Mar 31, 2019
Note: Figures in brackets relate to the previous year.
1. Since the Company prepares consolidated financial statements, segment information as revised by IND AS 108 âSegment Reportingâ has been disclosed in consolidated financial statements.
2. Effective from 01.07.2017, Revenue are recorded net of GST, whereas earlier revenue were recorded gross of Excise duty, which formed part of expenses.
3. Exceptional Item represent profit on sale of land including compulsory accquision by the Department of Highways.
4. Borrowing cost capitalized during the year Rs, 137.35 Lakhs ( previous year Rs, 11.30 Lakhs)
5. âIND AS-115â Revenue from contracts with customer mandatory from reporting period beginning on or after April 01, 2018 replaces existing revenue recognition requirement. The application of IND AS - 115 did not have any significant impact on recognition and measurement of revenue and related items in the financial results of the Company. Further there were no significant adjustment required to the retained earnings as at April 01, 2018 under the modified retrospective approach.
6. Previous year figures have been regrouped and reclassified, wherever necessary, to correspond with the current yearâs classification/disclosure.
7. Related party disclosure
a) List of parties having significant influence
Subsidiaries LGB USA INC. - 77.01%
Fellow Subsidiaries
GFM ACCQUISITION LLC. - Holding by LGB USA - 98%
GFM LLC - Holding by GFM Acquisition LLC - 100%
b) List of parties having significant influence Associate Companies
Renold Chain India Private Limited - 25%
Enterprises owned or significantly influenced by Key Managerial Personnel and Relatives of Key Managerial personnel
Elgi Automotive Services (P) Limited__Super Speeds Private Limited_
L.G.B. Auto Products (P) Limited LGB Forge Limited
LG Farm Products (P) Limited__Tribe Investments & Services Private Ltd
L.G. Balakrishnan & Bros - Karur South Western Engineering India Limited
LG Sports Limited Silent Chain India Private Limited
Super Transports Private Limited
Key management personnel
Sri. B. Vijayakumar, Chairman and Managing Director Sri. P. Prabakaran, Managing Director Sri.N. Rengaraj, Chief Financial Officer
Sri.M. Lakshmi Kanth Joshi, General Manager (Legal) and Company Secretary Relatives of Key Management Personnel
Relatives of Sri. B. Vijayakumar:__
Smt. Vijayashree V - Wife Smt. Rajsri Vijayakumar - Daughter
Sri. V. Rajvirdhan - Son Sri. Rajiv Parthasarathy - Daughterâs Husband
Sri. Nithin Karivardhan - Son Minor. Samriddhi Andal Rajiv - Daughterâs daughter
Sri. Arjun Karivardhan - Son Minor. Vidhur Narayanan Rajiv - Daughterâs Son
Relatives of Sri. P. Prabakaran:__
Sri. K. Palanichamy_-_Father Smt. D. Maheswari_-_Wife_
Smt. Rajalakshmi - Mother Sri. P. Suryakumar - Son
Mar 31, 2018
1. EMPLOYEE BENEFIT PLANS Defined Contribution plans:
The Company makes Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs.812.02 Lakhs (Year ended 31 March, 2017 Rs.669.85 Lakhs) for Provided Fund contributions and Rs.10.65 Lakhs (Year ended 31 March, 2017 Rs.11.26 Lakhs) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the Schemes.
State plans:
The Company makes ESI contributions to Employees State Insurance Scheme. Under the Scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 220.60 Lakhs (Year ended 31 March, 2017 Rs.163.74 Lakhs) in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the Scheme.
Defined Benefit Plan - Gratuity:
The Company provides gratuity benefit (included as part of employees contribution to funds in Note 21 Employee benefits expense) to all eligible employees, which is funded with Life Insurance Corporation of India.
The following table sets out the funded status of the defined benefit schemes and the amount recognised in the financial statements
Note: Figures in brackets relate to the previous year.
2. Since the Company prepares consolidated financial statements, segment information as revised by IND AS 108 âSegment Reportingâ has been disclosed in consolidated financial statements.
3. The Board of Directors at its meeting held on 6th May, 2017 has given an in principle approval of the proposed merger of its wholly owned Subsidiary BCW V Tech India Private Limited with the Company with effect from 1st April, 2017 under a scheme of amalgamation, subject to appropriate NCLT and other approvals. As per the Honâble NCLT Order dated 13.07.2018 BCW VTech India Private Limited accounts has been merged with our Company.
