Mar 31, 2016
c. Terms/ right attached to equity shares:
The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/-. Each holder of equity shares is entitled to one vote per share.
The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
During the year ended 31st March 2016, the amount of per share dividend recognized as distributions to equity shareholders is Rs.NIL (Previous Year Rs. NIL)
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 in proportion to the number of equity shares held by the shareholders, after distribution of all preferential amounts.
As per records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.
e. Aggregate number of shares issued as fully paid up pursuant to contract without payment being received in cash or by way of bonus shares during the period of five years immediately preceding the date of Balance Sheet is prepared:
Deposits under stipulations of lending financial institutions and banks. Unsecured loans amounting to Rs.21,70,25,000 /- (previous year Rs. 16,73,40,000/-) from Sh. Dinesh Kumar Jain, one of the promoters carries an interest rate of 11% per annum and loans from all other Directors and other are interest free.
b. DEFERRED PAYMENT LIABILITIES
(i) Deferred payment credits from Haryana State Industrial & Infrastructure Development Corporation Limited (HSIIDC) are secured against the following properties:-
1. Plot no. 153, Sector 3 at IMT Manesar , Gurgaon
2. Plot no. 257, Sector 6 at IMT Manesar , Gurgaon
3. Working Housing unit at IMT Manesar , Gurgaon
4. Dormitory House at IMT Manesar , Gurgaon
a) The above properties shall continue to belong to HSIIDC until and unless the full price of the properties with interest and other amount, if any, due to HSIIDC is paid by the Company.
b) On the payment of total price of the properties, the HSIIDC would execute a deed of conveyance in favour of the Company.
i) The liability towards gratuity is as certified by the actuary.
ii) The Company provides for encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits for future encashment. The liability is provided based on numbers of days of unutilized leave at each Balance Sheet date as certified by an Actuary.
(a) Working capital limits from banks (secured)
1) Working capital limits from consortium banks are from Canara Bank and State Bank of India in the ratio of 70:30 and are secured by way of pari passu first charge against hypothecation of entire chargeable current assets i.e stock (including goods in transit) and book debts (present and future) of the Company and pari passu second charge on fixed assets of the Company consisting of land and building, plant and machinery and other fixed assets including capital work in progress (present and future) and guaranteed by Directors of the Company and their relatives. Working capital limits from consortium banks are further secured by way of equitable mortgage of:
1) Plant I and II of the Company. Property part of Khewat No 124/115, Khatoni No 171, Killa No 96/(713/2(3-8, 14/2 (10-3), 15/1(1-12)-17(9-4)-24(7-12) and Part of Khewat No 129/120, Khatoni No 183 min, Killa No 96(4/1(2-17)-7/3/1(4-1) situated at 8.5 lane Mile Stone, Village Totoli, Jind Road. Rohtak-124001 Haryana. Plant III of the Company. Plot no 153, Sector 3 IMT Manesar, Gurgaon-122050 Haryana measuring 4050 sq mtrs. Packaging Unit of the Company. Plot No 257 Sector 6 IMT Manesar Gurgaon-122050, Haryana (India) measuring 1800 sq mtrs. Plant IV of the Company. Part of Khewat No 141 Min. Khatoni No 176 Min, Killa No 122/1(5-4) and Part of Khewat No 140 Min, Khatoni No 175 Min Killa No 103/108(8-0), 11(8-0),20(8-0) and Part of Khewat No 103/1(8-0), 104(5/2(4-0), 5/3(2-0) and Part of Khewat No 140 N.H. 10 Near Sudhir Automotive NH-10, Kharwae Delhi Road Rohtak 124001 Haryana, measuring 45496 sq yards.
ii) Property situated at adjacent LPS Plant-II and near Canara Bank and Honda Showroom Hissar Road Industrial Area, Rohtak in the name of Smt. Sushila Devi Jain wife of Late Shri Bimal Prasad Jain measuring 10640 sq yards of land.
iii) Agriculture land part of Khewat no 97 Min, Khatoni no 117 Min. and Killa no 126/12/2/1(2-3) and part of Khewat no 90 Min,
Khatoni No 103 Min and Killa no 126/19/2(7-13), 22/1(6-5) and Part of Kheat no 88/97 Min, Khatoni no 10 Min and Killa no 126/22/2(1-8) 23(8-0) and part of Khewat no 97 Min, Khatoni no 117 Min and Killa no 147/1/(8-0)3(6-17)4(7-7) and part of Khewat no 91 Min, Khatoni no 103 Min and Killa no 147/3 Min Northern 4-9 situated at near LPS Bossard and Kharwar village Rohtak Delhi Road NH 10, Village Kharwar, Distt Rohtak, Haryana measuring 46125 acres.
iv) First pari passu charge with other consortium members on Dies and Tools capitalised during financial year 2010-2011 and 2011-12.
v) Exclusive charge on Dies and Tools capitalised during financial year 2012-13.
2) Working capital limits from Corporation Bank Limited (outside consortium) are secured against equitable mortgage of Industrial plot measuring 16 Kanal 3 Marla situated in the Revenue Village Kutana, Tehsil and District Rohtak, Hayana in the name of the Company.
3) Working capital limits from Kotak Mahindra Bank are secured against book debts of the Company namely Maruti Suzuki India Limited (MSIL) and Honda Motorcycle and Scooter India Private Limited (HMSI) and are further secured against personnel gurantees of Shri Lalit Kumar Jain, Shri Dinesh Kumar Jain, Shri Vijay Kumar Jain, and Shri Rajesh Jain, Directors of the Company.
b) Deposits from directors and others (unsecured)
1) Deposits are from directors and others and are repayable on demand.
2) Interest accrued and due Rs. 2, 03, 04,712/- (previous year 17,08,774/-) on Fixed Deposit from directors and others remained unpaid as on the Balance Sheet date.
c) Other loans and advances from Companies (unsecured)
1) Other loans and advances are from Companies and repayable on demand.
2) Interest accrued and due Rs.11, 00,000 /- (previous year Rs. 5, 14,110/) - remained unpaid as on the Balance sheet date.
b) Investor Protection and Education Fund is being credi ted by the amount of unclaimed dividend after seven years from the due date.
Th e Compa ny has teansferred and depos ited a sum of Rs. 3,92,280/- (previous year Rs. 4,27,991/-) out of unclaimed dividend pertaining to the F.Y. 2007-08 (previous year FY. 2006-07) to Investor Education and Protection Fund of the Central Government in accordance with the provisions of section 205C of the Companies Act, 1956.
c) Credit balance with HDFC Bank Umited,Rohtak is due to uncashed cheques.
d) T lif? Company has made a pr ovision of ex cis e desy payable amounti pg Rs 5, 34, 76,418/- (previous year Rs. 5,09,7-4,629/-) on oc:k;i of finished goods and scrap material at the end of th9 year. Excise duty is considered as an element of cost at the time of manufacture of goods.
e) Employees benefit expense e includes Rs. 1, 15, 12,608/- (Prev''s oear Rs. 46, 36,000/-) payable to D irecrors of this Company.
f) Statutory dues ar e in respect of at ESI : Sales Tax, TDS, Service Tax, W ithnoidine Tax, Weeleh Tax, TC S, sa bour Welfar e Fund, Wark Contract Tax, Professional Tax, Interest on TDS, Interest on Income Tax, Income tax, Interest on Sales Tax, Interest on PF/ESI, R&D Cess and excise Duty.
g) Other payables include job work charges, repairs, audit fees, advertisement, rent, consultancy and other expenses payable.
Provisions are recognized for expenses such as gratuity, leave encashment, income tax and wealth tax. The provisions are recognized on the basis of past events and the probable settlement of the present obligation as a result of the past events during the financial year 2015-16.
- Rs. 1, 74, 77,093/- included in statutory dues under other current liabilities.
- Rs. 3, 06,508/- included in statutory dues under other current liabilities.
1. Depreciation has been provided as per useful life prescribed in Schedule II of Companies Act, 2013 as per written down value method except in case of Plant II, Manesar and Recoil Division where the depreciation has been provided on straight line method.
2. Additions in fixed assets include Rs. 3,84,11,005/- (previous year Rs 3,68,43,267/-) capitalized on account of borrowing costs in accordance with AS-16 "Borrowing Cost" (specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014).
3. Addition in Plant and Machinery includes a sum of Rs. 60, 64, 97,351/- on account of Dies and Tools capitalized during the year (refer note no. 33(4)).
4. Leasehold Offices Premises are in respect of office flats at Bangalore.
5. Freehold Offices Premises are in respect of office flats at Mumbai and Delhi.
6. Leasehold Land are in the nature of perpetual lease and hence not amortized.
7. Plant & Machinery include captial expenditure of Rs. Nil incurred during the year (previous year Rs. 1, 23, 26,476/-) on Research & Development.
8. Vehicles under finance lease are as under:
Gross Block Rs. 78, 30,189/- (Previous year Rs. 3, 60, 32,248/-)
Net Block Rs. 48, 94,448/- (Previous year Rs. 1, 94, 26,302/-)
9. Machines under finance lease are as under:
Gross Block Rs. 15, 65,758/- (Previous year Rs. 15, 65,758/-)
Net Block Rs. 8, 31,246/- (Previous year Rs. 13, 60,372/-)
10. Sales / adjustments include a sum of Rs. 21457668/- on account of excess depreciation charged in earlier years (refer note no 33(27)).
Note:
i. There was a labour strike in Unit 1 of the Company on 27/02/2016 and there was a shutdown of Plant for the period 04/03/2016 to 31/03/2016 due to various demands of workers. The shut down of the Plant was Struck down by Government of Haryana vide Order no. 15409-17 and the matter was referred for adjudication to Industrial Tribunal. The Company is contesting the case before Industrial Tribunal Labour Court, Rohtak and there is a contingent liability of Rs. 2, 30,35,314/- due to various demands by workers on the said account. Based on advise of Solicitors, the Company has adequately represented before judicial authorities and therefore expects no liability on this account and hence no provisions have been recognized. The detail of Contingent liability is as under:-
2. That there was a misappropriation of funds amounting to Rs. 1, 60, 59,342/- by an employee of the Company in the earlier years. An FIR was lodged with City Police Station, Rohtak on 22.06.2006. Investigations are being conducted. The hearing was conducted on 02.05.2011 in the Court of Chief Judicial Magistrate, Rohtak for the purpose of checking of challan and framing of charges against the employee. The next hearing is due on 18th July 2015 for argument on charge, in the court of Chief Judicial Magistrate. The Company had also filed a civil suit for recovery before the Delhi High Court on 13/09/2006. The aforesaid amount has been debited to concerned employee and shown under Short-term loans and advances. No provision for the same has been made since the Company expects to recover the entire amount.
3. Interest and other borrowing costs amounting to Rs 3,84,11,005/- (previous year Rs. 3,68,43,267/-) have been capitalized to the carrying cost of fixed assets and capital work- in- progress being financing costs directly attributable to the acquisition, construction or installation of the concerned qualifying assets till the date of its commercial use.
4. CHANGE IN ACCOUNTING POLICY:
The Company has changed its system of accounting in respect of amortization of dies and tools. As of 1st January, 2016, the inventory of dies and tools having a book value of Rs. 60,64,97,351/- have been capitalized under fixed assets and depreciated prospectively as per the rate and method prescribed under Schedule II of the Companies Act, 2013. In the earlier years, the same were amortized on the basis of their effective residual life based on technical assessment. The Company has changed its policy due to better and more appropriate presentation in accounts. In earlier years, the Company was unable to obtain technical assessment in respect of consumption of dies and tools as per the accounting policy of the Company resulting in charge of consumption of dies and tools to the statement of profit and loss on a non-scientific basis. The Statutory auditors have also given a modified opinion on the said matter in the auditor''s report in the earlier years. The Company has therefore capitalized dies and tools and depreciated them on the basis of their useful life as per Schedule II of Companies Act, 2013. Due to such change:
a) The charge to Statement of Profit and Loss on account of consumptions of dies and tools is lower by Rs. 1,50,13,630/-.
b) Depreciation charge for the year is higher by Rs. 4, 10, 09,492/
c) The Net Loss of the year is higher by Rs. 2, 59, 95,862/-. The said change is likely to hold good in the future years also.
5. PRIOR PERIOD ITEMS:
a) The Company has recognized interest expense @ 18% on unsecured loans taken by the Company for the period from 20th November, 2012 to 31st March 2016. During the period the said interest was being provided @ 11%, however as per terms of the agreement filed before the CLB, differential interest @ 7% has been provided with retrospective effect from 20th November, 2012 therefore generating a prior period charge amounting to Rs. 91,24,932/-.
b) The Company has recovered cost of recharge amounting to Rs. 12, 02,328/- from LPS-Ejot Fastening Systems Private Limited in respect of common facilities and usage charges pertaining to financial year 2014-15.
c) The Company has received refund of interest amounting to Rs. 23, 78,025/- on foreign bills discounted with banks pertaining to financial year 2014-15.
6. EXCEPTIONAL ITEMS:
a) The Company has entered into a Share Purchase Agreement dated 10th March, 2016 with Sh. Rajesh Jain, Smt. Sandhya Jain, Sh. Rahul Jain, Smt. Samridhi Jain, M/s. Sun Shares Trading & Consultancy Private Limited and M/s. LPS Industrial Supplies Private Limited for sale of 100% stake in its Joint Venture, LPS Bossard Private Limited for a purchase consideration equivalent to Rs. 40, 18, 00,000/-. Pursuant to aforesaid sale of shares, the Company has received a sum of Rs.40,18,00,000/- against sale on 23,52,019 Equity shares of LPS Bossard Private Limited as aforesaid resulting in a Profit of Rs. 37,82,79,810/- on the said transaction being the difference between consideration received and historical cost of shares as on the date of transaction. The same has been disclosed as an Exceptional item in accordance with the requirement of Accounting Standard -5, "Net Profit or Loss for the period, Prior Period Items and Changes in Accounting policies" (specified under section 133 of the Companies Act, 2013, read with Rule 7 of Companies (Accounts) Rules, 2014). The closing date for the above transaction has been taken on 23rd March, 2016, being the date on which transfer of shares has been completed. Therefore, LPS Bossard Private Limited has ceased to be a joint venture company.
b) Inventories written down:
Work- in- Progress
The Company has identified dead and slow moving inventory under Work- in- progress having a book value of Rs. 5,45,83,125/- and after recognizing a scrap value of Rs. 43,67,760/- , the net write down of Rs. 5,02,15,365/- in the value of Work- in- progress has been treated as an exceptional item in accordance with Accounting Standard- 5, "Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies", specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.
Consumable stores and spare parts
The Company has identified dead and slow moving inventory under Consumable stores and spare parts having a book value of Rs. 6,97,35,433/- and after recognizing scrap value of Rs. 13,67,361/- , the net write down of Rs. 6,83,68,072/- in the value of Consumables stores and spare parts has been treated as an exceptional item in accordance with Accounting Standard- 5, "Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies", specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.
c) There was a labour strike in Unit 1 of the Company on the 27/02/2016 and there was a shutdown of Plant for the period from 04/03/2016 to 31/03/2016 due to various demands of workers. Due to strike, the following expenses incurred during the shut down period have been treated as exceptional items in pursuance of Accounting Standard-5-"Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies" (specified under Section 133 of Companies Act, 2013, read with Rule 7 of Companies (Account) Rules, 2014.
7. The Company has capitalized dies and tools amounting to Rs. Nil/- (previous year Rs. 2,16,34,049/-) relating to dies and tools purchased/ manufactured during the year.
8. Research and development expenses debited to the statement of profit and loss include the following:
10. Balances under Sundry Debtors and Sundry Creditors, loans and advances given by the Company and parties from whom unsecured loans have been taken are subject to confirmations and adjustments, if any, required upon such confirmations are not ascertainable and hence not provided for.
12. SEGMENT REPORTING:
The segment reporting of the Company has been prepared in accordance with Accounting Standard (AS-17), "Accounting for Segment Reporting", (specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014).
Primary-Business Segment
The Company is mainly engaged in the business of manufacture of high tensile fasteners. Since the Company is operating in a single line of product, there are no reportable primary segments.
Secondary-Geographical Segment
The analysis of geographical segment is based on geographical location of the customers. The following is the distribution of Company''s consolidated revenue by geographical market, regardless of where the goods were produced.
13. In the opinion of the Board, assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated and provision for all known liabilities have been made.
14. RELATED PARTY TRANSACTIONS:
The related parties as per the terms of Accounting Standard- 18, "Related Party Disclosures", (specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014) are disclosed below:-(a) Names of related parties and description of relationship:
1. |
Subsidiary: i |
Indian Fasteners Limited |
2. |
Associate Companies: i ii iii |
Hanumat Wires Udyog Private Limited J C Fasteners Limited Lakshmi Extrusions Limited |
3. |
Joint Venture: i |
LPS Bossard Information Systems Private Limited |
|
ii |
LPS Bossard Private Limited (upto 23rd March, 2016) |
4. |
Enterprises in which KMP and relatives of i |
Amit Screws Private Limited |
such person exercise significant influence: ii |
LPS Fasteners & Wires Private Limited |
|
|
iii |
Nav Bharat Industries (Partnership Firm) |
|
iv |
Nav Bharat Agencies (Partnership Firm) |
|
v |
Shiv Industries (Partnership Firm) |
|
vi |
Swadesh Engineering Industries (Partnership Firm) |
|
vii |
Sudhir Automotive Industries Private Limited |
|
viii |
United Engineers (Partnership Firm) |
|
ix |
Universal Enterprises (Partnership Firm) |
|
x |
Universal Precision Screws (UPS) (Partnership Firm) |
|
xi |
LPS Industrial Supplies Private Limited |
|
xii |
LPS-Ejot Fastening Systems Private Limited |
|
xiii |
Sun Shares Trading & Consultancy Private Limited |
5. |
Key Management Personnel: i ii |
Shri Lalit Kumar Jain (Managing Director) Shri Dinesh Kumar Jain (Managing Director) |
|
iii |
Shri Vijay Kumar Jain (Managing Director) |
|
iv |
Shri Rajesh Jain (Director) |
|
v |
Shri Santosh Kumar Sharma (Company Secretary) |
|
vi |
Shri Kanai Lal Ghorui (Chief Financial Officer) |
6. |
Relative of Key Management Personnel: i ii |
Shri Sudesh Kumar Jain Shri Nikhlesh Jain |
|
iii |
Shri Amit Jain |
|
iv |
Shri Gagan Jain |
|
v |
Shri Gautam Jain |
|
vi |
Shri Rahul Jain |
|
vii |
Smt.Charul Jain |
|
viii |
Smt. Rita Jain |
|
ix |
Smt. Sushila Devi Jain |
|
x |
Smt. Sandhya Jain |
|
xi |
Smt. Samridhi Jain |
15 In accordance with Accounting Standard- 28, "Impairment of Assets", (specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014) and made applicable from 1st day of April, 2004, the Company has assessed the potential generation of economic benefits from its business units as on the balance sheet date and is of the view that assets employed in continuing business are capable of generating adequate returns over their useful lives in the usual course of business; there is no indication to the contrary and accordingly, the management is of the view that no impairment provision is called for in these accounts.
16 Pursuant to Accounting Standard- 27, "Financial Reporting of Interests in Joint Ventures", (specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014), disclosures in respect of the said joint ventures are given below:
(i) a) Name of the Venture LPS Bossard Private Limited
b) Description of Interest Jointly Controlled Entity (upto 23rd March, 2016)
c) Country of Incorporation India
d) Proportion of ownership interest as at March 31, 2016 Nil
e) The Company has entered into a Share Purchase Agreement dated 10th March, 2016 with Sh. Rajesh Jain, Smt. Sandhya Jain, Sh. Rahul Jain, Smt. Samridhi Jain, M/s. Sun Shares Trading & Consultancy Private Limited and M/s. LPS Industrial Supplies Private Limited for the sale of 100% stake in its Joint Venture, LPS Bossard Private Limited
f) The Company''s share in each of the assets, liabilities, incomes and expenses (each without elimination of the effect of transaction between the Company and the Joint Venture) related to its interest in Joint Venture, based on unaudited financial statements/ financial information as at 23rd March, 2016 are as under:
(ii) a) Name of the Venture |
LPS Bossard Information Systems Private Limited |
b) Description of Interest |
Jointly Controlled Entity |
c) Country of Incorporation |
India |
d) Proportion of ownership interest as at March 31, 2016 |
49% |
e) The Company''s share in each of the assets, liabilities, incomes and expenses (each without elimination of the effect of transaction between the Company and the Joint Venture) related to its interest in Joint Venture, based on unaudited financial statements/ financial information as at 31st March, 2016 are as under:
17 Disclosures pursuant to Accounting Standard- 15, "Employee Benefits", (specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014) are given below:
DEFINED CONTRIBUTION PLAN
Contribution to Defined Contribution Plan, recognized as expense for the year is as under:
DEFINED BENEFIT PLAN
The employee''s Gratuity Fund Scheme, which is defined benefit plan, is managed by trust maintained with Life Insurance Corporation of India (LIC). The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
Gratuity:-
The employees'' Gratuity Fund Scheme, which is a defined benefit plan, is managed by the trust maintained with Life insurance Corporation of India (LIC). The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of services as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
NOTES:
1. The plan assets are maintained with Life Insurance Corporation of India (LIC).
2. The Company expects to contribute Rs. 75.00 lacs (previous year Rs. 50.00 lacs) to the plan during the next financial year.
3. The estimates of rate is escalation in salary''s considered in actuarial valuation are after taking into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the Actuary.
4. The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risk, historical results of return on plan assets and the Company''s policy for the plan assets management.
Leave Encashment:-
The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of services as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
NOTES:
1. The estimates of rate is escalation in salary''s considered in actuarial valuation are after taking into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the Actuary.
2. Since the liability is not funded, thereby information with regard to the plan assets has not been furnished. The estimates of rates of escalation in salary considered in actuarial valuation after taking into account inflation seniority, promotion and other relevant factors including supply and demand in the employment market.
3. DISCLOSURE REQUIRED UNDER SECTION 186(4) OF THE COMPANIES ACT, 2013.
Particulars of Loans Given:
4. Deferred tax assets in respect of timing differences capable of reversal in future and carried forward losses under the Income Tax Act, 1961 has not been recognised in view of absence of virtual certainty supported by convincing evidence that sufficient taxable income will be available in future for reversal of deferred tax assets. The total deferred tax assets not recognized amounting to Rs. 15, 91, 21,514/- (previous year Rs. 12, 01, 39,276/-) as on 31.03.2016.
5 . During the year, the Company has valued the inventory of finished goods at 57% and semi-finished goods at 66% less on the price-list and special items have been valued at 22% less in the case of finished goods of the selling price and 31% less in case of semi-finished goods. The exact cost of each item is not ascertainable in case of finished goods and semi-finished goods in view of multiple sizes and nature of products. However, the management believes that its impact on financial statements is not likely to be material on adoption of actual cost vis-a-vis the Standard Costing adopted by the Company. The Company plans to review its standard costing system based on the overall cost data every year.
6. CORPORATE SOCIAL RESPONSIBILITY:
The Company does not satisfy the criteria for spending on CSR activities as provided under section 135 of the Companies Act, 2013. Therefore no provision towards Corporate Social Responsibility (CSR) has been made.
7. The Company had made a provision of '' 18,06,164/- towards income tax liability for the financial year 2014-15 and recognized MAT credit entitlement towards the same. However, due to nonpayment of statutory dues before due date of filing of income tax return for the assessment year 2015-16 and resulting disallowances under section 40(ia) of the Income Tax Act, 1961, the Company has made an estimated provision of '' 2,50,00,000/- towards income tax liability on the said account.
8. The Company has calculated to date item-wise depreciation on plant and machinery and it was observed that depreciation amounting to Rs. 2,14,57,668/- was provided excess vis a vis the depreciation policy of the Company. The said amount has been duly derecognized in the financial statements.
28. The Company has adopted component accounting as required under schedule II of Companies Act, 2013 and AS 10 (Rev.), from 1st April, 2015. The Company has identified and determined cost of each component/part of the assets separately. if the component/part has a cost which is significant to the total cost of the asset and has useful life that is materially different from that of the remaining assets. However, no such component has been identified which is significant to the respective asset and has a useful life different from that of the remaining asset.
9. As per the transfer pricing norms prescribed under Section 92 of the Income Tax Act, 1961, the Company is required to use certain specified methods in computing arm''s length price of international transactions and specified domestic transactions between the associated enterprises and maintain prescribed information and documents relating to such transactions. The appropriate methods to be adopted will depend on the nature of transaction/ class of transaction, class of associated persons, functions performed and other factors, which have been prescribed. The Company is in the process of conducting a transfer pricing study for the current financial year. Accordingly, these financial statements do not include any adjustments for the transfer pricing implications, if any.
10. The Company has taken various residential/commercial premises under cancellable operating leases. These lease agreements are normally renewed on expiry. There are no restrictions placed upon the Company by entering into these leases and there are no subleases. Lease payments recognized in the statement of profit and loss as an expense for the year is Rs. 70,54,373/-(previous year Rs. 68,25,151/-).
11. The Company has also taken few commercial premises under non-cancellable operating leases. There are no restrictions placed upon the Company by entering into these leases and there are no subleases. Normally there are renewal and escalation clauses in these contracts. The total of future minimum lease payments in respect of such leases is as follows:
12. The figures for the previous year has been regrouped/reclassified wherever necessary to make them comparable with those of the current year.
13. Figures have been rounded off to the nearest rupees upto two decimal places.
14. Note No. 1 to 33 form an integral part of the balance sheet and statement of profit and loss.
The accompanying notes form an integral part of the standalone financial statements.
Mar 31, 2015
(i) The liability towards gratuity is as certified by an actuary.
(ii) The Company provides for encashment of leave or leave with pay
subject to certain rules. The employees are entitled to accumulate
leave subject to certain limits for future encashment. The liability is
provided based on numbers of days of unutilized leave at each Balance
Sheet date as certified by an Actuary.
a. Working capital limits from banks (secured)
(1) Working capital limits from consortium banks are from Canara Bank
and State Bank of India in the ratio of 70:30 and are secured by way of
pari passu first charge against hypothecation of entire chargeable
current assets i.e stock and book debts (present and future) of the
Company and pari passu second charge on fixed assets of the Company
consisting of land and building, plant and machinary and other fixed
assets including capital work in progress (present and future) and
guaranteed by Directors of the Company and their relatives. Working
capital limits from consortium banks are further secured by way of
equitable mortgage of:
(i) Plant I & II of the Company
Property part of Khewal No 124/115, Khatoni No 171, Killa No
96/(713/2(3-8, 14/2 (10-3), 15/1(1-12)-17(9-4)-24(7-12) and Part of
Khewat No 129/120, Khatoni No 183 min, Killa No 96(4/1(2-17)-7/3/1(4-1)
situated at 8.5 lane Mile Stone,Village Totoli, Jind Road,Rohtak-124001
Haryana
Plant III of the Company
Plot No 153, Sector 3 IMT Manesar, Gurgaon-122050 Haryana measuring
4050 sq mtrs.
Packaging Unit of the Company
Plot No 257 Sector 6 IMT Manesar Gurgaon-122050, Haryana measuring 1800
sq mtrs.
Plant-IV of the Company
Part of Khewat No 141 Min. Khatoni No 176 Min, Killa No 122/1(5-4) and
Part of Kheat No 140 Min, Khatoni No 175 Min Killa No 103/108 (8-0),
11(8-0), 20(8-0) and Part of Khewat No 103/1(8-0), 104(5/2(4-0),
5/3(2-0) and Part of Khewat No 140 N.H. 10 Near Sudhir Automotive
NH-10, Kharwar Delhi Road, Rohtak 124001 Haryana, Measuring 45496 sq
yards.
(ii) Property situated at adjacent LPS Plant-II and Near Canara Bank
and Honda Showroom Hissar Road Industrial Area, Rohtak in the name of
Smt. Sushila Devi Jain wife of Late Shri Bimal Prasad Jain measuring
10640 sq yards of land
(iii) Agriculture land part of Khewat no 97 Min, Khatoni no 117 Min.
and Killa no 126/12/2/1(2-3) and part of Khewat no 90 Min, Khatoni No
103 Min and Killa no 126/19/2(7-13), 22/1(6-5) and Part of Kheat no
88/97 Min, Khatoni no 10 Min and Killa no 126/22/2(1-8) 23(8-0) and
part of Khewat no 97 Min, Khatoni no 117 Min and Killa no
147/1/(8-0)3(6-17)4(7-7) and part of Khewat no 91 Min, Khatoni no 103
Min and Killa no 147/3 Min Northern 4-9 situated at near LPS Bossard
and Kharwar village Rohtak Delhi Road NH 10, Village Kharwar, Distt
Rohtak, Haryana measuring 46125 acres
(iv) First pari passu charge with other consortium members on Dies and
Tools capitalized during financial year 2010-2011 and 2011-12.
(v) Exclusive charge on Dies and Tools capitalized during financial
year 2012-13.
(1) Working capital limits from Corporation Bank Limited (outside
consortium) are secured against equitable mortgage of Industrial plot
measuring 16 Kanal 3 Marla situated in the Revenue Village Kutana,
Tehsil & District Rohtak, Hayana in the name of the Company.
(2) Interest accrued and due Rs. 1708774/- (previous year 1708771/-) on
Fixed Deposit from Directors and others remained unpaid as on the
Balance
Sheet date.
b. Other loans and advances from a Company (unsecured)
(i) Other loans and advances are from Companies and repayable on
demand.
Interest accrued and due Rs. 514110/- (previous year Rs760932/)-
remained unpaid as on the Balance sheet date.
(i) Trade payables include payable to a subsidiary company Rs.
10097214/- (Previous Year Rs.8961869/-)
(ii) Information required to be furnished as per section 22 of the
Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act)
for the year ended 31st March, 2015. This information has been
determined to the extent such parties have been identified on the basis
of information available with the company.
(i) Investor Protection and Education Fund is being credited by the
amount of unclaimed dividend after seven years from the due date. The
company has transferred and deposited a sum of Rs. 427941/- (Previous year
216095/-) of unclaimed dividend pertaining to the F.Y. 2006-07 to
Investor Education and Protection Fund of Central Government in
accordance with the provision of section 205C of the Companies Act,
1956.
(ii) The Company has made a provision of Excise duty amounting Rs
50974629/- (previous year Rs. 50328743/-) payable on stocks of Finished
and Scrap material. Excise duty is considered as an element of cost at
the time of manufacture of goods.
(iii) Employees benefit expense includes Rs 4636000/- (Previous year
Rs.6615000/-) payable to Directors of the Company.
(iv) Statutory dues are in respect of PF,ESI,Sales Tax, TDS, Service
Tax, Withholding Tax, Income Tax, TCS, Labour Welfare Fund, Work
Contract Tax, Professional Tax, Interest on TDS, Interest on Income
Tax, Interest on Sales Tax, Interest on PF/ESI, R&D Cess and Excise
Duty.
(v) Other payables include expenses payable, advance against sale of
assets and other payables.
(vi) Other payables include Rs. 3211753/- (previous year Rs.1070754/-)
payable to Directors of the Company.
(vii) Credit Balance with HDFC Bank Limited, Rohtak is due to uncashed
cheques.
* Statutory dues are in respect of Income Tax and Wealth Tax.
* Includes Rs. 286196/- under statutory dues payable (Note no. 9)
Notes:
1 Depreciation has been provided as per useful life prescribed in
Schedule II of Companies Act, 2013 as per written down value method
except in case of Plant II, Manesar and Recoil Division where the
depreciation has been provided on straight line method.
2 The addition in fixed assets include Rs. 36843267/- (Last year
Rs.16730445) capitalized on account of borrowing costs in accordance
with AS-16 "Borrowing Cost" issued by The Institute of Chartered
Accountant of India.
3 Leasehold Offices Premises are in respect of office flats at
Bangalore.
4 Freehold offices Premises are in respect of office flats at Mumbai
and Delhi.
5 Plant & Machinery include capital expenditure of Rs. 12326476/-
incurred during the year (Previous year Rs. 5963676/- ) on Research &
Development.
