Mar 31, 2018
NOTES TO THE FINANCIAL STATEMENTS
Particulars |
For the year ended |
For the year ended |
March 31, 2018 |
March 31, 2017 |
|
Earnings per share |
||
Profit after tax for the year attributable to equity shareholders (Rs in Lacs) |
4,159.03 |
3,455.36 |
Weighted average number of equity shares (in Nos.) |
100,000,000 |
100,000,000 |
Basic and Diluted earnings per equity share (in Rs) |
4.16 |
3.46 |
Face Value per equity share (in Rs) |
2.00 |
2.00 |
Notes:
The Company has allotted 50,000,000 number of fully paid Bonus Shares on July 13, 2017 in the ratio of one equity share of Rs 2 each fully paid up for every one existing equity shares of Rs 2 fully paid up. In accordance with Ind AS 33, Earning per Share'', basic and diluted earnings per equity share have been adjusted for bonus issue for previous year.
40 Leases
The Company has obtained land, certain premises and furniture and fittings for its business operations under operating lease or leave and license agreements. These are generally not non-cancellable and periods range between 11-12 months and 99 years under leave and licence and are renewable by mutual consent on mutually agreeable terms. The Company has given refundable interest free security deposits in accordance with the agreed terms. These refundable security deposits have been valued at amortised cost under relevant Ind AS.
Lease payments are recognised in the Statement of Profit and Loss under "Rent" in Note 36.
41 Employee Benefits
(a) Defined Contribution Plans
Contributions to defined contribution plan are recognised as expenses when contributions become due.
The Company participates in a number of defined contribution plans on behalf of relevant personnel. Any expense recognised in relation to these schemes represents the value of contributions payable during the period by the Company at rates specified by the rules of those plans. The only amounts included in the balance sheet are those relating to the prior months contributions that were not due to be paid until after the end of the reporting period. The major defined contribution plans operated by the Company are as below:
(i) Provident fund and Pension
In accordance with the Employee''s Provident Fund and Miscellaneous Provisions Act, 1952 eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees'' salary.
The contributions, as specified under the law, are made to the provident fund set up as an irrevocable trust by the Company, post contribution of amount specified under the law to Employee Provident Fund Organisation on account of employee pension scheme.
(ii) Superannuation fund
The Company has a superannuation plan for the benefit of its employees. Employees who are members of the defined benefit superannuation plan are entitled to benefits depending on the years of service and salary drawn.
Separate irrevocable trusts are maintained for employees covered and entitled to benefits. The Company contributes up to 10% of the eligible employees'' salary to the trust every year. Such contributions are recognised as an expense as and when incurred. The Company does not have any further obligation beyond this contribution.
The total expenses recognised in the Statement of Profit and Loss during the year are as under:
Particulars |
For the year ended March 31, 2018 |
(Amount Rs in Lacs) For the year ended March 31, 2017 |
Employer''s contribution to Provident and other Funds |
299.53 |
259.87 |
Employer''s contribution to Superannuation Fund |
84.45 |
82.58 |
Total |
383.98 |
342.45 |
(b) Defined Benefit Plan (i) Gratuity
In respect of Gratuity, a defined benefit plan, contributions are made to LIC''s Recognised Group Gratuity Fund Scheme. It is governed by the Payment of Gratuity Act, 1972. Under the Gratuity Act, employees are entitled to specific benefit at the time of retirement or termination of the employment on completion of five years or death while in employment. The level of benefit provided depends on the member''s length of service and salary at the time of retirement/termination age. The most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out as at March 31,2018 by a member firm of the Institute of Actuaries of India. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method. Each year, the Company reviews the level of funding in gratuity fund. The Company decides its contribution based on the results of its annual review.
This plan typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.
(I) Investment Risk
The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to the market yields on government bonds denominated in Indian Rupees. If the actual return on plan asset is below this rate, it will create a plan deficit. However, the risk is partially mitigated by investment in LIC managed fund.
(II) Interest Rate Risk
A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase in the return on the plan''s debt investments.
(III) Longevity Risk
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.
(IV) Salary Risk
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.
