Dec 31, 2022
A Defined contribution plan
Contributions are made to provident fund at a fixed percentage of employee''s salary as per the regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the year towards contribution to provident fund is '' 96.85 million (December 31, 2021 - '' 82.60 million).
B Compensated absences
The leave obligations cover the Company''s liability for privilege leave and sick leave. The amount of provision made during the year is '' 82.93 million (December 31, 2021 - '' 42.61 million). The Company does not have an unconditional right to defer settlement for any of these obligations. However, based on the past experience, the Company does not expect payment of the entire amount of accrued leaves or availment of the entire number of accrued leaves by employees within twelve months and accordingly, amounts have been classified as current and non-current.
C Long service award
The Company award all the employees who complete 25 years of service in the Company and the Workmen employees who complete 20 or more years of service in the Company but unable to complete 25 years due to superannuation. The amount of provision made during the year is '' 14.75 million (December 31,2021 - '' 50.74).
D Gratuity
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employee''s last drawn basic salary per month computed proportionately for 15 days to one month''s salary multiplied for the number of years of service. The gratuity plan is a funded plan.
The above sensitivity analysis have been determined based on reasonable possible changes of the respective assumptions occurring at the end of the year and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the same method is used to calculate the liability recognised in the Balance Sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous year.
Asset-liability mismatch risk
Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. In managing the plan assets, Board of Trustees reviews and manages these risks associated with the funded plan. Each year, the Board of Trustees reviews the level of funding in the gratuity plan. Such a review includes asset - liability matching strategy and investment risk management policy (which includes contributing to plans that invest in risk averse markets). The Board of Trustees aim to keep annual contributions relatively stable at a level such that no plan deficits (based on valuation performed) will arise.
Asset volatility
All plan assets are maintained in a trust fund managed by a public sector insurer i.e., LIC of India. LIC has a sovereign guarantee and has been providing consistent and competitive returns over the years. The Company has opted for a traditional fund wherein all assets are invested primarily in risk averse markets. The Company has no control over the management of funds but this option provides a high level of safety for the total corpus. A single account is maintained for both the investment and claim settlement and hence, 100% liquidity is ensured. Also, interest rate and inflation risk are taken care of.
Discount rate risk
The present value of the defined benefit obligation is calculated using discount rate based on Government bonds. The decrease in the bond yield will increase the defined benefit obligation, however the same will be partially offset by an increase in value of plan assets.
Future salary escalation risk
The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in salary of the plan participants will increase the defined benefit obligation.
34 Fair value measurements
Except derivative instruments, all financial assets and financial liabilities are measured at amortised cost. Derivative instruments are classified as fair value through profit or loss. The fair value is determined using forward exchange rates at the balance sheet date. The instruments fall under level 2 of the fair value hierarchy as per Ind AS 113 Fair Value Measurements. Level 2 fair value financial instruments are those which are not traded in an active market, which maximise the use of observable market data and rely as little as possible on entity specific estimates. Significant inputs required to measure a level 2 fair value are observable. The fair value of all the instruments measured at amortised cost is not significantly different from the carrying value of such instruments.
35 Financial risk management
The Company''s activities exposes it to credit risk, liquidity risk and market risk. In order to minimise any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts are taken. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.
The Company''s risk management is carried out by the Company''s treasury department under policies approved by the board of directors. The board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.
(A) Credit risk
The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and other financial instruments. For banks and other financial institutions, only high rated banks/ financial institutions are accepted. The balances with banks, loans given to employees, security deposits are subject to low credit risk and the risk of default is negligible or nil. The Company has recognized provision based on assumptions about risk of default, expected loss rates and specific identification method.
I Trade receivables
Credit risk arises from the possibility that customer will not be able to settle their obligations as and when agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, analysis of historical bad debts, ageing of accounts receivable and forward looking information. Individual credit limits are set accordingly. The Company has recognized the provision based on assumptions about risk of default, expected loss rates and specific identification method.
(B) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying business, the Company''s treasury maintains flexibility in funding by maintaining availability under committed credit lines.
The table below analyses the Company''s financial liabilities into relevant maturity groupings based on their contractual maturities for :
1) all non-derivative financial liabilities, and
Market risk
I) Foreign currency risk
The Company is engaged in international trade and thereby exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the EUR and USD. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company''s functional currency ''. The Company uses foreign exchange forward contracts to hedge its exposure in foreign currency risk.
i) Foreign currency risk exposure
The Company''s exposure to foreign currency risk at the end of the reporting period expressed in '' million, are as follows :-
(C) Market risk
II) Interest rate risk
The Company''s main interest rate risk arises from short term borrowings and deposits taken / placed over a period of time on frequent basis thereby exposing the Company to interest rate risk. The Company''s policy is to have fixed interest rate at the time of deal execution.
36 Capital management
a) Risk management
The Company''s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital. For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company''s capital management is to maximise the shareholders value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company is debt-free and has net cash and bank balance.
No changes were made in the objectives, policies or processes for managing capital during the years ended December 31, 2022 and December 31, 2021.
*Other bank balance consists of fixed deposits which are considered as short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.
The amount of net cash and bank balance considering the amount of lease liability of '' 28.82 million (December 31, 2021: '' 29.89 million) is '' 2,574.10 million (December 31,2021: '' 3,508.77 million)
(b) Details of benami property held
No proceedings have been initiated on or are pending against the company under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
(c) Borrowing secured against current assets
The Company has placed fixed deposits of '' 1,018.91 million (December 31, 2021: '' 1,137.88 million) under lien with banks and has availed the overdraft facilities against the same. Thus, the Company is not required to file quarterly returns or statement of current assets with the banks.
(d) Wilful defaulter
The company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
(e) Relationship with struck off companies
Below are the details of transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.
(f) Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under the Companies Act, 2013.
(g) Compliance with approved scheme(s) of arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact in the year ended December 31, 2022 and December 31,2021.
(h) Utilisation of borrowed funds and share premium
The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person or entity, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or
ii. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries
The Company has not received any funds from any person or entity, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
ii. provide any guarantee, security or the like on behalf of the ultimate beneficiaries
(i) Undisclosed income
There is no income surrendered or disclosed as income during the year ended December 31, 2022 and December 31, 2021 in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
(j) Details of cryptocurrency or virtual currency
The Company has not traded or invested in cryptocurrency or virtual currency during the year ended December 31, 2022 and December 31,2021.
(k) Valuation of Property, plant and equipment, Right-of-use assets and Other intangible assets
The Company has not revalued its property, plant and equipment or right-of-use assets or intangible assets during the year ended December 31, 2022 and December 31,2021.
38 Events occurring after the reporting period
Refer to note 36 (b) (ii) for the final dividend recommended by the directors which is subject to the approval of shareholders in the ensuing general meeting.