*In terms of joint venture agreement entered into with Bossard AG,
Switzerland on 26.06.1997, the Company has invested a sum of
Rs.23520190/- in LPS Bossard Private Limited towards allotment of
2352019 Equity Shares of Rs.10/- each and a sum of Rs.1847490/- in LPS
Bossard information Systems Private Limited towards allotment of 184749
equity shares of Rs. 10/- each, towards 49% holding in the aforesaid
companies.
Inventories have been valued at lower of cost and net realizable value.
Cost has been ascertained in case of Semi-finished goods at 66% less on
price-list and finished goods have been valued at 57% less on
price-list and special items have been valued at 31% less in case of
semi-finished goods and 22% less in the case of finished goods of the
selling price; since exact cost is not ascertainable. Excise duty
payable on finished goods and scrap materials are shown separately as
part of manufacturing cost and is included in the valuation of finished
goods and scrap materials. Inventories are consumed on FIFO (First in
First out) basis. Scrap material has been valued at net realizable
value.
* Fixed deposits with banks include deposits of Rs. 31418179/-
(Previous Year of Rs. 36641627/-) with maturity of more than 12 months.
** Unpaid dividends can be utilized only for payment of unpaid dividend
liability.
Trade receivables includes
a) Rs 779216/- (previous year Rs. 271723/-) due from LPS Bossard
Private Limited, a Joint Venture Company.
b) Rs 67880/- (previous year Rs. 7880) due from J C Fasteners Limited,
an Associate Company.
c) Rs 448058/- (previous year Rs. 448058) due from Lakshmi Extrution
Limited, an Associate Company.
d) Rs 8945990/- (previous year Rs. 7745249) due from Universal
Precision Screws, a firm in which directors are partners.
e) Rs 129855/- (previous year Rs. 139019/-) due from LPS Industrial
Supplies Pvt Ltd, an Associate company.
(ii) The balance with central excise department includes balance in
central excise account at head office, duty paid on stocks lying at the
branches and with consignees.
(i) Employee benefits expenses include managerial remuneration Rs.
3,73,80,000/- (previous year Rs. 4,48,50,000/-).
(ii) The managerial remuneration has been paid in terms of sanction
from Central Government u/s 2(94), 2(78), 197 and 200 of the Companies
Act, 2013, vide letters
(i) Interest received includes a sum of Rs. 6971282/- (previous year
Rs.7725097/-) on bank deposits, Rs. 24048/- (previous year Rs. 90661/-)
from trade customers, Rs. 930426/- (previous year Rs. 664590/-) on
loans , and Rs. 2249035/- (previous year Rs. 2477645/-) on securities.
(ii) The Company has been sanctioned term loan of Rs. 25,00,00,000/-
from Haryana State Industrial and Infrastructure Development
Corporation Limited to be utilized for setting up plant at IMT, Rohtak.
Out of the said loan, Haryana State Industrial and Infrastructure
Development Corporation Limited has disbursed a sum of Rs.
23,13,51,000/- till the date of Balance Sheet, which has been utilized
for the purpose for which it was sanctioned.
(iii) The Company has been disbursed a loan of Rs. 13605400/- from
Intec Capital Limited for purchase of machinery. The Company has
utilized the loan for the purpose it was sanctioned.
(iv) The Company has been sanctioned a term loan of Rs. 52198474/- from
Karvy Financial Services Limited for working Capital Purposes. The same
has been utilized for the purpose it was sanctioned.
(v) The Company has been sanctioned and disbursed a term loan of
Rs.200000000/- from Hero Fincorp Limited for the purchase of
equipment/Plant and Machinery. Out of the said loan, the Company has
utilized a sum of Rs.114048736/- for the purpose it was sanctioned.
(vi) That there was a misappropriation of funds amounting to
Rs.16059342/- by an employee of the Company in the earlier years. An
FIR was lodged with City Police Station, Rohtak on 22.06.2006.
Investigations are being conducted. The hearing was conducted on
02.05.2011 in the Court of Chief Judicial Magistrate, Rohtak for the
purpose of checking of challan and framing of charges against the
employee. The next hearing is due on 18th July 2015 for argument on
charge, in the court of Chief Judicial Magistrate. The Company had also
filed a civil suit for recovery before the Delhi High Court on
13/09/2006. The aforesaid amount has been debited to concerned employee
and shown under Short term loans and advances. No provision for the
same has been made since the Company expects to recover the entire
amount.
(vii)(a)Till 31st March, 2014 depreciation was being provided on
Written Down Value Method except in case of Plant-II, Manesar and
Recoil Division where depreciation has been provided on Straight Line
method as per the rates prescribed in Schedule XIV of the Companies
Act, 1956. The Schedule XIV has been replaced by Schedule II of
Companies Act, 2013 and depreciation has been charged on WDV method and
straight line method respectively on the basis of useful lives of the
assets in the manner as prescribed in Schedule II of the Companies Act,
2013.
(b)Till 31st March, 2014, the assets for a value not exceeding Rs.
5000/- were written off in the year of purchase as per Schedule XIV of
the Companies Act, 1956. Schedule II of the Companies Act, 2013 does
not recognise such a practice. The depreciation on the assets for a
value not exceeding Rs. 5000/- has been provided on the basis of their
useful lives in the manner as prescribed in the Schedule II of the
Companies Act, 2013.
(viii) Interest and other borrowing costs amounting to Rs.36843267/-
(previous year Rs.16730445/-) have been capitalized to the carrying
cost of fixed assets and capital work in progress being financing costs
directly attributable to the acquisition, construction or installation
of the concerned qualifying assets till the date of its commercial use.
(ix) The Company has capitalized dies and tools amounting to
Rs.21634049/- (previous year Rs.22313167/-) relating to dies and tools
purchased/manufactured during the year.
(x) Segment Reporting
The segment reporting of the Company has been prepared in accordance
with Accounting Standard (AS-17), "Accounting for Segment Reporting"
issued by the Institute of Chartered Accountants of India.
Primary-Business Segment
The Company is in the business of manufacture of high tensile
fasteners. Since the Company is operating in a single line of product,
there are no reportable primary segments.
(xi) Confirmations from debtors and creditors and parties to whom
loans and advance have been made are being obtained on a periodical
basis. In respect of accounts under reconciliation, necessary entries
will be passed on reconciliation of these accounts.
(xii) In the opinion of the Board, assets other than fixed assets and
non-current investments have a value on realization in the ordinary
course of business at least equal to the amount at which they are
stated and provision for all known liabilities have been made.
* Net of Provision for doubtful receivables
(xiii) Related Party Transactions:
As per Accounting Standard No.18 issued by the Institute of Chartered
Accountants of India, related parties in terms of the said Standard are
disclosed below: -
(a) Names of Related parties and description of relationship:
1 Subsidiary i Indian Fasteners Limited
2 Enterprises where Directors exercises i Amit Screws Private Limited
sign cant influence: ii Hanumat Wire Udyog Private Limited
iii J C Fasteners Limited
iv LPS Bossard Private Limited (Joint Venture)
v LPS Bossard Information System Private Limited (Joint Venture)
vi Lakshmi Extrusion Limited
vii LPS Fasteners & Wires Private Limited
viii Nav Bharat Industries (Partnership Firm)
ix Nav Bharat Agencies (Partnership Firm)
x Shiv Industries (Partnership Firm)
xi Swadesh Engineering Industries (Partnership Firm)
xii Sudhir Automotive Industries Private Limited
xiii United Engineers (Partnership Firm)
xiv Universal Enterprises (Partnership Firm)
xv Universal Precision Screws (UPS) (Partnership Firm)
xv LPS Industrial Supplies Private Limited
3 Key Management Personnel i Shri Lalit Kumar Jain
ii Shri Dinesh Kumar Jain
iii Shri Vijay Kumar Jain
iv Shri Rajesh Jain
4 Relative of Key Management Personnel i Shri Sudesh KumarJain
ii Shri Nikhlesh Jain
iii Shri Amit Jain
iv Shri Gagan Jain
v Shri Gautam Jain
vi Shri Rahul Jain
vii Smt. Charul Jain
viii Smt. Rita Jain
ix Smt. Sushila Devi Jain
(xiv) In accordance with Accounting Standard 28 ''Impairment of Assets''
issued by the Institute of Chartered Accountants of India and made
applicable from 1st day of April, 2004, the Company has assessed the
potential generation of economic benefits from its business units as on
the balance sheet date and is of the view that assets employed in
continuing business are capable of generating adequate returns over
their useful lives in the usual course of business; there is no
indication to the contrary and accordingly, the management is of the
view that no impairment provision is called for in these accounts.
Dened Benefit Plan
The employee''s Gratuity Fund Scheme, which is defined benefit plan, is
managed by Trust maintained with Life Insurance Corporation of India
(LIC). The present value of obligation is determined based on actuarial
valuation using Projected Unit Credit method, which recognises each
period of service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation
Notes:
1) The plan assets are maintained with Life Insurance Corporation of
India (LIC).
2) The Company expects to contribute Rs. 50.00 lacs (previous year Rs.
35.00 lacs) to the plan during the next financial year.
3) The estimates of rate is escalation in salary''s considered in
actuarial valuation and other factors such as inflation seniority,
promotion and other relevant factors including supply and demand in the
employment market have been taken into account. The above information
is certified by the actuary.
4) The expected rate of return on plan assets is determined considering
several applicable factors mainly the composition of plan assets held,
assessed risk, historical results of return on plan assets and the
Company''s policy for the plan assets management.
Notes:
1) The estimates of rate is escalation in salary''s considered in
actuarial valuation and other factors such as inflation seniority,
promotion and other relevant factors including supply and demand in the
employment market have been taken into account. The above information
is certified by the actuary.
2) Since the liability is not funded, thereby information with regard
to the plan assets has not been furnished. The estimates of rates of
escalation in salary considered in actuarial valuation after taking
into account inflation seniority, promotion and other relevant factors
including supply and demand in the employment market.
Leave encashment:-
The present value of obligation is determined based on actuarial
valuation using the Projected Unit Credit Method, which recognizes each
period of services as giving rise to additional unit of employee
benefit entitlement and measures each unit separately to build up the
final obligation.
(xvi) Deferred tax assets in respect of timing differences capable of
reversal in future and carried forward losses under the Income Tax Act
1961 has not been recognized in view of absence of virtual certainty
supported by convincing evidence that sufficient taxable income will be
available in future for reversal of deferred tax assets. The total
deferred tax assets not recognized amounting to Rs. 120139276/- as on
31.03.2015.
(xvii) During the year, the Company has valued the inventory of
finished goods at 57% and semi-finished goods at 66% less on the
price-list and special items have been valued at 22% less in the case
of finished goods of the selling price and 31% less in case of
semi-finished goods. The exact cost of each item is not ascertainable
in case of finished goods and semi-finished goods in view of multiple
sizes and nature of products. However, the management believes that its
impact on financial statements is not likely to be material on adoption
of actual cost vis-a-vis the Standard Costing adopted by the Company.
the Company plans to review its standard costing system based on the
overall cost data every year.
(xviii) The Company is amortizing dies and tools on the basis of
effective residual remaining life based on technical assessment
conducted by a committee. However, the said assessment has not
undertaken during the year and dies and tools have been amortized to
the Statement of Profit and Loss as and when they are scrapped. Pending
the technical assessment and determination of effective residual values
of dies and tools, the impact of amortization thereof is not
ascertainable and will be provided prospectively as and when the
assessment is undertaken.
(xvix) As per the transfer pricing norms prescribed under section 92 of
the Income Tax Act, 1961, the Company is required to use certain
specified methods in computing arm''s length price of international
transactions and specified domestic transactions between the associated
enterprises and maintain prescribed information and documents relating
to such transactions. The appropriate methods to be adopted will depend
on the nature of transaction/ class of transaction, class of associated
persons, functions performed and other factors, which have been
prescribed. The Company is in the process of conducting a transfer
pricing study for the current financial year. Accordingly, these
financial statements do not include any adjustments for the transfer
pricing implications, if any.
(xx) The Company has taken various residential/commercial premises
under cancellable operating leases. There lease agreements are normally
renewed on expiry. There are no restrictions placed upon the Company by
entering into these leases and there are no subleases.
(xxi) The figure of the previous year has been regrouped/rearranged
wherever necessary to make them comparable with those of the current
year.
(xxii) Figure have been rounded off to the nearest rupee.
(xxiii) Note No.1 to 30 form an integral part of the balance sheet and
statement of profit and loss.
Mar 31, 2014
NOTE - 1
CONTINGENT LIABILITIES AND COMMITMEN TS
Contingent liabilities and commitments
(a) Contingent liabilities
1 Letter of credits and guarantees obtained from
bank (Net of margin money) 151256824 79722194
2 Liabilities against legal undertakings/bonds
executed in favour of DGFT on account of export
obligation undertaken by the Company against
Advance/ import licenses under EPCG Scheme. 56917398 66917398
3 Income Tax liabilities on account of appeals
pending with various authorities 171667 7716673
(b) Commitments
1 Estimated amount of capital contracts remaining
to be executed and not provided for (net of
advances) 138018914 6829118
NOTE - 2
OTHER NOTES ON ACCOUNTS
(i) The Company has one following subsidiary as on 31.03.2014.
Name of Subsidiary: Indian Fasteners Limited
Country of Incorporation: India
Date of control: 24.12.1990
Nature: Subsidiary Company
Extent of control: 67.30%
(ii) The Company has been sanctioned term loan of Rs. 25,00,00,000/-
from Haryana State Industrial and Infrastructure Development
Corporation Limited to be utilised for setting up plant at IMT, Rohtak.
Out of the said loan, Haryana State Industrial and Infrastructure
Development Corporation Limited has disbursed a sum of Rs.
17,84,51,000/- as on the date of Balance Sheet, which has been utilised
for the purpose for which it was sanctioned, except a sum of Rs.
132155/- lying in the current account to be utilised in the current
year.
(iii) The Company has been sanctioned a term loan of Rs. 10,00,00,000/-
from Hero Fincorp Limited for purchase of equipment/Plant and
Machinery. Out of the said loan, Hero Fincorp Limited has disbursed a
sum of Rs. 5,90,00,000/- as on the date of Balance Sheet, which has
been utilised for the purpose for which it was sanctioned.
(iv) That there was a misappropriation of funds amounting to
Rs.16059342/- by an employee of the Company in the earlier years. An
FIR was lodged with City Police Station, Rohtak on 22.06.2006.
Investigations are being conducted. The hearing was conducted on
02.05.2011 in the Court of Chief Judicial Magistrate, Rohtak for the
purpose of checking of challan and framing of charges against the
employee. The next hearing is due on 9th July 2014 for argument on
charge, in the court of Chief Judicial Magistrate. The Company had also
filed a civil suit for recovery before the Delhi High Court on
13/09/2006. The aforesaid amount has been debited to concerned employee
and shown under Short term loans and advances. No provision for the
same has been made since the Company expects to recover the entire
amount.
(v) Interest and other borrowing costs amounting to Rs 16730445/-
(previous year Rs. 6314538/-) have been capitalized to the carrying
cost of fixed assets and capital work in progress being financing costs
directly attributable to the acquisition, construction or installation
of the concerned qualifying assets till the date of its commercial use.
(vi) The Company has capitalized dies and tools amounting to Rs.
22313167/- (previous year Rs. 29009177/-) relating to dies and tools
purchased/ manufactured during the year.
(vii) Research and development expenses debited to the statement of
profit and loss include the following:
(viii) Prior Period Items: The company has written off a sum of Rs.
9628697/- on account of excess provisions for export benefits for the
financial years 2011-12 and 2012-13 in respect of Focus Product
Scheme(FPS) and a sum of Rs. 2769688/- on account of excess provision
for the financial year 2010-11 in respect of Status Holder Incentive
Scheme(SHIS). The same has been treated as prior period items in
accordance with AS-5 ''Net Profit or Loss for the period, prior period
items and change in accounting Policies'' and treated accordingly in the
statement of profit and loss.
(ix) Foreign currency exposures not hedged by the Company are as
follows:-
(x) Confirmations from debtors and creditors and parties to whom loans
and advance have been made are being obtained on a periodical basis. In
respect of accounts under reconciliation, necessary entries will be
passed on reconciliation of these accounts.
(xi) In the opinion of the Board, assets other than fixed assets and
non-current investments have a value on realization in the ordinary
course of business at least equal to the amount at which they are
stated and provision for all known liabilities have been made.
(xiii) E arning per share- Basic and Diluted
(xiv) S egment Reporting
The segment reporting of the Company has been prepared in accordance
with Accounting Standard (AS-17), "Accounting for Segment
Reporting" issued by the Institute of Chartered Accountants of India.
Primary-Business Segment
The Company is in the business of manufacture of high tensile
fasteners. Since the Company is operating in a single line of product,
there are no reportable primary segments.
Secondary-Geographical Segment
The analysis of geographical segment is based on geographical location
of the customers. The following is the distribution of Company''s
consolidated revenue by geographical market, regardless of where the
goods were produced.
As per Accounting Standard No.18 issued by the Institute of Chartered
Accountants of India, related parties in terms of the said Standard are
disclosed below: -
(a) Names of Related parties and description of relationship:
1 Subsidiary
i Indian Fasteners Limited
2 Enterprises where Directors exercises significant influence:
i Amit Screws Private Limited
ii Hanumat Wire Udyog Private Limited
iii J C Fasteners Limited
iv LPS Bossard Private Limited (Joint Venture)
v LPS Bossard Information System Private Limited (Joint Venture)
vi Lakshmi Extrusion Limited
vii LPS Fasteners & Wires Private Limited
viii Nav Bharat Industries (Partnership Firm)
ix Nav Bharat Agencies (Partnership Firm)
x Shiv Industries (Partnership Firm)
xi Swadesh Engineering Industries (Partnership Firm)
xii Sudhir Automotive Industries Private Limited
xiii United Engineers (Partnership Firm)
xiv Universal Enterprises (Partnership Firm)
xv Universal Precision Screws (UPS) (Partnership Firm)
xvi LPS Industrial Supplies Private Limited
3 Key Management Personnel
i Shri Lalit Kumar Jain
ii Shri Dinesh Kumar Jain
iii Shri Vijay Kumar Jain
iv Shri Rajesh Jain
4 Relative of Key Management Personnel
i Shri Sudesh KumarJain
ii Shri Nikhlesh Jain
iii Shri Amit Jain
iv Shri Gagan Jain
v Shri Gautam Jain
vi Shri Rahul Jain
vii Smt. Charul Jain
viii Smt. Rita Jain
ix Smt. Deepa Jain
x Smt. Sushila Devi Jain
(xvi) In accordance with Accounting Standard 28 ''Impairment of
Assets'' issued by the Institute of Chartered Accountants of India and
made applicable from 1st day of April, 2004, the Company has assessed
the potential generation of economic benefits from its business units
as on the balance sheet date and is of the view that assets employed in
continuing business are capable of generating adequate returns over
their useful lives in the usual course of business; there is no
indication to the contrary and accordingly, the management is of the
view that no impairment provision is called for in these accounts.
(xvii) Disclosure in respect of Company''s joint ventures in India
pursuant to Accounting Standard 27, ''''Financial Reporting of Interest
in Joint Ventures'''':
(i) a) Name of the Venture LPS Bossard Pvt. Ltd.
b) Country of Incorporation India
c) Proportion of ownership interest as at March 31,2014 49%
d) The aggregate of Company''s share in the above ventures in:
(xviii) The Company has obtained acturial valuation in respect of
liability towards Gratuity and Leave Encashment in accordance with
AS-15 ''Employee Benefits'' notified under the Companies (Accounting
Standards) Rules, 2006 (as amended). A sum of Rs. 180807588/- and
44224758/-has been debited in the statement of Profit and Loss towards
Gratuity Liability and Leave Encashment respectively towards past
service liability which has been fully amortised in view of average
working period of employees being more than 5 years. The said liability
has arisen due to first time adoption of actuarial valuation of
Gratuity and Leave Encashment as prescribed under AS-15 ''Employee
Benefits'' and therefore has been debited to Employee benefit expenses
and not been treated as an exceptional item.
As per Accounting Standard 15 "Employee Benefits", the disclosures
of Employees benefits as defined in the Accounting Standard are given
below: Defined Contribution Plan
Contribution to Defined Contribution Plan, recognized as an expense for
the year are as under:
Defined Benefit Plan
The employee''s Gratuity Fund Scheme, which is defined benefit plan, is
managed by Trust maintained with Life Insurance Corporation of India
(LIC). The present value of obligation is determined based on
actuarial valuation using Projected Unit Credit method, which
recognises each period of service as giving rise to additional unit of
employee benefit entitlement and measures each unit separately to build
up the final obligation.
* The data has been given for the current year only as the acturial
valuation has been adopted for the first time in accordance with AS-15
"Employees Benefits" issued by the Institute of Chartered Accountants
of India.
* The data has been given for the current year only as the acturial
valuation has been adopted for the first time in accordance with AS-15
"Employees Benefits" issued by the Institute of Chartered Accountants
of India.
(xix) During the year, the Company has valued the inventory of finished
goods at 57% (earlier 55%) and semi-finished goods at 66% (earlier 65%)
less on the price-list and special items have been valued at 22%
(earlier 20%) less in the case of finished goods of the selling price
and 31% (earlier 30%) less in case of semi-finished goods. The cost has
been reviewed in light of overall cost data and Gross Margin in case of
finished goods. Due to this, inventories of finished goods have
decreased by Rs. 20947082/- and semi-finished goods by Rs. 18883848/-
The exact cost of each item is not ascertainable in case of finished
goods and semi-finished goods in view of multiple sizes and nature of
products. However, the management believes that its impact on financial
statements is not likely to be material on adoption of actual cost
vis-a-vis the Standard Costing adopted by the Company. the Company
plans to review its standard costing system based on the overall cost
data every year.
(xx) The Company has revised its accounting policy of amortisation of
dies and tools. In the earlier years, the same was charged to statement
of profit and loss account when the dies were scrapped and discarded
from actual use. During the current year, the company has assessed the
residual remaining life of dies and tools based on report of technical
committee and amortised the same on the basis of effective remaining
residual life of dies. Due to this the amortisation of dies and tools
has increased by Rs. 27556298/-. in the current year.
The Company propose to undertake technical assessment of dies and tools
at the end of every quarter and amortise the dies and tools
accordingly.
(xxvi) As per the transfer pricing norms prescribed under section 92 of
the Income Tax Act, 1961, the Company is required to use certain
specified methods in computing arm''s length price of international
transactions and specified domestic transactions between the associated
enterprises and maintain prescribed information and documents relating
to such transactions. The appropriate methods to be adopted will depend
on the nature of transaction/ class of transaction, class of associated
persons, functions performed and other factors, which have been
prescribed. The Company is in the process of conducting a transfer
pricing study for the current financial year. Accordingly, these
financial statements do not include any adjustments for the transfer
pricing implications, if any.
(xxvii) The Company has taken various residential/commercial premises
under cancellable operating leases. These lease agreements are normally
renewed on expiry. There are no restrictions placed upon the Company by
entering into these leases and there are no subleases.
(xxviii) The Company has also taken few commercial premises under
non-cancellable operating leases. There are no restrictions placed upon
the Company by entering into these leases and there are no subleases.
Normally there are renewal and escalation clauses in these contracts.
The total of future minim um lease payments in respect of such leases
are as follows:
(xxix) The figure of the previous year has been regrouped/rearranged
wherever necessary to make them comparable with those of the current
year.
(xxx) Figure have been rounded off to the nearest rupee.
(xxxi) Note No.1 to 31 form an integral part of the balance sheet and
statement of profit and loss.
Mar 31, 2013
(i) The Company has one following subsidiary as on 31.03.2013.
Name of Subsidiary: Indian Fasteners Limited
Country of Incorporation: India
Date of control: 24.12.1990
Nature: Subsidiary Company
Extent of control: 67.30%
(ii) Foreign currency loan from ICICI Bank Limited as at the end of the
year has been translated at the prevailing rate of exchange as on the
date of balance sheet. Consequent to realignment of the value of
foreign currency loan, the rupee liability of the Company has increased
by Rs. 2259727/- Out of the said exchange loss, a sum of Rs. 1501815/-
has been adjusted to the carrying cost of fi xed assets and the balance
sum of Rs 757913/- has been credited to the Foreign Currency Monetary
Item Translation Difference Account in accordance with Accounting
Standard 11 (AS-11) as amended vide notifi cation no.G.S.R 225 (E)
dated 31.03.2009 and further amended by notifi cation dated 11.05.11
issued by the Ministry of Corporate Affairs.
(iii) The Company has been sanctioned a term loan of Rs. 50000000/- by
Canara Bank Limited ,to be utilized for purchase of accessories of
machines and dies and tools, out of which the bank has disbursed a sum
of Rs. 5680000/- till the date of Balance Sheet. The same is lying
unutilised as at the end of the year and shall be utilized for the
purpose for which it was sanctioned in the current year.
(iv) That there was a misappropriation of funds amounting to
Rs.16059342/- by an employee of the Company in the earlier years. An
FIR was lodged with City Police Station, Rohtak on 22.06.2006.
Investigations are being conducted. The hearing was conducted on
02.05.2011 in the Court of Chief Judicial Magistrate, Rohtak for the
purpose of checking of challan and framing of charges against the
employee. The next hearing is due on 6th July, 2013 for argument on
charge, in the court of Chief Judicial Magistrate. The Company had also
fi led a civil suit for recovery before the Delhi High Court on
13.09.2006. The aforesaid amount has been debited to concerned employee
and shown under Short term loans and advances. No provision for the
same has been made since the Company expects to recover the entire
amount.
(v) Interest and other borrowing costs amounting to Rs.6314538/-
(previous year Rs. 34320709/-) have been capitalized to the carrying
cost of fi xed assets and capital work in progress being fi nancing
costs directly attributable to the acquisition, construction or
installation of the concerned qualifying assets till the date of its
commercial use.
(vi) The Company has capitalized dies and tools amounting to
Rs.29009177/- (previous year Rs. 45865408/-) relating to dies and tools
purchased/ manufactured during the year.
(vii) Research and development expenses debited to the statement of
profi t and loss include the following:
(viii) Prior Period Items: The Company has recognised an income in
respect of export incentives relating to Status Holders Incentive
Scheme (SHIS) for the fi nancial Year 2009-10, 2010-11 & 2011-12
amounting to Rs.14871472/- and written off a sum of Rs.7172294/- in
respect of excess provision of export incentives relating to Focus
Product Scheme (FPS) in earlier years . The same has been treated as
prior period items in accordance with AS-5 ''Net Profi t or Loss for the
period, prior period items and change in accounting Polices'' and
treated accordingly in the statement of profi t and loss.
(ix) Foreign currency exposures not hedged by the Company are as
follows:-
(x) Confi rmations from debtors and creditors and parties to whom loans
and advance have been made are being obtained on a periodical basis. In
respect of accounts under reconciliation, necessary entries will be
passed on reconciliation of these accounts.
(xi) The Company has taken various residential/commercial premises
under cancellable operating lease for a period not exceeding one year.
These lease agreements are normally renewed on expiry. There are no
restrictions placed upon the Company by entering into these leases and
there are no subleases. Lease payments recognised in the statement of
profi t and loss as an expense for the year is Rs.5819947/- (Previous
year Rs.5825256/-).
(xii) In the opinion of the Board, assets other than fi xed assets and
non-current investments have a value on realization in the ordinary
course of business at least equal to the amount at which they are
stated and provision for all known liabilities have been made.
(xiii) Segment Reporting
The segment reporting of the Company has been prepared in accordance
with Accounting Standard (AS-17), "Accounting for Segment Reporting"
issued by the Institute of Chartered Accountants of India.
Primary-Business Segment
The Company is in the business of manufacture of high tensile
fasteners. Since the Company is operating in a single line of product,
there are no reportable primary segments.
Secondary-Geographical Segment
The analysis of geographical segment is based on geographical location
of the customers. The following is the distribution of Company''s
consolidated revenue by geographical market, regardless of where the
goods were produced.
(xiv) Related Party Transactions:
As per Accounting Standard No.18 issued by the Institute of Chartered
Accountants of India, related parties in terms of the said standard are
disclosed below: -
(a) Names of Related parties and description of relationship:
1 Subsidiary i Indian Fasteners Limited
2 Enterprises where Directors exercises signifi cant infl uence:
i Amit Screws Private Limited
ii Hanumat Wire Udyog Private Limited
iii J C Fasteners Limited
iv LPS Bossard Private Limited (Joint Venture)
v LPS Bossard Information System Private Limited (Joint Venture)
vi Lakshmi Extrusion Limited
vii LPS Fasteners & Wires Private Limited
viii Nav Bharat Industries
ix Nav Bharat Agencies
x Shiv Industries
xi Swadesh Engineering Industries
xii Sudhir Automotive Industries Private Limited
xiii United Engineers
xiv Universal Enterprises
xv Universal Precision Screws (UPS)
3 Key Management Personnel i Shri Lalit Kumar Jain
ii Shri Dinesh Kumar Jain
iii Shri Vijay Kumar Jain
iv Shri Rajesh Jain
v Smt. Sushila Devi Jain
4 Relative of Key Management Personnel i Shri Sudesh KumarJain
ii Shri Nikhlesh Jain
iii Shri Amit Jain
iv Shri Gagan Jain
v Shri Gautam Jain
vi Shri Rahul Jain
vii Smt.Charul Jain
viii Smt. Rita Jain
ix Smt. Deepa Jain
(xv) In accordance with Accounting Standard 28 ''Impairment of Assets''
issued by the Institute of Chartered Accountants of India and made
applicable from 1st day of April, 2004, the Company has assessed the
potential generation of economic benefi ts from its business units as
on the balance sheet date and is of the view that assets employed in
continuing business are capable of generating adequate returns over
their useful lives in the usual course of business; there is no
indication to the contrary and accordingly, the management is of the
view that no impairment provision is called for in these accounts.
(xvi) Disclosure in respect of Company''s joint ventures in India
pursuant to Accounting Standard 27, ''''Financial Reporting of Interest
in Joint Ventures'''':
(i) a) Name of the Venture LPS Bossard Pvt. Ltd.
b) Country of Incorporation India
c) Proportion of ownership interest as at March 31, 2013 49%
d) The aggregate of Company''s share in the above ventures in:
Defined Benefit Plan
The employee''s Gratuity Fund Scheme, which is defi ned benefi t plan,
is managed by Trust maintained with Life Insurance Corporation of India
(LIC). The Company could not obtain actuarial valuation in respect of
provision for gratuity liability and leave encashment payable to its
employees. The impact of liability on this account, is therefore not
ascertainable and not provided for. In absence of actuarial valuation,
The disclosures as required by AS-15 ''Employee Benefi ts'' are not
furnished in their entirety.
(xvii) Inventories are valued at lower of cost and net realizable value.
However, since exact cost is not ascertainable, semi-fi nished goods
have been valued at 65% less on the price- list and fi nished goods
have been valued at 55% less on the price-list and special items have
been valued at 30% less in case of semi-fi nished goods and 20% less in
the case of fi nished goods of the selling price. The stocks will be
valued on actual cost basis on implementation of detailed cost records.
The impact, if any, on fi nancial statements on valuation of stocks on
actual cost basis shall be provided for as and when ascertained.
(xviii) The cost of dies and tools are charged to statement of profi t and
loss as and when scrapped. The Company is reviewing the policy to
charge the cost of dies and tools in a systematic manner depending upon
their useful lives. The impact of such change on the fi nancial
statements is not ascertainable and hence not provided for.
(xix) As per the transfer pricing norms prescribed under section 92 of
the Income Tax Act, 1961, the Company is required to use certain
specifi ed methods in computing arm''s length price of international
transactions and specifi ed domestic transactions between the
associated enterprises and maintain prescribed information and
documents relating to such transactions. The appropriate methods to be
adopted will depend on the nature of transaction/ class of transaction,
class of associated persons, functions performed and other factors,
which have been prescribed. The Company is in the process of conducting
a transfer pricing study for the current fi nancial year. Accordingly,
these fi nancial statements do not include any adjustments for the
transfer pricing implications, if any.
