. The
Company has paid an aggregate amount of 2,237.80 2,121.94
Rs 701.94 lakhs against the demand which has
been included in Loans & advances
viii) Show cause notices raised by the
Income Tax Department for short
and non remittances 45.99 45.99
of tax deduction at source - matter
under examination
ix) Sales tax liabilities in respect of
pending assessments - C forms have not
been received Not Ascertainable Not
Ascertain
able
from several
customers. Continuing efforts are being
made to obtain them. Significant
progress has been made in the matter as
compared to the previous year.
x) Interest if any, on account of
delays in payment to suppliers. Not Ascertainable Not
Ascertain
able
xi) Sales tax on equipment procured
on hire/ lease and on computer
software charges is Not Ascertainable Not
Ascertain
able
contested by
the suppliers. Will be charged to
revenue in the year of final claim.
xii) Certain industrial disputes are
pending before various judicial
authorities - not acknowledged Not Ascertainable Not
Ascertain
able
by the Company
xiii) Wage settlement of certain
units have expired. However provision
has been made on Not Ascertainable Not
Ascertain
able
estimated basis and differences if
any will be accounted on final settlement
xiv) Income tax demands under appeal 174.98 93.07
xv) Guarantee given to ICICI Bank in
consideration of stand by letter of
credit opened by them 5,878.54 8,031.25
in favour of ICICI Bank,Canada as
security for loan granted issued by
them to Kirsons BV. SBLC is secured by
mortgage of certain immovable properties
of the company and shares of Kirsons BV
xvi) The Company had furnished a guarantee
for the redemption of preference shares issued 405.60 405.60
by Kirloskar Investment and Finance Ltd to
an extent of Rs 200 lakhs (as at the end of
the previous reporting period Rs 200 lakhs)
and had obtained counter guarantee from
the said Company. The preference shareholder
has claimed a sum of Rs 200 lakhs along with
dividends in arrears of Rs 205.60 lakhs and
interest from the Company. This claim has been
upheld by the Debt Recovery Tribunal (DRT). The
Company has preferred an appeal before the Debt
Recovery Appellate Tribunal to set aside the
orders passed by the DRT.
The Company does not acknowledge this liability.
xvii) Arrears of fixed cumulative dividends
on preference shares (including tax thereon) 1,154.82 1,071.74
In respect of items above, future cash outflows in respect of
contingent liabilities is determinable only on receipt of judgements
pending at various forums / settlement of matter. The management
believes, based on internal assessment and / or legal advice, that the
probability of an ultimate adverse decision and outflow of resources of
the Company is not probable and accordingly, no provision for the same
is considered necessary.
2. (a) The order of the Honourable High court of Karnataka according
approval for the scheme of arrangement and amalgamation under sections
391 to 394 of the Companies Act, 1956 ("Scheme") was received in
September 2008 with April 1, 2007 as the appointed date. This scheme of
arrangement and amalgamation interalia involved transfer of operating
business of Kirloskar Power Equipments Limited ("KPEL") and
amalgamation of Kaytee Switchgear Limited ("KSL") with the Company.
The Scheme was registered with the Registrar of Companies on October
17, 2008.
(b) Decree in Form 42 of the Companies (Court) Rules, 1949 is yet to be
passed by the Honourable High Court of Karnataka pending assessment and
payment of stamp duty. The Company has provisionally accounted for
stamp duty liability estimated at Rs 589.22 pending finalization of the
matter. Further adjustments to the accounts will be made as and when
correct assessment of stamp duty is made and settled.
(c) The assets & liabilities so transferred to the Company are
continuing in the name of the respective companies. Necessary action is
being taken by the company to obtain the consent/approvals of the
various regulatory authorities.
3. The Company has preferred a suit for various claims against
Deutsche Bank, one of the members of the consortium of bankers for
breach of trust for withholding of monies belonging to the company and
freezing sanctioned working capital limits.
4. (a) Confirmation of balances from sundry debtors, deposit
accounts, loans and advances, certain creditors etc have not been
obtained. Accounts of certain sundry debtors, loans and advances,
deposits, collector of customs and creditors, are under review and
reconciliation. Against aggregate debts outstanding as at March 31,
2012 for more than 2 years of Rs 2,911.29, the Company holds a provision
of Rs 525.05. Adjustments, if any will be made on completion of
review/reconciliation/ identification of further doubtful
debts/advances. Effect on revenue is not expected to be material.
(b) The Company is in process of reconciling the balances of the
Company, its erstwhile subsidiary KSL and the operating business of
KPEL. The net difference to the extent identified amounting to Rs
1,116.75 and Rs 561.14 has been included in Current assets and current
liabilities respectively. Necessary rectification entries will be
accounted after completion of the reconciliation. However, according to
the management this difference is not likely to materially affect the
operating results of the Company.