39 During year ended December 31, 2022, the Company was informed by the parent entity, KSB SE & Co. KGaA, that the parent entity has encountered a cyber-attack on their IT systems in Germany. The Company''s IT systems and infrastructure is part of the aforesaid IT systems. As an immediate measure, the parent entity had temporarily shut down all actual or potentially affected IT systems in a controlled manner for security reasons which led to temporary disruption in some of the Company''s business services. The Company had put in place alternative control mechanisms in the temporary absence of the said systems. After taking all the possible necessary measures, the said systems were restored in a phased manner. Based on the assessment carried out (with the assistance of external specialist consultants) there was no impact on the financial statements of the Company for the year ended December 31, 2022.
40 The Ministry of Corporate Affairs (MCA) through a notification dated March 24, 2021, amended Schedule III of the Companies Act, 2013, applicable for financial years commencing from April 1, 2021. Pursuant to such amendments, security deposits of '' 38.70 million as at December 31, 2021 have been reclassified from ''Loans'' to ''Other financial assetsâ.
41 Previous year''s figures have been regrouped / reclassified wherever considered necessary to conform current year''s classification / disclosure.
Dec 31, 2018
1. Background:
KSB Limited (formerly known as KSB Pumps Limited) (the Company) is engaged in the business of manufacture of different types of power driven pumps and industrial valves. Castings are mainly produced for captive consumption. The registered office of the Company is 126, Maker Chambers III, Nariman Point, Mumbai -400 021. The separate financial statements have been authorized for issue by the Board of Directors on February 27, 2019.
i. Refer to note 29 (b) for disclosure of contractual commitments for the acquisition of property, plant and equipment.
ii. The borrowing costs capitalised during the year ended December 31, 2018 under buildings and plant and machinery is Rs. Nil (December 31, 2017 : 35.49 million). The Company constructed a new manufacturing plant in the year ended December 31, 2017 and the average rate used to determine the amount of borrowing costs eligible for capitalisation is 8 %.
iii. Leasehold land mainly pertains to manufacturing plant located at Shirwal.
iv. Capital work in progress mainly includes plant and machinery in the process of installation.
v. The additions to capital work in progress are net after considering the transfers to property, plant and equipment. Gross additions to capital work in progress/ transfers to property, plant and equipment are as follows:
Transferred receivables
The carrying amounts of the trade receivables includes receivables which have been discounted with banks (with recourse). The Company has the obligation to pay to the bank in case the customer makes a default in payment. Hence, the Company has continued to recognise the transferred receivables along with a corresponding liability of equivalent amount under current borrowings.
(ii) Terms/ rights attached to equity shares
The company has only one class of shares referred to as equity shares having a par value of '' 10/-. Each shareholder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amount exists currently. The distribution will be in proportion to the number of equity shares held by the shareholders.
Nature and purpose of Other reserves:
1 These reserves pertain to reserve arising on amalgamations in the past, which is required to be statutorily maintained and cannot be distributed to the shareholders.
2 This reserve represents amounts transferred from retained earnings in earlier years as per the requirements of the erstwhile Companies Act, 1956. The reserve is a free reserve.
Notes:
1. Packing credit has been obtained by the Company at a concessional rate of interest ranging from 5 - 7% p.a.
2. Hypothecation of stocks including loose tools, stores and spares, book debts against the Working Capital Facility - 2 and 3 has been released in full w.e.f. December 17, 2018
Details of dues to micro and small enterprises as defined under the MSMED Act, 2006
Based on the information and records available with the Company, the disclosures required pursuant to the Micro, Small and Medium Enterprises Development Act,2006 (''MSMED ACT''). The Disclosure pursuant to the said MSMED Act are as follows:
Provision for employee benefits under note 17 (b) includes provision for employee bonus and incentives. For details of gratuity, superannuation and compensated absences, refer note 30.
Provision for warranty is computed as a percentage of sales based on the past trends observed. The time value of money is considered to be not material and hence the provisions are not discounted.
Goods and Service Tax (GST) has been effective from July 1, 2017 replacing excise duty. Until June 30, 2017, ''Sale of products'' included the amount of excise duty recovered on sales. With effect from July 1, 2017, ''Sale of products'' excludes the amount of GST recovered. ''Sale of products'' for the year ended December 31, 2017 includes Rs. 249.10 million of excise duty collected. Accordingly, ''Sale of products'' for the year ended December 31, 2018 and December 31, 2017 are not comparable to the extent.
Finance costs amounting to Rs.Nil (December 31, 2017 : Rs.35.49 million) is capitalised in the cost of assets during the current year. The average rate used to determine the amount of borrowing costs eligible for capitalisation is 8%.
b) Capital commitments
i) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for is Rs.60.58 million (December 31, 2017 Rs.59.81 million)
A Defined contribution plan
The Company also has certain defined contribution plans. Contributions are made to provident fund for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the period towards defined contribution plan is Rs.60.01 million (December 31, 2017 - Rs.54.97 million).
B Compensated absences
The leave obligations cover the Company''s liability for privilege leave and sick leave. The amount of provision made during the year is '' 52.63 million (December 31, 2017 - Rs.59.34 million).
C Gratuity
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days to one month''s salary multiplied for the number of years of service. The gratuity plan is a funded plan.
The fund is subject to risks such as asset volatility, changes in bond yields and asset liability mismatch risk. In managing the plan assets, Board of Trustees reviews and manages these risks associated with the funded plan. Each year, the Board of Trustees reviews the level of funding in the gratuity plan. Such a review includes asset - liability matching strategy and investment risk management policy (which includes contributing to plans that invest in risk averse markets). The Board of Trustees aim to keep annual contributions relatively stable at a level such that no plan deficits (based on valuation performed) will arise.
D Superannuation
Superannuation is a benefit to certain employees at '' 1000/ 500/ 250 (depending on the grade/ category of the employee and completed years of service) per year for each completed year of service.
2 Segment reporting
Where a financial report contains both consolidated financial statements and separate financial statements for the parent, segment information needs to be presented only in case of consolidated financial statements. Accordingly, segment information has been provided only in the consolidated financial statements.
3 Fair value measurements
All financial assets (except derivative instruments) and financial liabilities (except derivative liabilities) are measured at amortised cost and derivative instruments are classified as fair value through profit or loss. The fair value is determined using forward exchange rates at the balance sheet date. The instruments fall under level II of the fair value hierarchy as per Ind AS 113 Fair Value Measurements. Level II fair values maximise the use of observable market date and rely as little as possible on entity specific estimates. Significant inputs required to measure a level II fair value are observable. The fair value of all the instruments measured at amortised cost is not materially different from the carrying value of such instruments.
4 Financial risk management
The Company''s activities exposes it to market risk, liquidity risk and credit risk. In order to minimise any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts are taken. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.
The Company''s risk management is carried out by the Company''s treasury department under policies approved by the board of directors. The board provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.