(xx) The fi gures for the previous year has been
regrouped/rearranged wherever necessary to make them comparable with
those of the current year.
(xxi) Figures have been rounded off to the nearest rupee.
(xxii) Note No.1 to 31 form an integral part of the balance sheet and
statement of profit and loss.
Mar 31, 2012
A. Terms/right attached to equity shares:
The Company has issued equity shares having a par value of Rs. 10/- per
share. Each holder of equity shares is entitled to one vote per share.
The Company declares and 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.
During the year ended 31st March 2012, the amount of per share dividend
recognized as distributions to equity shareholders is Rs.1.50 (Previous
Year Rs.1.50)
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assests of the Company
after distribution of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the
shareholders.
*Pursuant to Notification no: G.S.R 225(E) dated 31st March, 2009 and
as amended by notification dated 11th May, 2011 issued by the Ministry
of Corporate Affairs, the Company has opted to apply the prescribed
treatment in respect of exchange rate variation arising on long term
foreign currency monetary items. Accordingly exchange rate variation
arising out of reporting of long term foreign currency monetary items
at rates different from those at which they were initially recorded
during the period, or reported in previous financial statements, in so
far as they relate to the acquisition of a depreciable capital assets,
are added to or deducted from the cost of the assets and depreciated
over the balance life of the asset, and in other cases accumulated in a
Foreign Currency Monetary Item Translation Difference Account:, and
amortized over the balance period of such long term asset/liability by
recognition as income or expense in each of such period. Out of total
exchange loss of Rs.13112115/- arising on aforesaid long term foreign
currency monetary items, a sum of Rs.8714312/- has been deducted from
the cost of fixed assets and a sum of Rs.4397803/- has been transferred
to Foreign Monetary Items Translation Difference account. A sum of
Rs.2619364/- has been amortized in the Statement of Profit and loss in
accordance with the remaining period of the long term liability.
(i) Period and amount overdue and unpaid as on the Balance Sheet date:
a) Out of instalment of $333000 due on 21.03.2012 in respect of foreign
currency term loan(ECB) from ICICI Bank Ltd, a sum of $ 176250 remains
unpaid as on 31.03.2012
b) Interest accrued and due Rs.1784687/- remain unpaid as on the date
of Balance Sheet.
a. Term Loans from other parties (secured)
a) Term Loan from Intec Capital Limited is secured to the extent of
cash collateral security of Rs. 5460000/- and has been shown under the
secured term loan from other parties and balance under unsecured term
loan from other parties in note no. 4(d).
b. Deferred Payment Liabilities:
(i) Deferred payment credits from Haryana State Industrial &
Infrastructure Development Corporation Limited (HSIIDC) are secured
against the properties as under:
1. Plot no. 153, Sector 3 at IMT Manesar, Gurgaon
2. Plot no. 257, Sector 6 at IMT Manesar, Gurgaon
3. Working Housing unit at IMT Manesar, Gurgaon
4. Dormitory House at IMT Manesar, Gurgaon
5. Plot no. 4, Sector 30B at IMT Rohtak
a) The above properties shall continue to belong to HSIIDC until and
unless the full price of the properties with interest and other amount,
if any, due to HSIIDC is paid by the Company.
b) On the payment of total price of the properties, the HSIIDC would
execute a deed of conveyance in favour of the Company.
(i) The Company provides for encashment of leave or leave with pay
subject to certain rules. The employees are entitled to accumulate
leave subject to certain limits for future encashment. The liability is
provided based on numbers of days of unutilized leave at each Balance
Sheet date.
(ii) The shortfall in liability, if any, on ascertainment of liability
by an independent actuary, will be provided for on the basis of
actuarial valuation certificate when obtained.
a. Working capital limits from banks (secured)
1) Working capital limits are in consortium with Canara Bank and State
Bank of India in the ratio of 70:30 and are secured by way of pari
passu first charge against hypothecation of entire chargeable current
assets i.e stock and book debts (present and future) of the Company and
pari passu second charge on fixed assets of the Company consisting of
land and building, plant and machinery and other fixed assets including
capital work in progress (present and future) and guaranteed by some of
Directors of the Company and their relatives.
Working capital limits from consortium banks are further secured by way
of equitable mortgage of:
# Second pari passu charge on 10640 square yards of Land and Building
standing in the name of Smt. Sushila Devi Jain, Director of the
Company, situated at NH - 10, Hissar Road, Rohtak.
# Second pari passu charge on Land and Building 4.6125 acres situated
at Mauza Kharawar, Tehsil - Sampla, District - Rohtak, Haryana in the
name of Shri Nikhlesh Jain and Shri Saurabh Jain
# Second pari passu charge with working capital consortium members on
Dies and Tools capitalised during financial year 2010-2011
b. other loans and advances from a company (unsecured)
(i) Other loans and advances received from a Company are repayable on
demand.
(ii) Interest accrued and due Rs.738221/- remained unpaid as on the
Balance sheet date.
(i) Trade payables include acceptances Rs.118689908/- (Previous Year
Rs.91782556/-)
(ii) Trade payables include payable to a subsidiary company Rs.
4913910/- (Previous Year Rs.3731492/-)
(ii) The Company has made a provision of Excise duty amounting
Rs.47615531/- (previous year Rs.32334578/-) payable on stocks of
Finished and Scrap material. Excise duty is considered as an element of
cost at the time of manufacture of goods.
(iii) Employees benefit expense includes Rs.16831400/- (Previous year
Rs.902200/-) payable to Directors of the Company.
(iv) Other payables include Rs.175186/- (previous year Rs.175186/-)
payable to a Director of the Company.
(v) Statutory dues are in respect of PF, ESI, Sales Tax and TDS.
(vi) Other payables include expenses payable and other liabilities.
Notes:
1 Depreciation has been provided on rates as per Schedule XIV of the
Companies Act,1956 on WDV basis except in case of Plant-II, Manesar
Plants and Recoil Division where depreciation has been provided on
straight line method.
2 Depreciation on assets for a value not exceeding Rs.5000/- has been
provided @100%.
3 Addition in fixed assets include Rs.34320709/- (last year
Rs.15912144/-) capitalised on account of borrowing costs in accordance
with AS-16 "Borrowing Cost"'' issued by Institute of Chartered
Accountants of India.
4 Leasehold Offices Premises are in respect of office flats at
Bangalore.
5 Freehold Offices Premises are in respect of office flats at Mumbai
and Delhi.
6 A sum of Rs.8714321/- on account of exchange loss incurred during the
year has been adjusted in Plant and Machinery in accordance with
notification no. G.S.R. 225(E) dated 31.03.2009 as amended vide
notification dated 11.05.2011, issued by Ministry of Corporate Affairs.
7 Plant and Machinery include capital expenditure of Rs.25822374/-
incurred during the year and Rs.20195483/- incurred during the previous
year on research and development.
8 Title Deeds in respect of lands acquired from HSIIDC, have not been
yet executed. As per the terms of letters of allotment, the same will
be executed after the full payment to HSIIDC.
Inventories have been valued at lower of cost and net realizable value.
Cost has been ascertained in case of Semi-finished goods at 65% less
price-list and finished goods have been valued at 55% less price-list
and special items have been valued at 30% less in case of semi-finished
goods and 20% less in the case of finished goods of the selling price;
since exact cost is not ascertainable. Excise duty payable on finished
goods and scrap materials are shown separately as part of manufacturing
cost and is included in the valuation of finished goods and scrap
materials. Inventories are consumed on FIFO (First in First out) basis.
Scrap material has been valued at net realisable value.
note - 1
contingent liabilities and commitments
Contingent liabilities and commitments
(a) Contingent liabilities
1 Letter of credits and guarantees
obtained from bank (Net of margin
money) H 135637867 2456447 -138094314 112585617
2 Liabilities against legal
undertakings/bonds executed
in favour of DGFT on account
of export obligation undertaken
by the Company against Advance/
import licenses under EPCG Scheme. 66917098 - - 66917098 53209439
3 Income Tax liabilities on
account of appeals pending
with various authorities 7716673 - - 7716673 7716673
4 Liabilities on account of
suits filed against the
Company in the Labour
Courts/ESI Corporation/
Civil Courts 239980 - - 239980 460517
(b) Commitments
1 Estimated amount of capital
contracts remaining to be
executed and not
provided for (net of advances) 21766520 - - 21766520 39587317
note - 2
other notes on accounts
(i) The Company has one following subsidiary as on 31.03.2012.
Name of Subsidiary: Indian Fasteners Limited
Country of Incorporation: India
Date of control: 24.12.1990
Nature: Subsidiary Company
Extent of control: 67.30%
(ii) Foreign currency loan from ICICI Bank Limited as at the end of the
year has been translated at the prevailing rate of exchange as on the
date of balance sheet. Consequent to realignment of the value of
foreign currency loan, the rupee liability of the Company has increased
by Rs.9263033/-. Out of the said exchange loss, a sum of Rs.6156212/-
has been adjusted to the carrying cost of fixed assets and the balance
sum of Rs. 3106821/- has been credited to the Foreign Currency Monetary
Item Translation Difference Account in accordance with Accounting
Standard 11 (AS-11) as amended vide notification no.G.S.R 225 (E) dated
31.03.2009 and further amended by notification dated 11.05.11 issued by
the Ministry of Corporate Affairs.
(iii) The Company has been sanctioned a term loan of Rs.50000000/- by
Canara Bank Limited, to be utilized for working capital requirements,
out of which the bank has disbursed a sum of Rs.40100441/- The same has
been utilized for the purpose for which it was sanctioned and there are
no amounts lying unutilized as at the end of the year.
(iv) The Company has been sanctioned a term loan of Rs. 45000000/- by
State Bank of India, to be utilized for working capital requirements,
out of which the bank has disbursed a sum of Rs. 45000000/-. The same
has been utilized for the purpose for which it was sanctioned and there
are no amounts lying unutilized as at the end of the year.
(v) That there was a misappropriation of funds amounting to
Rs.16059342/- by an employee of the Company in the earlier years. An
FIR was lodged with City Police Station, Rohtak on 22.06.2006.
Investigations are being conducted. The hearing was conducted on
02.05.2011 in the Court of Chief Judicial Magistrate, Rohtak for the
purpose of checking of challan and framing of charges against the
employee. The next hearing is due on 05.07.2012 for argument on charge,
in the court of Chief Judicial Magistrate. The Company had also filed a
civil suit for recovery before the Delhi High Court on 13.09.2006. The
aforesaid amount has been debited to concerned employee and shown under
Short term loans and advances. No provision for the same has been made
since the Company expects to recover the entire amount.
(vi) Interest and other borrowing costs amounting to Rs.34320709/-
(previous year Rs.15912144/-) have been capitalized to the carrying
cost of fixed assets and capital work in progress being financing costs
directly attributable to the acquisition, construction or installation
of the concerned qualifying assets till the date of its commercial use.
(vii) The Company has capitalized dies and tools amounting to
Rs.45865408/- (previous year Rs.30039429/-) relating to dies and tools
purchased/ manufactured during the year.
(viii) Research and development expenses debited to the statement of
profit and loss include the following:
(x) Confirmations from debtors and creditors and parties to whom loans
and advance have been made are being obtained on a periodical basis. In
respect of accounts under reconciliation, necessary entries will be
passed on reconciliation of these accounts.
(xi) The Company has taken various residential/commercial premises
under cancellable operating lease for a period not exceeding one year.
These lease agreements are normally renewed on expiry. There are no
restrictions placed upon the Company by entering into these leases and
there are no subleases.
Lease payments recognised in the statement of profit and loss as an
expense for the year is Rs. 5825256/- (Previous year Rs.5508024/-).
(xii) In the opinion of the Board, any of the assets other than fixed
assets and non-current investments have a value on realization in the
ordinary course of business at least equal to the amount at which they
are stated.
(xiv) Segment Reporting
The segment reporting of the Company has been prepared in accordance
with Accounting Standard (AS-17), "Accounting for Segment
Reporting" issued by the Institute of Chartered Accountants of India.
Primary-Business Segment
The Company is in the business of manufacture of high tensile
fasteners. Since the Company is operating in a single line of product,
there are no reportable primary segments.
Secondary-Geographical Segment
The analysis of geographical segment is based on geographical location
of the customers. The following is the distribution of Company''s
consolidated revenue by geographical market, regardless of where the
goods were produced.
(xvi) In accordance with Accounting Standard 28 ''Impairment of
Assets'' issued by the Institute of Chartered Accountants of India and
made applicable from 1st day of April, 2004, the Company has assessed
the potential generation of economic benefits from its business units
as on the balance sheet date and is of the view that assets employed in
continuing business are capable of generating adequate returns over
their useful lives in the usual course of business; there is no
indication to the contrary and accordingly, the management is of the
view that no impairment provision is called for in these accounts.
Defined Benefit Plan
The employee''s Gratuity Fund Scheme, which is defined benefit plan, is
managed by Trust maintained with Life Insurance Corporation of India
(LIC). The Company could not obtain actuarial valuation in respect of
provision for gratuity liability and leave encashment payable to its
employees. The impact of liability on this account, is therefore not
ascertainable and not provided for. In absence of actuarial valuation,
The disclosures as required by AS-15 ''Employee Benefits'' are not
furnished in their entirety.
(xix) Inventories are valued at lower of cost and net realizable value.
However, since exact cost is not ascertainable, semi-finished goods
have been valued at 65% less on the price- list and finished goods have
been valued at 55% less on the price-list and special items have been
valued at 30% less in case of semi-finished goods and 20% less in the
case of finished goods of the selling price. The company is under the
process of implementing the maintenance of cost records and the exact
cost will be ascertained on maintenance of the said cost records.
(xx) Dies carried as inventories are amortized as a charge to the
statement of profit and loss when they are scrapped from active use.
The Company is reviewing the policy to charge off consumption of dies
on a systematic basis over their useful period of lives. Pending such
change in policy, the impact, if any, on the financial statements is
not ascertainable and hence cannot be provided for.
(xxvi) Till the year ended 31st March 2011, the Company was using
pre-revised Schedule VI to the Companies Act 1956, for preparation and
presentation of its financial statements. During the year ended 31st
March 2012, the revised Schedule VI notified under the Companies Act
1956, has become applicable to the Company. The Company has
reclassified previous year figures to conform to this year''s
classification.
(xxvii) Figures have been rounded off to the nearest rupee.
(xxviii) Note No.1 to 31 form an integral part of the balance sheet and
statement of profit and loss.
Mar 31, 2011
A) CONTINGENT LIABILITIES:
(Lac/Rs.)
Sr. Particulars MBBT 2010-11 2009-10
No.
1. Estimated amount of capital contracts
remaining to be executed and not provided
for (net of advances) 396 452
2. Letter of credits and guarantees obtained
from bank (Net of margin money) 1097 590
3. Liabilities against legal undertakings/
bonds executed in favour of DGFT on account
of export 532 441
obligation undertaken by the Company
against Advance/Import licenses under EPCG
Scheme.
4. Income Tax liabilities on account of appeals
pending with various authorities. 77 77
5. Liabilities on account of suits filed against
the Company in the Labour Court/ ESI
Corporation. 5 5
C) NOTES:
1. The Company has following subsidiary as on 31.03.2011.
Name of Subsidiary : Indian Fasteners Limited
Country of Incorporation : India
Date of control : 24.12.1990
Nature : Subsidiary Company
Extent of control : 67.295%
2. a) IDBI Bank Limited has disbursed a term loan of Rs.1935.74 lacs
as on the date of Balance Sheet against the sanctioned amount of
Rs.2000 lacs to be utilized towards capital expenditure at the existing
units of the Company. The same has been utilized for the purpose for
which it was sanctioned and a sum of Rs. 144.98 lacs is lying
unutilized as at the end of the year on this account.
b) The Company has been sanctioned a term loan of Rs.1500 lacs by the
Canara Bank and IDBI Bank Limited in consortium in the ratio of 70:30
respectively to be utilized for working capital requirements, out of
which Canara Bank has disbursed of a sum of Rs.1050 lacs. The same has
been utilized for the purpose for which it was sanctioned and there are
no amounts lying unutilized as at the end of the year.
c) Foreign currency loan from ICICI Bank Limited as at the end of the
year has been translated at the prevailing rate of exchange as on the
date of balance sheet. Consequent to realignment of the value of
foreign currency loan, the rupee liability of the Company has decreased
by Rs.6.36 lacs. Out of the said exchange gain, a sum of Rs.4.23 lacs
has been adjusted to the carrying cost of fixed assets and the balance
sum of Rs.2.13 lacs has been credited to the Foreign Currency Monetary
Item Translation Difference Account in accordance with Accounting
Standard 11 (AS-11) as amended vide notification no.G.S.R 225 (E) dated
31.03.2009 and further amended by notification dated 11.05.11 issued by
the Ministry of Corporate Affairs.
3. In terms of joint venture agreement entered into with Bossard AG,
Switzerland on 26.06.1997, the Company has invested a sum of
Rs.2,35,20,190/- in LPS Bossard Private Limited towards allotment of
23,52,019 Equity Shares of Rs.10/- each and a sum of Rs.18,47,490/- in
LPS Bossard Information Systems Private Limited towards allotment of
1,84,749 Equity Shares of Rs.10/- each, towards 49% holding in the
aforesaid Companies.
4. Fixed deposits from public include a sum of Rs. 1,23,50,000/- due
to Directors (previous year Rs.1,23,50,000/-).
5. There is a change in accounting policy with regard to accounting
treatment of Dies and Tools. A sum of Rs.25,02,30,200/- has been
capitalized from inventories representing dies and tools having a
useful life of more than three years and depreciation has been charged
accordingly.
The Company has adopted the policy of providing depreciation on
aforesaid tools and dies capitalized, with a view to provide more
appropriate and reliable information. Due to such change profit for the
year ended 31st March, 2011 is lower by Rs.1,61,849/-.The said change
in policy is not likely to have a material impact in future periods.
6. The Company has capitalized dies and tools amounting to
Rs.3,00,39,429./-(Previous year Rs.2,15,71,784/-) relating to dies and
tools purchased/ manufactured during the year.
7. Sundry Debtors include a sum of Rs. 1,28,38,653/- due from LPS
Bossard Private Limited, a Joint Venture Company (maximum due during
the year Rs.2,43,37,892/-) (previous year due Rs.1,53,31,641/- and
maximum due Rs.3,43,75,355/-).
8. a) Advances recoverable in cash or in kind or for value to be
received, include a sum of Rs.69,96,685/- due from Lakshmi Extrusion
limited, an associate Company (Maximum due Rs.89,93,709/-) (previous
year due Rs.44,96,073/- and maximum due Rs.57,82,621/-).
b) Advances recoverable in cash or in kind or for value to be received,
includes a sum of Rs.3,77,488/- due from J.C Fasteners Limited, an
associate Company (Maximum due Rs.3,77,448/-) (previous year due Rs.nil
and maximum due Rs.nil).
9. That there was a misappropriation of funds amounting to Rs.
1,60,59,342/- by an employee of the Company in the earlier years. An
FIR was lodged with City Police Station, Rohtak on 22.06.2006.
Investigations are being conducted. The hearing was conducted on
02.05.2011 in the Court of Chief Judicial Magistrate, Rohtak for the
purpose of checking of challan (police report file) and framing of
charges against the employee. The next hearing is due on 07.07.2011 in
the court of Chief Judicial Magistrate. The Company had also filed a
civil suit for recovery before the Delhi High Court on 13.09.2006. The
aforesaid amount has been debited to concerned employee and shown under
loans and advances. No provision for the same has been made since the
Company expects to recover the entire amount.
10. That the balance of Rs.2,33,35,811/- with central excise
department as on 31.03.2011 includes balance in central excise account
at head office, duty paid on stocks lying at the branches and with
consignees.
11. The Company has made a provision of Excise duty amounting
Rs.3,23,34,578/- (Previous Year Rs.3,69,45,535/-) payable on stocks of
Finished and Scrap material. Excise duty is considered as an element of
cost at the time of manufacture of goods.
12. a) Sundry creditors include:
i) Rs.23,65,92,783/- (previous year Rs.23,21,07,035/-) on account of
letter of credits on 180 days''sight issued by Canara Bank, which are
not due for payment on the date of Balance Sheet.
ii) Rs.6,53,01,093/- (previous year Rs.6,90,54,674/-) on account of,
letter of credits on 180 days'' sight issued by Indian Overseas Bank,
which are not due for payment on the date of Balance Sheet.
iii) Rs.37,31,492/- (previous year Rs.34,07,816/-) payable to Indian
Fasteners Ltd., a subsidiary Company.
iv) Rs.1,75,186/- payable to Directors of the Company (previous year
Rs. 1,75,186/-).
b) Other liabilities include Rs.9,02,200/-(previous year
Rs.10,57,200/-) payable to directors on account of salaries.
c) Information required to be furnished as per section 22 of the Micro,
Small and Medium Enterprises Development Act, 2006/MSMED Act'' for the
year ended 31st March, 2011. This information has been determined to
the extent such parties have been identified on the basis of
information available with the Company.
13. Prior period items represents a sum of Rs.40,12,186/- and
Rs.69,38,451/- credited to the profit and loss account on account of
FPS (Focus Product Scheme) entitlement in terms of Para 3.15 of Foreign
Trade Policy 2009-14 for the financial years 2008-09 and 2009-10
respectively. The same has been ascertained and provided during the
year.
14. As per Accounting Standard 15 "Employee Benefits", the disclosures
of Employees benefits as defined in the Accounting Standard are given
below:
Defined Benefit Plan
a) The employee''s Gratuity Fund Scheme, which is a defined benefit
plan, is managed by Trust maintained with Life Insurance Corporation of
India (LIC). During the year ended 31st March, 2011, the Company has
provided a gratuity liability of Rs.55,41,719/- and paid a sum of
Rs.54,62,816/- to the Life Insurance Corporation of India and debited a
sum of Rs.1,10,04,535/- to the Profit and Loss account.
The Company has provided the gratuity liability of Rs.25,41,719/- in
respect of Plant II and Manesar Unit on the basis of actuarial
valuation certificate, while the gratuity liability in respect of other
units has been provided at Rs.30 lacs on estimate basis. The disclosure
as required by Accounting Standard 15, ''Employee Benefits'' issued by
the Institute of Chartered Accountants of India in respect of Plant II
and Manesar Unit is as follows:
The estimates of rate of escalation in salary considered in actuarial
valuation are after taking into account inflation, seniority, promotion
and other relevant factors including supply and demand in the
employment market.
The expected rate of return on plan assets is determined considering
several applicable factors, mainly the composition of plan assets held,
assessed risks, historical results of return on plan assets and the
Company''s policy for the plan assets management.
The disclosure requirement in respect of other plants as required by
Accounting Standard 15, ''Employee Benefits'' has not been given and the
shortfall in the gratuity liability (if any), will be provided on
receipt of actuarial valuation certificate.
b) The Company provides for encashment of leave or leave with pay
subject to certain rules. The employees are entitled to accumulate
leave subject to certain limits for future encashment. The liability is
provided based on numbers of days of unutilized leave at each Balance
Sheet date.
The shortfall in liability, if any, on ascertainment of liability by an
independent actuary, will be provided for on the basis of actuarial
valuation certificate when obtained.
15. Interest and other borrowing costs amounting to Rs. 1,59,12,144/-
(previous year Rs. 1,15,56,381/-) have been capitalized to the carrying
cost of fixed assets and capital work in progress being financing costs
directly attributable to the acquisition, construction or installation
of the concerned qualifying assets till the date of its commercial use.
16. Pursuant to Notification no: G.S.R 225(E) dated 31 st March, 2009
and 11 th May, 2011 issued by the Ministry of Corporate Affairs, the
Company has opted to apply the prescribed treatment in respect of
exchange rate variation arising on long term foreign currency monetary
items. Accordingly exchange rate variation arising out of reporting of
long term foreign currency monetary items at rates different from those
at which they were initially recorded during the period, or reported in
previous financial statements, in so far as they relate to the
acquisition of a depreciable capital assets, are added to or deducted
from the cost of the assets and depreciated over the balance life of
the asset, and in other cases accumulated in a Foreign Currency
Monetary Item Translation Difference Account:, and amortized over the
balance period of such long term asset/liability by recognition as
income or expense in each of such period. Out of total exchange gain of
Rs.2.83 lacs arising on aforesaid long term foreign currency monetary
items, a sum of Rs.1.88 lacs has been deducted to the cost of fixed
assets and a sum Rs.0.95 lacs has been transferred to Foreign Monetary
Items Translation Difference account. A sum of Rs.8.60 lacs has been
amortized in profit and loss account in accordance with the remaining
period of the long term liability.
17. Confirmations from debtors and creditors and parties to whom loans
and advance have been made are being obtained on a periodical basis. In
respect of accounts under reconciliation, necessary entries will be
passed on reconciliation of these accounts.
18. Interest received includes a sum of Rs.44,64,504/- (previous year
Rs.33,49,119/-) on bank deposits and Rs.6,681/- (previous year
Rs.1829/-) received from trade customers and interest paid include Rs.
13,58,500/- paid to Directors (previous year Rs. 13,58,500/-).
19. In the opinion of the Management, current assets, loans and
advances have a value on realization in the ordinary course of business
at least equal to the amount at which they are stated and the provision
for all known liabilities have been made.
20. Segment Reporting
The segment reporting of the Company has been prepared in accordance
with Accounting Standard (AS-17), "Accounting for Segment Reporting"
issued by the Institute of Chartered Accountants of India.
Primary-Business Segment
The Company is in the business of manufacture of high tensile
fasteners. Since the Company is operating in a single line of product,
there are no reportable primary segments.
Secondary-Geographical Segment
The analysis of geographical segment is based on geographical location
of the customers. The following is the distribution of Company''s
consolidated revenue by geographical market, regardless of where the
goods were produced.
21. Related Party Transactions
As per Accounting Standard No.18 issued by the Institute of Chartered
Accountants of India, related parties in terms of the said standard are
disclosed below: -
(a) Names of Related parties and description of relationship:
1. Subsidiary (i) Indian Fasteners Limited
2. Associates (i) Amit Screws Pvt. Ltd.
(ii) Hanumat Wire Udyog Pvt. Ltd.
(iii) J C Fasteners Ltd.
(iv) LPS Bossard Pvt. Ltd. (Joint Venture)
(v) LPS Bossard Information Systems
Pvt. Ltd. (Joint Venture)
(vi) Lakshmi Extrusion Ltd.
(vii) LPS Fasteners & Wires Pvt. Ltd.
(viii) Nav Bharat Industries
(ix) Nav Bharat Agencies
(x) Shiv Industries
(xi) Swadesh Engineering Industries
(xii) Sudhir Automotive Industries Pvt. Ltd.
(xiii) United Engineers
(xiv) Universal Enterprises
3. Key Management
Personnel (i) Shri Lalit Kumar Jain
(ii) Shri Dinesh Kumar Jain
(iii) Shri Vijay Kumar Jain
(iv) Shri Rajesh Jain
(v) Smt. Sushila Devi Jain
4. Relative of Key
Management
Personnel (i) Shri S.K.Jain (Brother of Shri
D.K.Jain)
(ii) Shri Nikhlesh Jain (Son of Shri
D.K.Jain)
(iii) Shri Amit Jain (Son of Shri V.K.Jain)
(iv) Shri Gagan Jain (Son of Shri L.K.
Jain)
(v) Shri Gautam Jain (Son of Shri
L.K. Jain)
(vi) Shri Rahul Jain (Son of Shri
R.K. Jain)
(vii) Smt. Charul Jain (Wife of Shri
Amit Jain)
(viii) Smt. Rita Jain (Wife of Shri L.K.
Jain)
(ix) Smt. Deepa Jain (Wife of Shri V.K.
Jain)
22. Disclosure in respect of Company''s Joint Ventures in India
pursuant to Accounting Standard 27 "Financial Reporting of Interest in
Joint Ventures":
(i) a) Name of the Venture LPS Bossard Pvt. Ltd.
b) Country of Incorporation India
c) Proportion of Ownership
interest as at March 31,2011 49%
d) The aggregate of Company''s share in the above ventures in:
(ii) a) Name of the Venture LPS Bossard Pvt. Ltd.
b) Country of Incorporation India
c) Proportion of Ownership
interest as at March 31,2011 49%
23. In accordance with Accounting Standard 28 ''Impairment of Assets''
issued by the Institute of Chartered Accountants of India and made
applicable from 1st day of April, 2004, the Company has assessed the
potential generation of economic benefits from its business units as on
the balance sheet date and is of the view that assets employed in
continuing business are capable of generating adequate returns over
their useful lives in the usual course of business; there is no
indication to the contrary and accordingly, the management is of the
view that no impairment provision is called for in these accounts.
24. The Company has proposed dividend for the year @15% on its equity
capital and the provision for corporate dividend tax including
surcharge and education cess thereon has been made in accordance with
Finance Act, 2011. The said amount is not subject to tax deducted at
source (TDS).
We report that the consolidated financial statements have been prepared
by the Company in accordance with the requirements of the Accounting
Standard (AS-21) Consolidated Financial Statements, Accounting standard
(AS-23) Accounting for Investments in Associates in Consolidated
Financial Statements and Accounting Standard (AS-27)'' Financial
Reporting of interests in Joint Ventures, issued by the Institute of
Chartered Accountants of India, and on the basis of the separate
financial statements of the subsidiary, associates and the joint
ventures included in the Consolidated Financial Statements.
We report that, on the basis of the information and explanations given
to us, and on consideration of report of auditors on separate financial
statements of subsidiary company and provisional financial statements
of the Joint ventures and associates, the consolidated financial
statements, subject to Note No. 10 of Schedule 17 with regard to non
provision of gratuity liability and leave encashment in accordance with
AS-15 ''Employee Benefits'' issued by the Institute of Chartered
Accountants of India and read together with other notes thereon give a
true and fair view in the case of:
(a) the consolidated balance sheet, of the consolidated state of
affairs of the Company, its subsidiary, associates and joint ventures
as at 31st March, 2011 and
(b) the consolidated profit and loss account, of the consolidated
results of the operations of the Company, its subsidiary, associates
and joint ventures for the year ended on that date;
(c) in the case of consolidated cash flow statements, of the
consolidated cash flows of the Company, its subsidiary, associates and
the joint ventures for the period ended on that date.
Mar 31, 2010
(Lac/Rs.)
Sr. No Particulars 2009-10 2008-09
1. Estimated amount of capital contracts
remaining to be executed
and not provided for 452 26
(net of advances)
2. Letter of credits and guarantees obtained
from bank (Net of margin
money) 590 174
3. Liabilities against legal undertakings/
bonds executed in favour
of DGFT on account of export 441 478
obligation undertaken by the Company
against Advance/Import licenses
under EPCG Scheme.
4. Income Tax liabilities on account of
appeals pending with various
authorities. 77 77
5. Liabilities on account of suitsfiled
against the Company in the
Labour Court/ ESI Corporation. 5 5
C) NOTES :
1. a) During the year the IDBI Bank Limited has disbursed a term loan
of Rs.725 lacs against sanctioned amount of Rs.1000 Lacs to be utilized
towards capital expenditure at the existing units of the Company. A sum
of Rs.330.65 lacs is lying unutilized as at the end of the year on this
account.
b) Foreign currency loan from ICICI Bank Limited as at the end of the
year has been translated at the prevailing rate of exchange as on the
date of balance sheet. Consequent to realignment of the value of
foreign currency loan, the rupee liability of the Company has decreased
by Rs.189.52 lacs. Out of the said exchange gain, a sum of Rs.125.96
lacs has been adjusted to the carrying cost of fixed assets and the
balance sum of Rs.63.56 lacs has been credited to the Foreign Currency
Monetary Item Translation Difference Account in accordance with
Accounting Standard 11 (AS-11) as amended vide notification no.G.S.R
225 (E) dated 31.03.2009 issued by the Ministry of Corporate Affairs.
2. In terms of joint venture agreement entered into with Bossard AG,
Switzerland on 26.06.1997, the Company has invested a sum of
Rs.2,35,20,190/- in LPS Bossard Private Limited towards allotment of
23,52,019 Equity Shares of Rs.10/- each and a sum of Rs.18,47,490/- in
LPS Bossard Information Systems Private Limited towards allotment of
1,84,749 Equity Shares of Rs.10/- each, towards 49% holding in the
aforesaid Companies.