4. Effective from 01.07.2017, Revenue are recorded net of GST, whereas earlier revenue were recorded gross of Excise duty, which formed part of expenses. Hence, revenue from operations for the three months and year ended 31.03.2018 are not comparable with previous period corresponding figures.
5. Previous year figures have been regrouped and reclassified, wherever necessary, to correspond with the current yearâs classification/disclosure.
6. Related party disclosure
a) List of parties having significant influence Subsidiaries
BCW V Tech India Private Limited - 100% (Till 31.03.2017)
LGBUSAINC. -77.01%
b) List of parties having significant influence Associate Companies
Renold Chain India Private Limited - 25%
Enterprises owned or significantly influenced by Key Managerial Personnel and Relatives of Key Managerial personnel
Elgi Automotive Services (P) Limited L.G.B. Auto Products (P) Limited LG Farm Products (P) Limited L.G. Balakrishnan & Bros - Karur LG Sports Limited Super Transports Private Limited Super Speeds Private Limited
LGB Forge Limited
Tribe Investments & Services Private Ltd
South Western Engineering India Limited Silent Chain India Private Limited
Key management personnel
Sri. B. Vijayakumar, Chairman & Managing Director Sri. P. Prabakaran, Deputy Managing Director Relatives of Key Management Personnel
Relatives of Sri. B. Vijayakumar:
Smt. Vijayashree V Wife
Sri. V. Rajvirdhan Son
Sri. Nithin Karivardhan Son
Sri. Arjun Karivardhan Son
Smt. Rajsri Vijayakumar Daughter
Sri. Rajiv Parthasarathy Daughterâs Husband
Minor. Samriddhi Andal Rajiv Daughterâs daughter
Minor. Vidhur Narayanan Rajiv Daughterâs Son
Relatives of Sri. P. Prabakaran:s
Sri. K. Palanichamy Father
Smt. Rajalakshmi Mother
Smt. D. Maheswari Wife
Sri. P. Suryakumar Son
7. First-time adoption of Ind AS Transition to Ind AS
These are the Companyâs first financial statements prepared in accordance with Ind AS.
The accounting policies set out in Note III have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 1, 2016 (The companyâs date of transition).
In preparing its opening Ind AS balance sheet, the company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP).
An explanation of how the transition from previous GAAP to Ind AS has affected the companyâs financial position, financial performance and cash flows is set out in the following tables and notes.
A. Exemptions and exceptions availed
Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.
A.1 Ind AS optional exemptions
A.1.1 Deemed cost for PPE, Intangibles and Investment Property Ind AS 101 permits a first-time adopter to elect to fair value a class of property, plant and equipment or to continue with the carrying value for all of its PPE as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 "Intangible Assets".
Accordingly, the company has elected to continue the property, plant and equipment, intangible assets and investment property at their previous GAAP values.
A.1.2. Designation of previously recognised financial instruments
Ind AS 101 allows an entity to designate investments in equity instruments at FVOCI or FVTPL on the basis of the facts and circumstances at the date of transition to Ind AS. The company has elected to apply this exemption for its investment in equity investments. Accordingly, the investment in equity instruments are classified as FVOCI except its subsidiaries and associates which is measured at amortised cost.
A.1.3. Leases
Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS, except where the effect is expected to be not material. The company has elected to apply this exemption for such contracts/ arrangements.
A.2 Ind AS mandatory exceptions
A.2.1 Estimates
"An entityâs estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.
Ind AS estimates as at April 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The company made estimates for impairment of financial assets based on expected credit loss model in accordance with Ind AS at the date of transition as these were not required under previous GAAP:â- Impairment of financial assets based on expected credit loss model."
B. Notes to first-time adoption
B.1 Trade receivables
As per Ind AS 109, The company is required to apply expected credit loss model for recognising the allowance for doubtful debts. Accordingly, the Company has developed an assessment for allowance for expected credit loss. The same has been considered in the opening and comparative period financial statements.
B.2 Transaction costs in respect of financial instruments
"Under the previous GAAP, transaction costs in relation to financial liabilities are charged to the profit and loss in the year in which they are incurred.ââAs per Ind AS 109, transaction costs in relation to financial liabilities are to be reduced from the related financial liabilities and amortised over the repayment period of the said liability."
B.3 Remeasurement of post-employment benefit obligations
Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. Adjustments have been made for such re-classifications.
B.4 Constructive obligations
Under Ind AS, any constructive obligation shall also be considered and provided for in the financial statements. Accordingly, the Company has measured its constructive obligation relating to salary revision based on best estimate and considered the same in the Ind AS financial statements.