(A) Credit risk
The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and other financial instruments. For banks and other financial institutions, only high rated banks/ financial institutions are accepted. The balances with banks, loans given to employees, security deposits are subject to low credit risk and the risk of default is negligible or nil. Hence, no provision has been created for expected credit loss for credit risk arising from these financial assets.
I Trade receivables
Credit risk arises from the possibility that customer will not be able to settle their obligations as and when agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, analysis of historical bad debts, ageing of accounts receivable and forward looking information. Individual credit limits are set accordingly.
(B) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying business, the Company''s treasury maintains flexibility in funding by maintaining availability under committed credit lines.
The financial liabilities as at December 31, 2018 and December 31, 2017 mature within a period of one year.
(C) Market risk
I) Foreign currency risk
The Company is engaged in international trade and thereby exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD, EUR, AUD, GBP and CHF. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company''s functional currency (INR). The Company''s risk management policy is to hedge purchases and sales separately. The Company uses foreign exchange forward contracts to hedge its exposure in foreign currency risk.
ii) Sensitivity
The sensitivity of profit and loss to changes in the exchange rates arises mainly from foreign currency denominated financials instruments:
II) Interest rate risk
The Company''s main interest rate risk arises from short term borrowings and deposits taken / placed over a period of time on frequent basis thereby exposing the Company to interest rate risk. The Company''s policy is to have fixed interest rate at the time of deal execution.
5 Capital management
a) Risk management
The Company''s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital. For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company''s capital management is to maximise the shareholders value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants.
6 The list of standards issued but not yet effective:
Following are the pronouncements which have been issued by the Ministry of the Corporate Affairs (âMCAâ) that are effective from annual periods beginning on and after April 1, 2018 and are applicable to the Company from next year:
a) Ind AS 115 - Revenue from Contract with Customers
The standard deals with revenue recognition and establishes principles for reporting useful information to users of financials statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from the Company''s contracts with customers. It defines a new five step model to recognise revenue from customer contracts.
Revenue is recognised when a customer obtains control of the goods or receive services and thus has the ability to direct the use and obtain the benefits from the goods or services. The standard supersedes Ind AS 18 ''Revenue'' and Ind AS 11 ''Construction Contracts'' and related interpretations. Adoption of Ind AS 115 is not expected to have a significant impact on the timing and measurement of revenue. Consistent with the current practice, recognition of revenue will continue to occur over time when services are provided to customers, which is also when the customers consumes the benefits of the entity''s performance as it occurs under Ind AS 115. The Company is in process of evaluating the effect of this on the financials statements and does not expect any material impact from the change.
b) Ind AS 12 - Income Taxes
The amendments clarify the accounting for deferred taxes on unrealised loss, where an asset is measured at fair value and the fair value is below assets tax base. A temporary difference exists whenever the carrying amount of an asset is less than its tax base at the end of the reporting period. The amendment will come into force from April 1, 2018. The Company is in process of evaluating the effect of this on the financials statements and does not expect any material impact from the change.
c) Ind AS 21 - Foreign currency transactions and advance consideration
The amendments clarify the date of the transaction for the purpose of determining the exchange rate to use an initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The amendment will come into force from April 1, 2018. The Company is in process of evaluating the effect of this on the financials statements and does not expect any material impact from the change.
There is no other standards or interpretations that are not yet effective and that would be expected to have a material impact on the Company in the current or future reporting periods and on foreseeable future transactions.
7 Events occurring after the reporting period
Refer to note 35 (b) (ii) for the final dividend recommended by the directors which is subject to the approval of shareholders in the ensuing general meeting.
8 Previous year''s figures have been regrouped / reclassified wherever considered necessary to conform to current year''s classification / disclosure.
Dec 31, 2016
1. The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/-. Each shareholder of equity shares is entitled to one vote per share.
2. Aggregate number of equity shares allotted as fully paid up by way of bonus shares for the period of five years immediately preceding the Balance Sheet date - 17,403,922 (previous year - 17,403,922).
3. Number of shares held by each shareholder holding more than 5% shares in the company are as follows:
4. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amount exists currently. The distribution will be in proportion to the number of equity shares held by the shareholders.
5. Principal amount payable to Micro and Small Enterprises (to the extent identified by the Company from available information and relied upon by the auditors) as at 31/12/2016 is Rs. 0.24 Million (previous year -Rs.0.47 Million) including unpaid amounts of Rs. Nil (previous year - Rs. Nil) outstanding for more than 45 days. Estimated interest due thereon is Rs. Nil (previous year - Rs. Nil).
6. Amount of payments made to suppliers beyond 45 days during the year is Rs. 2.99 Million (previous year -Rs.3.93 Million). Interest paid thereon is Rs. Nil (previous year - Rs. Nil) and the estimated interest due and payable thereon is Rs. 0.06 Million (previous year - Rs. 0.09 Million).
7. The amount of estimated interest accrued and remaining unpaid as at 31/12/2016 is Rs. 2.03 Million (previous year - Rs. 1.97 Million).
8. The amount of estimated interest due and payable for the period from 01/01/2017 to actual date of payment or 30/01/2017 (whichever is earlier) is Rs. Nil.
9. As the Company also sells as spare parts (for goods manufactured and sold by it), some of its bought-out components, the items shown above as consumption include cost of such items sold, this being an activity ancillary to its manufacturing activity.
10. The Company is of the opinion that the purchase & sale of such bought-out components is a part of its activity to manufacture and deliver a complete pump unit and, therefore, is not a trading activity as referred to in paragraph 5(ii)(b) of Part II of Schedule III to the Companies Act, 2013.
11. The consumption figures in value are balancing figures ascertained on the basis of opening stocks plus purchases less closing stocks and therefore, include adjustments for excesses and shortages ascertained on physical count, etc.
12. In addition to spares purchased for resale, the Company also sells as spares some of its bought-out components. The Company is of the opinion that the purchase and sale of such bought-out components is a part of its activity to manufacture and deliver a complete pump unit and therefore, is not a trading activity as referred to in paragraph 5(ii)(b) of Part II of Schedule III to the Companies Act, 2013.
13 - Research and Development expenditure debited to the Statement of Profit and Loss aggregating Rs. 2.93 Million (previous year - Rs. 2.94 Million) has been incurred by the Company and disclosed under Miscellaneous expenses (Refer note 25).
Note 34 - The net exchange differences arising during the year recognized appropriately in the Statement of Profit and Loss - net gain- Rs. 12.76 Million (previous year - net loss - Rs. 20.88 Million)
14. Disclosures under Accounting Standards
15. Details of Employee Benefits as required by the Accounting Standard 15 (Revised) Employee benefits are as under:
16. Defined contribution plan
Amount recognized as an expense in the Statement of Profit and Loss in respect of Defined Contribution Plan towards Provident Fund is Rs. 54.21 Million (previous year Rs. 54.61 Million).