3. Fixed deposits from public include a sum of Rs.1,23,50,000/- due to
Directors (previous year Rs.1,23,50,000/-).
4. The Company has capitalized dies and tools amounting to
Rs.2,15,71,784/- (last year Rs. 2,59,19,461/-) relating to tools and
dies purchased / manufactured during the year..
5. Sundry Debtors include a sum of Rs.1,53,31,641/- due from LPS
Bossard Private Limited, a Joint Venture Company (maximum due during
the year Rs.3,43,75,355/-) (previous year due Rs. 2,42,50,387/- and
maximum due Rs. 3,77,88,652/-).
6. Advances include a sum of Rs.44,96,073/- due from Lakshmi Extrusion
Limited, an associate Company (Maximum due Rs. 57,82,621/-) (previous
year due Rs.46,87,727/- and maximum due Rs. 48,15,723/-).
7. That there was a misappropriation of funds amounting to
Rs.1,60,59,342/- by an employee of the Company in the earlier years. An
FIR was lodged with City Police Station, Rohtak on 22.06.2006.
Investigations are being conducted. Police has filed the report on
14.01.2010 in the Court of Chief Judicial Magistrate, Rohtak which is
pending for framing charges against the employee The Company had also
filed a civil suit for recovery before the Delhi High Court on
13.09.2006. The aforesaid amount has been debited to concerned employee
and shown under loans and advances. No provision for the same has been
made since the Company expects to recover the entire amount.
8. That the balance of Rs.1,43,35,107/- with central excise department
as on 31.03.2010 includes balance in central excise account at head
office, duty paid on stocks lying at the branches and with consignees.
9. a) Sundry creditors include:
i) Rs.23,21,07,035/- (previous year Rs.23,09,43,507/-) on account of
letter of credits on 180 days sight issued by Canara Bank, which are
not due for payment on the date of Balance Sheet.
ii) Rs.6,90,54,674/- (previous year Rs.4,57,46,380/-) on account of
letter of credits on 180 days sight issued by Indian Overseas Bank,
which are not due for payment on the date of Balance Sheet.
iii) Rs.34,07,816/- (previous year Rs.43,56,202/-) payable to Indian
Fasteners Ltd., a subsidiary Company.
iv) Rs.1,75,186/- payable to Directors of the Company (previous year
Rs. nil).
b) Other liabilities include Rs.10,57,200/-(previous year
Rs.12,60,200/-) payable to directors on account of salaries.
c) Information required to be furnished as per section 22 of the Micro,
Small and Medium Enterprises Development Act, 2006/MSMED Act for the
year ended 31st March, 2010. This information has been determined to
the extent such parties have been identified on the basis of
information available with the Company.
10. Prior period items include a sum of Rs.25,21,655/- credited to the
profit and loss account on account of DEPB entitlement for the
financial year 2007- 2008 and amounts debited on account of
professional charges, LIC Gratuity premium and salary to non-executive
director Rs. 2,70,000/-, Rs.1,27,908/- and Rs.18,00,000/- respectively
relating to the financial year 2008-2009.
11. As per Accounting Standard 15 "Employee Benefits", the disclosures
of Employees benefits as defined in the Accounting Standard are given
below: Defined Contribution Plan
Contribution to Defined Contribution Plan, recognized as an expense for
the year are as under:
(Amount in Rs.)
2009-10 2008-09
Employers Contribution to Provident Fund 60,57,067 42,92,427
Employers Contribution to Pension Scheme 67,46,757 82,83,125
Defined Benefit Plan
The employees Gratuity Fund Scheme, which is defined benefit plan, is
managed by Trust maintained with Life Insurance Corporation of India
(LIC). The present value of obligation is determined based on actuarial
valuation using Projected Unit Credit Method, which recognizes each
period of service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation. The obligation for compensated absences is recognized in
same manner as gratuity.
In respect of Financial year 2009-10, the Company has provided for a
sum of Rs. 50,00,000/- towards gratuity payable for the year. The
actuarial valuation certificate as certified by an actuary has not been
received and the short fall, if any, in the provision of Gratuity shall
be provided on receipt of actuarial valuation certificate as aforesaid.
12. Interest and other borrowing costs amounting to Rs.1,15,56,381/-
(previous year Rs.68,16,544/-) have been capitalized to the carrying
cost of fixed assets and capital work in progress being financing costs
directly attributable to the acquisition, construction or installation
of the concerned qualifying assets till the date of its commercial use.
13. Pursuant to Notification no: G.S.R 225(E) dated 31st March, 2009
issued by the Ministry of Corporate Affairs, the Company has opted to
apply the prescribed treatment in respect of exchange rate variation
arising on long term foreign currency monetary items. Accordingly
exchange rate variation arising out of reporting of long term foreign
currency monetary items at rates different from those at which they
were initially recorded during the period, or reported in previous
financial statements, in so far as they relate to the acquisition of a
depreciable capital assets, are added to or deducted from the cost of
the assets and depreciated over the balance life of the asset, and in
other cases accumulated in a Foreign Currency Monetary Item Translation
Difference Account:, and amortized over the balance period of such long
term asset/liability by recognition as income or expense in each of
such period. Out of total exchange gain of Rs.199.47 lacs arising on
aforesaid long term foreign currency monetary items, a sum of Rs.132.57
lacs has been deducted to the cost of fixed assets and a sum Rs.66.90
lacs has been transferred to Foreign Monetary Items Translation
Difference account. A sum of Rs.13.30 lacs has been amortized in profit
and loss account in accordance with the remaining period of the long
term liability.
14. Confirmations from debtors and creditors and parties to whom loans
and advance have been made are being obtained on a periodical basis. In
respect of accounts under reconciliation, necessary entries will be
passed on reconciliation of these accounts.
15. Interest received includes a sum of Rs.33,49,119/- (previous year
Rs.28,73,279/-) on bank deposits and Rs.1829/-(previous year Rs.152/-)
received from trade customers and interest paid include Rs.13,58,500/-
paid to Directors (previous year Rs.13,58,500/-).
16. In the opinion of the Managing Directors and the Joint Managing
Director, current assets, loans and advances have a value on
realization in the ordinary course of business at least equal to the
amount at which they are stated and the provision for all known
liabilities have been made.
In addition, salary amounting Rs.1800000/- has been paid to
non-executive director for the period from 01.10.2008 to 31.03.2009 as
per approval of Central Government vide letter dated 26.05.2009 and
same has been adjusted under prior period items.
17. Segment Reporting
The segment reporting of the Company has been prepared in accordance
with Accounting Standard (AS-17), ÂAccounting for Segment ReportingÂ
issued by the Institute of Chartered Accountants of India.
Primary-Business Segment
The Company is in the business of manufacture of high tensile
fasteners. Since the Company is operating in a single line of product,
there are no reportable primary segments.
Secondary-Geographical Segment
The analysis of geographical segment is based on geographical location
of the customers. The following is the distribution of Companys
consolidated revenue by geographical market, regardless of where the
goods were produced.
18. Related Party Transactions
As per Accounting Standard No.18 issued by the Institute of Chartered
Accountants of India, related parties in terms of the said standard are
disclosed below: -
(a) Names of Related parties and description of relationship:
1. Subsidiary (i) Indian Fasteners Limited
2. Associates (i) Amit Screws Pvt. Ltd.
(ii) Hanumat Wire Udyog Pvt Ltd.
(iii) J C Fasteners Ltd.
(iv) LPS Bossard Pvt. Ltd. (Joint Venture)
(v) LPS Bossard Information Systems Pvt. Ltd.
(Joint Venture)
(vi) Lakshmi Extrusion Ltd.
(vii) LPS Fasteners & Wires Pvt. Ltd.
(viii) Nav Bharat Industries
(ix) Nav Bharat Agencies
(x) Shiv Industries
(xi) Swadesh Engineering Industries
(xii) Sudhir Automotive Industries Pvt. Ltd.
(xiii) United Engineers
(xiv) Universal Enterprises
3. Key Management Personnel (i) Shri Lalit Kumar Jain
(ii) Shri Dinesh Kumar Jain
(iii) Shri Vijay Kumar Jain
(iv) Shri Rajesh Jain
(v) Smt. Sushila Devi Jain
4. Relative of Key Management Personnel
(i) Shri S.K.Jain (Brother of
Shri D.K.Jain)
(ii) Shri Nikhlesh Jain (Son of Shri D.K. Jain)
(iii) Shri Amit Jain (Son of Shri V.K. Jain)
(iv) Shri Gagan Jain (Son of Shri L.K. Jain)
(v) Shri Gautam Jain (Son of Shri L.K. Jain)
(vi) Shri Rahul Jain (Son of Shri RK. Jain)
(vii) Smt. Charul Jain (Wife of Shri Amit Jain)
(viii) Smt. Rita Jain (Wife of Shri L.K. Jain)
(ix) Smt. Deepa Jain (Wife of Shri V.K. Jain)
19. Disclosure in respect of Companys Joint Ventures in India
pursuant to Accounting Standard 27 Financial Reporting of Interest in
Joint Ventures: (i) a) Name of the Venture LPS Bossard Pvt. Ltd.
b) Country of Incorporation India
c) Proportion of Ownership interest as at March 31, 2010 49%
d) The aggregate of Companys share in the above ventures in:
20. In accordance with Accounting Standard 28 Â Impairment of Assets
issued by the Institute of Chartered Accountants of India and made
applicable from 1st day of April, 2004, he Company has assessed the
potential generation of economic benefits from its business units as on
the balance sheet date and is of the view that assets employed in
continuing business are capable of generating adequate returns over
their useful lives in the usual course of business; there is no
indication to the contrary and accordingly, the management is of the
view that no impairment provision is called for in these accounts.
21. Provisions are recognized for expenses such as gratuity, income
tax, wealth tax, leave encashment and bonus to employees. The
provisions are recognized on the basis of past events and the probable
settlement of the present obligation as a result of the past events
during the financial year 2009-10
22. The Company has proposed dividend for the year @10% on its equity
capital and a provision for corporate dividend tax including surcharge
and education cess thereon has been made in accordance with Finance
Act, 2010. The said amount is not subject to tax deducted at source
(TDS). No dividend has been declared by the group companies.
Mar 31, 2009
A) CONTINGENT LIABILITIES
(Lac/Rs.)
S.No Particulars 2009 2008
1. Estimated amount of capital contracts
remaining to be executed and
not provided for (net of advances) 26 256
2. Letter of credits and guarantees
obtained from bank (Net of
margin money) 174 606
3. Liabilities against legal undertakings/
bonds executed in favour of
DGFT on account of export obligation 478 927
undertaken by the Company
against advance/ import licences under
EPCG Scheme.
4. Income Tax liabilities on account of
appeals pending with various
authorities. 77 77
5. Liabilities on account of suits filed
against the company in the
Labour Court/ESI Corporation. 5 5
B) NOTES
1. a) During the year, the ICICI Bank Limited, Singapore has disbursed
a foreign currency loan of $20 lacs (Rs.799 lacs) previous year $ 46.60
lacs i.e
Rs.1875 lacs). The said amount has been utilized towards capital
expenditure for the purpose of expansion/extention of the new units at
Manesar, Haryana and at existing units of the company. A sum of
Rs.117.51 lacs is lying unutilized as at the end of the year on this
account.
b) Foreign currency loan from ICICI Bank Limited as at the end of the
year has been translated at the prevailing rate of exchange as on the
date of balance sheet. Consequent to realignment of the value of
foreign currency loan, the rupee liability of the company has increased
by Rs.331.75 lacs. Out of the said exchange loss a sum of Rs.220.48
lacs has been adjusted to the carrying cost of fixed assets and the
balance sum of Rs.111.27 lacs has been debited to the Foreign Currency
Monetary Item Translation Difference Account in accordance with
Accounting Standard 11 (AS-11) as amended vide notification no.G.S.R
225 (E) dated 31.03.2009 issued by the Ministry of Corporate Affairs.
2. In terms of joint venture agreement entered into with Bossard AG,
Switzerland on 26.06.1997, the company has invested a sum of
Rs.23520190/- in LPS Bossard Private Limited towards allotment of
2352019 Equity Shares of Rs.10/- each and a sum of Rs.1847490/- in LPS
Bossard Information Systems Private Limited towards allotment of 184749
Equity Shares of Rs.10/- each, towards 49% holding in the aforesaid
Companies.
3. Fixed deposits from public include a sum of Rs.12350000/- due to
Directors (previous year Rs.12350000/-).
4. The company has capitalized dies and tools amounting to
Rs.25919461/- (last year Rs.19957780/-) relating to development of new
tools and dies during the year.
5. Sundry Debtors includes a sum of Rs.24250387/- due from LPS Bossard
Private Limited, a Joint Venture Company (maximum due during the year
Rs.37788652/-) (previous year due Rs.15070332/- and maximum due
Rs.29162480/-).
6. Advances includes a sum of Rs.4687727/- due from Lakshmi Extrusion
Limited, an associate company (Maximum due Rs.4815723/-) (previous year
due Rs.3200000/- and maximum due Rs.3568912/-).
7. That there was a misappropriation of funds amounting to
Rs.16059342/- by an employee of the company in the earlier years. An
FIR was lodged with City Police Station, Rohtak on 22.06.2006.
Investigations are being conducted. Police challan is awaited. The
Company had also filed a civil suit for recovery before the Delhi High
Court on 13.09.2006. The aforesaid amount has been debited to concerned
employee and shown under loans and advances. No provision for the same
has been made since the company expects to recover the entire amount.
8. That the balance of Rs.14149987/- with central excise department as
on 31.03.2009 includes balance in central excise account at head
office, duty paid on stocks lying at the branches and with consignees.
9. a) Sundry creditors include:
i) Rs.230943507/- (previous year Rs.181140266 /-) on account of letter
of credits on 180 days sight issued by Canara Bank, which are not due
for payment on the date of Balance Sheet.
ii) Rs.4356202/- (Previous year Rs.3803811/-) payable to subsidiary
company viz Indian Fasteners Limited.
iii) Rs.1260200/- payable to Directors of the company (previous year
Rs.1082200/-).
10. Prior period items include a sum of Rs.8572976/- credited to the
profit and loss account on account of DEPB entitlement for the fnancial
year 2007-2008.
11. As per Accounting Standard 15 ÂEmployee BenefitsÂ, the disclosures
of Employees benefits as defined in the Accounting Standard are given
below:
Defined Benefit Plan
The employeeÂs Gratuity Fund Scheme, which is defined benefit plan, is
managed by Trust maintained with Life Insurance Corporation of India
(LIC). | The present value of obligation is determined based on
actuarial valuation using Projected Unit Credit Method, which
recognizes each period of service as giving rise to additional unit of
employee benefit entitlement and measures each unit separately to build
up the final obligation. The obligation for compensated absences is
recognized in same manner as gratuity.
In respect of Financial year 2008-09, the company has made payment of
Rs.30,00,000/- towards gratuity payable for the year. The actuarial
valuation certificate as certified by an actuary has not been received
and the short fall, if any, in the provision of Gratuity shall be
provided on receipt of actuarial valuation certificate as aforesaid.
12. Interest and other borrowing costs amounting to Rs.6816544/-
(previous year Rs.14270746/-) have been capitalized to the carrying
cost of fixed assets and capital work in progress being financing costs
directly attributable to the acquisition, construction or installation
of the concerned qualifying assets till the date of its commercial use.
13. Pursuant to Notification no: G.S.R 225(E) dated 31st March, 2009
issued by the Ministry of Corporate Affairs, the company has opted to
apply the prescribed treatment in respect of exchange rate variation
arising on long term foreign currency monetary items. Accordingly
exchange rate variation arising out of reporting of long term foreign
currency monetary items at rates different from those at which they
were initially recorded during the period, or reported in previous
financial statements, in so far as they relate to the acquisition of a
depreciable capital assets, are added to or deducted from the cost of
the assets and depreciated over the balance life of the asset, and in
other cases accumulated in a Foreign Currency Monetary Item Translation
Difference Account:, and amortized over the balance period of such long
term asset/liability by recognition as income or expense in each of
such period. Out of total exchange loss of Rs.3.63 crore arising on
aforesaid long term foreign currency monetary items, a sum of Rs.2.41
crores has been added to the cost of fixed assets and a sum Rs.1.11
crores has been transferred to Foreign Monetary Items Translation
Difference account and Rs.0.11 crore has been transferred to profit and
loss account in accordance with the revised treatment.
14. Confirmations from debtors and creditors and parties to whom loans
and advance have been made are being obtained on a periodical basis. In
respect of accounts under reconciliation necessaries entries will be
passed on reconciliation of these accounts.
15. Interest received includes a sum of Rs.2873279/- (previous year
Rs.4387317/-) on bank deposits and Rs.152 (previous year Rs.2048/-)
received from trade customers and interest paid include Rs.1358500/-
paid to Managing Directors (previous year Rs.568052/-).
16. In the opinion of the Managing Directors and the Joint Managing
Director, current assets, loans and advances have a value on
realization in the ordinary course of business at least equal to the
amount at which they are stated and the provision for all known
liabilities have been made.
17. Segment Reporting
The segment reporting of the company has been prepared in accordance
with Accounting Standard (AS-17), ÂAccounting for Segment ReportingÂ
issued by the Institute of Chartered Accountants of India.
Primary-Business Segment
The company is in the business of manufacture of high tensile
fasteners. Since the company is operating in a single line of product,
there are no reportable primary segments.
18. Related Party Transactions
As per Accounting Standard No.18 issued by the Institute of Chartered
Accountants of India, related parties in terms of the said standard are
disclosed below:-
(a) Names of Related parties and description of relationship:
1. Subsidiary (i) Indian Fasteners Limited
2. Associates (i) Amit Screws Pvt. Ltd.
(ii) Hanumat Wire Udyog Pvt. Ltd.
(iii) J C Fasteners Ltd.
(iv) LPS Bossard Pvt. Ltd. (Joint Venture)
(v) LPS Bossard Information Systems Pvt. Ltd. (Joint Venture)
(vi) LPS Fasteners & Wires Pvt. Ltd.
(vii) Nav Bharat Industries
(viii) Nav Bharat Agencies
(ix) Shiv Industries
(x) Swadesh Engineering Industries
(xi) Sudhir Automotive Industries Pvt. Ltd.
(xii) United Engineers
(xiii) Universal Enterprises
(xiv) Lakshmi Extrusion Ltd.
3. Key Management Personnel (i) Shri Lalit Kumar Jain
(ii) Shri Dinesh Kumar Jain
(iii) Shri Vijay Kumar Jain
(iv) Shri Rajesh Jain
(v) Smt. Sushila Devi Jain
4. Relative of key Management Personnel
(i) Shri S.K.Jain (brother of Shri D.K.Jain)
(ii) Shri Nikhlesh Jain (son of Shri D.K. Jain)
(iii) Shri Amit Jain (son of Shri V.K. Jain)
(iv) Shri Gagan Jain (son of Shri L.K. Jain)
(v) Shri Gautam Jain (son of Shri L.K. Jain)
(vi) Smt. Rita Jain (wife of Shri L.K. Jain)
(vii) Smt. Deepa Jain (wife of Shri V.K. Jain)
19. In accordance with Accounting Standard 28 ÂImpairment of AssetsÂ
issued by the Institute of Chartered Accountants of India and made
applicable from 1st day of April, 2004, the Company has assessed the
potential generation of economic benefits from its business units as on
the balance sheet date and is of the view that assets employed in
continuing business are capable of generating adequate returns over
their useful lives in the usual course of business; there is no
indication to the contrary and accordingly, the management is of the
view that no impairment provision is called for in these accounts.
20. Provisions are recognized for expenses such as gratuity, income
tax, wealth tax, leave encashment and bonus to employees. The
provisions are recognized on the basis of past events and the probable
settlement of the present obligation as a result of the past events
during the fnancial year 2008-09.
Mar 31, 2008
A) CONTINGENT LIABILITIES: (Lac/Rs)
Sr. No Particulars 2008 2007
1. Estimated amount of capital contracts remaining
to be executed and not provided for
(net of advances) 256 493
2. Letter of credit and guarantees obtained from
bank (Net of margin money) 606 342
3. Liabilities against legal undertakings/bonds
executed in favour of DGFT on account of export
obligation 927 undertaken by the Company against
advance and import licenses under EPCG Scheme.
4. Income Tax liabilities on account of appeals
pending with various authorities. 77 101
5. Liabilities on account of suits filed against
the company in the Labour Court/ESI Corporation. 5 5
B) NOTES
1. a) During the year, the company has been sanctioned a Foreign
Currency Loan of S 66.60 lacs by ICICI Bank Limited out of which the
company has availed a sum of S 46.60 lacs (Rs.1875 lacs) during the
year. The said amount has been utilized towards capital expenditure for
the purpose of expansion/extension of the new units of Manesar and at
its existing units of the company. Asum of Rs.460.81 lacs is lying
unutilized as at the end of the year on this account.
b) Foreign currency loan taken from ICICI Bank Limited as at the end of
the year has been translated at the prevailing rate of exchange as on
the date of balance sheet. Consequent to realignment of the value of
foreign currency loan, the rupee liability of the company has decreased
by Rs.13.19 lacs. The said exchange gain of Rs.13.19 lacs has been
credited to the profit and loss account.
2. In terms of joint venture agreement entered into with Bossard AG,
Switzerland on 26.06.1997, the company has invested a sum of
Rs.2,35,20,190/- in LPS Bossard Private Limited towards allotment of
23,52,019 Equity Shares of Rs. 10/- each and a sum of Rs. 18,47,490/-
in LPS Bossard Information Systems Private Limited towards allotment of
1,84,749 Equity Shares of Rs.10/- each, towards 49% holding in the
aforesaid Companies.
3. Fixed deposits from public include a sum of Rs. 1,23,50,000/- due
to Directors (previous year Rs. 1,23,50,000/-).
4. The company has capitalized dies and tools amounting to Rs.
1,99,57,780/- (last year Rs. 1,18,74,606/-) during the year relating to
development of new products in Research and Development Division.
5 Sundry Debtors includes a sum of Rs.1,50,70,332/- due from LPS
Bossard Private Limited, a Joint Venture Company (maximum due during
the year Rs.2,91,62,480/-) (previous year due Rs.2,16,20,074/- and
maximum due Rs.4,74,18,072/-).
6 Advances includes a sum of Rs.32,00,000/- due from Lakshmi Extrusion
Limited, an associate company (Maximum due Rs.35,68,912/-) (previous
year due Rs.26,54,461/- and maximum due Rs.44,86,552/-).
7. Thai there was a misappropriation of tods amounting to
Rs.1,60,59,342/- by an employee of the company in the earlier years. An
FIR was lodged with City Police Station, Rohtak on 22.06.2006.
Investigations are being conducted. SLP filed by the employee before
the Honble Supreme Court for grant of anticipatory bail has been
dismissed on 02.11.07 by the Honbie Court. The Company had also filed
a civil suit for recovery before the Delhi High Court on 13.09.2006.
The aforesaid amount has been debited to concerned employee and shown
under loans and advances. No provision for the same has been made since
the company expects to recover the entire amount.
8. That the balance of Rs.1,08,97,616/- with central excise department
as on 31.03.2008 includes balance in central excise account at head
office, duty paid on stocks lying at the branches and with consignees.
9. a) Sundry creditors include:
i) Rs.18,11,40,266/-(previous year Rs.19,20,63,745/-) on account of
letter of credits on 180 dayssight issued by Canara Bank, which are
not due for payment on the date of Balance Sheet.
ii) Rs.38,03,811 /- (Previous year Rs.30,42,746/-) payable to
subsidiary company viz Indian Fasteners Limited.
iii) Rs.10,82,200/- payable to Directors of the company (previous year
Rs. Nil).
b) The list of SSIs to whom the Company owes any sum and which is
outstanding for more than 30 days is:
1. A. K. Auto Components 2. A.B. Finisher 3. Aakash Precision Screws 4.
Aarti Precision Products 5. Abhi Industries 6. Adinath Mfrg and Mkt.
Company 7.Ajit Engg. Works 8. Akansha Engg. Works. 9. Amba
Electroplating Industries 10. Amit Auto Industries 11. Amit Screws Pvt.
Ltd. 12. ANI Engineers 13. ANZ Engineers. 14. Ankit Auto Industries
15. Associate Blackening 16. AUM Dacro Coating 17. B. D. Engineering
Works 18. Badhwar Engineering Works 19. Benco Industries 20. Belz
Instrument Pvt. Ltd. 21. Bhagwati Precision Industries 22. Bharat
Electroplating Industries 23. Blades India. 24. Bod Ote Metallurgical
Services (I) Pvt. Ltd. 25. Chandra Engineering Works 26. Choudhary
Enterprises 27. Computer Services Centre. 28. D.A. Fasteners Ind. 29.
D. K. Enterprises 30. D. P. Industries 31. Dahiya Engg. Works 32. Deep
Precision Industries 33. Diamond Fasteners 34. Diamond Fasteners Tools
35. Divya Automates 36. G.S. Engineering Tools 37. Ganesh Engineering
Industries 38. Ganesh Fasteners Tools 39. Gaurav Tools Udyog 40. Geeta
Fasteners 41. Govind Enterprises 42. Gupta Auto Industries 43. Hanumat
Wire Udyog Pvt. Ltd. 44. Hanwant Fasteners Pvt. Ltd. 45. Harjai Sons
46. Henkel Adhesives Technologies India Pvt, Ltd. 47. India Industrial
Products 48. lonbond Coatings Pvt. Ltd. 49. Jassu Industries 50. K. V.
Auto Industries 51. Kapil Auto Engineering 52. Kapoor Auto Industries
53. Kumar Auto Industries 54. Kwality Engineers 55. Kwality Products
56. Lakshmi Machine Tools 57. Laxmi Engg. Works 58. LPS Fasteners &
Wires Pvt. Ltd. 59. Lakshmi Extrusions Ltd. 60. M. K. Electro Polisher
61. M.K. Precision Screws Pvt. Ltd. 62. Man Darshak Udyog 63. Man
Darshak Tools 64. Mahla Industries 65. Manish Fasteners 66. Manish
Tools 67. Manjeet Auto Industries 68. Manish Steel Services 69.
Markewell Fasteners 70. M.R.S Industries 71. Nahar Engineering Works
72. Nanak Engineering Works 73. Natraj Automatics 74.NavkarAutomotives
75. Navratika Fasteners 76. Nisha Tools 77, Niharika Enterprises 78.
Nirmala Job Works 79. Neeraj Tools & Components 80. Om Industries 81.
P. S. Industries 82. Panchal Engineering Works 83. Paramjeet Auto
Industries 84,ParasnathAuto Industries 85. Pooja Steel Fabricators 86.
Pragati Fasteners 87. Precision Machine Tools 88. Premier Auto
Industries 89. Push Up Threads Dies Pvt. Ltd. 90. Push Up Tools Udyog
Pvt. Ltd. 91. Rajesh Engineering Works 92. Rajesh Enterprises 93. Ram
Gopal Industries 94. Raman Auto Industries 95. Rathee Engineering
Works. 96. Rishabh Precision Screws 97. Rishi Tools Udyog 98. Reliance
Cargo Movers Pvt. Ltd. 99. R.I.Metals Works, 100. R.S.Enterprises 101.
S. K. Auto Industries 102. Saini Technofeb 103. Sakshi Enterprises 104.
Santosb Industries 105. Sarika Engg. Works 106. Sehgal Fasteners 107.
Sehrawat Engineering Works 108. Shakti Fasteners 109. Shakti Tools
Udyog 110. Shanti Shakti Engineering Works 111. Shikher Auto Industries
112. Shitla Tools Industries 113. Shiv Industries 114. Shiva Auto
Industries 115. Shiv Automotive Industries 116. Shiva Hardwell
Industries 117. Singla Precision Screws 118. Shreesh Precision Screws
119. Shri Radha Ballabh Enterprises 120. Shri Aadinath Auto Engineering
121. Sonu Engineering Works (Regd.) 122. Soni Tools 123. Sumit Auto
Components 124. Sunil Auto Industries 125. Sunil Engineering Works 126.
Supreme Industries 127. Surinder Engineering Works 128. Surya
Engineering Works 129. S.P. Ind. 130. Three Bond India Pvt. Ltd. 131.
Trimurti Precision 132. Tirupati Engineers 133. Universal Enterprises
134. Vikash Engg. Works 135. Vishwakarma Machine Tools, 136. Yogi
Industries.
c) The identification of Micro, Small and Medium Enterprise Suppliers
under the Micro, Small and Medium Enterprises Development Act, 2006 is
based on the information available with the Management regarding their
status. There are no dues to Micro, Small and Medium Enterprise
Suppliers as on March 31,2008 and the company is making payment within
time as per stipulations.
10. Interest and other borrowing costs amounting to Rs.1,42,70,746/-
(previous year Rs. 29,88,625/-) have been capitalized to the carrying
cost of fixed assets and capital work in progress being financing costs
directly attributable to the acquisition, construction or installation
of the concerned qualifying assets till the date of its commercial use
in accordance with (AS-16), "Borrowing Costs" issued by the Institute
of Chartered Accountants of India.
11. Dividend @ 12 % has been proposed for the year and a provision of
corporate dividend tax @ 15% plus surcharge @ 10% plus 3% cess thereon
has been made. The said amount is not subject to deduction of tax at
source.
12. That the company had paid a sum of Rs.110 lacs as prepaid premium
to ICICI Bank Limited during the earlier years, which has been
amortized in the ratio of interest payable for the period of six years
i.e. during the currency of term loan. Accordingly, a sum of Rs.3.25
lacs (last year Rs.8.42 lacs) has been written off and debited to
interest paid during the year. Further, the company had also paid a sum
of Rs.45.13 lacs as prepaid premium to ICICI Bank during the earlier
years, which has been amcwtized in the ratio of interest payable for
the period of four years i.e. during the currency of term loan.
Accordingly a surn of rs.2.92 lacs (last year rs.8.41) has been written
off and debited to interest paid during the year.
13. Interest received includes a sum of Rs.43,87,317/- (previous year
Rs.24,57,060/-) on bank deposits, Rs. 27,027/- (previous year
Rs.1,11,636/-) on loan to a director and Rs.2,048/- (previous year Rs.
2,565/-) received from trade customers and interest paid include
Rs.5,68,052/- paid to Managing Directors (previous yearRs.5,66,500/-).
14. Pursuant to the adoption of Accounting Standards as prescribed by
the Companies (Accounting Standard) Rules, 2006 issued by Ministry of
Corporate Affairs vide notification no. G.S.R.739 (E) dated December
7,2006, as required by Accounting Standard-11 on "The Effect of changes
in Foreign Exchange rates", the company has recognized net gain arising
on account of foreign exchange fluctuations amounting to Rs.12.44 lacs
for the year ended march 31 st 2008 in the profit and loss account
relating to acquisition of fixed assets. This has resulted in profit
before tax for the year increased by Rs. 11.45 lacs (net of
depreciation).
15. In the opinion of the Management, current assets, loans and
advances have a value on realization in the ordinary course of business
at least equal to the amount at which they are stated and the provision
for all known liabilities have been made.
16. In accordance with Accounting Standard 28 Impairment of
Assetsissued by the Institute of Chartered Accountants of India and
made applicable from 1st day of April, 2004, the Company has assessed
the potential generation of economic benefits from its business units
as on the balance sheet date and is of the view that assets employed in
continuing business are capable of generating adequate returns over
their useful lives in the usual course of business; there is no
indication to the the country and accordingly, the management is of the
view that no impairment provision is called for in these accounts.
17. Previous years figures have been regrouped wherever necessary to
make them comparable with that of current year.
18. Figures have been rounded off to the nearest rupee.
Mar 31, 2007
A) CONTINGENT LIABILITIES: (Lac/Rs.)