B.5 Decommissioning liability
Under Ind AS, any obligation towards decommissioning liability shall be estimated and provided. The Company has certain obligations to restore the land to its original position, in respect of land acquired for mining (both freehold and leasehold). The said liability has been estimated as per Ind AS 37 and accounted for in the Ind AS financial statements.
B.6 Fair valuation of financial assets and liabilities
Under Ind AS, financial assets and liabilities are to be valued at amortised cost or fair valued through profit and loss (FVTPL) or fair valued through other comprehensive income (FVTOCI) based on the Company''s business objectives and the cash flow characteristics of the underlying financial assets and liabilities. The Company has remeasured the financial assets and liabilities as on the date of transition and the consequential impact has been given in the opening retained earnings.
B. 7 Government Grants
Under Ind AS, Government grants related to assets, including non-monetary grants at fair value, is presented in the balance sheet by setting up the grant as deferred income. The grant set up as deferred income is recognised in profit or loss on a systematic basis over the useful life of the asset.. The Company has remeasured the capital grants as aforesaid and accounted in the Ind AS financial statements.
B.8 Proposed dividends
Under Ind AS, liability to pay dividends arises only when the shareholders approves the dividends recommended by the board of directors. Till such approval the proposed dividends does not meet the recognition criteria of a liability. The Company has accordingly, reversed the provisions for proposed dividends and the related taxes. Only a disclosure as required by Ind AS has been made
B.9 Deferred tax
Under Ind AS, the deferred tax asset and liabilities are required to be accounted based on balance sheet approach. The Company has remeasured its deferred tax assets and liabilities as aforesaid and accounted in the Ind AS financial statements.
B.10 Investment Property
Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property. investment property is measured initially at its cost, including related transaction costs. Subsequent expenditure is capitalised to the assetâs carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred. When part of an investment property is replaced, the carrying amount of the replaced part is derecognised.
Investment properties (other than land) are depreciated using the written down value method over their estimated useful lives. Investment properties have a useful life of 30 years. The useful lives have been determined based on Schedule II to the Companies Act, 2013.
Transition to Ind AS
On transition to Ind AS, the Company has elected to continue with the carrying value of all of its investment properties recognised as at April 1, 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of investment properties.
B.11 Assets held for sale
The assets which are meet the criteria under Ind AS 105 are classified as ''Assets held for Sale''. Assets held for sale are measured at the lower of the carrying amount and fair value less costs to sell and the depreciation of an asset is to cease.
Mar 31, 2017
Notes:
1 (i) Details of Security for Long Term Borrowings:
a) Term Loans from banks are secured by hypothecation of Plant and Machineries and are collaterally secured by equitable mortgage by deposit of title deeds of immovable properties of Chakkan Plant and Jalna Plant.
b) Interest rate relating to Term loans from banks is in the range of 9.10% to 9.75%
2 (iii) a. There was no default in the repayment of loans, borrowing and interest during the year.
b. Interest rate relating to fixed deposits is in the range of 8.00% to 9.50% during the year.
Notes
3 (i) Details of security for short-term borrowings:
a. Working capital loans from banks are primarily secured by hypothecation of inventories and book debts of the Company
b. Interest rate relating to Short Term loans from banks is in the range of 9.10% to 12.10%
4. Disclosure required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006
Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the Auditors.
5. Details on derivative instruments and unhedged foreign currency exposures:
I. The following derivative positions are open as at 31st March, 2017. These transactions have been undertaken to act as economic hedges for the Companyâs exposures to various risks in foreign exchange markets and may/may not qualify to be designated as hedging instruments. The accounting for these transactions are as stated in Notes 2.11.
(a) Forward exchange contracts and options (being derivative instruments), which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.
(i) Outstanding forward exchange contracts entered into by the Company as on 31st March, 2017
Note: Figures in bracket relate to the previous year.
(ii) With respect to those Forward contracts which are covered by the underlying assets, the unexpired premium as of 31st March, 2017 amounts to Rs. 7.18 lakhs (Previous year - Rs.5.54 lakhs).
6. Details on derivative instruments and unhedged foreign currency exposures: (Contd.)
iii. The year end foreign currency exposures that have not been hedged by a derivative instrument
Note: Provisions for / contributions to employee retirement benefits, which are based on actuarial valuations done for the Company as a whole, are excluded from the above.
b) Computation of net profit under section 198 of the Companies Act, 2013 and commission payable to the Chairman cum Managing Director and Deputy Managing Director:
Note: The remuneration paid / payable to the Chairman cum Managing Director and Deputy Managing Director for the year is within the limits specified in Section 198 of the Companies Act, 2013.