5. (a) The Company has implemented SAP ECC 6 systems at certain
units. Various mistakes and omissions noticed have been corrected based
on physical inventory taken from time to time. Continuing steps are
being taken to cleanse data and stabilize systems. The effect of
unrectified mistakes and omissions is not expected to be material.
(b) The Company has initiated steps to bring the valuation of
inventories in line with Accounting Standard - 2. However, the
processes followed for determination of cost and net realizable value
needs to be refined/improved to bring in line with the requirements of
the said standards. Continuing steps are being taken by the management
in this respect.
6. (a) During the year, the Company has implemented SAP ECC 6 systems
software in certain units. Inventory at these units as at March
31, 2012 have been based on moving weighted average and labour/
overheads absorption methods configured in the said system as against
other cost basis used in the Previous reporting Period. Effect of such
change on the revenue for the year is not ascertained.
(b) Depreciation on additions has been calculated on monthly prorata
basis instead of quarterly basis, in certain units where SAP ECC 6
system has been implemented. Effect of such change on the revenue for
the year is not ascertained.
7. Assets held for sale have been recognized at realizable value
estimated by the management. No external valuation or quotations from
prospective buyers have been obtained.
8. (a) Current Assets, Loans & Advances include Rs 431.93 (as at end
of Previous reporting Period Rs 236.92) being rescheduled advances from
certain other Companies.
(b) All the above companies have incurred losses and their net worth is
substantially eroded. Having regard to the long term association with
these companies and their revival plans as communicated to the Company
and other factors, these debts are considered good of recovery.
Defined Benefit Plan:
The employees' gratuity fund scheme managed by a trust is a defined
benefit plan. The Present value of obligation is determined based on
actuarial valuation using the projected unit credit method.
The estimates of rate of escalation in salary considered in actuarial
valuation, take into account inflation, seniority, promotion and other
relevant factors including supply and demand in the employment market.
The above information is as certified by the actuary.
9. SEGMENT REPORTING:
The Company has not furnished segment report since same has been
furnished in the Consolidated financial statements, as referred in para
4 of accounting standard 17 issued by Central Government.
KEC North America Inc has been dissolved. The investments in and dues
from the said company have not been written off, pending receipt of
approvals from Reserve Bank of India. However, full provision has been
made for the same. Since the said company has been dissolved, the same
has not been considered for related party disclosures.
* Includes Purchases of goods/ services from Kirloskar Batteries Pvt.
Ltd. Rs 51.75 (Previous reporting Period Rs 47.71), Vijay Farms Pvt. Ltd.
Rs 70.58 (Previous reporting Period Rs 63.71), Sri Vijaydurga Investments
and Agencies Pvt. Ltd. Rs 125.29 (Previous reporting Period Rs 86.46),
Vijay Jyothi Investments and Agencies Pvt. Ltd. Rs 2.73 (Previous
reporting Period Rs 2.84), Ravindu Motors Pvt. Ltd. Rs 0.97 (Previous
reporting Period Rs Nil), Vijay Kirthi Investments Pvt. Ltd. Rs 1.20
(Previous reporting Period Rs Nil), Abhiman Trading Company Pvt. Ltd. Rs
60.65 (Previous reporting Period Rs 35.41) and Kirloskar Electric
Charitable Trust Rs 13.98 (Previous reporting Period Rs Nil).
# Represents transaction with Kirloskar (Malaysia) Sdn Bhd.
A Includes sales to Kirloskar Power Equipment Limited Rs 2.55 (Previous
reporting Period Rs Nil), Kirloskar Electric Charitable Trust Rs 0.08
(Previous reporting Period Rs Nil) and Ravindu Motors Pvt. Ltd. Rs Nil
(Previous reporting Period Rs 54.86).
## Includes rent paid to Kirloskar Power Equipments Limited Rs 240.00
(Previous reporting Period Rs 222.00), Vijay Jyothi Investment and
Agencies Pvt Ltd Rs 172.07 (Previous reporting Period Rs 156.00), Sri
Vijaydurga Investments and Agencies Pvt. Ltd. Rs 18.00 (Previous
reporting Period Rs 18.00) and Kirloskar Batteries Pvt Ltd Rs Nil
(Previous reporting Period Rs 18.87).
Investments in Kirloskar Power Equipments Limited Rs 28.17 (as at
March 31, 2011 Rs 28.17)
$$ includes amount due to Kirloskar Batteries Private Limited Rs Nil (as
at March 31, 2011 Rs 67.46), Kirloskar Electric Charitable Trust Rs 1.76
(Previous reporting Period Nil) and Vijay Kirthi Investments and
Agencies Private Limited Rs 0.12 (as at March 31, 2011 Rs Nil).
$ Represents Kirloskar Computer Services Limited
!! Includes due from Kirloskar Power Equipments Limited Rs 308.14 (as at
March 31, 2011 Rs 312.46), Vijay Farms Pvt. Ltd. Rs 173.39 (as at March
31, 2011 Rs 178.48), Vijay Jyothi Investments and Agencies Pvt. Ltd. Rs
98.28 (as at March 31, 2011 Rs 44.10), Abhiman Trading Company Pvt. Ltd.