17. Defined benefit plans
18. Actuarial gains and losses in respect of defined benefit plans are recognized in the Statement of Profit & Loss.
19. The Defined Benefit Plans comprise of Gratuity and superannuation.
Gratuity is a benefit to an employee based on 15/20/25/30 days (depending on the grade/category of the employee and the completed years of service) last drawn salary for each completed year of service.
Superannuation is a benefit to certain employees at Rs. 1000 / 500 / 250 (depending on the grade/ category of the employee and the completed years of service) per month for each completed year of service.
20. - Where a financial report contains both consolidated financial statements and separate financial statement for the parent, segment information needs to be presented only in case of consolidated financial statements. Accordingly, segment information has been provided only in the consolidated financial statements.
21. - Details of provisions and movements in each class of provisions as required by the Accounting Standard on âProvisions, Contingent liabilities and Contingent assetsâ (AS-29)
22. - Earnings per Share
23. The amount used as the numerator in calculating basic and diluted earnings per share is the Profit for the year attributable to the equity shareholders disclosed in the Statement of Profit and Loss.
24. The weighted average number of equity shares used as the denominator in calculating both basic and diluted earnings per share is 34,807,844.
25. - Repairs to machinery include Rs. 37.92 Million (previous year - Rs. 36.06 Million) spares consumed.
26. - Provision for taxation for the year is an aggregate of the provision made for the year ended 31st March, 2016 as reduced by the provision for 9 months up to 31st December, 2015 and the provision based on the figures for the remaining 9 months up to 31st December, 2016. However, the ultimate tax liability for the remaining 9 months up to 31st December, 2016 will be determined based on the results for the year 1st April, 2016 to 31st March, 2017.
27. - The prescribed Corporate Social Responsibility (CSR) expenditure required to be spent in for year 2016 as per Section 135 of the Companies Act, 2013 is Rs. 19.90 Million. The Company has spent Rs. 19.90 Million towards CSR. No amount has been spent on construction/acquisition of an asset of the Company.
28. - Previous yearâs figures have been regrouped/reclassified wherever necessary to correspond with the current yearâs classification/disclosure.
Dec 31, 2015
ii) The Company has only one class of shares referred to as equity shares having a par value of Rs,10/-. Each shareholder of equity shares is entitled to one vote per share.
(iii) Aggregate number of equity shares allotted as fully paid up by way of bonus shares for the period of five years immediately preceding the Balance Sheet date - 17,403,922 (previous year - 17,403,922).
v) The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amount exists currently. The distribution will be in proportion to the number of equity shares held by the shareholders.
a) Principal amount payable to Micro and Small Enterprises (to the extent identified by the Company from available information) as at 31/12/2015 is Rs, 0.47 million (previous year - Rs,1.75 Million) including unpaid amounts of Rs, Nil (previous year - Rs,Nil) outstanding for more than 45 days. Estimated interest due thereon is Rs, Nil (previous year - Rs, Nil).
b) Amount of payments made to suppliers beyond 45 days during the year is Rs, 3.93 Million (previous year -Rs,5.43 Million). Interest paid thereon is Rs, Nil (Previous Year - Nil) and the estimated interest due and payable thereon is Rs, 0.09 Million (previous year - Rs, 0.15 Million).
c) The amount of estimated interest accrued and remaining unpaid as at 31/12/2015 is Rs, 1.97 Million (previous year - Rs, 1.88 Million).
d) The amount of estimated interest due and payable for the period from 01/01/2016 to actual date of payment or 30/01/2016 (whichever is earlier) is Rs, Nil.
Components and spare parts referred to in paragraph 5(viii)(c) of Part II of schedule III to the Companies Act, 2013, are interpreted to mean the components and spare parts which are incorporated in the products sold and not those used for the maintenance of plant and machinery.
1. In addition to spares purchased for re-sale, the Company also sells as spares some of its bought-out components. The Company is of the opinion that the purchase and sale of such bought-out components is a part of its activity to manufacture and deliver a complete pump unit and therefore, is not a trading activity as referred to in paragraph 5(ii)(b) of Part II of Schedule III to the Companies Act, 2013.
The above information pertains to only those nonresident shareholders where the Company has made direct remittance or has made payment into non-resident designated accounts with banks in India.
Note 1 - Research and Development expenditure debited to the Statement of Profit and Loss aggregating Rs, 2.94 Million (previous year - Rs, 4.16 Million) has been incurred by the Company and disclosed under Miscellaneous expenses (Refer Note 25).
Note 2 - The net exchange differences arising during the year recognized appropriately in the Statement of Profit and Loss - net loss- Rs, 20.88 Million (previous year - net loss - Rs, 50.71 Million).
Note 3 Disclosures under Accounting Standards
4. Details of Employee Benefits as required by the Accounting Standard 15 (Revised) Employee benefits are as under:
5.a Defined contribution Plan
Amount recognized as an expense in the Statement of Profit and Loss in respect of Defined Contribution Plan towards Provident Fund is Rs, 54.61 Million (previous year Rs, 52.48 Million).
6..b Defined benefit plans
i. Actuarial gains and losses in respect of defined benefit plans are recognized in the Statement of Profit & Loss.
ii. The Defined Benefit Plans comprise of Gratuity and superannuation.
Gratuity is a benefit to an employee based on 15/ 20/ 25/ 30 days (depending on the grade/ category of the employee and the completed years of service) last drawn salary for each completed year of service.
Superannuation is a benefit to certain employees at Rs, 1000/ 500/ 250 (depending on the grade/ category of the employee and the completed years of service) per month for each completed year of service.
The Discount rate is based on the prevailing market yields of Indian Government securities as at the Balance Sheet date for the estimated terms of the obligations.
Expected Rate of Return of Plan Assets : This is based on the expectation of the average long term rate of return expected on investments of the Fund during the estimated term of obligations.
Salary Escalation Rate: The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.
(D) The related parties included in the various categories above, where transactions have taken place are given below:
Controlling Companies KSB AG
Canadian Kay Pump Ltd.
Associate Company MIL Controls Ltd.
Subsidiary Company_Pofran Sales &c Agency Ltd._
Common Control KSB S.A.
KSB Inc., USA
KSB Pumps (S.A.) (Pty.) Ltd., South Africa KSB Australia KSB Chile S.A.
KSB Singapore (Asia Pacific) PTE. Ltd. Singapore
KSB Limited, Hongkong
KSB Pumps Co. Ltd., Thailand
P.T. KSB., Indonesia
KSB Taiwan Co. Ltd.
KSB Ltd., Tokyo
KSB Brazil
KSB Korea
KSB Mexico
KSB Nederland
DP Industries B.V., Nederland
KSB Pumps Arabia Ltd.
KSB Ltd., U.K.