7. Excise duty amounting to Rs.119.73 Lakhs (Previous Year: Rs.97.45 Lakhs) is included in the finished goods stock value, pending clearance from factories
8. Employee benefit plans
Defined Contribution plans:
The Company makes Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs.669.85 Lakhs (Year ended 31 March, 2016 Rs.715.75 Lakhs) for Provident Fund contributions and Rs.11.26 Lakhs (Year ended 31 March, 2016 Rs.8.61 Lakhs) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the Schemes.
State plans:
The Company makes ESI contributions to Employees State Insurance Scheme. Under the Scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs.163.74 Lakhs (Year ended 31 March, 2016 Rs.150.43 Lakhs) in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the Scheme.
Defined Benefit Plan - Gratuity:
The Company provides gratuity benefit (included as part of employees contribution to funds in Note 22 Employee benefits expense) to all eligible employees, which is funded with Life Insurance Corporation of India.
The following table sets out the funded status of the defined benefit schemes and the amount recognized in the financial statements:
Note: (i) The discount rate is based on the prevailing market yields of Government of India securities as at the balance sheet date for the estimated term of the obligations.
(ii) The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.
(iii) The Company is expected to contribute Rs. 250.00 Lakhs to the Gratuity Fund next year.
9. Related party transactions : (As identified by the Management and relied upon by Auditors) A. Name of related parties and nature of relationship where control exists are as under:
i) Enterprise owned or significantly influenced by KMP and relatives of KMP.
Note : 1) Figures in bracket relate to the previous year
2) None of the balances due to or receivable from related parties have been adjusted or written-off during this period.
Note:
While the accounts of R & D department are maintained separately, for the purpose of presentation, the administrative and other expenses are clubbed along with other functional head of expenses and presented in the Statement of Profit and Loss.
10. Details of provision
The Company has made provision for various contractual obligations and disputed liabilities based on its assessment of the amount it estimates to incur to meet such obligations, details of which are given below:
Note: Figures in brackets relate to the previous year.
11. Since the Company prepares consolidated financial statements, segment information as revised by AS 17 "Segment Reporting" has been disclosed in consolidated financial statements.
12. The Board of Directors of the Company have recommended a final dividend of Rs.7.00 per share, (70% on the face value of Rs.10/-) aggregating to Rs.1,322.41 Lakhs on the equity shares of the company, for the year ended 31st March, 2017. In terms of the revised Accounting Standard (AS)-4 "Contingencies and Events occurring after Balance sheet date" as notified by the Ministry of Corporate Affairs through amendments to Companies (Accounting Standards) Amendment Rules, 2016, dated March 30, 2016, the Company has not accounted for proposed dividend as liability as at 31st March, 2017. However, the proposed dividend of the previous year was accounted as liability as at 31st March, 2016 in accordance with the then existing Accounting Standard.
13. Revaluation reserve of Rs.44.44 Lakhs relating to certain revalued assets sold in the earlier years is transferred to the Statement of Profit and Loss and included in Other Income for the year ended 31st March, 2017.
14. Accounting Standard (AS) - 10 "Property, Plant and Equipment''s" became applicable to the Company from 1st April, 2016. The management has decided that it would adopt the cost model and accordingly revaluation reserve of Rs.94.47 Lakhs has been adjusted against the cost of respective assets as provided in the transitional provisions of the standard.
15. The Board of Directors at its meeting held on 6th May, 2017 has given an in principle approval of the proposed merger of its wholly owned Subsidiary BCW V Tech India Private Limited with the Company with effect from 1st April, 2017 under a scheme of amalgamation, subject to necessary statutory and other approvals.
16. Exceptional item represents profit on sale of Land and Building.
17. Previous year figures have been regrouped and reclassified, wherever necessary, to correspond with the current year''s classification/disclosure.
Mar 31, 2016
1 (i) Rights, preferences and restrictions attached to shares
The Company has only one class of equity shares. 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 Board of Directors is subject to approval by the Shareholders at the ensuing Annual General Meeting. In the event of liquidation, the shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion of their shareholdings.
2 (i) Details of Security for Long Term Borrowings:
a) Term Loans from banks are secured by hypothecation of Plant and Machineries and are collaterally secured by equitable mortgage by deposit of title deeds of immovable properties of Chakkan Plant and Jalna Plant.
b) Interest rate relating to Term loans from banks is in the range of 9.70% to 10.40%
3. Disclosure required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006
Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the Auditors.