S.No Particulars 2007 2006
1. Estimated amount of capital contracts
remaining to be executed and not provided
for (net of advances) 493 140
2. Letters of credit and guarantees
obtained from bank (Net of margin money) 342 159
3. Liabilities against legal undertakings/
bonds executed in favour of DGFT on account
of export obligation 833 -
undertaken by the Company against advance and
import licenses under EPCG Scheme. .
4. Income Tax liabilities on account of
appeals pending with various authorities. 101 101
5. Liabilities on account of suits filed
against the company in the Labour Court /
ESI Corporation. 5 2
6. During the year, the Company had availed a Short Term Loan (STL) of
Rs. 403 lacs from Canara Bank out of sanctioned amount of Rs.500 lacs
for the purchase of dies and tools and also availed Working Capital
Term Loan of Rs. 592 lacs to meet working capital requirements on the
security of existing stock of dies and tools. The said loans have been
utilized for the purpose for which the same were sanctioned.
7. In terms of joint venture agreement entered into with Bossard AG,
Switzerland on 26.06.1997, the company has invested a sum of
Rs.23520190/- in IPS Bossard Private Limited towards allotment of
2352019 Equity Shares of Rs.10/- each and a sum of Rs.1847490/- in IPS
Bossard Information Systems Private Limited towards allotment of 184749
Equity Shares of Rs.10/- each, towards 49% holding in the aforesaid
Companies.
8. Fixed deposits from public include a sum of Rs.12350000/- due to
Directors (previous year Rs.12350000/-)
9. The company has capitalized dies and tools amounting to
Rs.11874606/- (last year Rs.9218454/-) during the year relating to
development of new products in Research & Development Block.
10 Sundry Debtors include
(i) A sum of Rs.21620074/- due from M/s LPS Bossard Private Limited, a
Joint Venture Company (maximum due during the year Rs.47418072/-)
(previous year due Rs.11318851 /- and maximum due Rs.37470713/-).
(ii) A sum of Rs.2654461/ due from M/s Lakshmi Extrusion Limited, an
associate company (maximum due during the year Rs.4486552/-) (previous
year due Rs.3274754/- and maximum due Rs.7888184/-)
11. Advances recoverable in cash or in kind or for value to be received
include Rs.535607/- (previous year Rs.1255607/-) due from Smt Sushila
Devi Jain, Director of the Company. (Maximum outstanding during the
year Rs.1260307/-) (Previous year Rs.1980307/-) The approval for the
aforesaid loan was obtained from Central Government vide letter dated
12.02.2001, issued by Government of India, Ministry of Law, Justice &
Company Affairs, Department of Company Affairs.
12 That there was a misappropriation of funds amounting to
Rs.16059342/- by an employee of the company in the earlier years. An
FIR was lodged with City Police Station, Rohtakon 22.06.2006.
Investigations are being conducted. In the meantime, the concerned
employee has been granted interim anticipatory bail by Punjab & Haryana
High Court on deposit of an amount of Rs.20 lacs with the court as
security. The Company had also filed a civil suit for recovery before
the Delhi High Court on 13.09.2006. The aforesaid amount has been
debited to concerned employee and shown under loans and advances. No
provision for the same has been made since the company expects to
recover the entire amount.
13. That the balance of Rs. 12391588 /- with central excise department
as on 31.03.2007, include balance of excise duty at head office, duty
paid on stocks at the branches and with consignees.
14. a) Sundry creditors include:
i) Rs.192063745/-(previous year Rs.161575397/-) on account of letter of
credits on 180 dayssight issued by Canara Bank, which are not due for
payment on the date of Balance Sheet.
ii) Rs.3042726/- (previous year Rs.3511406/-) payable to subsidiary
company viz Indian Fasteners Limited, b) The list of SSIs to whom the
Company owes any sum and which is outstanding for more than 30 days is:
1. Aarti Precision Products 2. Abhi Industries 3. Amar Nath Precision
Screws 4. Amit Auto Industries 5. Ankit Auto Industries 6. Ankit
Industries 7. Ankush Enterprises 8. Ashish Engineering & Tools 9. A. K.
Auto Components 10. Ar Vee Industries 11. Ajit Engineering Works 12.
Amba Electroplating Industries 13. Amit Screws Private Limited 14. A.B.
Finisher 15. Associate Blackening 16. AUM Dacro Coating 17. Aakash
Precision Screws 18. Budhwar Enterprises 19. Bharat Electroplating
Industries 20. Benco Industries 21. Bhagwati Precision Industries 22.
Bharat Industries 23. B.D. Engineering Works 24. Balaji Industries 25.
Badhwar Engineering Works 26. Chakson Engineering Company 27. Chandra
Engineering Works 28. O.K. Enterprises 29. D.P. Industries 30. Deep
Precision Industries 31. Dhamuniya Engineering Works 32. Diamond
Automatics 33. Diamond Fasteners 34. Divya Automates 35. Dempa Machine
Tools 36. Dahiya Engineering Works 37. Diamond Fasteners Tools 38.
Friend Engineering Works 39. Ganesh Engineering Industries 40. Ganesh
Fasteners Tools 41. Govind Audo Product 42. Gupta Auto Industries 43.
Geeta Fasteners 44. Govind Enterprises 45. Ganesh Fasteners Tools 46.
Gaurav Tools Udyog 47. G.S. Engineering Tools 48. Hanumat Wire Udyog
Private Limited 49. Harjaisons 50. H.K. Engineering Works 51. Hanwant
Fasteners Private Limited 52. India Industrial Products 53. Jai Hanuman
Engineering Works 54. Jassu Industries 55. Jhandai Fasteners 56. J.C.
Fasteners Limited 57. K.V. Auto Industries 57. Kapoor Auto Industries
58. Karan Auto Industries 59. Kumar Auto Industries 60. Kapil Auto
Engineering 61. Kulwant Enterprises 62. LPS Fasteners & Wires Private
Limited 63. Lakshmi Machine Tools 64. M.K. Electro Polisher 65.
Mahalakshmi Fabricators 66. Manish Fasteners 67. Markewell Fasteners
68. MNP Turnmatics 69. Manish Steel Services 70. Man Darshak Udyog 71.
Nageshwar Auto Industries 72. Nanak Engineering Works 73. Natraj
Automatics 74. Nav Bharat Industries 75. Navkar Automotives 76. Nirmala
Job Works 77. Nahar Engineering Works 78. Punch Ratna Steels Private
Limited 79. Precision Machine Tools 80. P. S. Enterprises 81. Panchal
Engineering Works 82. Parasnath Auto Industries 83. Parmjeet Auto
Industries 84. Premier Auto Industries 85. Pragati Fasteners 86. P.S.
Industries 87. Pooja Steel Fabricators 88. Parvati Precision 89.
Quality Fasteners 90. R. K. Tools 91. Rahul Industries 92. Rajdeep
Industries 93. Rajesh Engineering Works 94. Ram Gopal Industries 95.
Raman Auto Industries 96. Rishabh Precision Screws 97. Rishi Tools
Udyog 98. Rathee Engineering Works. 99. S.K. Auto Industries 100.
Santosh Industries 101. Sehrawat Engineering Works 102. Shakti
Fasteners 103. Shanker Engineering Works 104. Shanti Machine Tools
(Regd.) 105. Shanti Shakti Engineering Works 106. Shitla Tools
Industries 107. Sonu Engineering Works (Regd.) 108. Sunil Auto
Industries 109. Surya Engineering Works 110. Sunil Engineering Works
111. Shreesh Precision Screws 112. Saify Industries 113. S. P.
Industries 114. Shiva Auto Industries 115. Supreme Industries 116.
Sehgal Fasteners 117. Shakti Tools Udyog 118. Shiv Industries 119.
Sharma Precision Works 120. Shiva Hardwell Industries 121. Sakshi
Enterprises 122. Sudhir Automotive Industries Private Limited 123. Taif
Industries 124. Trimurti Precision 125. Three Bond India Private
Limited 126. Universal Enterprises 127. V.K. Engineering Works 128.
Venus Hydroline Engineering Works 129. Vishesh Engineering 130.
Vishwakarma Machine Tools 131. Yogi Industries.
15. Interest and other borrowing costs amounting to Rs.29,88,625/-
(previous year Rs.30,15,674/-) have been capitalized to the carrying
cost of fixed assets being financing costs directly attributable to
the acquisition, construction or installation of the concerned
qualifying assets till the date of its intended commercial use.
16. Dividend @ 18 % has been proposed for the year and a provision of
corporate dividend tax @ 15% plus surcharge @ 10% plus 3% cess thereon
has been made. The said amount is not subject to deduction of tax at
source.
17 a.) That the company had paid a sum of Rs.110 lacs as prepaid
premium to ICICI Bank Limited during the earlier years, which has been
amortized in the ratio of interest payable for the period of six years
i.e. during the currency of term loan. Accordingly, a sum of Rs.8.42
lacs (last year Rs.13.64 lacs) has been written off and debited to
interest paid during the year. Further, the company had also paid a sum
of Rs.45.13 lacs as prepaid premium to ICICI Bank during the earlier
years, which has been amortized in the ratio of interest payable for
the period of four years i.e. during the currency of term loan.
Accordingly, a sum of Rs.8.41 lacs (last year Rs.13.89 lacs) has been
written off and debited to interest paid during the year.
b.) That the company had paid a sum of Rs.6.50 lacs as premium towards
reduction in the interest rate from 15.25% p.a. to 11 % p.a. to
Industrial Development Bank of India during the earlier years which has
been amortized in the ratio of interest payable for the period of two
and half years i.e. during the currency of term loan. Accordingly, a
sum of Rs.0.78 lac (last year Rs.3.13 lacs) has been written off and
debited to interest paid during the year.
14. Interest received include a sum of Rs.2457060/- (previous year Rs.
1796090/-) on bank deposits, Rs. 111636/- (previous year Rs.198036/-)
on loan to a director and Rs.2565/- (previous year Rs.219865/-)
received from trade customers and interest paid include Rs.566500/-
paid to Managing Directors (previous year Rs. 566500/-).
15. In the opinion of the Managing Directors and the Joint Managing
Director, current assets, loans and advances have a value on
realization in the ordinary course of business at least equal to the
amount at which they are stated and the provision for all known
liabilities have been made.
16. Related Party Transactions
As per Accounting Standard No.18 issued by the Institute of Chartered
Accountants of India, related parties in terms of the said standard are
disclosed below: -
(a) Names of Related parties and description of relationship:
1. Subsidiary (i) Indian Fasteners Limited
2. Associates
(i) Amit Screws Private Limited
(ii) Hanumat Wire Udyog Private Limited
(iii) J C Fasteners Limited
(iv) LPS Bossard Private Limited (Joint Venture)
(v) LPSBossard Information System Private Limited (Joint Venture)
(vi) LPS Fasteners & Wires Private Limited
(vii) NavBharat Industries
(viii) NavBharat Agencies
(ix) Shiv Industries
(x) Swadesh Engineering Industries
(xi) Sudhir Automotive Industries Private Limited
(xii) United Engineers
(xiii) Universal Enterprises
(xiv) Lakshmi Extrusion Limited
3. Key Management Personnel
(I) Shri LalitKumar Jain
(ii) Shri Dinesh Kumar Jain
(iii) Shri Vijay Kumar Jain
(iv) Shri Rajesh Jain
(v) Smt. Sushila Devi Jain
4. Relative of key Management Personnel
(i) Shri S.K. Jain (Brother of Shri D.K.Jain)
(ii) Shri Nikhlesh Jain (S/o. Shri D.K. Jain)
(iii) Shri Amit Jain (S/o. Shri V.K. Jain)
(iv) Shri Gagan Jain (S/o. Shri L.K. Jain)
(v) Shri Gautam Jain (S/o. Shri L.K. Jain)
(vi) Smt. Rita Jain (W/o. Shri L.K. Jain)
(vii) Smt. Deepa Jain (W/o. ShriV.K. Jain)
17. In accordance with Accounting Standard 28th Impairment of Assets
issued by the Institute of Chartered Accountants of India and made
applicable from 1 st day of April, 2004, the Company has assessed the
potential generation of economic benefits from its business units as on
the balance sheet date and is of the view that assets employed in
continuing business are capable of generating adequate returns over
their useful lives in the usual course of business; there is no
indication to the contrary and accordingly, the management is of the
view that no impairment provision is called for in these accounts.
Mar 31, 2006
CONTINGENT LIABILITIES:
(Lac/Rs.)
S.No Particulars 2006 2005
1. Estimated amount of capital contracts 140 81
remaining to be executed and not
provided for (net of advances)
2. Letter of credits and guarantees 159 228
obtained from bank (Net of margin
money)
3. Liabilities against legal undertakings/ 318 113
bonds executed in favour of DGFT on
account of export obligation undertaken
by the Company against advance and
import licenses under EPCG Scheme.
4. Income Tax liabilities on account of 101 101
appeals pending with various authorities
5. Liabilities on account of suits filed against 2 2
the company in the Labour Court.
C) NOTES
1. During the year, the Company issued Right Shares to its shareholders
at a premium of Rs.40/- per share, over its face value of Rs. 10/- per
share in the ratio of 2 shares for every 3 shares held, in order to
generate funds for meeting the working capital needs and the right
issue expenses. The Company received total sum of Rs.2008.33 lacs
(Rs.401.67 lacs towards Share Capital and Rs. 1606.66 lacs towards
Securities Premium) which were utilized as below:
Sr. No. Particulars Amount
(Rs.ln lacs)
1. Meeting long term working capital 1986.59
requirements
2. Meeting right issue expenses 21.74
Total 2008.33
2. In terms of joint venture agreement entered into with Bossard AG,
Switzerland on 26.06.1997, the company has invested a sum of
Rs.23520190/- in LPS Bossard Private Limited towards allotment of
2352019 Equity Shares of Rs. 10/- each and a sum of Rs.1847490/- in LPS
Bossard Information Systems Private Limited towards allotment of 184749
Equity Shares of Rs.10/- each, towards 49% holding in the aforesaid
Companies
3. Fixed deposits from public include a sum of Rs.12350000/- due to
Directors (previous year Rs, 12350000/-)
4. The company has capitalized dies and tools amounting to Rs.9218454/-
(last year Rs.7920200/-) during the year relating to development of new
products in Research & Development Department.
5. Sundry Debtors includes a sum of Rs.1131885/- due from LPS Bossard
Private Limited, a Joint Venture Company (maximum due during the year
Rs.37470713/-) (previous year due Rs.1844658/- and maximum due Rs.
11682128/-)
6. Advances recoverable in cash or in kinder for value to be received
include Rs.1260307/- (previous year Rs.1980307/-) due from Smt. Sushila
Devi Jain, Director of the Company (Maximum outstanding during the year
Rs.1980307/-) (Previous year Rs.2952594/-) The approval for the
aforesaid loan was obtained from Central Government vide letter dated
12.02.2001, issued by Government of India, Ministry of Law, Justice &
Company Affairs, Department of Company Affairs.
7. That during the year there was a misappropriation of funds amounting
to Rs.51,97,499/- by an employee of the company An FIR has been lodged
with City Police Station, Rohtak on 22.06.2006. Investigations are
being conducted and final amount will only be ascertained after
detailed enquiry and reconciliation of accounts with the concerned
parties. The aforesaid amount has been debited to concerned employee
and shown as loans and advances. No provision for the same has been
made since the company expects to recover the entire amount.
8. That the balance with central excise department as on 31.03.2006
include balance in central excise account at head office, duty paid on
stocks lying at the branches and with consignees.
9. a) Sundry creditors include
i) Rs.161575397/-(previous year Rs.173903980/-) on account of letter of
credits on 180 days sight issued through Canara Bank, which are not due
for payment on the date of Balance Sheet.
ii) Rs.464800/- (Previous year Rs.250200/-) payable to Directors.
iii) Rs.3511406/- (Previous year Rs. 1539420/-) payable to subsidiary
company viz Indian Fasteners Limited
b) The list of SSIs to whom the Company owes any sum and which is
outstanding for more than 30 days are:
1. Ajit Engg. Works 2, Amba Electroplating industries 3. Amit Screws
Pvt. Ltd, 4. A.B. Finisher 5. Associate Blackening 6. Aakash Precision
Screws 7 AX. Auto Components 8. Abhi Industries 9. Amit Auto
Industries 10, Ankit Auto Industries 11. Budhwar Enterprises 12, Bharat
Electroplating Industries 13. Benco industries 14. Bhagwati Precision
Industries 15. Choudhary Enterprises 16. Chandra Engineering Works 17.
Dahiya Engg, Works 18. Diamond Fasteners Tools 19. D.K. Enterprises 20.
D. P. Industries 21. Deep Precision Industries 22. Divya Automates 23.
Friend Engg. Works 24. Geeta Fasteners 25. Gaurav Tools Udyog 26. G.S.
Engineering Tools 27. Ganesh Engg. Industries 28. Ganesh Fasteners
Tools 29, Hanumat Wire Udyog Pvt. Ltd 30. Harjai Sons 31. Hanwant
Fasteners Pvt. Ltd. 32. lonbond Coating Pvt Ltd. 33. Jassu Industries
34. Jai Industries 35. Jhandai Fasteners 36. J.C. Fasteners Ltd. 37.
K.V. Auto Industries 38. Kumar Auto Industries 39. LPS Fasteners &
Wires Pvt. Ltd, 40. Lakshmi Machine Tools 41. Manish Steel Services 42.
Man Darshak Udyog 43. Mahaiakshmi Fabricators 44. Markwell Fasteners
45. Nirmala Job Works 46. Nahar Engineering Works 47. Nageshwar Auto
Industries 48. Nanak Engg. Works 49. Natraj Automatics 50. Nav Bharat
Industries 51. Paras Nath Auto Industries 52. Panchal Engineering Works
53. Paramjeet Auto Industries 54. Raj Auto Ind. 55. Rajesh Engg. Works
56. Rathee Engineering Works 57. Ram Gopal Ind. 58. Sonu Engg. Works
59. Supreme Industries 60. Shakti Fasteners 61. Sehgal Fasteners 62.
Shiv Fasteners Tools. 63. Shree Ganesh Engg. Works 64, S.P Engg. Works
65. Suraj Engg. Works 66. Shakti Tools Udyog 67. Shiv Industries 68.
Saini Technofeb 69. Shreesh Precision Screw 70. Shiv Electroplating
71. Sharma Precision Works 72. Suku Automotive 73. S.K. Auto Industries
74. Santosh Industries 75. Sehrawat Engineering Works 76, Trimurti
Precision 77. Three Bond India Pvt. Ltd. 78. Vikas Industries 79. V.
K. Engg. Works 80. Vishwakarma Machine Tools.
10. The company has paid and transferred a sum of Rs. NIL (last year Rs
95797/-) on account of unclaimed dividend for the year 1996-97 to
Investor Education and Protection Fund in accordance with the
provisions of Section 205C of the Companies Act, 1956.
11. Dividend @ 15 % has been proposed for the year and a provision of
corporate dividend tax @ 12.5% plus surcharge @ 10% plus 2% cess
thereon has been made. The said amount is not subject to deduction of
tax at source.
12. a) That the Company had paid a sum of Rs.110.00 lacs as prepaid
premium to ICICI Bank Limited during the earlier year, which has been
amortized in the ratio of interest payable for the period of six years
i.e. during the currency of term loan. Accordingly, a sum of
Rs.1363888/- (last year Rs.188353.3/-) has been written off and debited
to interest paid during the year. Further, the Company had also paid a
sum of Rs.45.13 lacs as prepaid premium to ICICI Bank during the
earlier year, which has been amortized in the ratio of interest payable
for the period of four years i.e. during the currency of term loan.
Accordingly, a sum of Rs.1389465/- (last year Rs. 1933855/-) has been
written off and debited to interest paid during the year.
b) That the company had paid a sum of Rs.650395/- as premium towards
reduction in the interest rate from 15 25% p.a. to 11% p.a. to
Industrial Development Bank of India during the earlier year which has
been amortized in the ratio of interest payable for the period of two
and half years i.e. during the currency of term loan. Accordingly a sum
of Rs.312656/- (last year Rs.259845/-) has been written off and debited
to interest paid during the year,
13. Interest received include a sum of Rs.1796090/- (previous year
Rs.1935809A) on bank deposits, Rs.198036/- (previous year Rs.306801/-)
on loan to a director and Rs.219865/- (previous year Rs.352968/-)
received from trade customers and interest paid include Rs.566500/-
paid to Managing Directors (previous year Rs.255125/-).
14. In the opinion of the Managing Directors and the Joint Managing
Director, current assets, loans and advances have a value on
realization in the ordinary course of business at least equal to the
amount at which they are stated and the provision for all known
liabilities have been made.
16. Royalty, technical know-how fee debited to the profit and loss
account include Rs.163895/- incurred as prior period expenses.
17. The break-up of deferred tax assets and deferred tax liabilities is
as under:-
2006 (Rs.) 2005 (Rs.)
Deferred tax liability
a) on account of difference in 20657775 24737212
rates and method of depreciation
b) on account of different 4814773 3137573
treatment of certain payments
under IT. Act, 1961
25472548 27874785
Deferred tax liability
-at the end of year (net) 25472548 27874785
-for the year (2402237) 2676409
18. Earning per share-Basic and Diluted
Profit after tax Rs. 52317541 40309975
Weighted number of Nos. *7931440 *6735950
Equity Shares Earning per share Rs. 6.60 5.98
Nominal Value per share Rs. 10.00 10.00
19. Segment Reporting
The company is in the business of manufacture of high tensile
fasteners. Since the company is operating in a single line of product
and there being no reportable segment, the requirements of Accounting
Standard-17 on `Segment Reporting are not applicable to the company.
22. In accordance with Accounting Standard 28 Impairment of Assets
issued by the Institute of Chartered Accountants of India and made
applicable from 1st day of April, 2004, the Company has assessed the
potential generation of economic benefits from its business units as on
the balance sheet date and is of the view that assets employed in
continuing business are capable of generating adequate returns over
their useful lives in the usual course of business; there is no
indication to the contrary and accordingly, the management is of the
view that no impairment provision is called for in these accounts.
26. Previous years figures have been regrouped wherever necessary to
make them comparable with that of current year.
Mar 31, 2005
1. Working capital loans from Canara Bank are secured against
hypothecation of raw materials, semi-finished goods, finished goods,
stores and spares, receivables, both present and future and also
secured by pari-passu second charge on all the fixed assets of the
Company including plant and machinery, land and building (present and
future) of W.D.V. of Rs. 2649.42 lacs as on 31.03.2004 and guaranteed
by S/Shri L.K. Jain, D. K. Jain, V. K. Jain, Rajesh Jain, Smt. Sushila
Devi Jain, Directors of the Company and Shri Nikhlesh Jain son of Shri
D.K. Jain, Director of the Company and Shri Saurabh Jain and Shri
Gaurav Jain sons of Shri S.K. Jain, brother of Shri D.K. Jain, Director
of the Company and corporate guarantee of Indian Fastners Limited, a
subsidiary company.
Working capital limits from Canara Bank are further secured by way of
equitable mortgage of land measuring 10640 sq. yards situated at
Rohtak in the name of Smt. Sushila Devi Jain, Director of the Company,
agricultural land measuring 4.5 acre situated at Delhi road in the
names of Shri Nikhlesh Jain son of Shri D. K. Jain, Director of the
Company, Shri Saurabh Jain and Gaurav Jain sons of Shri S. K. Jain,
brother of Shri D. K. Jain, Director of the Company and second charge
on plots of land (5 nos.) measuring 107464 sq.yards situated at Rohtak
owned by the Company.
2. Term loans from ICICI Bank Limited, State Bank of Patiala and IDBI
are secured by way of pari-passu charge against first mortgage and
charge on all the company's immoveable and moveable properties, both
present and future, subject to the charges created/to be created in
favour of the company's bankers on current assets for securing
borrowings for working capital requirements and irrevocable and
unconditional personal guarantees of S/Shri L.K.Jain, D.K.Jain, V.K.
Jain and Rajesh Jain, Directors of the Company and Nikhlesh Jain son of
Shri D.K. Jain, Director of the Company. Rupee loan of Rs.5 crores
sanctioned by IDBI for long term working capital is further secured by
way of first charge on land measuring 9904 sq. yards belonging to
Indian Fasteners Limited, a subsidiary company.
3. Other Loans from ICICI Bank Ltd. are under hire purchase scheme and
secured by hypothecation of specific assets and on personal guarantees
of the Directors of the Company.
4. Loan from Director of Industries, Haryana is in respect of interest
free loan sanctioned to the Company on conversion of deferred amount of
sales tax which is secured by way of pari-passu second charge on fixed
assets alongwith the Canara Bank.
5. Deferred payment credits are in respect of 2 nos. industrial plots
purchased from HSIDC at Manesar (Haryana).
6. Term loans and deferred payment credits due within a year are Rs.681
lacs (Previous year Rs.640 lacs).
7. Depreciation has been provided on rates as per Schedule XIV of the
Companies Act, 1956 on W.D.V. basis except in the case of Plant-II
setup in the year 1993 where depreciation has been provided on straight
line method.
8. Depreciation on assets for a value not exceeding Rs.5000/- has been
provided @ 100%.
9. The additions in land include Rs. 1020134/- (last year Rs.780195/-)
capitalised on account of interest paid to HSIDC for the purchase of
industrial plots in accordance with AS-16 "Borrowing Costs" issued by
the Institute of Chartered Accountants of India.
10. Additions in Plant and Machinery include Rs.145692/- adjusted on
account of fluctuation in foreign exchange rate.
11. Leasehold Office Premises are in respect of office premises at
Bangalore.
12. Freehold Office Premises are in respect of office premises at Mumbai
and Delhi.
B) CONTINGENT LIABILITIES:
1. Estimated amount of capital contracts remaining to be executed and
not provided for (net of advances)
2. Letter of credits and guarantees obtained from bank (Net of margin
money)
3. Liabilities against legal undertakings/bonds executed in favour of
DGFT on account of export obligation undertaken by the Company against
advance and import licenses under EPCG Scheme.
4. Income tax liabilities on account of appeals filed by Income Tax
Department in Punjab &Haryana High Court, Chandigarh
5. In terms of joint venture agreement entered into with Bossard AG,
Switzerland on 26.06.1997, the company has invested a sum of
Rs.23520190/- in LPS Bossard Private Limited towards allotment of
2352019 Equity Shares of Rs.10/- each and a sum of Rs.1847490/- in LPS
Bossard Information Systems Private Limited towards allotment of 184749
Equity Shares of Rs. 10/- each, towards 49% holding in the aforesaid
Companies.
6. Fixed deposits include a sum of Rs. 12350000/- due to Directors
(previous year Rs.12350000/-).
7. The company has capitalized dies and tools amounting to Rs.7920200/-
(last year Rs.22358902/-) during the year relating to development of
new products.
8. The stocks of imported tooling and cost of tools manufactured by the
Company are as certified by the Chairman and Managing Director of the
Company.
9. Sundry Debtors includes a sum of Rs.1844658/- due from LPS Bossard
Private Limited, a Joint Venture Company (maximum due during the year
Rs. 11682128/-) (previous year due Rs.2487659/- and maximum due
Rs. 10069737/-).
10. Advances recoverable in cash or in kind or for value to be received
include Rs. 1980307/- (previous year Rs.2492052/-) due from Smt.
Sushila Devi Jain, Director of the Company. (Maximum outstanding during
the year Rs.2952594/-) (Previous year Rs.2492052/-) The approval for
the aforesaid loan was obtained from Central Government vide letter
dated 12.02.2001, issued by Government of India, Ministry of Law,
Justice & Company Affairs, Department of Company Affairs.
11. That the balance with central excise department as on 31.03.2005
include balance in central excise account at head office, duty paid on
stocks lying at the branches and with consignees.
12 a) Sundry creditors include:
i) Rs.173903980/- (previous year Rs.42554208/-) on account of letter of
credits on 180 days' sight issued through Canara Bank, which are not
due for payment on the date of Balance Sheet.
ii) Rs.250200/- (Previous year Rs.489200/-) payable to Directors.
iii) Rs. 1539420/- (Previous year Rs. 1539420/-) payable to subsidiary
company viz Indian Fasteners Limited.
b) The list of SSI's to whom the Company owes any sum and which is
outstanding for more than 30 days are:
1. Aarti Precision Products 2. Arihant Fasteners (P) Ltd. 3. Ajit Engg.
Works. 4. Amit Screws Pvt. Ltd. 5. A.B. Finisher 6. Amit Auto
Industries 7-Aakash Precision Screws 8. Amba Electro Plating Inds. 9.
Adinath Forgings (P)Ltd. 10-Ankit Auto Industries 11. Associate
Blackening 12. Ankit Industries 13. Amarnath Precision Screws 14.
Ankush Enterprises 15. A.D. Industries 16. Abhi Industries 17. Benco
Industries 18. Bharat Electroplating 19. Bharat Industries 20. Chawla
Fasteners 21. Deep Precision Industries 22. D. K. Enterprises 23.
Diamond Fasteners Tools 24. Diamond Fasteners 25. Divya Automates 26.
Diamond Automatives 27. D.P. Industries 28. Dahiya Engg. Works 29.
Dhamuniya Engg. Works. 30. Friend Engg. Works 31. Girdhar Auto
Industries 32. Ganesh Fasteners Tools 33. Gaurav Tools Udyog 34. Ganesh
Engg. Industries 35. Hanumat Wire Udyog Pvt. Ltd. 36. Hanwant Fasteners
Pvt. Ltd. 37. Harjai Sons Industries 38. Harpreet Fasteners 39. H.K.
Engg. Industries 40. Hind Tools 41. Innovative Heat Handling Pvt. Ltd.
42. Jhandai Fasteners 43. J.C. Fasteners Ltd. 44. Jassu Industries 45.
Kumar Auto Industries 46. Kapoor Auto Industries 47. Karan Auto
Industries 48. K.V. Auto Industries 49. Lakshmi Machine Tools 50. LPS
Fasteners & Wires Pvt. Ltd. 51. Manish Steel Services 52. Markwell
Fasteners 53. M.K. Electropolishers 54. Mohit Industries 55. Manish
Fasteners 56. Mahalaxmi Fabricators 57. Nirmala Job Works 58. Natraj
Automatics 59. New India Engg. Works 60. Push-Up Thread Dies Pvt. Ltd.
61. Paramjeet Auto Industries. 62. Premier Auto Ind. 63. Push-up Tools
Udyog P Ltd. 64. Parkash Auto Products 65. Precision Machine Tools 66.
Panchal Engg. Works 67. Paras Nath Auto Industries 68. R R Industries
69. Rishi Tool Udyog 70. Raj Auto Ind. 71. Rahul Ind. 72. Rajesh Engg.
Works 73. Raman Auto Ind. 74. Rawal Automotives 75. Rishabh' Precision
Works 76. Ram Gopal Ind. 77. R & D Centre for Bicycle 78. R.K. Tools
79. R.S. Sindhu Engg. Works 80. Rajdeep Ind. 81. Sonu Engg. Works 82.
Supreme Industries 83. Sehrawat Engg.Works 84. Shakti Fasteners 85.
Sehgal Fasteners 86. Sudhir Automotive Industries 87. S.K. Auto Ind.
88. Shanti Machine Tools 89. Surya Engg.Works 90. Sunil Auto Ind. 91.
Shiv Fasteners Tools. 92. Shree Ganesh Engg. Works 93. S.G. Ind. 94.
Shiv Auto Engg. Works 95. Suraj Engg. Works 96. Sinil Engg. Works 97.
Shrimahavir Bright Steel Udyog 98. Shanti Shakti Engg. Works 99.
Santosh Ind. 100.ShitalaTool Ind. 101. Shiv Automotive Ind. 102.
Suvidha Automotive 103. Shanker Engg. Works 104. The Shipping Corp. of
India 105. Treat Aids 106. Truthread Gauges & Tools P Ltd.
107. Taif Industires 108. Udehra Fasteners 109. V.K.Engg.Works
110. Vishal Auto Industries
13. The company has paid and transferred a sum of Rs.95797/- (last year
Rs.80743/-) on account of unclaimed dividend for the year 1996-97 to
Investor Education and Protection Fund in accordance with the
provisions of section 205C of the Companies Act, 1956.
14. Provision for unclaimed bonus to ex-employees has not been made,
since the amount is not ascertainable.