Rs 40.80 (as at March 31, 2011 Rs 34.05), Vijaydurga Investments and
Agencies Pvt Ltd Rs 13.33 (as at March 31, 2011 Rs 24.39), Kirloskar
Batteries Pvt. Ltd. Rs 204.41 (as at March 31, 2011 Rs Nil) and Ravindu
Motors Pvt. Ltd. Rs 4.79 (as at March 31, 2011 Rs 1.08).
** Represents deposits renewed/ accepted from Mrs. Meena Kirloskar Rs 25
(Previous reporting Period Rs 25) and Ms. Rukmini Kirloskar Rs 20
(Previous reporting Period Rs 10)
*** Represents interest paid to Mrs. Meena Kirloskar Rs 2.88 (Previous
reporting Period Rs 3.79) and Ms. Rukmini Kirloskar Rs 1.62 (Previous
reporting Period Rs 0.54)
$$$ Includes expenses incurred in connection of acquisition of
subsidiary Rs 902.60.
AAA Includes paid to Mr. Vijay R Kirloskar Rs 137.16 (Previous reporting
Period Rs 137.16), Mr. P S Malik Rs Nil (Previous reporting Period Rs
61.73), Mr. Anuj Pattanaik Rs 129.24 (Previous reporting Period Rs 38.76)
but does not include accrued gratuity, compensated absence (since
liability has been recognized for the company as a whole) free use of
company car and communication facilities.
aaa Includes Mrs. Meena Kirloskar Rs 0.90 (Previous reporting Period Rs
0.73), Ms. Janaki Kirloskar Rs 2.72 (Previous reporting Period Rs 2.40)
and Ms. Rukmini Kirloskar Rs 6.39 (Previous reporting Period Rs 5.60).
@ Includes received from KEC Executives & Others Officers Welfare Trust
Rs 10.00 (Previous reporting Period Rs Nil), KEC Officers & Engineers
Welfare Trust Rs 10.00 (Previous reporting Period Rs Nil), KEC Vice
Presidents Welfare Trust Rs 15.00 (Previous reporting Period Rs Nil) and
KEC Engineers of Mysore Unit Welfare Trust Rs 5.00 (Previous reporting
Period Rs Nil)
@@Includes paid to KEC Executives & Others Officers Welfare Trust Rs
0.95 (Previous reporting Period Rs Nil), KEC Officers & Engineers
Welfare Trust Rs 0.95 (Previous reporting Period Rs Nil), KEC Vice
Presidents Welfare Trust Rs 1.32 (Previous reporting Period Rs Nil) and
KEC Engineers of Mysore Unit Welfare Trust Rs 0.37 (Previous reporting
Period Rs Nil)
10. The Company has various operating leases for office facilities,
guesthouse and residential premises of employees that are renewable on
a periodic basis, and cancelable at its option. Rental expenses for
operating leases included in the financial statements for the year are
Rs 656.06. (Rs 693.80).
11. The Company has paid a higher remuneration to the Deputy Managing
Director amounting to Rs 92.13 for the period August 4, 2011 to March
31, 2012 which is subject to approval of the members of the Company.
12. During the year the Company has sold goods amounting to Rs 6.15 and
purchases of goods amounting to Rs 0.10 to a private limited company
covered under Section 297 of the Companies Act, 1956 in respect of
which no prior approval of the Central Government as required under
Section 297 of the Companies Act, 1956 was obtained. The Company is in
the process of making an application to the Company Law Board under
Section 621A of the Companies Act, 1956 for compounding of the above
non-compliance. However, no adjustments have been made to the financial
statements for the year ended March 31, 2012.
13. Donations of Rs 150 are subject to approval of members in their
meeting under section 293 (1) (e) of the Companies Act, 1956.
14. Operating Cycle for segregation between current and non current:
Normal operating cycle of the business of the Company is assessed by
management as not more than twelve months for segregation of Current
and Non-Current.
15. Previous reporting period's figures have been regrouped wherever
required in conformity with presentation this year. Figures in brackets
relates to previous reporting period figures.