4. Details on derivative instruments and unhedged foreign currency exposures:
I. The following derivative positions are open as at 31st March, 2016. These transactions have been undertaken to act as economic hedges for the Company s exposures to various risks in foreign exchange markets and may/may not qualify to be designated as hedging instruments. The accounting for these transactions is stated in Notes 2.11.
(a) Forward exchange contracts and options (being derivative instruments), which are not intended for trading or speculative purposes but for hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables.
5.. Excise duty amounting to Rs.97.45 Lakhs (Previous Year: Rs. 102.88 Lakhs) is included in the finished goods stock value, pending clearance from factories
6. Employee benefit plans
Defined Contribution plans:
The Company makes Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs. 715.75 Lakhs (Year ended 31 March, 2015 Rs. 519.01 Lakhs) for Provided Fund contributions and Rs. 8.61 Lakhs (Year ended 31 March, 2015 Rs. 8.49 Lakhs) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the Schemes.
State plans:
The Company makes ESI contributions to Employees State Insurance Scheme. Under the Scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs. 150.43 Lakhs (Year ended 31 March, 2015 Rs. 157.36 Lakhs) in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the Scheme.
Defined Benefit Plan Gratuity:
The Company provides gratuity benefit (included as part of employees contribution to funds in Note 22 Employee benefits expense) to all eligible employees, which is funded with Life Insurance Corporation of India.
The following table sets out the funded status of the defined benefit schemes and the amount recognized in the financial statements:
7 Since the Company prepares consolidated financial statements as per AS-17 Segment Reporting, segment information has been disclosed in consolidated financial statements.
8 Previous year figures have been regrouped and reclassified, wherever necessary, to correspond with the current year s classification/disclosure.
Mar 31, 2015
1 Corporate Information
L.G.Balakrishnan & Bros Limited was founded in 1937 as a transport
Company and has evolved today as a major manufacturer of chains,
sprockets and metal formed parts for automotive applications. Its
business segments include transmission, metal forming and others. Its
transmission products include chains, sprockets, tensioners, belts and
brake shoe. It also offers metal forming products consisting of fine
blanking for precision sheet metal parts, machined components and wire
drawing products for internal use as well as for other chain
manufacturing plants, spring steel suppliers and umbrella
manufacturers. The Company's products are marketed under the "Rolon"
brand. LGB has manufacturing units spread across Tamil Nadu,
Maharashtra, Uttrakhand, Karnataka and Haryana.
(i) Details of Security for Long Term Borrowings:
a) Term Loans from banks are secured by hypothecation of Plant and
Machineries and are collaterally secured by equitable mortgage by
deposit of title deeds of immovable properties of Chakkan Plant and
Jalna Plant.
b) Inerest rate relating to Term Loan from banks is in the range of
9.70% to 11.75%
As at As at
Particulars 31.03.2015 31.03.2014
(Rs. in lakhs) (Rs. in lakhs)
2. Contingent liabilities and
commitments (to the extent not
provided for)
(i) Contingent liabilities:
(a) Claims against the Company, not
acknowledged as debt - disputed
tax liability.
i. Central Excise 624.28 538.80
ii. Entry Tax 408.36 408.36
iii. Service tax 10.02 21.41
iv. VAT / CST 454.33 289.81
1,496.99 1,258.38
(b) Guarantee given by Bankers 38.36 85.88
and outstanding
(c) Corporate guarantee given 4,450.00 5,750.00
for others
(d) Estimated customs duty
obligation on imports,
if corresponding export 1,784.97 1,522.94
obligation is not satisfied.
Note : Future Cash outflows in respect of the above matters are
determinable only on receipt of Judgements/decisions pending at various
forums / authorities.
(ii) Commitments:
As at As at
Particulars 31.03.2015 31.03.2014
(Rs. in lakhs) (Rs. in lakhs)
Estimated amount of contracts remaining
to be executed on capital account and not 7,886.59 6,701.99
provided for - Tangible assets
3.Details on derivative instruments and unhedged foreign currency
exposures:
I. The following derivative positions are open as at 31st March, 2015.
These transactions have been undertaken to act as economic hedges for
the Company's exposures to various risks in foreign exchange markets
and may/may not qualify or be designated as hedging instruments. The
accounting for these transactions is stated in Notes 2.11.
(a) Forward exchange contracts and options (being derivative
instruments), which are not intended for trading or speculative
purposes but for hedge purposes to establish the amount of reporting
currency required or available at the settlement date of certain
payables and receivables.