15. Dividend @ 15 % has been proposed for the year and a provision of
corporate dividend tax @ 12.5% plus surcharge @ 2.5% plus 2% cess
thereon has been made. The said amount is not subject to deduction of
tax at source.
16 a) That the Company had paid a sum of Rs.110.00 lacs as prepaid
premium to ICICI Bank Limited during the earlier year, which has been
amortized in the ratio of interest payable for the period of six years
i.e. during the currency of term loan. Accordingly, a sum of
Rs.1883533/- (last year Rs.2454886/-) has been written off and debited
to interest paid during the year. Further, the Company had also paid a
sum of Rs.45.13 lacs as prepaid premium to ICICI Bank during the
earlier year, which has been amortized in the ratio of interest payable
for the period of four years i.e. during the currency of term loan.
Accordingly, a sum of Rs. 1933855/- (last year Rs.57533/-) has been
written off and debited to interest paid during the year.
b) That the company had paid a sum of Rs.650395/- as premium towards
reduction in the interest rate from 15.25% p.a. to 11% p.a. to
Industrial Development Bank of India during the current financial year
which has been amortized in the ratio of interest payable for the
period of two and half years i.e. during the currency of term loan.
Accordingly a sum of Rs. 259845/- (last year Nil) has been written off
and debited to interest paid during the year.
17. Interest received include a sum of Rs. 1935809/- (previous year Rs.
1908080/-) on bank deposits, Rs.306801/- (previous year Rs.290229/-) on
loan to director and Rs.352968/- (previous year Rs-1443993/-) received
from customers. (TDS deducted Rs.374937/- previous year Rs.408185/-).
18. Interest paid includes Rs.255125/- paid to Managing Directors on
fixed deposits, (previous year Rs.272619/-).
19. In the opinion of the Managing Directors and Whole time Director,
current assets, loans and advances have a value on realization in the
ordinary course of business at least equal to the amount at which they
are stated and the provision for all known liabilities have been made.
20. In accordance with Accounting Standard 28 Impairment of Assets'
issued by the Institute of Chartered Accountants of India and made
applicable from 1s' day of April, 2004, the Company has assessed the
potential generation of economic benefits from its business units as on
the balance sheet date and is of the view that assets employed in
continuing business are capable of generating adequate returns over
their useful lives in the usual course of business; there is no
indication to the contrary and accordingly, the management is of the
view that no impairment provision is called for in these accounts.
21. Provisions are recognized for expenses such as gratuity, income
tax, wealth tax, leave encashment and bonus to employees. The
provisions are recognized on the basis of past events and the probable
settlement of the present obligation as a result of the past events
during the financial year 2005-06.
Mar 31, 2004
1. Secured Loans:
1. Working capital limit from Canara Bank is secured against
hypothecation of raw materials, semi-finished goods, finished goods,
stores and spares, receivables, both present and future and also
secured by pari-passu second charge on all the fixed assets of the
Company and guaranteed by S/Shri L.K.Jain, D.K.Jain, V.K.Jain, Rajesh
Jain, Smt. Sushila Devi Jain, Directors of the Company and Shri
Nikhlesh Jain son of Shri D.K.Jain, Director of the Company and Shri
Saurabh Jain and Shri Gaurav Jain sons of Shri S.K. Jain, brother of
Shri D.K. Jain, Director of the Company and Corporate guarantee of
Indian Fasteners Limited, a subsidiary company.
Working capital limits from Canara Bank are further secured by way of
equitable mortgage of land measuring 10640 sq., yards situated at Rohtak
in the name of Smt. Sushila Devi Jain, Director of the Company,
agricultural land measuring 22.694 acres situated at Hansi in the names
of Shri Nikhlesh Jain son of Shri D.K. Jain, Director of the Company,
Shri Saurabh Jain and Gaurav Jain sons of Shri S. K. Jain, brother of
Shri D. K. Jain, Director of the Company and second charge on plots of
land (5 nos.) measuring 107464 sq.yards situated at Rohtak owned by the
Company.
2. Term loans from ICICI Bank Limited, State Bank of Patiala and IDBI
are secured by way of pari-passu charge against first mortgage and
charge on all the companys immoveable and moveable properties, both
present and future, subject to the charges created/to be created in the
favour of the companys bankers on current assets for securing
borrowings for working capital requirements and irrevocable and
unconditional personal guarantees of S/Shri L.K.Jain, D.K.Jain, V.K.
Jain and Rajesh Jain, Directors of the Company and Nikhlesh Jain son of
Shri D.K. Jain, Director of the Company.
Rupee loan of Rs.5 crores sanctioned by IDBI for long term working
capital is further secured by way of first charge on land measuring
9904 sq. yards belonging to Indian Fasteners Limited, a subsidiary
company.
3. Term Loan against Fixed Deposits is secured against pledged of
FDRs for Rs. 170 lacs belonging to the Company.
4. Other Loans are under hire purchase scheme and secured by
hypothecation of specific assets and on personal guarantees of the
Directors of the Company.
5. Term Loan from Director of Industries, Haryana is in respect of
interest free loan sanctioned to the Company on conversion of deferred
amount of the sales tax which is secured by way of pari-passu second
charge on fixed assets alongwith the Canara Bank.
6. Deferred payment credit are in respect of 2 nos. industrial plots
purchased from HSIDC in Maneser, Haryana.
7. Term loans and deferred payment credits due within a year are
Rs.640 Lacs (Previous year Rs.486 lacs).
2. Fixed Assets:
1. Depreciation has been provided on rates as per Schedule XIV of the
Companies Act, 1956 on W.D.V basis except in the case of Plant-II setup
in the year 1993 where depreciation has been provided on straight line
method.
2. Depreciation on assets for a value not exceeding Rs.5000/- has been
provided @ 100%.
3. Sales/Adjustments in Plant and Machinery include Rs. 140093/-
adjusted on account of difference in exchange fluctuations on Plant and
Machinery imported in the earlier years and depreciation has been
adjusted accordingly and Rs.387336/- on account of fire brigade donated
to Municipal Council, Rohtak (Haryana).
4. Addition in Plant and Machinery include dies and tools amounting to
Rs.22358902/- capitalised during the year.
5. Leasehold Properties are in respect of office premises at
Bangalore.
6. Freehold Properties are in respect of office premises at Mumbai and
Delhi
7. Addition in land include a sum of Rs.780195/- on account of
interest capitalised in accordance with Accounting Standard-16
"Borrowing Costs" issued by the Institute of Chartered Accountants of
India.
B) CONTINGENT LIABILITIES:
1. Estimated amount of capital contracts
remaining to be executed
and not provided for (net of advances) 31596
2. Letter of credits and guarantees obtained from bank
(Net of margin money) 1330 759
3. Liabilities against legal undertakings/bonds
executed in favour of DGFT on account of export
obligation undertaken by the Company against
advance and import licenses under EPCG Scheme. 226 275
C) NOTES
1 In terms of joint venture agreement entered into with Bossard AG,
Switzerland on 26.06.1997, the company has invested a sum of
Rs.23520190/- in LPS Bossard Private Limited towards allotment of
2352019 Equity Shares of Rs. 10/- each and a sum of Rs. 1847490/- in
LPS Bossard Information Systems Private Limited towards allotment of
184749 Equity Shares of Rs. 10/- each, towards 49% holding in the
aforesaid Companies.
2 That the Company had paid a sum of Rs.110.00 lacs as prepaid premium
to ICICI Bank Limited during the earlier year, which has been amortized
in the ratio of interest payable for the period of six years i.e.
during the currency of term loan. Accordingly, a sum of Rs.2454886/-
(last year Rs.2878408/-) has been written off and debited to interest
paid during the year. Further, the Company had paid a sum of Rs.45.13
lacs as prepaid premium to ICICI Bank during the current year, which
has been amortized in the ratio of interest payable for the period of
four years i.e. during the currency of term loan. Accordingly, a sum
of Rs.57533/- (last year Rs.Nil) has been written off and debited to
interest paid during the year.
3 Dividend @ 12% has been proposed for the year and a provision of
corporate dividend tax @ 12.5% plus surcharge @ 2.5% has been made in
accordance with Finance Act, 2003. The said amount is not subject to
deduction of tax at source.
4 The Proposed Dividend for the year 2002-2003 was not declared at the
Annual General Meeting held on 27.09.2003 due to pending bank
permission.The same, along with corporate dividend tax has been written
back during the year.
5 Fixed deposits include a sum of Rs. 12350000/- due to Directors
(previous year Rs. 12350000/-).
6 Sundry Debtors includes a sum of Rs.2487659/- due from LPS Bossard
Private Limited, a Joint Venture Company (maximum due during the year
Rs. 10069737/-) (previous year due Rs. 2947874/- and maximum due Rs.
8574794/-).
7 Advance recoverable in cash or in kind or for value to be received
include Rs. 2492052/- (previous year Rs. 2418573/-) due from Smt.
Sushila Devi Jain, Director of the Company. (Maximum outstanding during
the year Rs. 2492052/-) (Previous year Rs. 2418573/-). The approval for
the aforesaid loan was obtained from Central Government vide letter
dated 12.02.2001, issued by Government of India, Ministry of Law,
Justice & Company Affairs, Department of Company Affairs.
8 That the balance with central excise department as on 31.03.2004
include balance in central excise account at head office, duty paid on
stocks lying atthe branches and with consignees.
9 The company has capitalized dies and tools amounting to Rs.
22358902/- during the year relating to development of new products.
10 The company has paid and transferred a sum of Rs.80743/- on account
of unclaimed dividend for the year 1995-96 to investor education and
protection fund in accordance with the provisions of section 205C of
the Companies Act, 1956. Further, a sum of Rs.11100/- payable towards
dividend in the account of late Harshad Mehta is being retained by the
company in form of FDRs in pursuance of order of the Special Court,
office of the custodian, dated 9th September, 1996
11 a) Sundry creditors include:
i) Rs.42554208/- (previous year Rs.39266192/-) on account of letter of
credits on 180 days sight issued through Canara Bank, which are not
due for payment on the date of Balance Sheet.
ii) Rs.489200/- (Previous year Rs.252400/-) payable to Directors.
b) The list of SSI s to whom the Company owes any sum and which is
outstanding for more than 30 days are:
1. Arihant Fasteners (P) Ltd. 2. Ajit Engg. Works. 3. Amit Screws Pvt.
Ltd. 4. A.B. Finisher 5. Amit Auto Industries 6. Aakash Precision
Screws 7. Amba Electro Plating Inds. 8. Adinath Forgings (P) Ltd. 9.
Ankit Auto Industries 10. Associate Blackening 11. Ankit Industries 12.
Amarnath Precision Screws 13. Ankush Enterprises 14. A.D. Industries
15. Abhi Industries 16. Benco Industries 17. Bharat Electroplating 18.
Bharat Industries 19. Chawla Fasteners 20. Deep Precision Industries
21. D. K. Enterprises 22. Diamond Fasteners Tools 23. Diamond Fasteners
24. Divya Automates 25. Diamond Automatives 26. D.P. Industries 27.
Dahiya Engg. Works 28. Dhamuniya Engg. Works. 29. Friend Engg. Works
30. Girdhar Auto Industries 31. Ganesh Fasteners Tools 32. Gaurav Tools
Udyog 33. Ganesh Engg. Industries 34. Hanumat Wire Udyog Pvt. Ltd. 35.
Hanwant Fasteners Pvt. Ltd. 36. Harjai Sons Industries 37. Harpreet
Fasteners 38. H.K. Engg. Industries 39. Hind Tools 40. Innovative Heat
Handling Pvt. Ltd. 41. Jhandai Fasteners 42. J.C. Fasteners Ltd. 43.
Jassu Industries 44. Kumar Auto Industries 45. Kapoor Auto Industries
46. Karan Auto Industries 47. K.V. Auto Industries 48. Lakshmi Machine
Tools 49. LPS Fasteners & Wires Pvt. Ltd. 50. Manish Steel Services 51.
Markwell Fasteners 52. M.K. Electropolishers 54. Mohit Industries 55.
Manish Fasteners 56. Mahalaxmi Fabricators 57. Nirmala Job Works 58.
Natraj Automatics 59. New India Engg. Works 60. Push-Up Thread Dies
Pvt. Ltd. 61. Paramjeet Auto Industries. 62. Premier Auto Ind. 63.
Push-up Tools Udyog P Ltd. 64. Parkash Auto Products 65. Precision
Machine Tools 66. Panchal Engg. Works 67. Paras Nath Auto Industries
68. R R Industries 69. Rishi Tool Udyog 70. Raj Auto Ind. 71. Rahul
Ind. 72. Rajesh Engg. Works 73. Raman Auto Ind. 74. Rawal Automotives
75. Rishabh Precision Works 76. Ram Gopal Ind. 77, R & D Centre for
Bicycle 78. R.K. Tools 79. R.S. Sindhu Engg. Works 80. Rajdeep Ind. 81.
Sonu Engg. Works 82. Supreme Industries 83. Sehrawat Engg. Works 84.
Shakti Fasteners 85. Sehgal Fasteners 86. Sudhir Automotive Industries
87. S.K. Auto Ind. 88, Shanti Machine Tools 89. Surya Engg. Works 90.
Sunil Auto Ind. 91. Shiv Fasteners Tools. 92. Shree Ganesh Engg. Works
93. S.G. Ind. 94. Shiv Auto Engg. Works 95. Suraj Engg. Works 96. Sinil
Engg. Works 97. Shrimahavir Bright Steel Udyog 98. Shanti Shakti Engg.
Works 99. Santosh Ind. 100. ShitalaTool Ind. 101. Shiv Automotive Ind.
102. Suvidha Automotive 103. Shanker Engg.Works 104.The Shipping Corp.
of India 105.Treat Aids 106.Truthread Gauges &Tools P Ltd. 107.Taif
Industires 108. Udehra Fasteners 109. V. K. Engg.Works 110.Vishal Auto
Industries
12 Provision for unclaimed bonus to ex-employees has not been made,
since the amount is not ascertainable.
13 The stocks of imported tooling and cost of tools manufactured by the
Company are as certified by the Chairman and Managing Director of the
Company.
14 Interest received include a sum of Rs.1908080/- (previous year
Rs.2640981/-) on bank deposits, Rs.290229/- (previous year Rs.229466/-)
on loan to director and Rs.1443993/- (previous year Rs.585770/-)
received from customers. (TDS deducted Rs.408185/- previous year
Rs.554606/-).
15 Interest paid includes Rs. 272619/- paid to Managing Directors on
fixed deposits, (previous year Rs.139580/-).
16 In the opinion of the Managing Directors and Whole time Director,
current assets, loans and advances have a value on realization in the
ordinary course of business at least equal to the amount at which they
are stated and the provision for all known liabilities have been made.
17 Earning per share
Profit after tax 30015953 15376193
Weighted number of Equity Shares 6025000 6025000
outstanding during the year
Earning per share basic and diluted 4.98 2.55
18 Segment Reporting
The company is in the business of manufacture of high tensile
fasteners. Since the company is operating in a single line of product
and there being no reportable segment, the requirements of Accounting
Standard 17 on `Segment Reporting are not applicable to the company.
19 Related Party Transactions
As per Accounting Standard No. 18 issued by the Institute of Chartered
Accountants of India, related parties in terms of the said standard are
disclosed below:
(a) Names of Related parties and description of relationship:
1. Subsidiary (i) Indian Fasteners Limited
2. Associates (i) Amit Screws Pvt. Ltd. (ii) Hanumat Wire Udyog Pvt.
Ltd. (iii) JC Fasteners Ltd. (iv) LPS Bossard Pvt. Ltd. (Joint
Venture) (v) LPS Bossard Information System Pvt. Ltd. (Joint Venture)
(vi) LPS Fasteners & Wires Pvt. Ltd. (vii) Lakshmi Extrusions Ltd.
(viii) NavBharat Industries (ix) NavBharat Agencies (x) Shiv Industries
(xi) Swadesh Engineering Industries (xii) Sudhir Automotive Industries
Pvt. Ltd. (xiii) United Engineers (xiv) Universal Enterprises
3. Key Management Personnel (i) Shri Lalit Kumar Jain
(ii) Shri Dinesh Kumar Jain
(iii) Shri Vijay Kumar Jain
(iv) Shri Rajesh Jain
(v) Smt. Sushila Devi Jain
4. Relative of key Management Personnel (i) Shri S.K.Jain (Brother of
Shri O.K. Jain)
(ii) Shri Nikhlesh Jain (S/o. Shri D.K. Jain)
(iii) Shri Amit Jain (S/o. Shri V.K. Jain)
(iv) Shri Gagan Jain (S/o. Shri L.K. Jain)
(v) Shri Gautam Jain (S/o. Shri L.K. Jain)
20 Balance Sheet Abstract and Companys general business profiles as
required under Part IV of Schedule VI of the Companies Act, 1956.
21 Previous years figures have been regrouped wherever necessary to
make them comparable with that of current year.
22 Figures have been rounded off to the nearest rupee.
23 Schedule 1 to 19 form integral part of Balance Sheet and Profit and
Loss Account.
Mar 31, 2003
A. Secured Loans:
1. Working capital limit from Canara Bank is secured against
hypothecation of raw materials, semi-finished goods, finished goods,
stores and spares, book debts and other moveable assets, both present
and future and also secured by second charge on all the fixed assets of
the Company and guaranteed by S/Shri L.K. Jain, D. K. Jain, V. K. Jain,
R. K, Jain, Smt. Sushila Devi Jain, Directors of the Company and Shri
Nikhlesh Jain son of Shri D.K. Jain, Director of the Company and
corporate guarantee given by Indian Fasteners Limited, a subsidiary
company.
Working capital limits from Canara Bank are further secured by way of
equitable mortgage of land measuring 10640 sq. yards situated at Rohtak
in the name of Smt. Sushila Devi Jain. Director of the Company,
agricultural land measuring 22.694 acres situated at Hansi in the names
of Shri Nikhlesh Jain son of Shri D.K.Jain, Director of the company.
Shri Saurabh Jain and Gaurav Jain sons of Shri S.K. Jain, brother of
Shri D.K. Jain, Director of the Company and second charge on plots of
land (5 nos.) measuring 107464 sq.yards situated at Rohtak owned by the
Company.
2. Term loans from ICICI Bank Ltd. and IDBI are secured by way of
pari-passu charge against first mortgage and charge on all the
companys immoveable and moveable properties, both present and future,
subject to the charges created/to be created in the favour of the
companys bankers on current assets for securing borrowings for working
capital requirements and irrevocable and unconditional personal
guarantees of S/Shri L.K.Jain, D.K.Jain, V.K. Jain and R.K.Jain,
Directors of the Company.
Rupee loan of Rs.5 crores sanctioned by IDBI for long term working
capital is further secured by way of first charge on land measuring
9904 sq. yards belonging to Indian Fasteners Limited, a subsidiary
company.
3. Loan from others is under hire purchase scheme and secured by
hypothecation of specific assets and on personal guarantees of the
Directors of the Company.
4. Loan from Director of Industries, Haryana is as per sanction from
General Manager, District Industries Centre, Rohtak in respect of
interest free loan sanctioned to the company on conversion of deferred
amount of the sales tax. The legal documents executed till 31.03.2003
are for Rs. 312.16 lacs and the balance are yet to be executed.
5. Term loans and deferred payment credits due within a year are Rs.486
Lacs (Previous year Rs.531 lacs).
Other Notes:
B) CONTINGENT LIABILITIES:
As at As at
March 31, 2003 March 31, 2002
(Rs. in lacs) (Rs. in lacs)
1. Estimated amount of capital contracts
remaining to be executed and not provided
for (net off advances) 96 63
2. Letter of credits and guarantees
obtained from bank (Net off margin money) 759 285
3. Liabilities against legal undertakings/bonds
executed in favour of DGFT on account of export
obligation undertaken by the Company against
advance and 275 18
import licenses under EPCG Scheme.
C) NOTES
1. In terms of joint venture agreement entered into with Bossard AG,
Switzerland on 26.06.1997, the company has invested a sum of
Rs.23520190/- in LPS Bossard Private Limited towards allotment of
2352019 Equity Shares of Rs.10/- each and a sum of Rs.1847490/- in LPS
Bossard Information Systems Private Limited towards allotment of 184749
Equity Shares of Rs.10/- each, towards 49% holding in the aforesaid
Companies.
2. That the Company had paid a sum of Rs.110 lacs as prepaid premium
to ICICI Bank Ltd. during the earlier year, which has been amortized in
the ratio of interest payable for the period of six years I.e. during
the currency of term loan. Accordingly, a sum of Rs.2878408/- (last
year Rs.1253077/-) has been written off and debited to interest paid
during the year.
3. The Company has changed the system of providing excise duty payable
on finished goods and scrap material during the current year. The
excise duty is considered as an element of cost at the time of
manufacture of goods while in the earlier year, the same was being
accounted for at the time of clearance of goods from the factory.
Accordingly, a provision of Rs.23798006/- (previous year Rs. Nil) has
been made on account of excise duty payable on closing stocks of
finished goods and scrap materials. The same shall have no impact on
profit for the year.
4. Dividend @ 10% has been proposed for the year and a provision of
corporate dividend tax @ 12.5% plus surcharge 2.5% has been made in
accordance with Finance Act, 2003. The said amount is not subject to
deduction of tax at source.
5. Fixed deposits include a sum of Rs.12350000/- due to Directors
(previous year Rs. Nil).
6. Sundry debtors include:
(a) a sum of Rs.2947874/- due from LPS Bossard Private Limited, a Joint
Venture Company (maximum due during the year Rs.8574794/-) (previous
year due Rs.4786825/- and maximum due Rs.12323695/-).
(b) a sum of Rs.76796/- due from Swadesh Engineering Industries, a firm
in which the Directors are partners (previous year Rs. Nil).
7. Advances recoverable in cash or in kind or for value to be received
include Rs.2418753/- (previous year Rs.1628800/-) due from Smt. Sushila
Devi Jain, Director of the Company. The approval for the aforesaid loan
was obtained from Central Government vide letter dated 12.02.2001,
issued by Government of India, Ministry of Law, Justice & Company
Affairs, Department of Company Affairs.
8. That the balance with central excise department as on 31.03.2003
include balance in central excise account at head office, duty paid on
stocks lying at the branches and with consignees.
9.a) Sundry creditors include:
i) Rs. 39266192/- (previous year Rs.6718438/-) on account of letter of
credits on 180 days sight issued through Canara Bank, which are not
due for payment on the date of Balance Sheet.
ii) Rs.252400/- (previous year Rs.220800/-) payable to Directors.
b) The list of SSIs to whom the Company owes any sum and which is
outstanding for more than 30 days are:
1 Ace Precision Works
2. Adinath Forging Pvt. Ltd.
3. Amit Screws Pvt. Ltd.
4. A.B. Finisher
5. Amit Auto Industries
6. Aakash Precision Screws
7. Bhagwati Precision Industries
8. Benco Industries
9. Chawla Fasteners
10. Deep Precision Industries
11. D. K. Enterprises
12. Diamond Fasteners Tools
13. Diamond Fasteners
14. Gaurav Tools Udyog
15. Ganesh Engg. Industries
16. Hanumat Wire Udyog Pvt. Ltd.
17. Hanwant Fasteners Pvt. Ltd.
18. Jhandai Fasteners
19. J.C. Fasteners Ltd.
20. Jain Precision Screws
21. Kapoor Auto Industries
22. Karan Auto Industries
23. K.V. Auto Industries
24. Lakshmi Machine Tools
25. Leo Tools
26. Lakshmi Extrusions Pvt. Ltd.
27. LPS Fasteners & Wires Pvt. Ltd.
28. Manish Tools
29. Markwell Fasteners
30. M.K. Fasteners
31. Paras Nath Auto Industries
32. R R Industries
33. Rishi Tool Udyog
34.Sonu Engg. Works
35. Supreme Industries
36. Sehrawat Engg. Works
37. Shakti Fasteners
38. Sehgal Fasteners
39. Sudhir Automotive Industries
40. Shakti Tools Udyog
41. S.K. Engg Works
42. Shanti Machine Tools
43. Sonu Industries
44. Vikash Industries
45. Vikash Engg. Works
46. Vishal Auto Industries
10. Provision for unclaimed bonus to ex-employees has not been made,
since the amount is not ascertainable.
11. The stocks of imported tooling and cost of tools manufactured by
the Company are as certified by the Chairman and Managing Director of
the Company.
12. Interest received includ a sum of Rs.26,40,981/- on bank deposits,
Rs.229466/- on loan to director and Rs-585770/- received from
customers. (TDS deducted Rs.554606/- previous year Rs.702431/-).
13. Interest paid includes Rs.139580/- paid to Managing Director on
fixed deposits. (previous year Rs. Nil).
14. In the opinion of the Managing Directors and Whole time Director,
current assets, loans and advances have a value on realization in the
ordinary course of business at least equal to the amount at which they
are stated and the provision for all known liabilities have been made.
15. The break-up of managerial remuneration is as under: -
2002-2003 2001-2002
(RS.) (Rs.)
CHAIRMAN AND MANAGING DIRECTOR
Salary 1440000 1440000
House Rent Allowance 360000 360000
Contribution towards P.F. 172800 172800
1972800 1972800
VICE CHAIRMAN AND MANAGING DIRECTOR:
Salary 1440000 1440000
House Rent Allowance 360000 360000
Contribution towards P.F. 172800 172800
1972800 1972800
WHOLE TIME DIRECTOR:
Salary 1440000 1440000
House Rent Allowance 360000 360000
Contribution towards P.F. 172800 172800
1972800 1972800
TOTAL 5918400 5918400
16. The break-up of deferred tax assets and deferred tax liabilities is
as under: -
Deferred tax Deferred tax
liability liabiliaty
As on 31.03.2003 As on 31.03.2002
1. Deferred tax liability (Rs.) (Rs.)
a) on account of difference in rates and 26488750 26468750
method of depreciation
b) on account of different treatment of 706914 706914
certain payments under I. T. Act, 1961 27175664 27175664
2. Deferred Tax Assets
a) on account of difference in rates and 676
method of depreciation
b) on account of different treatment of 692212
certain payments under I. T. Act, 1961 693086
Deferred tax liability
- at the end of year (net) 26482576 27175664
- for the year (written back) (693088) 1148849
- created out of General Reserve - 26026815
17. Earning per share Profit after tax 15376193 10278153
Weighted number of Equity Shares outstanding 6025000 6025000
Earning per share - basic and diluted 2.55 1.71
18. Segment Reporting
The company is in the business of manufacture of high tensile
fasteners. Since the company is operating in a single line of product
and there being no reportable segment, the requirements of Accounting
Standard - 17 on `Segment Reporting are not applicable to the company.
19. Related Party Transactions
As per Accounting Standard No. 18 issued by the Institute of Chartered
Accountants of India, related parties in terms of the said standard are
disclosed below: -
(a) Names of Related parties and description of relationship:
1. Subsidiary (i) Indian Fasteners Limited
2. Associates, (i) Amit Screws Pvt. Ltd.
(ii) Hanumat Wire Udyog Pvt. Ltd.
(iii) J C Fasteners Ltd.
(iv) LPS Bossard Pvt. Lid. (Joint Venture)
(v) LPS Bossard Information System Pvt. Ltd. (Joint Venture)
(vi) LPS Fasteners & Wires Pvt. Ltd.
(vii) Lakshmi Extrusions Ltd.
(viii) Nav Bharat Industries
(ix) Nav Bharat Agencies
(x) Shiva Industries
(xi) Swadesh Engineering Industries
(xii) Sudhir Automotive Industries Pvt. Ltd.
(xiii) United Engineers
(xiv) Universal Enterprises
3. Key Management Personnel (i) Shri Lalit Kumar Jain (ii) Shri Dinesh
Kumar Jain (iii) Shri Vijay Kumar Jain (iv) Shri Rajesh Jain (v) Smt.
Sushila Devi Jain
4. Relative of key Management Personnel Shri S.K.Jain (Brother of Shri
D.K.Jain)
20. Disclosure in respect of Companys Joint Ventures in India
pursuant to Accounting Standard 27 `Financial Reporting of Interest in
Joint Ventures:
(I) a) Name of the Venture LPS Bossard Private Limited
b) Country of Incorporation India
c) Proportion of Ownership interest as at March 31, 2003 49%
d) The aggregate of Companys share in the above ventures in:
(Rs. in lacs)
ASSETS
Fixed Assets 153.66
Net Fixed Assets 111.34
Current Assets, Loans and advances
Current Assets 599.87
Loans and advances 9.89
LIABILITIES
Borrowings 101.55
Current Liabilities 123.38
Provisions 32.96
INCOME Sales 947.06
Other Income 12.91
EXPENDITURE Cost of Materials 533.43
Personnel Expenses 55.11
Administration Expenses 74.42
Office and Selling & Distribution Expenses 112.88
Interest Charges 13.71
Managerial Remuneration 9.70
Depreciation 16.71
Provision for Current tax 61.25
CONTINGENT LIABILITIES NIL
CAPITAL COMMITMENTS NIL
(ii) a) Name of the Venture LPS Bossard Information Systems Pvt. Ltd.
b) Country of Incorporation India
c) Proportion of Ownership interest as at March 31, 2003 49%
d) The aggregate of Companys share in the above ventures in:
(Rs. in lacs)
ASSETS
Fixed Assets 3.22
Net Fixed Assets 1.02
Current Assets, Loans and advances Current Assets 6.38
Loans and advances 4.48
LIABILITIES
Current Liabilities 1.18
INCOME Sales 4.41
Other Income 1.15
EXPENDITURE
Personnel Expenses 3 25
Administration Expenses 2.30
Managerial remuneration 0.06
Depreciation 0.71
CONTINGENT LIABILITIES NiL
CAPITAL COMMITMENTS NIL
Description Year Ended Year Ended
March 31, 2003 March 31, 2002
(Rs.) (Rs.)
A. CASH FLOW FROM OPERATING ACTIVITIES
Net profit after tax 15376193 10278153
Adjustments for: Tax 6847162 6031986
Net profit before tax and extraordinary items 22223355 16310139
Adjustments for: Depreciation 41345722 39237816
Rent and Interest received (Gross) -5654611 -6208120
Dividend Income 0 -481550
Income Tax Refund -154017 -29242
Interest and Financial charges 69131223 81635370
Miscellaneous expenses written off 294520 294520
Profit/Loss on sale of assets -338357 -411128
Operating profit before working
capital changes 126847835 130347805
Adjustments for: Trade Payables 80393503 10487576
Trade and other receivables (net) 68544 -7629319
Inventories -107700274 -101203415
Cash generated from operations 99609608 32002647
Interest and financial charges -69456053 -81643213
Tax paid -5500000 -4335832
Corporate Dividend Tax -771953 0
Net cash from operating activities 23881602 -53976398
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of fixed assets -39037621 -26352136
Proceeds from Sale of fixed assets 787000 1645000
Purchase of investments (net) 0 -4800000
Rent and Interest received (Net of TDS) 4177741 6208120
Dividend Income 0 481550
Income Tax Refund 154017 29242
Deferred payment interest and Technical know 4428783 3000038
how fee written off
Deferred payment interest and Technical know -1236090 -11939330
how fee provided during the year
Net cash used in investing activities -30726170 -31727516
C. CASH PLOW FROM FINANCING ACTIVITIES
Proceeds from long term borrowings 6286439 194506496
Repayment of long term borrowings -53103883 -169198934
Deposits from Directors and others 52578000 31872586
Dividend paid -5856364 -6026125
Net cash used in financing activities -95808 51154023
Description Year Ended Year Ended
March 31, 2003 March 31, 2002
(Rs.) (Rs.)