Mar 31, 2011
(Rs.. In '000's)
1(a) CONTINGENT LIABILITIES ETC As at As at
31.03.2011 31.03.2010
i) Letter of Credit, Guarantees, Corporate and
Counter guarantees given on Import and Sale 1,240,929 1,507,553
contracts etc.
ii) Bills discounted with bank 261,512 200,425
iii) Central excise and customs authorities
have issued notices and raised certain demands, 6,209 12,158
which are pending in appeal before various
authorities, not acknowledged as debt by the
Company
iv) Sales tax demanded under appeal. The
Company has paid an aggregate amount of 212,194 212,544
Rs. 70,194 against the demand which has been
included in Loans & advances under
schedule "H (B)".
v) Claims against the Company not acknowledged
as debt. The Company has made counter 256,491 241,532
claim against one of the parties amounting
to Rs. 12,944 (Previous year Rs. 12,944 )
vi) The Company had furnished a guarantee for
the redemption of preference shares issued 40,560 40,560
by Kirloskar Investment and Finance Ltd to
an extent of Rs. 20,000 (Previous year Rs. 20,000)
and had obtained counter guarantee from the
said Company. The preference shareholder has
claimed a sum of Rs. 20,000 along with dividends
in arrears of Rs. 20,560 and interest from the
Company. This claim has been upheld by the
Debt Recovery Tribunal (DRT). The Company has
preferred an appeal before the Debt Recovery
Appellate Tribunal to set aside the orders
passed by the DRT. The Company does not
acknowledge this liability.
vii) Sales tax liabilities in respect of
pending assessments, C forms have not been
received Not Not
from several customers. Continuing efforts
are being made to obtain them. Ascertainable Ascertainable
viii) Interest and penalty if any, on
account of delays/defaults in payment of
statutory/ suppliers Not Not
dues not ascertainable. The Company has
made waiver petition where ever
such interest / Ascertainable Ascertainable
penalty has been levied.
ix) Sales tax on equipment procured on
hire/ lease and on computer software
charges is Not Not
contested by the suppliers - amount not
ascertainable and will be charged to
revenue in the Ascertainable Ascertainable
year of final claim.
x) Certain industrial disputes are pending
before various judicial authorities - not
acknowledged Amount not Amount not
by the Company ascertainable ascertainable
xi) Arrears of dividend on cumulative
preference shares for the period
from April 1, 2004 to 107,174 95,643
March 31, 2011 (as at March 31, 2010 for
the period from April 1, 2004 to March
31, 2010) (including tax thereon).
xii) Penal damages levied by the Regional
Provident Fund commissioner and subject
to writ 9,154 9,154
before the High Court of Karnataka,
Bangalore. An amount of Rs. 4,618 paid has
been included in loans and advances
xiii) Guarantee given to ICICI Bank in
consideration of the stand by letter of
credit (SBLC) 803,125 932,147
opened by them in favor of ICICI Bank,
Canada as security for loan granted issued
by them to Kirsons BV. SBLC is secured by
mortgage of certain immovable properties
of the Company and shares of Kirsons BV.
xiv) Wage settlement of certain units has
expired. The Company is under negotiation
with the Not Not
workers for postponing the effective date
of new settlement, due to economic slowdown. ascertained ascertained
xv) Income tax demands under appeal 9,307 Nil
xvi) Show cause notices raised by the
Income Tax Department for short and
non remittances of 4,599 Nil
tax deduction at source - matter under
examination
In respect of items above, future cash outflows in respect of
contingent liabilities is determinable only on receipt of judgments
pending at various forums/ settlement of matter. The management
believes that, based on legal advice or internal assessment, the
outcome of these contingencies will be favorable and that loss is not
probable. Accordingly, no provisions have been made for the same.
2 (Note 17 of Schedule O" of financial statements)
a. The order of the honorable High court of Karnataka according
approval for the scheme of arrangement and amalgamation under sections
391 to 394 of the Companies Act, 1956 ("Scheme") was received in
September 2008 with April 1, 2007 as the appointed date. This scheme of
arrangement and amalgamation interalia involved transfer of operating
business of Kirloskar Power Equipment Limited ("KPEL") and amalgamation
of Kaytee Switchgear Limited ("KSL") with the Company. The Scheme was
registered with the Registrar of Companies on October 17, 2008.
b. Decree in Form 42 of the Companies (Court) Rules, 1949 is yet to be
passed by the Honorable High Court of Karnataka pending assessment and
payment of stamp duty. The Company has provisionally accounted for
stamp duty liability estimated at Rs. 58,922 pending finalization of the
matter. Further adjustments to the accounts will be made as and when
correct assessment of stamp duty is made and settled.
c. The assets & liabilities so transferred to the Company are
continuing in the name of the respective companies. Necessary action
is being taken by the company to obtain the consent/approvals of the
various regulatory authorities.
3. (Note 18 of Schedule 'O" of financial statements)
The Company has preferred a suit for various claims against Deutsche
Bank, one of the members of the consortium of bankers for breach of
trust for withholding of monies belonging to the company and freezing
sanctioned working capital limits.
4. (Note 19 of Schedule 'O" of financial statements)
a. Rs. 28,412 (as at March 31, 2010 Rs. 33,015) due from private limited
companies in which directors are interested.
b. Rs. 1,833 (as at March 31, 2010 Rs. 6,358) due from a wholly owned
subsidiary of the Company.