4. Excise duty amounting to Rs. 102.88 Lakhs (Previous Year: Rs.
69.20 Lakhs) is included in the finished goods stock value, pending
clearance from factories
5.Employee benefit plans
Defined Contribution plans:
The Company makes Providend Fund and Superannuation Fund contributions
to defined contribution plans for qualifying employees. Under the
Schemes, the Company is required to contribute a specified percentage
of the payroll costs to fund the benefits. The Company recognized Rs.
519.01 Lakhs (Year ended 31 March, 2014 Rs.387.08Lakhs) for Providend
Fund contributions and Rs. 8.49 Lakhs (Year ended 31 March, 2014 Rs.
7.60 Lakhs) for Superannuation Fund contributions in the Statement of
Profit and Loss. The contributions payable to these plans by the
Company are at rates specified in the rules of the Schemes.
State plans:
The Company makes ESI contributions to Employees State Insurance
Scheme. Under the Scheme, the Company is required to contribute a
specified percentage of the payroll costs to fund the benefits. The
Company recognised Rs. 157.36 Lakhs (Year ended 31 March, 2014
Rs.154.72 Lakhs) in the Statement of Profit and Loss. The contributions
payable to these plans by the Company are at rates specified in the
rules of the Scheme.
Defined Benefit Plan - Gratuity:
The Company provides gratuity benefit (included as part of employees
contribution to funds in Note 22 Employee benefits expense) to all
eligible employees, which is funded with Life Insurance Corporation of
India.
6.Segment information
The Company has identified business segments as its primary segment and
geographic segments as its secondary segment. Business segments are
primarily transmission, metal forming and others. Revenues and expenses
directly attributable to segments are reported under each reportable
segments. Expenses which are not directly identifiable to each
reportable segment have been allocated on the basis of associated
revenues of the segment and manpower efforts. All other expenses which
are not attributable or allocable to segments have been disclosed as
unallocable expenses. Assets and liabilities that are directly
attributable or allocable to segments are disclosed under each
reportable segment. All other assets and liabilities are disclosed as
unallocable. Fixed assets that are used interchangeably amongst
segments are not allocated to primary and secondary segments.
Geographical revenues are allocated based on the location of the
customer. Geographic segments of the Company and within India and
outside India.
7.Previous year figures have been regrouped and reclassified, wherever
necessary, to correspond with the current year's
classification/disclosure.
Mar 31, 2014
1. Employee benefit plans
Defined Contribution plans:
The Company makes Provident Fund and Superannuation Fund contributions
to defined contribution plans for qualifying employees. Under the
Schemes, the Company is required to contribute a specified percentage
of the payroll costs to fund the benefits. The Company recognised Rs.
387.08 Lakhs (Year ended 31 March, 2013 Rs. 332.72 Lakhs) for Provident
Fund contributions and Rs. 7.60 Lakhs (Year ended 31 March, 2013 Rs. 5.25
Lakhs) for Superannuation Fund contributions in the Statement of Profit
and Loss. The contributions payable to these plans by the Company are
at rates specified in the rules of the Schemes.
State plans:
The Company makes ESI contributions to Employees State Insurance
Scheme. Under the Scheme, the Company is required to contribute a
specified percentage of the payroll costs to fund the benefits. The
Company recognised Rs. 154.72 Lakhs (Year ended 31 March, 2013 Rs. 106.93
Lakhs) in the Statement of Profit and Loss. The contributions payable
to these plans by the Company are at rates specified in the rules of
the Scheme.
Defined Benefit Plan  Gratuity:
The Company provides gratuity benefit to all eligible employees, which
is funded with Life Insurance
Corporation of India.
2. Segment information
The Company has identified business segments as its primary segment and
geographic segments as its secondary segment. Business segments are
primarily transmission, metal forming and others. Revenues and expenses
directly attributable to segments are reported under each reportable
segments. Expenses which are not directly identifiable to each
reportable segment have been allocated on the basis of associated
revenues of the segment and manpower efforts. All other expenses which
are not attributable or allocable to segments have been disclosed as
unallocable expenses. Assets and liabilities that are directly
attributable or allocable to segments are disclosed under each
reportable segment. All other assets and liabilities are disclosed as
unallocable. Fixed assets that are used interchangeably amongst
segments are not allocated to primary and secondary segments.
Geographical revenues are allocated based on the location of the
customer. Geographic segments of the Company and within India and
outside India.
Note:
While the accounts of R & D department are maintained separately, for
the purpose of presentation, the administrative and other expenses are
clubbed along with other functional head of expenses and presented in
the Statement of Profit and Loss.
3. Previous year figures have been regrouped and reclassified, wherever
necessary, to correspond with the current year''s classification/ disclosure.