Cash & Cash equivalents as opening
Cash and Bank balance 55574019 46217634
Cash Credit Account -273346201 -229439925
-217772182 -183222291
Cash & Cash equivalents as closing
Cash and Bank balance 41850256 55574019
Cash Credit Account -266562814 -273346201
-224712558 -217772182
L.K. JAIN D.K. JAIN H.P.S. CHUGH
Chairman & Vice Chairman & Company Secretary
Managing Director Managing Director & DGM (Finance)
Mar 31, 2002
Secured Loan
1. Working capita! limit from Canara Bank is secured against
hypothecation of raw materials, semi-finished goods, finished goods,
stores and spares, book debts and other moveable assets, both present
and future and also secured by second charge on all the fixed assets of
the Company and guaranteed by S/Shri L.K. Jain, D. K. Jain, V. K. Jain,
R. K. Jain and Smt. Sushila Devi Jain, Directors of the Company and
corporate guarantee given by Indian Fasteners Limited, a subsidiary
company.
Working capita! limits from Canara Bank are further secured by way of
equitable mortgage of land measuring 10640 sq. yards situated at Rohtak
in the name of Smt. Sushiia Devi Jain, Director of the Company,
agricultural land measuring 22.694 acres situated at Hansi in the name
of Smt. Lajjawati Jain, mother of Sh. D.K.Jain ,Director of the company
and second charge on plots of land (5 nos.) measuring 107464 sq.yards
situated at Rohtak owned by the Company.
2. Term loans from 1CICI Bank Ltd. and !DB! are secured by way of
pari-passu charge against first mortgage and charge on ail the
companys immoveable and moveable properties, both present and future,
subject to the charges created/to be created in the favour of the
companys bankers on current assets for securing borrowings for working
capita! requirements and irrevocable and unconditional persona!
guarantees of S/Shri L.K.Jain, D.K.Jain, V.K. Jain and R.K.Jain,
Directors of the Company.
Foreign currency loan from IDB! is further secured by irrevocable and
unconditional personal guarantees of S/Shri L.K.Jain, D.K.Jain,
V.K.Jain, R.K.Jain and Smt. Sushiia Devi Jain, Directors of the
Company.
Rupee loan of Rs.5 crores sanctioned by IDBI for long term working
capital is further secured by way of first charge on iand measuring
9904 sq. yards belonging to Indian Fasteners Limited, a subsidiary
company.
3. Loan from others is under hire purchase scheme and secured by
hypothecation of specific assets and on persona! guarantees of the
Directors of the Company.
4. Deferred payment credits are secured against hypothecation of
specified machinery in respect of which deferred payment credits have
been availed.
5. Loan from Director of industries, Haryana is as per sanction from
General Manager, District Industries Centre, Rohtak in respect of
interest free loan sanctioned to the company on conversion of deferred
amount of the sales tax. The legai documents executed till 31.03.2002
are for Rs. 141.32 lacs and the balance are yet to be executed.
6. Term loans and deferred payment credits due within a year are Rs.
531 lacs (Previous year Rs.592 Sacs).
Fixed assets
NOTES:
1. Depreciation has been provided on rates as per Schedule XIV of the
Companies Act,1956 on W.D.V basis except in the case of Plant-ll setup
in the year 1993 where depreciation has been provided on straight !ine
method.
2. Depreciation on assets for a value not exceeding Rs.5000/- has been
provided ©100%.
3. A sum of Rs.494462/- (iast year Rs.1140581/-) on account of exchange
fluctuations has been adjusted in the cost of Plant and Machinery
imported in the eariier years and depreciation has been provided
accordingly.
4. Cost of fixed assets have been adjusted with the amount of
entitlement of Modvat/Cenvat.
5. Leasehold Properties are in respect of office/flat situated at
Bangalore.
6. Freehold Properties are in respect of office premises flat at Mumbai
and Delhi.
Other Notes
2001-2002 2000-2001
A) CONTINGENT LIABILITIES Rs. in lacs Rs. in lacs
1. Estimated amount of capital contracts
remaining to be executed and not
provided for (net off advances) 63 38
2. Letter of credits and guarantees
obtained from bank (Net off margin money) 285 176
3. Liabilities against legal undertakings/ bonds
executed in favour of DGFT on account of
export obligation undertaken by the Company
against advance and import licenses under
EPCG Scheme. 18 250
B) NOTES
1. Excise duty payable on finished goods and scrap material at head
office is accounted for on clearance of goods from the factory. The
amount of excise duty payable on finished goods manufactured and not
cleared from the factory and scrap material as at March 31, 2002 is
estimated at Rs.24488462/- (Previous year Rs. 18510462/-). However,
non-provision of the same have no impact on the profit for the year.
2. During the year, the company has changed the policy of valuation of
closing stocks of raw materials to comply with the guidance notes on
Accounting treatment for CENVAT issued by the Institute of Chartered
Accountants of India, Accordingly the closing stocks of raw materials
have been valued inclusive of duties and taxes (other than those
subsequently recoverable from the taxing authorities). Due to such
change, the value of closing stocks of raw materials and profit has
decreased by Rs.5152368/-.
3. That the Company has been sanctioned fresh rupee loan of Rs.16
crores by ICICI Bank Ltd. vide their letter dated 25.09.2001. The
Company has repaid the existing loan on receipt of fresh loan from
ICICI Bank Ltd. The Company has paid prepaid premium amounting to
Rs.11000000/-tolCICI Bank Limited on the fresh loan received. The said
premium has been allocated in the ratio of interest payable during the
period of currency of fresh loan i.e. six years. Accordingly, a sum of
Rs.1253077/- has been amortized and debited to interest paid account
during the year.
4.a) Sundry creditors include
i) Rs.6718438/- (previous year Rs.21478625/-) on account of letter of
credits on 180 days sight issued through Canara Bank, which are not
due for payment on the date of Balance Sheet.
ii) Rs.220800/- (previous year Rs.247800/-) payable to Directors.
iii) Rs.38880983/- (Last Year Rs.36283614/-) due to Small Scale
industries.
b) The list of SSIs to whom the Company and which are outstanding for
more then 30 days are:
1, Ajit Engg.Works 2.Amba Electroplating Industries 3.Ace Precision
Works 4. Adinath Forging Pvt. Ltd. 5. Amit Screws Pvt. Ltd. 6. Akasha
Engineers. 7. A.B.Finisher 8. Accurate Industries 9. Ankit Auto
Industries 10. Associate Blacking 11. Amit Auto Industries 12. Aakash
Precision Screws 13.Abhi Industries 14. Bansal Fastners 15. Bhagwati
Precision Industries 16. Benco Industries 17. Budhwar Enterprises 18.
Chandra Engg. Works 19. Chawla Fastners 20. Deep Auto Industries 21.
Deep Precision Industries 22. D.K.Enterprises 23. Gaurav Tools Udyog
24. Ganesh Engg. Industries 25. HanumatWire Udyog Pvt. LTd.26. Hanwant
Fastners Pvt. Ltd. 27. Jhandai Fastners 28, Jindal Fastners Pvt. LTd.
29. Jain Precision Screws 30. J.C.Fastners Ltd. 31. Kumar Auto
Industries 32. Kapoor Auto Industries 33. Karan Auto Industries 34.
Katyani Industries 35. Khetarpaul Industries 36. Lakshmi Machine Tools
37. Leo Tools 38. Leo industries 39. Luxmi Engg.Works 40. Manish Tools
41. Multi-arc India Ltd. 42. Markwell Fastners 43. P.S. Enterprises
44. Paras Nath Auto Industries 45. Parmjeet Auto Industries 46. P.Dayai
industries 47. Parkash Industries 48. Parkash Auto Products 49. Panchal
Engg.Works. 50. R.S.Sindhu Engg.Works 51. Rajendera Engg.Works 52. Raj
Auto Industries 53. Raman Auto Industries 54. Rawal Automotives 55.
Rishabh Precision Screws 56. Rashmi Engg.Works 57. R R Industries 58.
RishiTool Udyog 59. Rathee Engg.Works 60. R.B.Steel Services 61, Sharp
Tool Pvt Ltd. 61. Surya Engg. Works 62. Sonu Engg. Works 63. Singia
Precision Works 64. Supreme Industries 65. Sehrawat Engg.Works 66. Suni
Auto Industries 67. Shakti Fastners 68. Shree Ram Sales 69. S R
Industries 70. Sehgal Fastners 71. Sudhir Automotive Industries 72.
Shiv Fastners Tools 73. S P Engg. Works 74. Shiv Auto Engg Works 75,
Suraj Engg Works 76. Shakti Tools Udyog 77. Sinil Engg Works 78. Saini
Technofeb 79. Steel Services 80. S.K.Engg Works 81-Taif Industries
82.Trimurti Fastners 83-Vikash Industries 84-Vikash Auto Industries
85.Yogi Industries.
5. Sundry debtors include a sum of Rs.4786825/- due from LPS Bossard
Private Limited, (maximum due during the year Rs.12323695/-) (previous
year due Rs.5030608/- and maximum due Rs.9245568/-).
6. Sundry Creditors include Rs.1828250/- (Previous Year Rs.222951/-)
due to Indian Fasteners Limited, a subsidiary Company.
7. Provision for unclaimed bonus to ex-employees have not been made,
since the amount is not ascertainable.
8. The stocks of imported toolings and cost of tools manufactured by
the Company are as certified by the Chairman and Managing Director of
the Company.
9. In the opinion of the Managing Directors and Whole time Director,
current assets, loans and advances have a value on realization in the
ordinary course of business at least equal to the amount at which they
are stated and the provision for all known liabilities have been made.
10. in terms of joint venture agreement entered into with Bossard AG,
Switzerland on 26.06.1997, the company has invested a sum of
Rs.23520190/- in LPS Bossard Private Limited towards allotment of
2352019 Equity Shares of Rs.10/- each and a sum of Rs.1847490/- in LPS
Bossard Information Systems Private Limited towards allotment of 184749
Equity Shares of Rs.10/- each, towards 49% holding in the aforesaid
Companies.
11. The Company has been sanctioned a loan from Director of
Industries, Haryana under conversion of sales tax deferment scheme for
a period of seven years to the extent of Rs.332 lacs. A sum of
Rs.2126960/- under sale tax deferment scheme for the period from
01.01.2002 to 31.03.2002 has been included in the current liabilities
in respect of which sanction is pending from DIC, Rohtak for conversion
into interest free loan.
12. That the balance with central excise department as on 31.03.2002
include balance in central excise account at head office, duty paid on
stocks lying at the branches, with consignees and goods returned from
customers.
13. Advances recoverable in cash or in kind or for value to be
received include Rs.1628800/- (Previous Year Rs. Nil) due from Smt.
Sushila Devi Jain, Director of the Company. The approval for the
aforesaid loan has been obtained from Central Government vide letter
dated 12.02.2001, issued by Government of India, Ministry of Law,
Justice & Company Affairs, Department of Company Affairs.
14. The break-up of Managerial Remuneration is as under: -
2001-2002 2000-2001
(Rs.) (Rs.)
CHAIRMAN AND MANAGING DIRECTOR
Salary 1440000 600000
House Rent Allowance 360000 150000
Contribution towards P. F 172800 72000
1972800 822000
VICE CHAIRMAN AND MANAGING DIRECTOR
Salary 1440000 600000
House Rent Allowance 360000 150000
Contribution towards P. F. 172800 72000
1972800 822000
WHOLETIME DIRECTOR
Salary 1440000 600000
House Rent Allowance 360000 150000
Contribution towards P. F. 172800 72000
1972800 822000
TOTAL 5918400 2466000
15.a) In accordance with the Accounting Standard - 22 relating to Taxes
on Income and made applicable with effect from 1st day of April 2001,
the accumulated deferred tax liability net of deferred assets as on
01.04.2001 amounting to Rs.26026815/- is adjusted from general reserve.
b) The break-up of deferred tax assets and deferred tax liabilities is
as under: -
Deferred tax liability as Accumulated deferred tax
on 31.03.2002 liability as on 01.04.2001
Deferred tax liability (Rs.) (Rs.)
a) on account of difference
in rates and 441935 26026815
method of depreciation
b) on account of different
treatment of 706914 -
certain payments under i.T. Act,1961
Deferred income tax liability (net) 1148849 26026815
16. Earning per share
Profit after tax 10278153
Weighted number of Equity
Shares outstanding 6025000
Earning per share-basic and
diluted during the year 1.71
17. Segment Reporting
The company is in the business of manufacture of high tensile
fasteners. Since the company is operating in a single line of product
and there being no reportabie segment, the requirements of Accounting
Standard -17 on Segment Reporting are not applicable to the company.
18. Related Party Transactions
As per Accounting Standard No.18 issued by the Institute of Chartered
Accountants of India, related parties in terms of the said standard are
disclosed below: -
(a) Names of Related parties and description of relationship:
1. Subsidiaries (i) Indian Fasteners Limited
2. Associates (i) UPS Bossard Pvt. Ltd
(ii) LPS Bossard Information
System Pvt. Ltd.
(iii) Nav Bharat Industries
(iv) United Engineers
(v) J C Fasteners Ltd.
(vi) Hanumat Wire Udyog Pvt. Ltd.
(vii) Nav Bharat Agency
(viii) Sudhir Automotive Industries
Pvt. Ltd.
(ix) Universal Enterprises
3. Key Management Personnel (i) Shri Lalit Kumar Jain
(ii) Shri Dinesh Kumar Jain
(iii) Shri Vijay Kumar Jain
(iv) Shri Rajesh Jain
(v) Smt. Sushila Devi Jain
(b) Transactions
Particulars Subsidiaries Associates Key Management Total
Personnel
Rs. Rs. Rs. Rs.
1. Sale of goods 20116032 20116032
2. Purchase of goods 7298431 7298431
3. Rent received 2106000 2106000
4. Rent paid 480000 480000
5. Investment 4900000 4900000
6. Jobwork paid 1027920 67761160 68789080
7. Dividend received 481550 481550
8. Loan given 1628800 1628800
9. Remuneration paid 5918400 5918400
Total 1509470 102661623 7547200 11171823
Balance receivable
at the year end 4786825 1628800 6415625
Balance due at the
year end 1828250 30312822 220800 32361872
19. Additional information pursuant to the provisions of paragraphs
3,4C and 4D of Part II o1 Schedule VI to the Companies Act,1956 (as
certified by the Chairman and Managing Director)
a) Turnover
2001-2002 2000-2001
Unit Qty. Rs./1-acs Qty. Rs./Lacs
Finished Goods
Machine Screw lacs/nos. 2991 8042 3229 8263
Scrap Materials M.Tons 1527 116 1246 77
8158 8340
b) Raw Materials Consumed
Wire/Wire Rods M.Tons 6819 2193 6766 2059
S.S.Bars/Wire/
Wire Rods M.Tons *351 336 607 591
Bright Bars M.Tons 497 145 429 118
7667 2674 7802 2767
*(include sale of 1 M.Tons for Rs.93413/-).
c) Opening Stocks
(i) Finished Goods Lac/Nos 433 1296 458 218
Finished Goods .
in transit Lac/Nos. 2 10 4 11
Semi finished Goods Lac/Nos. 524 1282 457 1086
Scrap Materials M.Tons 764 46 396 24
2634 2339
(ii) Purchases
Semi-Finished Goods Lac/Nos. 39 90 9 39
90 39
(iii) Closing Stocks
Finished Goods Lac/Nos. 496 1648 433 1296
Finished Goods
in transit Lac/Nos. 3 8 2 10
Semi-finished Goods Lac/Nos. 575 1325 524 1282
Scrap Materials M.Tons 482 35 764 46
3016 2634
d) LICENCED CAPACITY,INSTALLED CAPACITY AND PRODUCTION
# Licenced Capacity M.Tons 14500 14500
## Installed Capacity M.Tons 12200 12200
@ Actual Production M.Tons 6424 6165
Lacs/Nos. (3067) (3260)
Capacity Utilisation % 53 51
# Licensing Capacity is as per the Industrial Entrepreneur Memorandum
filed with SIA, Ministry of Industry, Government of India, New Delhi.
## Installed capacity is as certified by the Chairman and Managing
Director. @ Actual production is on the basis of raw materials
consumed less scrap.
e) C.I.F. VALUE OF IMPORTS
Finished Goods Lac/Rs. 12 19
Raw material (Wire/Wire rods) Lac/Rs. 533 768
Tooling steel, Stores and Spares Lac/Rs. 44 46
Capital goods Lac/Rs. 109 94
1) EARNING IN FOREIGN EXCHANGE
F.O.B. value of exports Lac/Rs. 2957 3553
g) EXPENDITURE IN FOREIGN CURRENCY
Loan repayments
(through IC1CI and IDBI) Lac/Rs. 169 204
Interest and Commitment charges
(paid through IDBI and ICICI) Lac/Rs. 24 46
Foreign Travelling Lac/Rs. 32 51
Technical know-how fees Lac/Rs. 6 -
Books, membership and
other payments Lac/Rs. 6 7
h) NON-RESIDENT SHAREHOLDERS
No. of Non-Resident shareholders 20 17
No. of Equity Shares held by them 9700 13200
i) VALUE OF IMPORTED AND INDIGENOUS RAW MATERIALS, SPARE PARTS AND
COMPONENTS CONSUMED AND PERCENTAGETHEREOF
Lac/Rs. % Lac/Rs. %
Raw Materials
Imported 828 31 1250 45
Indigenous 1846 69 1517 55
2674 100 2767 100
Tools Dies and Spares
imported 44 18 48 15
Indigenous 206 82 275 85
250 100 323 100
Mar 31, 2001
SHARE CAPITAL
1. Cash credit accounts from bank is secured against hypothecation of
Raw Materials, Semi-finished Goods, Finished Goods, stores and Spares,
Book Debts and other movable assets, both present and future and also
secured by second charge on all the immovable assets of Company and
guaranteed by S/Shri L. K. Jain, D. K. Jain, V. K. Jain, R. K. Jain and
Smt. Sushila Devi Jain, Directors of the Company.
2. Term Loans from Financial Institutions are secured by way of
pari-passu charge in favour of ICICI LIMITED and Industrial Development
Bank of India (IDBI) against equitable mortgage of land and building
belonging to the Company subject to the charge created in favour of
bank as mentioned at serial no.1 and on the personal guarantees of the
Directors as stated in the Note No.1 above.
Term loans of Rs. 5 crores from IDBI sanctioned during the year is
further secured by way of equitable mortgage of land measuring 9904 sq.
yards belonging to Indian Fasteners Limited, a subsidiary company.
3. Loan from others is under Hire Purchase Scheme and secured by
hypothecation of specific assets and on personal guarantees of the
Directors of the Company.
4. Deferred payment credits are secured against hypothecation of
specified machinery in respect of which deferred payment credit have
been availed.
5. Loan from Director of Industries, Haryana is as per sanction from
general Manager, District Industries Centre, Rohtak in respect of
interest free loan sanctioned to the Company on conversion of deferred
amount of sales tax. The legal documents executed till 31.03.2001 are
for Rs.85.51 lacs and for the balance are yet to be executed.
6. Term Loans and Deferred Payment Credits due within a year are Rs.
592 lacs (Previous year Rs.536 lacs)
FIXED ASSETS
1. Depreciation has been provided on rates as per Schedule XIV of the
Companies Act, 1956 on W.D.V basis except in the case of Plant-ll setup
in the year 1993 where depreciation has been provided on straight line
method.
2. Depreciation on assets for a value not exceeding Rs.50000/- has been
provided @ 100%.
3. A sum of Rs.1140581/- on account of exchange fluctuation has been
adjusted in the cost of Plant and Machinery imported in the earlier
years and depreciation has been provided accordingly.
4. Cost of fixed assets have been adjusted with the amount of
entitlement of Modvat/Cenvat.
5. Leasehold Properties are in respect of office/flat situated at
Bangalore.
6. Freehold Properties are in respect of office premises at Mumbai and
Delhi.
OTHER NOTES
2000-2001 1999-2000
CONTINGENT LIABILITIES Rs.in lacs Rs. in lacs
1. Estimated amount of capital contracts
remaining to be executed and not
provided for (net of advances) 38 38
2. Letter of Credits and guarantees obtained
from Bank (Net off Margin Money) 176 13
3. Liabilities against legal undertakings/bonds
executed in favour of DGFT on account of export
obligation undertaken by the Company against
advance and import licences under EPCG Scheme. 250 1066
b) NOTES
1. Excise duty payable on finished goods and scrap at head office is
accounted for on clearance of goods from the factory. The amount of
excise duty payable on finished goods manufactured and not cleared from
the factory as at March 31, 2001 is estimated at Rs.18510462/-
(Previous year Rs. 19182703/-) However non-provision of this liability
will not affect the profit for the year.
2. During the current year there is a change in the method of valuation
of duty paid closing stock of finished goods at branches, with
consignees and goods returned from customers. From the current year in
view of the provisions of Section 145A of the Income Tax, 1961, the
excise duty paid has been added in the value of stocks as against
earlier practice of valuing the same at net off excise duty. This has
resulted in increase in profit by Rs.4340687/-.
3) Sundry Creditors Include :
i) Rs.21478625/- (Previous Year Rs.6884508/-) on account of Letters of
Credits on 180 days sight issued through Canara Bank, which are not
due for payment on the date of Balance Sheet.
ii) Rs.247800/- (Previous Year Rs.69040/-) payable to Directors.
iii) Rs.36283614/- (Last Year RS.341436/-) due to Small Scale
Industries.
b) The list of SSIs to whom the Company owes exceeding Rs. one Lac and
which are outstanding for more then 30 days are :-
1. Amba Electroplating Industries. 2. Adinath Forging PVT. Ltd. 3. A.
B. Finishers. 4. Accurate Industries 5. Amit Auto Industries. 6. Aakash
Precision Screws 7. Abni Industries. 8. Benco Industries. 9. Chawla
Fasteners 10. Diamond Fasteners Tools. 11. Deep Auto Indu. 12. Deep
Precision Industries. 13. Gaurav Tools Udyog. 14. Hind Tool Industries.
15. Hanumat Wires Udyog Pvt. Ltd 16. Hanwant Fasteners Pvt. Ltd. 17.
Jhandai Fasteners 18. J. D. Fasterners Ltd. 19. Kumar Auto Industries
20. Kapoor Auto Industries. 21. Karan Auto Industries 22. K. V. Auto
Industries. 24. Manohar Ind. 25. Markwell Fasteners, 26. Nageshwar Auto
Industries, 27. Paras Nath Auto Industries. 28. Parkash Auto Products,
29. Punch Ratna Fasteners Pvt. Ltd. 30. R. R. Industries 31. R. B.
Steel Services. 32. Supreme Industries, 33. Sehgal Fasteners, 34.
Sudhir Automotives Industries Pvt. Ltd; 35. S. K. Engg. Works 36.
Trimurty Fasteners Industries 37. Unique Precision Screws, 38. Vishal
Auto Industries. 39. Yogi Industries 40. Ganesh Fasteners Tools, 41.
R. K. Tools 42. Shanti Machine Tools 43. Krishnasai Tools Craft 44.
Mahalaxhmi Fabricators 45. h. K. Engg. Works.
4. Sundry Debtors include a sum of Rs. 5030608/-(Precious year Nil) due
from LPS Bossard Private Limited, (Maximum due from the year
Rs.9245568/- (Previous year Nil).
5. Advances recoverable in cash or in kind or for value to be received
include Rs.14428/- (Previous Year Rs. 1214018/-) due from LPS Bossard
Information Systems Private Limited.
6. Provision for unclaimed bonus to ex-employees have not been made,
since the amount is not ascertainable.
7. The stocks of imported tools manufactured by the Company are as
certified by the Chairman and Managing Director of the Company.
8. In the opinion of the Managing Director, current assets, loans and
advances have a value on realization in the ordinary course of business
at least equal to the amount at which they are stated and the provision
for all known liabilities have been made.
9. In terms of joint venture agreement entered into with Bossard AG,
Switzerland on 26.06.1997, the Company has invested
i) a sum of Rs. 18620190/- in LPS Bossard Private Private Limited
towards allotment of 1862019 Equity Shares of Rs.10/-each and
ii) a sum of Rs. 1847490/- in LPS Bossard Information System Private
Limited towards allotment of 184749 Equity Shares of Rs.10/- each.
towards 49% holding in the aforesaid Companies.
10. The Company has been sanctioned a loan from Director of Industries,
Haryana under conversion of Sales Tax Deferment Scheme for a period of
seven years to the extent of Rs.332 lacs. A sum of Rs.1957721/- under
Sale Tax Deferment Scheme for the period from 01.01.2001 to 31.03.2001
has been included in the current liabilities in respect of which
sanction is pending from DIC, Rohtak for conversion into interest free
loan.
12. That the balance with central excise department as on 31.03.2001
include balance in central excise account at head office, duty paid on
stocks lying at the branches, with consignees and goods returned from
customers.
13. The break-up of Managerial Remuneration is as under : -
2000-2001 1999-2000
(Rs.) (Rs.)
CHAIRMAN AND MANAGING DIRECTOR
Salary 600000 432000
House Rent Allowance 150000 108000
Contribution towards P.F. 72000 51840
822000 591840
VICE CHAIRMAN AND MANAGING DIRECTOR
Salary 600000 4320000
House Rent Allowance 150000 108000
Contribution towards P.F. 72000 51840
822000 591840
WHOLE TIME DIRECTOR
Salary 600000 432000
House Rent Allowance 150000 108000
Contribution towards P.F. 72000 51840
822000 591840
14. Additional information pursuant to the provisions of paragraphs
3,4C and 4D of Part ll of Schedule VI to the Companies Act, 1956 (as
certified by the Chairman and Managing Director)
a) Turnover 2000-2001
Unit Qty. Rs./Lacs
Finished Goods
Machine Screw Lacs/nos. 3229 8263
Scrap Materials M.Tons 1246 77
1999-2000
Qty. Rs./Lacs
3045 8073
1602 92
8165
b) Raw Materials Consumed
Wire/Wire Rods M.Tons *6766 2059
S.S. bars/Wire/Wire Rods M.Tons 607 591
bright Bars M.Tons 429 118
7802 2767
6828 1879
660 438
561 152
8049 2469
*(include sale of 23 M. Tons for Rs. 1039945/-)
c) Opening Stocks
(i) Finished Goods Lac/Nos. 458 1218
Finished Goods in Transit Lac/Nos. 4 11
Semi Finished Goods M.Tons 457 1086
Scrap Materials 396 24
2339
442 1377
5 13
248 702
605 34
2126
(ii) Purchases
Finished Goods Lac/Nos. 9 39
39
45 123
123
(iii) Closing Stocks
Finished Goods Lac/Nos. 433 1296
Finished Goods
in Transit Lac/Nos. 2 10
Semi-finished Goods Lac/Nos. 524 1282
Scrap Materials M.Tons. 764 46
Stock Damaged M.Tons 25
2659
458 1218
4 11
457 1086
396 24
0
2339
d) LICENCED CAPACITY, INSTALLED CAPACITY AND PRODUCTION
# Licenced Capacity M.Tons 14500 14500
## Installed Capacity M.Tons 12200 12200
@ Actual Production M.Tons 6165 6656
Lacs/Nos. (3260) (3224)
Capacity Utilisation % 51 55
# Licensing Capacity is as per the Industrial Entrepreneur Memorandum
filed with SIA, Ministry of Industry, Government of India, New Delhi.
## Installed capacity is as certified by the Chairman and Managing
Director. @ Actual production is on the basis of raw materials
consumed less scrap.
C.I.F. VALUE OF IMPORTS
Finished Goods Lac/Rs. 19 51
Raw materials
Wire/Wire rods Lac/Rs. 768 1439
Tooling steel, Stores
and Spare Parts Lac/Rs. 46 29
Capital goods Lac/Rs. 94 64
f) EARNING IN FOREIGN EXCHANGE
F.O.B. Value of Exports Lac/Rs. 3553 3690
g) EXPENDITURE IN FOREIGN CURRENCY
Loan Repayments
(through ICICI and IDBI) Lac/Rs. 204 199
Interest and Commitment charges
(paid through IDBI and ICICI) Lac/Rs. 46 135
Foreign Travelling Lac/Rs. 51 56
Technical Know-how fees Lac/Rs. - 18
Books, Membership and other
payments Lac/Rs. 7 14
h) NON-RESIDENT SHAREHOLDERS
No. of Non-Resident shareholders 17 18
No. of Equity Shares held by them 13200 11900
i) VALUE OF IMPORTED AND INDIGENOUS RAW MATERIALS, SPARE PARTS AND
COMPONENTS CONSUMED AND PERCENTAGE THERE OF
Lac/Rs. % Lac/Rs. %
Raw Materials 1250 45 1270 51
Imported 1517 55 1199 49
Indigenous 2767 100 2469 100
Tools Dies and Spares 48 15 78 17
Imported 275 85 369 83
Indigenous 323 100 447 100
Mar 31, 2000
1. Cash Credit accounts from bank is secured against hypothecation of
Raw Materials, Semi-finished Goods, Finished Goods, Stores and Spares,
Book Debts and other movable assets, both present and future and also
secured by second charge on all the immovable assets of Company and
guaranteed by S/Shri L.K.Jain, D.K.Jain, V.K.Jain, R.K.Jain and
Smt.Sushila Devi Jain, Directors of the Company.
2. Demand Loan against FDR has been availed against pledge of FDR for
Rs.2519222/-.
3. Term Loans from Financial Institutions are secured by way of
pari-passu charge in favour of ICICI Ltd. and Industrial Development
Bank Of India (IDBI) against equitable mortgage of land and building
belonging to the Company and hypothecation of all other fixed and
movable properties of the Company subject to charge created in favour
of bank as mentioned at serial no.1 and 6.
Out of Term loans from Financial Institutions, loans of Rs.2552000/- are in Participation
Certificate Scheme of The Industrial Development Bank Of India (IDBI) and ICICI Ltd.
4. Foreign Currency loan of US$ 1486609.65 (Rs.64583189/-) from ICICl
Ltd. has been converted into Rupee Term Loan vide letter dated
26.10.1999 w.e.f. 28.10.1999.
5. Loan from others is under Hire Purchase Scheme and secured by
hypothecation of specific assets and on personal guarantees of the
Directors of the Company.
6. Deferred payment credits are secured against hypothecation of
specified machinery in respect of which deferred payment credit have
been availed.
7. Loan from Director of Industries, Haryana is as per sanction from
General Manager, District Industries Centre, Rohtak in respect of
interest free loan sanctioned to the Company on conversion of deferred
amount of sales tax. The legal documents have not yet been executed.
8. Term Loans and Deferred Payment Credits due within a year are Rs.
536 lacs (Previous year Rs. 446 lacs)
1999-2000 1998-1999
9) CONTINGENT LIABILITIES lacs/Rs. lacs/Rs.
Estimated amount of contracts remains
to be executed on Capital Account and
not provided for (Net of advances) 38 31
Letter of Credit obtained from Banks
(Net of Margin Money) - 119
Liabilities against legal undertakings/bonds
executed in favour of DGFT on account of
export obligation undertaken by the Company
against advance and import licences under
EPCG Scheme. 1066 778
Liabilities towards Commissioner of Custom,
Mumbai in respect of disputed Custom duty
on raw materials 2 2
10) NOTES
1. Excise duty payable on finished goods is accounted for on clearance
of goods from the factory The amount of excise duty payable on finished
goods manufactured and not cleared from the factory as at March 31,
2000 is estimated at Rs.19182703/- (Previous year Rs.22131457/-).
However non provision of this liability will not affect the profit for
the year.
2a) Sundry Creditors Include :
i) Rs.68845080/- (Previous Year Rs.42004256/-) on account of Letters of
Credit on 180 days sight basis through Canara Bank, not due for payment
on the date of Balance Sheet.
ii) Rs.69040/- (Last year Rs.70380/-) on account of remuneration
payable to Directors.
iii) Rs.34143436/-(Last Year Rs.39515733/-) due to Small Scale
Industries.
b) The list of SSI's to whom the Company owes exceeding Rs. one Lac and
which are outstanding for more then 30 days are :-
1. Amba Electroplating lndustries. 2.Adinath Forging Pvt.Ltd.
3.A.B.Finishers. 4. Accurate Industries S. Amit Auto Industries. 6.
Aakash Precision Screws 7. Abhi Industries. 8. Benco Industries. 9.
Chawla Fastners 10. Diamond Fastner's Tools. 11. Deep Auto lndu. 12.
Deep Precision lndustries. 13. Gaurav Tools Udyog. 14. Hind Tool
Industries. 15. Hanumat Wires Udyog Pvt. Ltd 16. Hanwant Fastners Pvt.