5. (Note 21 of Schedule O" of financial statements)
a. Confirmation of balances from certain sundry debtors, deposit
accounts, loans and advances, creditors etc are awaited. Accounts of
certain sundry debtors, loans and advances, deposits, collector of
customs and creditors, are under review and reconciliation. Against
aggregate debts outstanding as at March 31, 2011 for more than 2 years
of Rs. 180,346, the Company holds a provision of Rs. 116,533. Adjustments,
if any will be made on completion of review/reconciliation/
identification of further doubtful debts. Effect on revenue is not
expected to be material.
b. The Company is in process of reconciling the balances of the
Company, its erstwhile subsidiary KSL and the operating business of
KPEL. The net difference to the extent identified amounting to Rs. 52,879
has been included in Loans & Advances. Necessary rectification entries
will be accounted after completion of the reconciliation. However,
according to the management this difference is not likely to materially
affect the operating results of the Company.
6. (Note 22 of Schedule O" of financial statements)
a. The Company has implemented SAP ECC 6 systems at certain units
during the year. Various mistakes and omissions noticed during the year
have been corrected based on physical inventory taken from time to
time. Continuing steps are being taken to cleanse data and stabilize
systems. The effect of unrectified mistakes and omissions is not
expected to be material.
b. The Company has initiated steps to bring the valuation of
inventories in line with Accounting Standard - 2. However, the
processes followed for determination of cost and net realizable value
needs to be uniform across units and refined/improved to bring it in
line with the requirements of the said standard. Continuing steps are
being taken by the management in this respect.
7. (Note 23 of Schedule 0" of financial statements)
a. During the year, the Company has implemented SAP ECC 6 Systems in
certain units. Inventory at these units as at March 31, 2011 have been
based on moving weighted average and labor/ overheads absorption
methods configured in the said system as against other cost basis used
in the previous year. Effect of such change on the revenue for the year
is not ascertained.
b. Depreciation on additions has been calculated on monthly prorate
basis instead of quarterly basis, in certain units where SAP ECC 6
system has been implemented. Effect of such change on the revenue for
the year is not ascertained.
8. (Note 24 of Schedule O" of financial statements)
Assets held for sale has been recognized at realizable value estimated
by the management. No external valuation or quotations from prospective
buyers have been obtained.
9. (Note 25 of Schedule O" of financial statements)
a) Current Assets, Loans & Advances include Rs. 23,692 (as at March 31,
2010 Rs. 22,718) being rescheduled advances from certain other Companies.
b) The above companies have incurred losses and their net worth is
partially eroded. Having regard to the long term association with these
companies and their revival plans as communicated to the Company and
other factors, these debts are considered good of recovery.
10. Finance Leases: (Note 31 of Schedule 0' of financial statements)
Finance lease arrangements relate to Plant & Machinery. The lease
period is for five years with interest rates ranging from 13% to 14%per
annum. The Company pays fixed lease rentals over the period of the
lease whereby the net present value of the minimum lease payments
amount substantially to the cost of the assets.
11. (Note 32 of Schedule 'O' of financial statements)
The Company has various operating leases for office facilities,
guesthouse and residential premises of employees that are renewable on
a periodic basis, and cancelable at its option. Rental expenses for
operating leases included in the financial statements for the year are
t 69,380 (Rs. 71,567).
12. (Note 36 of Schedule 0' of financial statements)
The Company has entered into forward contracts outstanding as on March
31, 2011 for Euro 250,000 to hedge future contractual obligation.
13 Figures have been rounded off to the nearest "000's" as permitted by
Government of India Notification No.GSR: 14(E) dated December 23, 1978.
Figures in Schedule 'O' are in Rs..000's unless otherwise stated.
26. Previous year figures have been regrouped wherever required in
conformity with presentation this year. Figures in brackets represents
previous year figures.
Mar 31, 2010
(Rs. In 000s)
1(a) CONTINGENT LIABILITIES ETC As at As at
31.03.2010 31.03.2009
i) Letter of Credit, Guarantees,
Corporate and Counter
guarantees given
on Import and Sale 1,507,553 965,553
contracts etc.
ii) Bills discounted with bank 200,425 188,037
iii) Central excise and customs
authorities have issued notices and
raised certain demands, which 12,158 6,103
are pending in appeal before various
authorities, not acknowledged as
debt by the Company
iv) Sales tax demanded under appeal 212,544 55,167
v) Claims against the Company not
acknowledged as debt. The Company has
made counter claim 241,532 251,246
against one of the parties amounting
to Rs.12.944 million (Previous
year Rs. 12.944 million)
vi) The Company had furnished a
guarantee for the redemption of
preference shares issued by 40,560 40,560
Kirloskar Investment and Finance
Ltd to an extent of Rs. 20 million
(Previous year Rs. 20 million)
and had obtained counter guarantee from
the said Company. The preference
shareholder has claimed a sum of
Rs..20 million along with dividends
in arrears of Rs.20.56 million and
interest from the Company. This
claim has been upheld by the Debt
Recovery Tribunal (DRT). The Company
has preferred an appeal before the
Debt Recovery Appellate Tribunal
to set aside the orders passed by the
DRT. The Company does not acknowledge
this liability.
vii) Sales tax liabilities in respect
of pending assessments, C forms
have not been received from Not Not
several customers. Continuing efforts
are being made to obtain them.