Mar 31, 2013
1 Corporate Information
L.G. Balakrishnan & Bros Ltd. was founded in 1937 as a transport
Company and has evolved today as a major manufacturer of chains,
sprockets and metal formed parts for automotive applications. Its
business segments include transmission, metal forming and others. Its
transmission products include chains, sprockets, tensioners, belts and
brake shoe. It also offers metal forming products consisting of fine
blanking for precision sheet metal parts, machined components and wire
drawing products for internal use as well as for other chain
manufacturing plants, spring steel suppliers, and umbrella
manufacturers. The Company''s products are marketed under the
"Rolon" brand. LGB has manufacturing units spread across Tamil
Nadu, Maharashtra, Uttrakhand, Karnataka and Hariyana.
As at As at
Particulars 31.03.2013 31.03.2012
(Rs. in lakhs) (Rs. in lakhs)
2.1 Contingent liabilities and
commitments
(to the extent not provided for)
(i) Contingent liabilities:
(a) Claims against the Company,
not acknowledged as debt -
Disputed tax liability. 982.87 772.32
(b) Guarantee given by
Bankers and outstanding 21.05 2.87
(c) Corporate guarantee
given for others 7,150.00 8,400.00
(d) Estimated customs duty
obligation on imports,
if corresponding export
obligation is not
satisfied. 1,386.06 1,625.20
(ii) Commitments:
Estimated amount of contracts
remaining to be executed on
capital account and not
provided for - Tangible assets 1,791.58 778.22
2.2 Details on derivative instruments and unhedged foreign currency
exposures:
I. The following derivative positions are open as at 31st March, 2013.
These transactions have been undertaken to act as economic hedges for
the Company''s exposures to various risks in foreign exchange markets
and may/may not qualify or be designated as hedging instruments. The
accounting for these transactions is stated in Note 2.11.
(a) Forward exchange contracts and options (being derivative
instruments), which are not intended for trading or speculative
purposes but for hedge purposes to establish the amount of reporting
currency required or available at the settlement date of certain
payables and receivables.
2.3. Excise duty amounting to '' 80.72 Lakhs (Previous Year: '' 103.77
Lakhs) is included in the finished goods stock value, pending clearance
from factories.
2.4. Mat Credit:
Provision for income tax has been computed on the basis of Minimum
Alternate Tax (MAT) in accordance with Section 115JB of the Income Tax
Act, 1961. Considering the future profitability and taxable positions
in the subsequent years, the Company has recognised "MAT Credit
Entitlement of '' 47.19 Lakhs as an asset by crediting to the Statement
of Profit and Loss an equivalent amount and included under Loans and
Advances in accordance with the guidance note on "Accounting for
credit available in respect of Minimum Alternate Tax under Income Tax
Act, 1961, issued by the Institute of Chartered Accountants of India.
Balance as on 31.03.2013 is '' 399.27 Lakhs (Previous year - '' 352.08
Lakhs).
2.5 Employee benefit plans
Defined Contribution plans:
The Company makes Providend Fund and Superannuation Fund contributions
to defined contribution plans for qualifying employees. Under the
Schemes, the Company is required to contribute a specified percentage
of the payroll costs to fund the benefits. The Company recognised ''
332.72 Lakhs (Year ended 31 March, 2012 '' 264.04 Lakhs) for Providend
Fund contributions and '' 5.25 Lakhs (Year ended 31 March,
2012 '' 5.02 Lakhs) for Superannuation Fund contributions in the
Statement of Profit and Loss. The contributions payable to these plans
by the Company are at rates specified in the rules of the Schemes.
State plans:
The Company makes ESI contributions to Employees State Insurance
Scheme. Under the Scheme, the Company is required to contribute a
specified percentage of the payroll costs to fund the benefits. The
Company recognised '' 106.93 Lakhs (Year ended 31 March, 2012 '' 82.04
Lakhs) in the Statement of Profit and Loss. The contributions payable
to these plans by the Company are at rates specified in the rules of
the Scheme.
Defined Benefit Plan - Gratuity:
The Company provides gratuity benefit to all eligible employees, which
is funded with Life Insurance Corporation of India.
2.6 Segment information
The Company has identified business segments as its primary segment and
geographic segments as its secondary segment. Business segments are
primarily transmission, metal forming and others. Revenues and expenses
directly attributable to segments are reported under each reportable
segments. Expenses which are not directly identifiable to each
reportable segment have been allocated on the basis of associated
revenues of the segment and manpower efforts. All other expenses which
are not attributable or allocable to segments have been disclosed as
unallocable expenses. Assets and liabilities that are directly
attributable or allocable to segments are disclosed under each
reportable segment. All other assets and liabilities are disclosed as
unallocable. Fixed assets that are used interchangeably amongst
segments are not allocated to primary and secondary segments.