KSB Italia S.p.A., Italy
KSB Pompa Turkey
KSB Shanghai Pump Co. Ltd., China
KSB Valves (Shanghai) Co. Ltd., China
Mercantile-KSB Oy AB, Finland
KSB Pakistan
Delian KSB Amri Valves Co. Ltd., China
Bombas ITLTR S.A., Spain
KSB TESMA S.A., Griechenland
KSB Tech. Pvt. Ltd., India
GIW Industries Inc., LISA
KSB Middle East FZE, Dubai
KSB Pumpy Armatury spol. sr.o, Czech
KSB Service LLC KSB Pompy Armatura Poland KSB Compania Sudamericana KSB Belgium SA KSB China
KSB Pumps & Valves Malaysia
KSB Finanz SA
KSB AMV SA Spain
KSB Finland
KSB Mork AB, Sweden
KSB Lindflaten, Norway
KSB Oesterreich, Austria
KSB Pompes ET Robintteries Sari, Morocco
KSB Argentina
KSB Service GMBH
KSB Canada
KSB New Zeland
Rotary Equipment
KSB OOO, Russia
KSB Valvulas Ltda. Brazil
KSB Services Ltd., Saudi Arabia
AMRI Inc., USA
KSB Vietnam Company Ltd.
KSB Philippines KSB Colombia SAS KSB Zurich AG, Switzerland Key management personnel Mr. W. Spiegel
Individuals having significant influence over the enterprise Mr. Gaurav Swarup
Relatives of individuals having significant influence over the enterprise Mrs. Gyan M. Swarup
Mahendra Swarup & Sons HLTF Mr. Vikram Swarup Mrs. Bindu Swarup Mrs. Parul Swarup
Enterprises over which individuals having significant influence over The Industrial & Prudential Investment Co. Ltd.
the reporting enterprise exercise significant influence New Holding and Trading Company Ltd.
Paharpur Cooling Towers Ltd.
Note 7 - Where a financial report contains both consolidated financial statements and separate financial statement for the parent, segment information needs to be presented only in case of consolidated financial statements. Accordingly, segment information has been provided only in the consolidated financial statements.
Note 8 - Details of provisions and movements in each class of provisions as required by the Accounting Standard on âProvisions, Contingent liabilities and Contingent assetsâ (AS-29)
Note 9 - Earnings per Share
(a) The amount used as the numerator in calculating basic and diluted earnings per share is the Profit for the year attributable to the equity shareholders disclosed in the Statement of Profit and Loss.
(b) The weighted average number of equity shares used as the denominator in calculating both basic and diluted earnings per share is 34,807,844.
Note 10 - Repairs to machinery include Rs, 36.06 Million (previous year - Rs, 36.12 Million) spares consumed.
Note 11 - Provision for taxation for the year is an aggregate of the provision made for the year ended 31st March, 2015 as reduced by the provision for 9 months up to 31st December, 2014 and the provision based on the figures for the remaining 9 months up to 31st December, 2015. However, the ultimate tax liability for the remaining 9 months up to 31st December, 2015 will be determined based on the results for the year 1st April, 2015 to 31st March, 2016.
Note 12 - The prescribed Corporate Social Responsibility (CSR) expenditure required to be spent in for year 2015 as per Section 135 of the Companies Act, 2013 is Rs, 18.30 Million. The Company has spent Rs, 18.30 million towards CSR. No amount has been spent on construction/acquisition of an asset of the Company.
Note 13 - Previous yearâs figures have been regrouped/reclassified wherever necessary to correspond with the current yearâs classification/disclosure.
Signature to Notes 1 to 43
In terms of our report attached G. Swarup Chairman
For Deloitte Haskins & Sells LLP A. R. Broacha
Chartered Accountants D. N. Damania
N. N. Kampani
Hemant M. Joshi Verghese Oommen Pradip Shah Directors
(Partner) Director Finance Dr. Stephan Bross
V. K. Viswanathan S. F. Motwani
W. Stegmuller _
R. Narasimhan W. Spiegel Managing Director
Company Secretary
Pune, 18th February, 2016 Mumbai, 18th February, 2016
Dec 31, 2013
Note 1 - Research and Development expenditure debited to the Statement
of Profit and Loss aggregating Rs. 2.43 Million (previous year - Rs. 2.06
Million) has been incurred by the Company and disclosed under
appropriate account heads.
Note 2 - The net exchange differences arising during the year
recognised appropriately in the Statement of Profit and Loss - net
loss- Rs. 0.43 Million (previous year - net loss - Rs. 17.61 Million)
Note 3 Disclosures under Accounting Standards
1.1 Details of Employee Benefits as required by the Accounting
Standard 15 (Revised) Employee benefits are as under:
1.2.a Defined contribution Plan Amount recognised as an expense in the
Statement of Profit and Loss in respect of Defined Contribution Plan is
Rs. 48.63 Million (previous year Rs. 43.72 Million). 36.1.b Defined
benefit plans
i. Actuarial gains and losses in respect of defined benefit plans are
recognised in the Statement of Profit & Loss.
ii. The Defined Benefit Plans comprise of Gratuity and superannuation.
Gratuity is a benefit to an employee based on 15/ 20/ 25/ 30 days
(depending on the grade/ category of the employee and the completed
years of service) last drawn salary for each completed year of service.
Superannuation is a benefit to certain employees at Rs. 1000/ 500/ 250
(depending on the grade/ catagory of the employee and the completed
years of service) per month for each completed year of service. Both
the plans are funded.
Note 3 - Where a financial report contains both consolidated financial
statements and separate financial statement for the parent, segment
information needs to be presented only in case of consolidated
financial statements. Accordingly, segment information has been
provided only in the consolidated financial statements.
Note 4 - Earnings per Share
(a) The amount used as the numerator in calculating basic and diluted
earnings per share is the Profit for the year after tax disclosed in
the Statement of Profit and Loss.
(b) The weighted average number of equity shares used as the
denominator in calculating both basic and diluted earnings per share is
34,807,844.
Note 5 - Repairs to machinery include Rs. 43.17 Million (previous year -
Rs. 40.23 Million) spares consumed.
Note 6 - Provision for taxation for the year is an aggregate of the
provision made for the year ended 31st March, 2013 as reduced by the
provision for 9 months up to 31st December, 2012 and the provision
based on the figures for the remaining 9 months up to 31st December,
2013. However, the ultimate tax liability for the remaining 9 months up
to 31st December, 2013 will be determined based on the results for the
year 1st April, 2013 to 31st March, 2014.
Note 7 - Previous year''s figures have been regrouped/ reclassified
wherever necessary to correspond with the current year''s
classification/ disclosure.
Dec 31, 2012
1 Company Overview
Products:
The Company is engaged in the business of manufacture of different
types of power driven pumps and industrial valves. Castings are mainly
produced for captive consumption.
Operations:
The Company has factories at the following places:-
A) Irrigation and Process Pumps Division (I.P.D.) at Pimpri
Manufacturing of submersible pumps, vertical and horizontal pumps,
series and non-series pumps, Multistage pumps, chemical process pumps,
non-clog pumps and water pumps.