Ascertainable Ascertainable
Not Not
viii) Interest and penalty if any, on
account of delays/defaults in
payment of statutory/ suppliers dues
Ascertainable Ascertainable
not ascertainable. The Company has
made waiver petition where ever such
interest / penalty
has been levied.
ix) Sales tax on equipment procured
on hire/ lease and on computer
software charges is contested Not Not
by the suppliers à amount not
ascertainable and will be charged to
revenue in the year of final
Ascertainable Ascertainable
claim.
x) Certain industrial disputes
are pending before various judicial
authorities - not acknowledged by Amount not Amount not
ascertainable ascertainable
the Company
xi) Arrears of dividend on cumulative
preference shares for the period
from April 1, 2004 to March 95,643 79,527
31, 2010 (as at March 31, 2009 for
the period from April 1, 2004 to
March 31, 2009) (including tax thereon).
xii) Penal damages levied by the
Regional Provident Fund commissioner
and subject to writ before 9,154 9,154
the High Court of Karnataka, Bangalore.
An amount of Rs.4.618 million
paid has been included in loans and advances
xiii) Guarantee given to ICICI Bank
in consideration of the stand by
letter of credit (SBLC) opened by 932,147 1,171,465
them in favor of ICICI Bank, Canada
as security for loan granted by
them to Kirsons BV. The SBLC is
secured by mortgage of certain
immovable properties of the Company
and shares of Kirsons BV.
xiv) Wage settlement of certain
units has expired. The Company is under
negotiation with the workers Not Not
for postponing the effective date of
new settlement, due to economic
slowdown. ascertained ascertained
xv) The Company had imported certain
capital equipments without payment
of customs duty under Nil Nil
the Export Promotion Capital Goods
Scheme subject to exporting
Rs.3,887.63 million within 8 years
starting from the financial year
1996-97. Estimated amount of customs
duty payable on capital goods
imported (excluding interest and penalty).
The Company had requested the Director
General of Foreign Trade to
refix the export obligation in terms
of current norms. Department has
considered and refixed the export
obligation which need to be fulfilled
by March 31, 2011. Based on the
revised approval the Company has
fulfilled the obligation and is
awaiting the final order from the
Department in respect of the earlier
obligation. Consequently and
according to the Company there
will be no contingent liability as on
31.03.2010.
In respect of items above, future cash outflows in respect of
contingent liabilities is determinable only on receipt of judgments
pending at various forums/ settlement of matter. The management
believes that, based on legal advice or internal assessment, the
outcome of these contingencies will be favorable and that loss is not
probable. Accordingly, no provisions have been made for the same.
(b) Estimated amount of contracts
remaining to be executed on capital
account and not provided for. 44,943 44,943
Notes:
1. (**) Registered with DGTD (*) on maximum utilization (+) On single
shift.
2. There is no change in installed capacity as compared to the
previous year.
3. (@) As certified by the Managing Director.
4. $ Standing in the name of Kirloskar Systems Ltd., whose switchgear
business was taken over by the Company in a prior year.
5. * as per letter no.3/24/2000-PAB-IL from Department of Industrial
Policy & Promotion, New Delhi dt.01/12/2004
6. # Includes production at the subcontractors facility.
5 (Note 17 of Schedule ÃOÃ of financial statements)
a. The order of the Honorable High Court of Karnataka according
approval for the scheme of arrangement and amalgamation under sections
391 to 394 of the Companies Act, 1956 (ÃSchemeÃ) was received in
September 2008 with April 1, 2007 as the appointed date. This scheme of
arrangement and amalgamation interalia involved transfer of operating
business of Kirloskar Power Equipment Limited (ÃKPELÃ) and amalgamation
of Kaytee Switchgear Limited (ÃKSLÃ) with the Company. The Scheme was
registered with the Registrar of Companies on October 17,2008.
b. Decree in Form 42 of the Companies (Court) Rules, 1949 is yet to be
passed by the Honorable High Court of Karnataka pending assessment and
payment of stamp duty. The Company has provisionally accounted for
stamp duty liability estimated at Rs.65 million pending finalization of
the matter. Further adjustments to the accounts will be made as and
when correct assessment of stamp duty is made and settled.
c. The assets & liabilities so transferred to the Company are
continuing in the name of the respective companies. Necessary action
is being taken by the company to obtain the consent/approvals of the
various regulatory authorities.
6. (Note 18 of Schedule O of financial statements)
The Company has received approval under section 314 (2) of the
Companies Act, 1956 from the Central Government with effect from 17th
September 2008 in respect of remuneration to a relative of a director.