Geographical revenues are allocated based on the location of the
customer. Geographic segments of the Company and within India and
outside India.
3 Previous year figures have been regrouped and reclassified, wherever
necessary, to correspond with the current year''s
classification/disclosure.
Mar 31, 2010
1. Pending the outcome of the Companys reference to the Tamilnadu
High Court regarding adequacy of the compensation relating to 163.73
acres of land acquired by the State government in 1972, no adjustment
has been made in the value of land.
2. The Company had purchased a Flat in Ahmedabad in 1979 for Rs. 1.40
Lakhs. The Flat has not yet been registered in the name of the Company.
A suit was filed against the company by the builder claming the
possession of the Flat together with an amount of Rs. 17.77 Lakhs
towards lease rent, compensation, and mense profit. The Company has
been advised by the counsel that the claim against the company is not
tenable.
3. SECURITY FOR LOAN
a. Term Loan:
The term loans are secured by the hypothecation of Plant and
Machineries and are collaterally secured by the equitable mortgage by
deposits of title deeds of certain immoveable properties.
b. Working Capital Loan:
The Working Capital loans are primarily secured by hypothecation of
inventories and book debts of the company.
4. CONTINGENT LIABILITIES (Rs. in Lakhs)
31.03.2010 31.03.2009
a. Guarantee given by Bankers and outstanding 1023.61 701.47
b. Corporate guarantee given for others 8376.67 8898.82
c. Estimated amount of contracts remaining
to be executed on Capital Accounts and not
provided for (Net after advance payments) 2355.16 617.31
d. Disputed tax liability 465.87 546.86
e. Duty implication involved on Export obligation 811.54 909.73
5. MAT CREDIT:
Provision for Income tax has been computed on the basis of Minimum
Alternate Tax (MAT) in accordance with Section 115JB of the Income Tax
Act, 1961. Considering the future profitability and taxable positions
in the subsequent years, the company has recognized "MAT Credit
Entitlement" of Rs.530.45 Lakhs (Previous Year - Nil) as an asset by
crediting to the Profit and Loss Account an equivalent amount and
included under Loans and Advances in accordance with the guidance note
on " Accounting for credit available in respect of Minimum Alternate
Tax under Income Tax Act, 1961, issued by the Institute of Chartered
Accountants of India.
6. Excise Duty amounting to Rs.59.75 Lakhs (Previous year Rs.39.52
lakhs) is included in the finished goods stock.
7. Remittances in foreign currencies for Dividends :
The Company has not remitted any foreign currencies on account of
Dividend during the year, 2009 - 10.
8. Pursuant to the notification G.S.R. 225(E) issued by Ministry of
Corporate Affairs, the Company exercised its option, during the year
irrevocably, to account for exchange difference on long term monetary
items in foreign currency (i.e. those items whose term of settlement
exceeds twelve months from the date of its origination) as directed in
this said notification. Accordingly, all long term outstanding in
foreign currency are translated at the closing rate as on March, 2010.
Exchange differences on translation or settlement of long term foreign
currency monetary items at rates different from those at which they
were initially recorded or April 1, 2007 which ever is later, in so far
as it relates to acquition of depreciable assets are adjusted to the
cost of the assets. In other cases, such exchange differences are
accumulated inToreign Currency Monetary Item translation difference
account" and amortised by recognition as income or expense in each
period over the balance term till settlement occurs but not beyond
March 31, 2011. The impact of the above adjustments returning to the
current year is a higher net profit of Rs.242.25 lakhs.
Note:
In the absence of detailed information regarding plan assets which is
funded with Life Insurance Corporate of India, the composition of each
major category of plan assets, the percentage or amount for each
category to the fair value of plan assets has not been disclosed. The
details of experience adjustments arising on account of plan assets and
liabilities as required by Paragraph 120(n) (ii) of AS 15 (Revised) on
"Employee Benefits" are not readily available in the valuation report
and hence, are not furnished.
The estimate of rate of escalation in salary considered in actuarial
valuation, takes into account inflation, seniority, promotion and other
relevant factors including supply and demand in the employment market.
9. The previous year figures in the Balance Sheet and in the Profit &
Loss Account have been regrouped and reclassified, wherever necessary,
to conform to the current years classification and expressed in terms
of Lakhs.