B) Power Projects Division (P.P.D.) at Chinchwad
Manufacturing of primary heat transfer pumps, moderator pumps, main
boiler feed pumps and multistage condense extraction pumps, re-heater
drain pumps and auxiliary boiler feed pumps.
C) Foundry Division at Vambhori
Manufacturing of steel &c iron castings including for captive
consumption.
D) Coimbatore Unit
Manufacturing of valves (Globe, Gate, Check, Butterfly & Ball valves).
E) Nasik Unit (Sinnar)
Established in 1995, this unit is engaged in the manufacture of high
pressure and submersible pumps.
(i) The Company declares and pays dividends in Indian rupees. The
dividend proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting. In the
event of liquidation of the Company, the holders of equity shares will
be entitled to receive any of the remaining assets of the Company,
after distribution of all preferential amounts. However, no such
preferential amount exists currently. The distribution will be in
proportion to the number of equity shares held by the shareholders.
Note 2 - Contingent Liabilities and Commitments
Particulars As at 31st As at 31st
December, 2012 December, 2011
Rs. in Million Rs. in Million
(i) Contingent Liabilities
(a) Claims against the Company not
acknowledged as debts 7.44 5.97
(b) Taxation matters in dispute
pending at various stages of appeal 50.61 63.82
(c) Bills Discounted / Cheques
Purchased with banks 26.79 25.55
(d) Excise matters 70.83 58.20
(e) Guarantees given by the bankers
on behalf of the Company 970.70 922.36
(ii) Commitments
Estimated amount of contracts
remaining to be executed on capital
account and not provided for -
- Tangible Assets 83.85 73.86
Note 3
a) Principal amount payable to Micro and Small Enterprises (to the
extent identified by the Company from available information) as at
31/12/2012 is Rs. Nil (Previous year - Rs. 3.29 million) including
unpaid amounts of Rs. Nil (Previous year - Rs. 1.44 million)
outstanding for more than 45 days. Estimated interest due thereon is
Rs. Nil (Previous year - Rs. 0.05 million).
b) Amount of payments made to suppliers beyond 45 days during the year
is Rs. 0.45 million (Previous year - Rs. 103.45 million). Interest paid
thereon is Rs. Nil (Previous year - Rs. Nil) and the estimated interest
due and payable thereon is Rs. Nil (Previous year - Rs. 1.26 million).
c) The amount of estimated interest accrued and remaining unpaid as at
31/12/2012 is Rs. 1.71 million (Previous year - Rs. 1.71 million).
d) The amount of estimated interest due and payable for the period from
01/01/2013 to actual date of payment or 08/02/2013 (whichever is
earlier) is Rs. Nil
Notes:
1. As the Company also sells as spare parts (for goods manufactured
and sold by it ), some of its bought-out components, the items shown
above as consumption include cost of such items sold, this being an
activity ancillary to its manufacturing activity.
2. The Company is of the opinion that the purchase & sale of such
bought-out components is a part of its activity to manufacture and
deliver a complete pump unit and, therefore, is not a trading activity
as referred to in paragraph 5(ii)(b) of Part II of Revised Schedule VI
to the Companies Act, 1956.
3. The consumption figures in value are balancing figures ascertained
on the basis of opening stocks plus purchases less closing stocks and
therefore, include adjustments for excesses and shortages ascertained
on physical count, etc.
1. In addition to spares purchased for re-sale, the Company also sells
as spares some of its bought-out components. The Company is of the
opinion that the purchase and sale of such bought-out components is a
part of its activity to manufacture and deliver a complete pump unit
and therefore, is not a trading activity as referred to in paragraph
5(ii)(b) of revised Schedule VI of the Companies Act, 1956.
Note 4 - Research and Development expenditure debited to the Statement
of Profit and Loss aggregating Rs. 2.06 million (previous year - Rs.
1.07 million) has been incurred by the Company and disclosed under
appropriate account heads.
Note 5 - The net exchange differences arising during the year
recognised appropriately in the Statement of Profit and Loss - net
loss- Rs. 17.61 million (previous year - net loss- Rs. 13.27 million)
Note 6 - Particulars of assets taken on finance lease on or after 1st
April, 2001:
(i) Total minimum lease payments as at the balance sheet date is Rs.
0.04 million (previous year - Rs. 0.22 million) and the present value
of total minimum lease payments as at the balance sheet date is Rs.
0.02 million (previous year - Rs. 0.20 million)
Note 7 Disclosures under Accounting Standards
7.1 Details of Employee Benefits as required by the Accounting
Standard 15 (Revised) Employee benefits are as under:
7.1.a Defined contribution Plan
Amount recognised as an expense in the Statement of Profit and Loss in
respect of Defined Contribution Plan is Rs. 43.72 million (previous
year Rs. 44.23 million)
7.1.b Defined benefit plans
i. Actuarial gains and losses in respect of defined benefit plans are
recognised in the Profit & Loss Account.
ii. The Defined Benefit Plans comprise of Gratuity and superannuation.
Gratuity is a benefit to an employee based on 15/20/25/30 days
(depending on the grade/ category of the employee and the completed
years of service) last drawn salary for each completed year of service.
Superannuation is a benefit to certain employees at Rs. 1000 / 500 /
250 (depending on the grade/ catagory of the employee and the completed
years of service) per month for each completed year of service.
Both the plans are funded.
Note 8 - Where a financial report contains both consolidated financial
statements and separate financial statement for the parent, segment
information needs to be presented only in case of consolidated
financial statements. Accordingly, segment information has been
provided only in the consolidated financial statements.
Note 9 - Earnings per Share
(a) The amount used as the numerator in calculating basic and diluted
earnings per share is the Profit for the year after tax disclosed in
the Statement of Profit and Loss.
(b) The weighted average number of equity shares used as the
denominator in calculating both basic and diluted earnings per share is
34,807,844.
Note 10 - Repairs to machinery include Rs. 40.23 million (previous year
- Rs. 24.13 million) spares consumed.
Nore 11 - Income Tax
Provision for taxation for the year is an aggregate of the provision
made for the year ended 31st March, 2012 as reduced by the provision
for 9 months up to 31st December, 2011 and the provision based on the
figures for the remaining 9 months up to 31st December, 2012. However,
the ultimate tax liability for the remaining 9 months up to 31st
December, 2012 will be determined based on the results for the year 1st
April, 2012 to 31st March, 2013.
Note 12 - The Revised schedule VI has become effective from 1st April,
2011 for the preparation of financial statements. This has
significantly impacted the disclosure and presentation made in the
financial statements. Previous year''s figures have been
regrouped/reclassified wherever necessary to correspond with the
current year''s classification/disclosure.
Dec 31, 2010
1. Contingent liabilities not provided in respect of:
(i) taxation matters in dispute pending at various stages of appeal Rs.
42,271,000 (previous year - Rs. 42,765,642);
(ii) claims against the Company not acknowledged as debts Rs.5,481,000
(previous year - Rs. 2,569,000);
(iii) bills discounted/cheques purchased with banks Rs. 20,281,403;
(previous year - Rs. 20,824,548);
(iv) excise matters - Rs. 49,975,869 (previous year - Rs. 46,989,068);
2. Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs. 54,289,595 (previous year - Rs.