Ltd. 17. Jhandai Fastners 18. J.C. Fasteners Ltd. 19. Kumar Auto
Industries 20. Kapoor Auto Industries. 21. Karan Auto Industries 22.
K.V.Auto Industries, 23. LPS Fasteners and Wires Pvt. Ltd. 24. Manohar
Industries. 25. Markwell Fasteners, 26. Nageshwar Auto Industries. 27.
Paras Nath Auto Indu. 28. Parkash Auto Products. 29. Punch Ratna
Fastners Pvt. Ltd. 30. R.R.Industries. 31. R.B,Steel Services. 32.
Singia Precision Screws. 33. Supreme industries, 34. Sehgal Fasteners,
35. SudhirAutomotives Industries Pvt.Ltd; 36. S.K.EngineeringWorks. 38.
Trimurty Fastners Industries 39. Unique precision Screws, 40. Vishal
Auto Industries. 41. Yogi Industries 42.Ganesh Fasteners Tools
43. Shanti Machine Tools 44. R.K.TooLs 45. Mahalakshmi Fabricators 46.
H.K.Engg. Works.
11. Advances recoverable in cash or in kind or for value to be received
include Rs.11277460/- (Previous Year Rs.6663825/-) paid to LPS Bossard
Pvt. Ltd. and Rs.1214018/- (Previous Year Rs.216138/-) paid to LPS
Bossard Information Systems Pvt. Ltd. towards subscription of Share
Capita! as per Joint Venture Agreement entered with Bossard
International AG, Switzerland on 26.06.97.
12. Provision for unclaimed bonus to ex-employees have not been made,
since the amount is not ascertainable.
13. The Company has been sanctioned a loan from Director of Industries,
Haryana under conversion of Sales Tax Deferment Scheme for a period of
seven years to the extent of Rs.332 lacs. A sum of Rs.2066971/- under
Sale Tax Deferment Scheme for the period from 01.01.2000 to 31.03.2000
has been included in the current liabilities in respect of which
sanction is pending from DIC, Rohtak or conversion into interest free
loan.
14. The stocks of imported toolings and cost of tools manufactured by
the Company are as certified by the Chairman and Managing Director of
the Company
15. That the balance with Central Excise Department as on 31.03.2000
include balance in Excise Duty account at Head Office, duty paid on
stocks lying at the branches and goods returned from customers.
16. In the opinion of the Managing Directors and Wholetime Director,
current assets, loans and advances have a value on realisation in the
ordinary course of business at least equal to the amount at which they
are stated and the provision for all known liabilities have been made.
17. The break-up of Managerial Remuneration is as under :-
1999-2000 1998-1999
(Rs.) (Rs.)
CHAIRMAN AND MANAGING DIRECTOR
Salary 432000 432000
House Rent Allowance 108000 108000
Contribution towards P. F 51840 51840
591840 591840
VICE CHAIRMAN AND MANAGING DIRECTOR
Salary 432000 432000
House Rent Allowance 108000 108000
Contribution towards P. F. 51840 51840
591840 591840
WHOLETIME DIRECTOR
Salary 432000 432000
House Rent Allowance 108000 108000
Contribution towards P. F. 51840 51840
591840 591840
18. Additional information pursuant to the provisions of paragraphs
3, 4C and 4D of Part II of Schedule VI to the Companies Act, 1956 (as
certified by the Chairman and Managing Director)
Mar 31, 1999
1. Cash Credit accounts from bank is secured against hypothecation of
Raw Materials, Semi-finished Goods, Finished Goods, Stores and Spares,
Book Debts and other movable assets, both present and future and also
secured by second charge on all the immovable assets of the Company and
guaranteed by S/Shri L.k. Jain, D.K. Jain, V.K. Jain, R.K. Jain and
Smt. Sushila Devi Jain, Directors of the Company.
2. Demand Loan against FDR has been availed against pledge of FDR for
Rs. 3603079/-including accrued interest of Rs. 794184/-.
3. Term Loans From Financial Institutions are secured by way of
pari-passu charge in favour of The Industrial Credit and Investment
Corporation of India Limited (ICICI) and Industrial Development Bank of
India (IDBI) against equitable mortgage of land and building belonging
to the Company and hypothecation of all other fixed and moveable
properties of the Company subject to charge created in favour of bank
as mentioned at serial no.1 and 5.
Out of Term loans from Financial Institutions, loans of Rs. 167 lacs
are in Participation Certificate Scheme of The Industrial Development
Bank of India (IDBI) and The Industrial Credit and Investment
Corporation of India Limited (ICICI).
4. Loan from others is under Hire Purchase Scheme and secured by
hypothecation of specific assets and on personal guarantees of the
Directors of the Company.
5. Deferred payment credits are secured against hypothecation of
specified machinery in respect of which deferred payment credits have
been availed.
6. Loan from Director of Industries, Haryana is as per sanction from
General Manager, District Industries Centre, Rohtak in respect of
interest free loan sanctioned to the Company on conversion of deferred
amount of sales tax. The legal documents have not yet been executed.
7. Term Loans and Deferred Payment Credits due within a year are Rs.
446 lacs (Previous year Rs. 377 lacs)
8. The Company has allotted 8,00,000 Equity Shares of Rs. 10/- each at
a premium of Rs. 9.75 per share on conversion of 8,00,000 Warrants
issued to the promoters and their associates on 24.12.97 as per SEBI
guidelines.
9. There is a change in the method of valuation of closing stocks of
raw materials and components. In the earlier years stocks were being
valued at invoice price less modvat, while the same has been valued at
invoice price in view of provisions of Section 145A of the Income Tax
Act, 1961. As a result of such change the value of closing stocks of
raw materials and components has been increased by Rs. 5727390/-.
10. Excise duty payable on finished goods is accounted for at the time
of clearance of goods from the factory. The amount of excise duty
payable on finished goods manufactured as at March 31, 1999 is
estimated at Rs. 22131457/- (Previous year Rs. 22089140/-). However,
non provision of this liability will not affect the profitability of
the Company.
11. Sundry Creditors include
i) Rs. 42004256/- (Previous Year Rs. 44315552/-) on account of Letter
of Credits on 180 day's sight basis through Canara Bank not due for
payment on the date of Balance Sheet.
ii) Rs. 70380/- (Last year Rs. 73540/-) on account of remuneration
payable to Directors.
12. Advances recoverable in cash or in kind or for value to be
received include :
a) Rs. 962330/- (Last year-Nil) due from the firm in which a Director
of the Company is a partner.
b) Rs. 6663825/- (Previous Year 1283/-) paid to LPS Bossard Pvt. Ltd.
and Rs. 216138/- (Previous year nil) paid to LPS Bossard Information
System Pvt. Ltd. towards subscription of Share Capital as per Joint
Venture Agreement entered with Bossard International AG. Switzerland on
26.06.97.
13. That the dividend proposed for financial year 1997-98 was not
approved by the bankers and the shareholders of the Company at the
adjourned Annual General Meeting held on 22-12-98. The same has been
reversed during the current year.
14. That a sum of Rs. 14980163/- has been received from the promoters
and their associates towards unsecured loans as per stiputations laid
down by the financial institutions to meet the cash flow requirements
of the Company.
15. A sum of Rs. 50000/- has been transfered from Capital Reserve to
Plant & Machinery during the year on account of subsidy on DG Set
received during the financial year 1985-86. The depreciation of Rs.
49345/- on the said amount provided in the earlier years has been
adjusted during the year.
16. Provision for unclaimed bonus to ex-employees have not been made,
since the amount is not ascertainable.
17. The Company has been sanctioned a loan from Director of
Industries, Haryana under conversion of Sales Tax Deferment Scheme for
a period of seven years to the extent of Rs. 332 lacs. A sum of Rs.
1029496/- under Sale Tax Deferment Scheme for the period from 01.01.99
to 31.03.99 is included in the current liabilities in respect of which
sanction is pending from DIC, Rohtak for conversion into interest free
loan.
18. The stocks of imported toolings and cost of tools manufactured by
the Company are as certified by the Chairman and Managing Director of
the Company.
19. That the balance with Central Excise Department as on 31.03.99
include balance in Excise Duty account at Head Office, duty paid on
stocks lying at the branches, goods returned from customers and goods
lying with Job Work Suppliers.
20. In the opinion of the Managing Directors and Wholetime Director,
current assets, loans and advances have a value on realisation in the
ordinary course of business at least equal to the amount at which they
are stated and the provision for all known liabilities have been made.
21. In the absence of availability of requisite details of suppliers
falling under the SSI category as per the Industries (Development &
Regulation) Act, 1951, the list of small scale industrial undertakings
to whom the Company owes a sum exceeding Rs. 1,00,000 which are
outstanding for more than 30 days and the total outstanding dues of
small scale industrial undertakings and other creditors have not been
given
Mar 31, 1998
1. Cash Credit accounts from bank is secured against hypothecation of
Raw Materials, Semi- finished Goods, Finished Goods, Stores and Spares,
Book Debts and other movable assets, both present and future and also
secured by second charge on all the immovable assets of the company and
guaranteed by S/Shri L.K. Jain, D.K. Jain, V.K. Jain, R.K. Jain and
Smt. Sushila Devi Jain - Directors of the Company.
2. Demand Loan against FDR has been availed against pledge of FDR for
Rs. 10750180/-.
3. Term Loans From Financial Institutions are secured by way of
pari-passu charge in favour of The Industrial Credit and Investment
Corporation of India Limited (ICICI) and Industrial Development Bank Of
India (IDBI) against equitable mortgage of land and building belonging
to the Company and hypothecation of all other fixed and moveable
properties of the Company subject to charge created in favour of bank
as mentioned at serial no.1 and 5.
Out of Term loans from Financial lnstitutions, loans of Rs. 222 lacs
are in Participation Certificate Scheme of The Industrial Development
Bank Of India (IDBI) and The Industrial Credit and Investment
Corporation of India Limited (ICICI).
4. Loan from others is under Hire Purchase Scheme and secured by
hypothecation of specific assets and on personal guarantees of the
Directors of the Company.
5. Deferred payment credits are secured against hypothecation of
specified machinery in respect of which deferred payment credit have
been availed.
6. Loan from Director of Industries, Haryana is as per sanction from
General Manager, District Industries Centre, Rohtak in respect of
interest free loan sanctioned to the company on conversion of deferred
amount of sales tax. The legal documents have not yet been executed.
7. Term Loans and Deferred Payment Credits due within a year are Rs.
377 lacs (Previous year Rs. 279 lacs)
8. A sum of Rs. 66700/- has been adjusted in the cost of Plant and
Machinery during the year on account of Subsidy on DG Set received
during the year. The depreciation of Rs. 38711/- on the said amount
charged in the earlier years has been adjusted during the year.
9. Company has allotted eight lacs Convertible Warrants to the promoters of the Company on up-front payment of Rs. 2.54 per Warrant, being 10% of the price fixed in accordance with SEBI guidelines. The holder of the Warrant is entitled to apply and get allotted one Equity Share of the face value of Rs. 10/- each fully paid up for every Warrant held, on or before June 23, 1999 on a price to be fixed on the relevant date.
10. Company has allotted sixteen lacs Equity Shares of Rs. 10/- each on
a premium of Rs. 15.40 to the promoters and their associates during the
year in terms of special resolution passed in the Annual General
Meeting held on 29.09.1997.
11. Advances recoverable in cash or in kind or for the value to be
received include Rs. 1166950/- (Last year 1437382/-) on account of rent
from a firm in which Directors are interested as partners.
12. Advances recoverable in cash or in kind or for the value to be
received include Rs. 1283/- (Last year NIL) due from a company under
the same management viz. LPS Bossard Pvt. Ltd.
13. Provision for unclaimed bonus to ex-employees have not been made,
since the amount is not ascertainable.
14. Sundry Creditors include
i) Rs. 44315552/- (Previous Year Rs. 60076877/-) on account of Letters
of Credit (on 180 days sight basis through Canara Bank) not due for
payment on the date of Balance Sheet.
ii) Rs. 73540/- (last year Rs. 53200/-) on account of remuneration
payable to Directors.
15. Miscellaneous receipts under the head Other Income includes a sum of
Rs. 5298929/- (Last Year Rs. 766577/-) towards sale of Special Import
Licences.
16. The Company has been sanctioned a loan from Director of Industries,
Haryana under conversion of Sales Tax Deferment Scheme for a period of
seven years to the extent of Rs. 332 lacs. A sum of Rs. 274893/- under
Sale Tax Deferment Scheme for the period from 01.03.98 to 31.03.98 has
been included in the current liabilities in respect of which sanction
is pending from DIC, Rohtak for conversion into interest free loan.
17. Front-end fee of Rs. 1171267/- include Rs. 1146000/- paid to IDBI
in respect of Foreign Currency Loan of US $ 27,80,000 (equivalent to
Rs. 10.91 crores) sanctioned to the Company during the year.
18. The stocks of imported toolings and cost of tools manufactured by
the company are as certified by the Chairman and Managing Director of
the Company,
19. That the balance with Central Excise Department as on 31.03.98
include balance in Excise Duty account at Head Office, duty paid on
stocks lying at the branches, goods returned from customers and goods
lying with Job Work Suppliers.
20. In the opinion of the Managing Directors and Wholetime Director,
current assets, loans and advances have a value on realisation, in the
ordinary course of business at least equal to the amount at which they
are stated and the provision for all known liabilities have been made.
Mar 31, 1997
Notes to Secured Loans:
1. Cash Credit accounts from bank is secured against
hypothecation of Raw Materials, Semi-finished Goods, Finished
Goods, Stores and Spares, Book Debts and other movable assets, both
present and future and also secured by second charge on all the
immovable assets of company and guaranteed by 5/Shri
L.K.Jain, D.K.Jain, V.K.Jain, R.K.Jain and Smt.Sushila Devi Jain,
Directors of the Company.
2. Term loan from Bank is secured against hypothecation of specified
machinery in respect of which loan has been availed
3. Term Loans From Financial Institutions are secured by way of
pari-passu charge in favour of The Industrial Credit and Investment
Corporation of India Limited (10101) and Industrial Development Bank of
India (IDBI) against equitable mortgage of land and building belonging
to the company and hypothecation of all other fixed and movable
properties of the company subject to charge created in favour of bank
as mentioned in 1 and 2 above.
Out of Term loans from Financial Institutions, loans of Rs.312 lacs are
in Participation Certificate Scheme of The Industrial Development Bank
Of India ( IDBI) and The Industrial Credit and Investment Corporation
Of India Limited (ICICI).
4. Loan from others is under Hire Purchase Scheme and secured by
hypothecation of specific assets and on personal guarantees of the
Directors of the Company.
5. Loan from Director of Industries, Haryana is as per sanction from
General Manager, District Industries Centre Rohtak in respect of
interest - free loan sanctioned to the company on conversion of
deferred amount of sales tax. The legal document have not been yet
executed, in respect of second charge to be created in favour of DIC,
Rohtak, pending approval from Canara Bank.
6. Term Loans and Deferred Payment Credits due within a year are Rs.279
lacs (Previous year Rs. 250 lacs)
Notes to Accounts:
1 A sum of Rs. 3,00,000/- has been transferred from Capital Reserve to
Plant and Machinery during the year on account of Subsidy on DG Set
received during the earlier years. The depreciation of Rs 77851/- on
the said amount charged in the earlier years has been adjusted during
the year.
2 No provision for unclaimed bonus to ex-employees have been made since
the amount is not ascertainable.
3 Sundry Creditors include :
i) Rs. 60076677/- (Previous Year Rs.17000505/-) on account of letters
of credit (on 180 days sight basis through Canara Bank) not due for
payment on the date of Balance Sheet.
ii) Rs. 53200/- (last year Rs. 28000/-) on account of remuneration
payable to Directors.
4. The Company has been sanctioned a loan from Director of Industries,
Haryana under conversion of sales tax deferred scheme for a period of
seven years to the extent of Rs.332 lacs. A sum of Rs. 595945/- under
sale tax deferment scheme for the period from 01.01 97 to 31.03.97 has
been included in the current liabilities in respect of which sanction
is pending from DIC, Rohtak for conversion into interest free loan.
5 Front end fee of Rs. 1161510/- include Rs. 1134000/- paid to ICICI
Ltd., in respect of Term Loan of Rs.10.80 crores sanctioned to the
Company during the year.
6 The stocks of imported toolings and cost of tools manufactured by the
company are as certified by the Chairman and Managing Director.
7 That the balance with Central Excise Department as on 31.03.97
include balance in excise duty account at Head Office, duty paid on
stocks lying at the branches and on goods returned from customers.
8 In the opinion of the Managing Directors and Whole time Director,
current assets, loan and advances have a value on realisation in the
ordinary course of business at least equal to the amount at which they
are stated and the provision for all liabilities have been made.
Mar 31, 1996
NOTES FOR SECURED LOANS:
1. Cash Credit accounts from bank is secured against hypothecation of
Raw Materials, Semi-finished Goods, Finished Goods, Stores and
Spares, Book debts and other moveable assets, both present and future
and also secured by second charge on all the immovable assets of the
company and by S/Shri D.K.Jain,. L.K.Jain, V.K.Jain, R.K.Jain and
Smt. Sushila Devi Jain Directors of Company.
2. Term loan from bank is secured against hypothecation of specified
machinery in respect of which loan was availed.
3. Term Loans From Financial Institutions are secured by way of
pari-passu charge in favour of The Industrial Credit and Investment
Corporation of India Limited (ICICI) and Industrial Development Bank
Of India (IDBI) against equitable mortgage of land and building
belonging to the company and hypothecation of all other fixed and
movable properties of the company subject to charge created in favour
of bank as mentioned in 1 and 2 above. Out of term loans from
Financial, Institutions, loans of Rs.447 lacs are in Participation
Certificate Scheme of The Industrial Development Bank Of India (IDBI)
and The Industrial Credit and Investment Corporation Of India Limited
(ICICI).
4 Loan from others is under Hire Purchase Scheme and secured by
hypothecation of specific assets and personal guarantee of the
Directors of the Company.
5 Term Loans and Deferred Payment Credits due within a year are Rs.
250 lacs (Previous year Rs.193 lacs)
NOTES TO ACCOUNTS:
1 The company has established a Trust under the Group Gratuity Scheme
of Life Insurance Corporation of India for payment of Gratuity to its
employees. A sum of Rs. 77951/- towards past service liabilities and
Rs.475820/- towards annual premium payable as on 31.03.1996 to LIC
under this scheme in respect of which provision has not been made.
2 No provision for unclaimed bonus to ex-employees have been made as
the amount is not ascertainable
3 A sum of Rs. 100000/- received from Director of Industries, Haryana
towards subsidy on generating set has been credited to capital
reserve account.
4 Sundry Creditors include
i) Rs.17000505/- (Previous Year Rs.51820000/-) on account of letters
of credit (on 180 days sight basis through Canara Bank) not due for
payment on the date of Balance Sheet.
ii) A sum of Rs. 28000/- (last year Rs. 46000/-) on account of
remuneration payable to Directors.
5 The company has been allowed sales tax deferrment for a period of
seven years by the Director of Industries, Haryana in respect of its
new unit. A sum of Rs.945519/- collected by the company on account
of sales tax during the year, has been included in other liabilities
till conversion into loan granted by the Director of Industries,
Haryana.
6 The stocks of imported toolings and cost of tools manufactured by
the company are as certified by the Chairman and Managing Director.
7 That the dividend of Rs.22.12 lacs for the year 1994-95 payable to
directors and their relatives has been transferred to their
respective loan accounts in order to meet the requirements of
financial institution to bring an additional sum of Rs.250 lacs as
unsecured loan.
8 That the balance with Central Excise Department as on at Head
Office, duty paid on stocks lying at the branches and on goods
returned from customers.
9 In the opinion of the Managing Directors and Wholetime
Director, currents assets, loans and advances have a value on
realisation in the ordinary course of business at least equal to the
amount at which they are stated and the provision for all liabilities
have been made.
Mar 31, 1995
1 Cash credit accounts from bank is secured against
hypothecation of Raw Materials,Semi-finished goods,Finished
Goods,Stores and Spares,on present and future book debts of
the Company and guaranteed by S/Shri D.K.Jain. L K. Jain,
V.K. Jan, R.K. Jain and Smt. Sushila Devi Jan, Directors.
2 Term loan from bank is secured against hypothecation of
specified machinery in respect of which loan was availed.
3 Term Loans From Financial Institutions are secured by way
of pari-passu charge in favour of The Industrial Credit and
Investment Corporation of India Limited (ICICI) and
Industrial Development Bank Of India (IDBl) against
equitable mortgage of land and building belonging to the
company and hypothecation of all other fixed and movable
properties of the company subject to charge created in
favour of bank as mentioned in 1 and 2 above. [Out of loans
from Financial Institutions loans of Rs. 538 lacs are in
Participation Certificate Scheme of The Industrial
Development Bank Of India (lDBI) and The lndustrial Credit
and Investment Corporation Of India Limited (ICICI)].
4 Hire purchaes finance from others is secured by
hypothecation of sepcific Assets and personal guarantee by
Directors of the Company.
5 Term loans and deferred payment credits due within a year
Rs. 193 lacs (Previous year Rs. 87 lacs)
3) CONTINGENT LIABILITIES
1995 1994
Iacs/Rs. lacs/Rs.
Estimated amounts of contracts
remaining to be executed on
capital account and not provided
for (nett of advances) 110 120
Letter of Credits and Guarantees
obtained from Banks( Margin Money
Rs.1 41.40 lacs-last year Rs.119.65
lacs) (Nett of Margin Money) 1134 306
Legal undertaking and bond to
joint Controller of Imports and
Exports against Advances Licences 4816 2631
Liabilities towards Collector of
Custom, Bombay in respect of disputed
custom duty on raw materials 2 2
C) NOTES
1.That the total liability towards gratuity as on 31.03.95
is Rs.76.07 Iacs(Last year Rs.41.54 lacs). The Company has
established a trust under the Group Gratuity Scheme of Life
Insurance Corporation of India for payments of gratuity to
its employees. A sum of Rs.1494163/-debited to Profit & Loss
Account represents the payments made against the past
service liabilities.
2. No provision for unclaimed bonus to ox-employees have
been made; since not ascertainable.
4. Sundry Creditors includes a sum of Rs.51820000/-
( Last year Rs. 28605000/-) on account of letters of credit
on 180 days sight basis through Canara Bank and State Bank
of India not due for payment on the date of Balance Sheet,
and also inculed a sum of Rs. 46000/- ( Last year Rs.
32500/-) on account of remuneration payable to Directors.
5. Divident for the year 1993-94 of Rs. 60842/- paid during
the year being less provided in the last year.
6. The stocks of imported toolings and cost of tools
manufactured by the Company are as certified by the Chairman
and Managing Director.
7. That the balance with Central Excise Department as on
31.3.1995 include balance at Head Office, duty paid on
stocks at the branches and on goods returned from customers.
8. In the opinion of the Managing Directors and wholetime
Director, Current Assets, Loans and Advances have a value on
realisation in the ordinary course of business at least
equal to the amount at which they are stated and the
provision for all liabilities have been made.
9. An amount of Rs.18930.00 is due on account of Share
Premium Account in respect of Right Share Issue of the
Company from the Members who have not paid the allotment
money.
10. Additional information pursuant the provisions of
paragarphs 3,4C and 4D of Part II of Schedule VI to the
Companies Act. 1956 (as certified by the Chairman and
Managing Director)
11. Previous year figures have been regrouped wherever
necessary to make them comparable with that of current year.
12. Figures have been rounded off to the nearest rupee.
13. Schedule 1 to 18 form integral part of Balance Sheet and
Profit and Loss Account.
Mar 31, 1994
1. There is estimated liability of Rs.41.54 lacs (Last year
Rs.33.27 lacs not provided for on
account of gratuity payable to employees as on 31.3.1994.
The gratuity liability has been estimated on the basis of
voluntary resignation after having rendered continuous
services of not less than 8 years, in view of the decision
of Punjab and Haryana High Court in the case of Victory
Public Hill Motor Tranport Co. (P) Limited V/s Controlling
Authority under payment of gratuity Act, 1972. The
estimated liability on the basis of eligibility after
having rendered continuous service for not less 5 years is
Rs.48.95 lacs (Last year Rs.38.58 lacs).
2. No provision for unclaimed bonus to ex-employees have been
made; since not ascertainable.
3. Sundry Creditors include's Rs.28,605,000/- (Previous Year
Rs.15,325,900/-) on account of letters of credit on 180 days
sight basis through Canara Bank and State Bank of India not
due for payment on the date of Balance Sheet and Rs.32,500/-
(Previous Year Rs.8,632/-) on account of remuneration
payable to Directors.
4. The stocks of imported toolings and cost of tools
manufactured by the company are as certified by the
Chairman and Managing Director.
5. That the balance with Central Excise Department as on
31.03.1994 include balance at Head Office, duty paid on
stocks at the branches and on goods returned from
customers.
6. An amount of Rs.1,973,865/- is due on account of Share
Premium Account in respect of Rights Share Issue of the
Company from the shareholders who have not paid the
allotment money.
7. An amount of Rs. 1973865 is due on account of Share Premium Account in respect of Right issue of the company from the shareholders who have paid the allotement money.
Mar 31, 1993
1. Advances recoverable in cash or for value to be received include
Rs.604,417/- (last year Rs.1,296,604/-) due from firm in which some
of the Directors are interested as Partners on account of advance
rent paid in respect of premises taken-on rent.
2. Rs. 255,000/- for building under construction (Unit-II) in respect
of which bills are to be received and adjusted.
3. C.W.C. Management charges represent the amount paid at
Rs.213,915/- (Last year Rs.279,290/-) to Central Warehouse
Corporation, Rohtak in respect of Public Bonded Warehouse in the
factory premises. The said Warehouse has ceased to be operative
w.e.f. 15/02/1993.
4. Closing Stock other than Finished and Semi Finished Goods have
been valued at cost or market value whichever is less Semi
Finished goods have been valued at 65% less than the price list
and Finished goods have been valued at 55% less than the price
list and special items (non standard) have been valued at 30%
less in case of semi finish goods and 20% less in the case of
Finished Goods of the selling price since exact cost is not
ascertainable.
5. Sundry Creditors include:-
a) Rs.15,325,900/- (Last year Rs.15,518,318/-) on account of letters of
credit on 180 days sight basis through Canara Bank not due for
payment on the date of Balance Sheet. Necessary Charges have
been created with the Registrar of Companies.
b) Rs.8,632/- (Last year Rs.13,689/-) on account of remuneration
payable to Directors.
c) Rs.627,388/- on account of unpaid dividend to promoters, their
friends and associates.
6. Bank balances with scheduled Banks in current account include
Rs.242,025/- (Last year Rs.1,711,487/-) kept with Canara Bank
(spacial account) on account of loan disbursement by ICICI
Limited not utilised.
7. Further bank balances include a sum of 933,885/- with Canara Bank
in dividend accounts.
Mar 31, 1992
1. No provision for unclaimed bonus to ex-employees have been made; since not ascertainable.
2. Advances recoverable in cash or for value to be received include a sum of Rs.1,296,604/- (Last year Rs.1,593,623/-) due from firm in which some of the Directors are interested as Partners on account of advance rent paid in respect of premises taken on rent.
3. Income Tax refund amounting to Rs.750,000 credited to Profit and Loss Account relate to the accounting year 1988-89 as per the decision of Hon'ble I.T.A.T., New Delhi. The Department has filed reference application before I.T.A.T., New Delhi against the order of I.T.A.T. which is pending.
4. C.W.C. Management charges represent the amount paid at Rs.279,290/- (Last year Rs.283,824/-) to Central Warehouse Corporation, Rohtak as their Management Charges for Godown in Company's premises at Rohtak, as the same has been declared as a Public Bonded Warehouse and also Warehousing charges paid at Bombay at Rs.7,984/- (Last year Rs.43,744/-).
Sundry Creditors Include :-
5. Rs.15,518,318/- (Last year Rs.10,166,235/-) on account of letters of credit on 180 days sight basis through Canara Bank not due for payment on the date of Balance Sheet, Necessary charges have been created with the Registrar of Companies.
6. Rs.13,689/- (Last year Rs.5,200/-) on account of remuneration payable to Directors.
7. Interest received includes Rs. 940,468/- being the interest received on delayed payment on hundies drawn through Bank.
8. Other liabilities include a sum of Rs. 1,048,456/- on account of unpaid dividend to promoters, their friends and associates, which will be paid when the arrears of Financial Institutions are cleared as per stipulations of ICICI Limited.
9. Bank balance with Scheduled Banks in current accounts include Rs. 1,711,487/- kept with Canara Bank (Special Account) on account of loan disbursement by ICICI Limited not utilised.
Mar 31, 1991
1. No provision for unclaimed bonus to ex-employees have been made; since not ascertainable.
2. Advances recoverable in cash or for value to be received include a sum of Rs.1,593,623/- due from firm in which some of the Directors are interested as Partners on account of advance rent paid in respect of premises taken on rent.
3. C.W.C. Management charges represent the amount paid at Rs.283,824/- to Central Warehouse Corporation, Rohtak as their Management Charges for Godown in Company's premises at Rohtak, as the same has been declared as a Public Bonded Warehouse and also Warehousing charges paid at Bombay at Rs. 43,744/-
Sundry Creditors Include :-
4. Rs.10,166,235/- on account of letters of credit on 180 days sight basis through Canara Bank not due for payment on the date of Balance Sheet, Necessary charges have been created with the Registrar of Companies.
5. Interest received includes Rs. 666,037/- being the interest received on delayed payment on hundies drawn through Bank.
6. Other liabilities include a sum of Rs. 422,232/- on account of unpaid dividend to promoters, their friends and associates, which will be paid when the arrears of Financial Institutions are cleared as per stipulations of ICICI Limited.
7. Bank balance with Scheduled Banks in current accounts include Rs. 1,511,736/- kept with Canara Bank (Special Account) on account of loan disbursement by ICICI Limited not utilised.
Mar 31, 1990
1. Advances recoverable in cash or for value to be received include
A sum of Rs. 2,131,403/- due from firm in which some of the Directors are interested as partners on account of advance rent paid in respect of premises taken on rent.
2. C.W.C Management charges represent the amount paid at Rs. 275,641 to Central Warehousing Corporation, Rohtak as their Management charges for Godowns in company's premises at Rohtak, as the same has been declared as a public Bonded Warehouse and also Warehousing charges paid at Bombay at Rs. 311,475
3. Addition of Rs. 6,450,000/- in Capital Reserve in Balance Sheet represents the amount of Insurance Claim received from the New India Assurance Company Limited on account of damages due to fire in shop floor which brokeout in the month of January
4. Sundry Creditors includes :- Rs. 7,424,680/- on account of letters of credit on 180 days sight basis through Canara bank not due for payment on the date of balance sheet.
5. There is a change in the method of providing depreciation from straight line to written down value method during the year. The same has been provided as per Income Tax Rules form the accounting year 1971-72 to 1986-87 and for 1987-88 and 1988-89 as per schedule XIV of the companies act, 1956. This has resulted in excess provison of depreciation at Rs. 21,266,793/- during the year.
Mar 31, 1989
1. Investment Allowance Reserve for earlier years amounting to Rs.7,762,773/- has been created during the year as provided in Explanation to Section 32 A (4) of the Income Tax Act.
2. Advances recoverable in cash or for value to be received include:
a) A sum of Rs. 975,791/- due from firm in which some of the Directors are interested as partners on account of advance rent paid in respect of premises taken on rent, Rs. 1,600/- due from the M D
b) C.W.C Management charges represent the amount paid at Rs. 237,294 to Central Warehousing Corporation, Rohtak as their Management charges for Godowns in company's premises at Rohtak, as the same has been declared as a public Bonded Warehouse
4. Sundry Creditors includes :- Rs. 19,507,474/- on account of letters of credit on 180 days sight basis through Canara bank not due for payment on the date of balance sheet.
5. No Provision for bonus liabilities for the year estimated at Rs. 9.77 lacs and for unclaimed bonus for earlier years payable at Rs. 4,378 has not been made