However, the earlier approval expired on 15th July 2008. The Company,
subsequent to the balance sheet date, has applied for restoring the
effective date of the approval to 16th July 2008. Remuneration paid for
such period on the basis of the earlier order is Rs.0.17 million.
7. (Note 19 of Schedule ÃOÃ of financial statements)
The Company has preferred a suit for various claims against Deutsche
Bank, one of the members of the consortium of bankers for breach of
trust for withholding of monies belonging to the company and freezing
sanctioned working capital limits.
8. (Note 20 of Schedule ÃOÃ of financial statements)
Current assets, loans and advances include
a. Rs.33.015 million (Previous year Rs.29.468 million) due from
private limited companies in which directors are interested.
b. Rs.6.358 million (Previous year Rs.5.063) due from a wholly owned
subsidiary of the Company.
10 (Note 22 of Schedule ÃOÃ of financial statements)
a. Confirmation of balances from certain sundry debtors, Ãdeposit
accounts, loans and advances, creditors etc are awaited. Accounts of
certain sundry debtors, loans and advances, deposits/ margin money with
banks, certain inter unit accounts, collector of customs and creditors,
are under review and reconciliation. Adjustments, if any will be made
on completion of review/reconciliation. Effect on revenue is not
expected to be material.
b. The Company is in process of reconciling the balances of the
Company, its erstwhile subsidiary KSL and the operating business of
KPEL. The net difference to the extent identified amounting to
Rs.52.344 million has been included in Loans & Advances. Necessary
rectification entries will be accounted after completion of the
reconciliation. However, according to the management this difference is
not likely to materially affect the operating results of the Company.
11. (Note 23 of Schedule O of financial statements)
a. Due to various problems and issues faced in implementation of SAP
R/3 systems in one unit as explained in note 25 (a) of schedule N of
the financial statements of the Company for the year 2008-2009, the
Company is in the process of a fresh implementation of a new version of
said software. Pending implementation of materials and production
modules, closing stocks of all inventories of this unit have been
adopted as per physical inventory taken by the management at the end of
the year.
b. The Company has initiated steps to bring the valuation of work in
progress and finished goods at certain units in line with Accounting
Standard à 2. However, the process followed in determination of cost
and net realizable value need to be further refined/ improved to bring
it in line with the requirements of the Company.
12 (Note 24 of Schedule O of financial statements)
a. During the year, the Company has implemented SAP ERP software in
certain units. Inventory at these units as at March 31, 2010 have been
based on moving weighted average and labour/ overheads absorption
methods configured in the said system as against other cost basis used
in the previous year. Effect of such change on the revenue of the year
is not ascertained.
b. The depreciation on additions has been calculated on monthly
proprated basis instead of quarterly basis in certain units where SAP
ERP system has been implemented. Effect of such change on the revenue
for the year is not ascetained.
13 (Note 25 of Schedule O of financial statements)
Capital work in progress includes Rs.33.856 million where the concerned
assets have not been installed for several years. The Company holds a
provision of Rs.7.841 million for diminution in value of the same.
Management is taking steps to dispose of these assets and is confident
of recovery of the un-provided amount.
14. (Note 26 of Schedule O of financial statements)
a) Current Assets, Loans & Advances include Rs.22.718 million (previous
year Rs.42.310 million) being rescheduled advances from certain other
Companies.
b) The above companies have incurred losses and their net worth are
partially eroded. Having regard to the long term association with these
companies and their revival plans as communicated to the Company and
other factors, these debts are considered good of recovery.
15. (Note 28 of Schedule O of financial statements)
Salaries, wages & bonus includes Rs.22.193 million amount paid towards
voluntary retirement scheme at certain units during the year.
16. (Note 29 of Schedule O of financial statements) Disclosures as
per Accounting Standard 15 "Employee Benefits": Defined Contribution
Plan:
Contribution to Defined Contribution, recognised as expense for the
year are as under:
*Based on the notification dated May 18, 2010 issued by the Government
of India, enhancing the maximum limit of gratuity payable to employees,
the Company has provided an additional liability amounting to Rs.14.139
million, which has not been included in the above table.
The estimates of rate of escalation in salary considered in actuarial
valuation, take into account inflation, seniority, promotion and other
relevant factors including supply and demand in the employment market.
The above information is as certified by the actuary.
17. Segment Reporting: (Note 30 of Schedule O of financial
statements)
The Company has not furnished segment report since same has been
furnished in the Consolidated financial statements, as referred in para
4 of accounting standard 17 issued by Central Government.
KEC North America Inc has been dissolved. The investments in and dues
from the said company have not been written off, pending receipt of
approvals from Reserve Bank of India. However, full provision has been
made for the same. Since the said company has been dissolved, the same
has not been considered for related party disclosures.