70,307,175).
3. Guarantees amounting to Rs. 934,906,075 (previous year - Rs.
693,489.196) have been given by the bankers on behalf of the Company,
and are secured by the hypothecation of stocks (including loose tools,
stores and spares) and book debts.
4. Repairs to machinery include Rs. 25,896,138 (previous year - Rs.
17,810,796) spares consumed.
5. Research and Development expenditure debited to the Profit and
Loss Account aggregating Rs. 4,748,150 (previous year - Rs. 5,669,000)
has been incurred by the Company and disclosed under appropriate
account heads.
6. The net exchange differences arising during the year recognised
appropriately in the profit and loss account - net gain- Rs. 29,821,365
(previous year - net gain Rs. 8,228,180)
7 Related party disclosures
(A) Name of the related party and nature of relationship where control
exists:
Name of the party Nature of relationship
1. KSB AG Controlling Company
2. Canadian Kay Pump Ltd. Controlling Company
3. Klein Pumpen GmbH Controlling Company
4. Pofran Sales & Agency Ltd. Subsidiary Company
2) The related parties included in the various categories above, where
transactions have taken place are given below:
- Controlling Companies
KSB AG
Canadian Kay Pump Ltd.
- Associate Company
MIL Controls Ltd.
- Subsidiary Company
Pofran Sales & Agency Ltd.
- Common Control
KSB S.A.
KSB Inc., USA
KSB Pumps (S.A.) (Pty.) Ltd., South Africa
KSB Australia
KSB Chile S.A.
KSB Singapore (Asia Pacific) PTE Ltd.Singapore
KSB Limited, Hongkong
KSB Pumps Co.Ltd., Thailand
P.T. KSB., Indonesia
KSB Taiwan Co.Ltd.
KSB Ltd, Tokyo
KSB Brazil
KSB Korea
KSB Mexico
KSB Nederland
DP Industries B.V., Nederland
KSB Pumps Arabia Ltd.
KSB Ltd., U.K.
KSB Italia S.p.A., Italy
KSB Pompa Turkey
KSB Shanghai Pump Co. Ltd., China
KSB Valves (Shanghai) Co. Ltd., China
Mercantile-KSB Oy AB, Finland
KSB Pakistan
Delian KSB Amri Valves Co. Ltd., China
Bombas 1TUR S.A., Spain
KSB TESMA S.A., Griechenland
KSB Tech. Pvt. Ltd., India
G1W Industries Inc., USA
KSB Middle East FZE, Dubai
KSB Pumpy + Armatury spol. sr. o, Czech
KSB Service LLC
KSB Pompy Armatura Poland
KSB Compania Sudamericana
KSB Belgium SA
KSB China
KSB Pumps & Valves Malaysia
KSB Finanz SA
KSB AMV SA Spain
KSB Finland
KSB Work AB , Sweden
KSB Lindflaten, Norway.
KSB Ajax Pumps PTY
- Key Management Personnel
Mr. W. Spiegel
- Individuals having significant influence over the enterprise
Mr. Gaurav Swarup
- Relatives of individuals having significant influence over the
enterprise
Mrs. Gyan M Swarup
Mahendra Swarup & Sons HUF
Mr. Vikram Swarup
Mrs. Bindu Swarup
Mrs. Parul Swarup
- Enterprises over which individuals having significant influence
overthe reporting enterprise exercise significant influence
The Industrial & Prudential Investment Co. Ltd.
New Holdjng and Tradjng Company Ltd.
Paharpur Cooling Towers Ltd.
8. Earnings per Share
(a) The amount used as the numerator in calculating basic and diluted
earnings per share is the Net Profit for the year disclosed in the
Profit and Loss Account.
(b) The weighted average number of equity shares used as the
denominator in calculating both basic and diluted earnings per share is
17,403,922.
9 (a) Principal amount payable to Micro and Small Enterprises (to the
extent identified by the Company from available information) as at
31/12/2010 is Rs. 1,891,400 (previous year - Rs. 1,324,529) including
unpaid amounts of Rs. 719,262 (previous year - Rs, 658,851) outstanding
for more than 45 days. Estimated interest due thereon is Rs, 4,811
(previous year - Rs. 20,364),
(b) Amount of payments made to suppliers beyond 45 days during the year
is Rs,14,586,344 (previous year - Rs. 9,366,765). Interest paid thereon
is Rs. Nil (previous year - Rs. Nil) and the estimated interest due and
payable thereon is Rs. 236,312 (previous year Rs, 159,107).
(c) The amount of estimated interest accrued and remaining unpaid as at
31/12/2010 is Rs. 241,123. (previous year - RS. 179,471)
(d) The amount of estimated interest due and payable for the period
from 01/01/2011 to actual date of payment or 10/02/2011 (whichever is
earlier) is Rs. 18,108.
10, Details of Employee Benefits as required by the Accounting Standard
15 (Revised) Employee benefits are as under:
(A) Defined Contribution Plan
Amount recognised as an expense in the Profit and loss Account in
respect of Defined Contribution Plans is Rs. 35,699,623 (previous year
- Rs. 34,969,368)
(B) Defined Benefit Plan
i) Actuarial gains and losses in respect of defined benefit plans are
recognised in the Profit & Loss Account.
11. Previous years figures have been regrouped/restated wherever
necessary to conform with this years classification. Signature to
Schedules 1 to 19
Dec 31, 2009
1. Contingent liabilities not provided in respect of:
(i) taxation matters in dispute pending at various stages of appeal Rs.
42,765,642 (previous year - Rs. 36,193,971);
(ii) claims against the Company not acknowledged as debts Rs. 2,569,000
(previous year - Rs. 7,002,000);
(iii) bills discounted/cheques purchased with banks Rs. 20,824,548;
(previous year - Rs. 12,795,088);
(iv) excise matters - Rs. 46,989,068 (previous year - Rs. 45,540,000);
2. Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs. 70,307,175 (previous year - Rs.
196,470,000).
3. Guarantees amounting to Rs. 693,489,196 (previous year - Rs.
757,252,875) have been given by the bankers on behalf of the Company,
and are secured by the hypothecation of stocks (including loose tools,
stores and spares) and book debts.
4. Repairs to machinery include Rs.17,810,796 (previous year - Rs.
25,823,048) spares consumed.
3. Sales exclude :-
a) 28 pumps (previous year - 8 pumps) and 72 valves ( previous year -
63 valves) given as free replacement.
b) 6 pumps ( previous year - 3 pumps) lost in transit during the year.
c) 516 pumps ( previous year à 56 pumps) manufactured on behalf of the
Company by a third party given as free replacement.
4. Production includes 38,256 pumps (previous year - 25,485 pumps)
manufactured on behalf of the Company by a third party.
5. The Company sells as spare parts a proportion of its manufactured
components.The Company considers a component as "meant for sale" only
when it is actually sold or transferred to the marketing offices for
sale.The manufactured components sold during the year are 179,649
numbers (previous year - 163,820 numbers ). It is not practicable to
furnish quantative information in respect of stock of spares in view of
considerable number of items diverse in size and nature.
6. In respect of Power Driven Pumps, whilst the components including
motors are invoiced on delivery & the value reflected in the turnover
of the year of delivery or in closing stock, as the case may be , for
the purpose of quantitative information a Power Driven Pump is treated
as having being produced / sold during the year in which the main
component i.e. the pump is produced and sold respectively.
7. The quantity disclosed under production for castings is the
quantity sold, as the Company considers production "meant for sale"
only when it is sold.
8. Research and Development expenditure debited to the Profit and
Loss Account aggregating Rs. 5,669,000 (previous year - Rs. 4,655,000)
has been incurred by the Company and disclosed under appropriate
account heads.
9. The net exchange differences arising during the year recognised
appropriately in the profit and loss account - net gain- Rs. 8,228,180
(previous year - net gain Rs. 5,661,940)
10. Particulars of assets taken on finance lease on or after 1st
April, 2001:
(i) Total minimum lease payments as at the balance sheet date is Rs.
2,213,256 (previous year - Rs. 3,767,126) and the present value of
total minimum lease payments as at the balance sheet date is Rs.
1,957,080 (previous year - Rs. 3,522,436). The difference represents
the finance charge payable in the future.
11 Related party disclosures
(A) Name of the related party and nature of relationship where control
exists:
Name of the party Nature of relationship
1. KSB AG Controlling Company
2. Canadian Kay Pump Ltd. Controlling Company
3. Klein Pumpen GmbH Controlling Company
4. Pofran Sales & Agency Ltd. Subsidiary Company
2) The related parties included in the various categories above, where
transactions have taken place are given below:
Controlling Companies KSB AG
Canadian Kay Pump Ltd.
Associate Company MIL Controls Ltd.
Subsidiary Company Pofran Sales & Agency Ltd.
Common Contrat
KSB S.A.
KSB inc., USA
KSB Pumps (S.A.) (Pry.) Ltd., South Africa
KSB Australia
KSB Chile S.A.
KSB Singapore (Asia Pacific) Pte Ltd. Singapore
KSB Limited, Hongkong
KSB Pumps Co.Ltd., Thailand
P.T. KSB., Indonesia
KSB Taiwan Co.Ltd.
KSB Ltd, Tokyo
KSB Brazil
KSB Korea
KSB Mexico
KSB Nederland
DP Industries B.V., Nederland
KSB Pumps Arabia Ltd.
KSB Ltd., U.K.
KSB Italia S.p.A., Italy
KSB Pompa Turkey
KSB Shanghai Pump Co. Ltd., China
KSB Valves (Shanghai) Co. Ltd., China
Mercantrle-KSB Oy AB, Finland
KSB Pakistan
Dalian KSB Amri Valves Co. Ltd., China
Bombas 1TUR S.A., Spain
KSB TESMA S.A., Griechenland
KSB Tech. Pvt. Ltd., India
G1W Industries Inc., USA
KSB Middle East FZE, Dubai
KSB Pumpy + Armatury spol. sr. o, Czech
KSB Service LLC
KSB Pompy Armatura Poland
KSB Compania Sudamericana
KSB Belgium SA
KSB China
KSB Pumps & Valves Malaysia
KSB Finanz SA
KSB AMV SA Spain
KSB Finland
Key management personnel Mr. W. Spiegel
Individuals having significant influence over the enterpriseMr. Gaurav
Swarup
Relatives of individuals having significant influence over the
enterprise
Mrs. Gyan M. Swarup
Mr. Vikram Swarup
Mr. Mahendra Swarup and his HUF
Mrs. Bindu Swarup
Mrs. Parul Swarup
Enterprises over which individuals having significant influence over
the reporting enterprise exercise significant influence
The Industrial & Prudential Investment Co. Ltd. New Holding and
Trading Company Ltd. Paharpur Cooling Towers Ltd.
12. (a) Provision for taxation for the year is an aggregate of the
provision made for the year ended 31st March, 2009 as reduced by the
provision for 9 months up to 31st December, 2008 and the provision
based on the figures for the remaining 9 months up to 31s December,
2009, However, the ultimate tax liability for the remaining 9 months up
to 31s1 December, 2009 will be determined based on the results for the
year 1st April, 2009 to 31st March, 2010.
13. Earnings per Share
(a) The amount used as the numerator in calculating basic and diluted
earnings per share is the Net Profit for the year disclosed in the
Profit and Loss Account.
(b) The weighted average number of equity shares used as the
denominator in calculating both basic and diluted earnings per share is
17,403,922.
14. (a) Principal amount payable to Micro and Small Enterprises (to
the extent identified by the Company from available
information) as at 31/12/2009 is Rs. 1,324,529 (previous year - Rs.
363,265) including unpaid amounts of Rs. 658,851 (previous year - Rs.
Nil) outstanding for more than 30/45 days, as the case may be. Interest
due thereon is Rs. 20,364 (previous year - Rs. Nil).
(b) Amount of payments made to suppliers beyond 30/45 days as the case
may be, during the year is Rs. 9,336,765. Interest paid thereon is Rs.
Nil and the estimated interest due and payable thereon is Rs. 159,107.
(c) The amount of estimated interest accrued and remaining unpaid as at
31/12/2009 is Rs. 179,471 (previous year - Rs. Nil)
(d) The amount of estimated interest due and payable for the period
from 01/01/2010 to actual date of payment or 25/02/2010 (whichever is
earlier) is Rs. 37,293.
15. Details of Employee Benefits as required by the Accounting
Standard 15 (Revised) Employee benefits are as under:
(A) Defined Contribution Plan
Amount recognised as an expense in the Profit and loss Account in
respect of Defined Contribution Plans is Rs. 34,969,368 (previous year
- Rs. 29,353,413)
(B) Defined Benefit Plan
i) Actuarial gains and losses in respect of defined benefit plans are
recognised in the Profit & Loss Account.
ii) The Defined Benefit Plans comprise of Gratuity and superannuation.
Gratuity is a benefit to an employee based on 15/20/25/30 days
(depending on the grade/ category of the employee and the completed
years of service) last drawn salary for each completed year of service.
Superannuation is a benefit to certain employees at Rs. 1000 / 500 /
250 (depending on the grade / category of the employee and the
completed years of service) per month for each completed year of
service.
16 Payments to the auditors excludes Rs. Nil (previous year - Rs.
20,000) towards tax services paid to a firm, some of the partners
whereof are also partners in the audit firm.
17 Previous years figures have been regrouped/restated wherever
necessary to conform with this years classification. Signature to
Schedules 1 to 19