*Includes Purchases of goods/ services from Kirloskar Batteries Private
Limited Rs.26,641 (previous year Rs.52,090), Vijay Farms Limited
Rs.5,918 (Previous year Rs.5,834), Sri Vijaydurga Investments and
Agencies Private Limited Rs.9,595 (Previous year Rs.8,377), Vijay
Jyothi Investments and Agencies Private Limited Rs.68 (Previous year
Rs.1,983) and Abhiman Trading Company Limited Rs.5,527 (Previous year
Rs.5,720).
# Represents transaction with Kirloskar (Malaysia) Sdn Bhd.
Includes sales to Kirloskar Batteries Private Limited Rs.9,449
(Previous year Rs.14,709) and Ravindu Toyota Private Limited Rs. 1,087
(Previous year Rs.Nil).
## Includes rent paid to Kirloskar Power Equipment Limited Rs.21,600
(Previous year Rs.9,900), Vijay Jyothi Investment and Agencies Pvt Ltd
Rs.15,600 (Previous year Rs.15,600), Sri Vijaydurga Investments and
Agencies Private Limited Rs.1,800 (Previous year Rs.Nil) and Kirloskar
Batteries Pvt Ltd Rs.2,622 (Previous year Rs.Nil).
** Includes rent paid to Vijay R Kirloskar Rs.Nil (Previous year
Rs.3,780) and Meena Kirloskar Rs.1,600 (Previous year Rs.1,500).
+ Includes investments in Kirloskar (Malaysia) Sdn Bhd. Rs.529
(Previous year Rs.529) and KEASI Robican Industiral Systems Limited
Rs.Nil (Previous year Rs.5,000).
++ Includes investments in Kirloskar Power Equipments Limited Rs.2,817
(Previous year Rs.2,817) and Kirloskar Computer Services Limited Rs.Nil
(Previous year Rs.2,380).
@ Represents KEASI Robican Industrial Systems Limited Rs.Nil (Previous
year Rs.5,000) and Kirloskar Computer Services Limited Rs.Nil (Previous
year 2,380).
@@ Represents KEASI Robican Industrial Systems Limited Rs.5,000
(Previous year Rs.Nil) and Kirloskar Computer Services Limited Rs.2,380
(Previous year Rs.Nil).
$ Represents Kirloskar Computer Services Limited
!! Includes due from Kirloskar Power Equipment Limited Rs.27,630
(previous year Rs.42,774), Kirloskar Computer Services Limited
Rs.32,246 (Previous year Rs.32,246), Vijay Farms Limited Rs.17,707
(Previous year Rs.18,183), Kirloskar Batteries Private Limited Rs.Nil
(Previous year Rs.29,468), Vijay Jyothi Investments and Agencies
Private Limited Rs.10,480 (Previous year Rs.141,688), Abhiman Trading
Company Limited Rs.3,607 (Previous year Rs. 4,048), Vijay Keerthi
Investment and Agencies Private Limited Rs.60 (Previous year
Rs.60),Vijaydurga Investments and Agencies Pvt Ltd Rs.865 (Previous
year Rs.1,064) and Ravindu Motors Private Limited Rs.100 (Previous year
Rs.62).
! Represents due from Meena Kirloskar
û Includes Shares allotted to Vijay R Kirloskar Rs.Nil (Previous year
Rs. 34,303) and P S Malik Rs.Nil (Previous year Rs.12)
$$$ Includes expenses incurred in connection of acquisition of
subsidiary Rs.88.249 million.
$$ Includes due to Kirloskar Batteries Limited Rs.21,231 (Previous year
Rs.821) and Ravindu Motors Private Limited Rs.Nil (Previous year
Rs.146).
^^^ Includes paid to Vijay R Kirloskar Rs.20,908 (Previous year
Rs.4,744), P S Malik Rs.7,503 (Previous year Rs. 7,762), Meena
Kirloskar Rs.25 (Previous year Rs. Nil), Janki Kirloskar Rs.1,007
(Previous year Rs.1,167) and Rukmini Kirloskar Rs.536 (Previous year
Rs.357).
- Includes Shares allotted to Vijay Farms Pvt Ltd Rs.Nil (Previous year
Rs. 14,639), Vijay Jyothi Investments & Agencies Pvt Ltd Rs.Nil
(Previous year Rs.12,000), Abhiman Trading Co Pvt Ltd Rs.Nil (Previous
year Rs. 20,902) and Vijay Kirthi Investments & Agencies Pvt Ltd Rs.Nil
(Previous year Rs.12,000).
18. (Note 33 of Schedule O of financial statements)
The Company has various operating leases for office facilities,
guesthouse and residential premises of employees that are renewable on
a periodic basis, and cancelable at its option. Rental expenses for
operating leases included in the financial statements for the year are
Rs.71,567 (Rs.56,786).
19 Figures have been rounded off to the nearest 000s as permitted by
Government of India Notification No.GSR: 14(E) dated 23.12.1978.
20.Previous year figures have been regrouped wherever required in
conformity with presentation this year.