Amounts recognized in the Financial Statements in respect of defined benefit plan are as follows:
(Amount Rs in Lacs) |
||
Particulars |
For the year ended |
For the year ended |
March 31, 2018 |
March 31, 2017 |
|
Service Cost |
||
Current Service Cost |
106.39 |
94.14 |
Past service cost and loss/(gain) on curtailments and settlement |
29.98 |
- |
Net interest expense/ (income) |
15.20 |
24.04 |
Components of defined benefit costs recognised in |
||
Employee Benefit Expenses |
151.57 |
118.18 |
Re-measurement on the net defined benefit liability: |
||
Actuarial (gains)/losses arising from changes in demographic assumptions |
- |
- |
Actuarial (gains)/losses arising from changes in financial assumptions |
(31.79) |
39.84 |
Actuarial (gains)/losses arising from experience adjustments |
2.01 |
19.52 |
Return on Plan Assets excluding amount included in net interest cost |
(5.21) |
(0.51) |
Components of Re-measurement |
(34.99) |
58.85 |
Total |
116.58 |
177.03 |
(Amount Rs in Lacs) |
||
Particulars |
For the year ended |
For the year ended |
March 31, 2018 |
March 31, 2017 |
|
The amount included in the balance sheet arising from the entity''s |
||
obligation in respect of its defined benefit plan is as follows: |
||
Present Value of funded defined benefit obligation |
1,174.07 |
1,032.07 |
Fair value of plan assets |
980.66 |
766.28 |
Net liability arising from defined benefit obligation |
193.41 |
265.79 |
Movements in the present value of the defined benefit obligation are as follows: |
||
Opening defined obligation |
1,032.07 |
868.48 |
Current service cost |
106.39 |
94.14 |
Interest cost |
61.86 |
57.06 |
Re-measurement (gains)/losses : |
||
Actuarial (gains)/ losses arising from changes in financial assumptions |
(31.79) |
39.84 |
Actuarial (gains)/ losses arising from experience adjustments |
2.01 |
19.52 |
Past Service Cost |
29.98 |
- |
Benefits paid |
(26.45) |
(46.97) |
Closing defined benefit obligation |
1,174.07 |
1,032.07 |
Movements in the fair value of plan assets are as follows: |
||
Opening value of plan assets |
766.28 |
513.16 |
Interest income |
46.66 |
33.02 |
Return on plan assets excluding amounts included in interest income |
5.21 |
0.51 |
Contributions by employer |
187.96 |
266.56 |
Benefits paid |
(25.45) |
(46.97) |
Closing defined benefit obligation |
980.66 |
766.28 |
Classification of Non-Current and Current Liability:
|
(Amount Rs in Lacs) |
||
Particulars |
As at |
As at |
As at |
March 31, 2018 |
March 31, 2017 |
April 1,2016 |
|
Non-Current liability |
117.50 |
106.39 |
94.14 |
Current liability |
75.91 |
159.40 |
261.18 |
Total |
| 193.41 |
265.79 |
355.32 |
The principal assumptions used for the purposes of the actuarial valuations were as follows: |
|||
Particulars |
As at March 31, 2018 |
As at March 31, 2017 |
As at April 1,2016 |
Mortality |
Indian Assured Lives Mortality (2006-08) Ultimate |
Indian Assured Lives Mortality (2006-08) Ultimate |
Indian Assured Lives Mortality (2006-08) Ultimate |
Withdrawal Rates |
Up to 25 years:10% from 26 to 35 years: 7.50% from 36 to 45 years: 5.00% from 46 to 55 years: 2.50% After 56 years: 1.00% |
Up to 25 years:10% from 26 to 35 years: 7.50% from 36 to 45 years: 5.00% from 46 to 55 years: 2.50% After 56 years: 1.00% |
Up to 25 years:10% from 26 to 35 years: 7.50% from 36 to 45 years: 5.00% from 46 to 55 years: 2.50% After 56 years: 1.00% |
Discount Rate (%) |
7.60% |
7.15% |
7.80% |
Salary escalation rate (%) |
7.50% |
7.50% |
7.50% |
Rate of Return on Plan Assets (%) |
7.60% |
7.15% |
7.80% |
|
(Amount Rs in Lacs) |
|
Particulars |
As at |
As at |
March 31, 2018 |
March 31, 2017 |
|
Thefair value of the plan assets attheend of the reporting period |
||
for each category are as follows: |
||
100%managed by insurer (Life Insurance Corporation of India) |
980.66 |
766.28 |
Fair value of Investment in Group of Insurance Company is taken asbookvalueon reporting date.
The actual return on plan assets of gratuity during the year is Rs 51.87 Lacs (during previous year ended March 31,2017: ? 33.53 Lacs)
Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and withdrawal rates. The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumptions occurring attheend of the reporting period, while holding all other assumptions constant.
(Amoun Rs in Lacs) |
||
Significant actuarial assumptions |
For the year ended |
For the year ended |
March 31, 2018 |
March 31, 2017 |
|
Discount Rate |
||
Impact due to increase of 50 basis points |
1,140.92 |
946.05 |
Impact due to decrease of 50 basis points |
1,209.51 |
1,000.93 |
Salary increase |
||
Impact due to increase of 50 basis points |
1,208.06 |
1,000.22 |
Impact due to decrease of 50 basis points |
1,141.63 |
946.10 |
Withdrawal Rate |
||
Impact due to increase of 10 percent |
1,173.88 |
972.98 |
Impact due to decrease of 10 percent |
1,173.00 |
971.83 |
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Sensitivity due to mortality are not material & hence impact of change not calculated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.
(Amount Rs. in Lacs) |
||
Particulars |
As at |
As at |
March 31, 2018 |
March 31, 2017 |
|
Maturity Profile of Defined Benefit Obligations: |
||
Zero to Four years |
46.96 |
66.81 |
Four to Ten years |
306.14 |
236.56 |
Ten to Fifteen years |
63.97 |
55.55 |
Fifteen and above |
757.00, |
673.15 |
Accrued gratuity for left employees |
I |
- |
Total |
1,174.07 |
1,032.07 |
The Company expects to make acontribution of Rs 117.51 Lacs (as at March 31,2017:Rs 106.39 Lacs, as at April 1,2016:Rs 94.14 Lacs) to the defined benefit plans during the next financial year.
42 Impairment of Assets
In accordance with the Indian Accounting Standard (Ind AS-36) on "Impairment of Assets" the Company has, during the year, carried out an exercise of identifying the assets that may have been impaired in respect of cash generating unit in accordance with the said Indian Accounting Standard. Based on the exercise, no impairment loss is required as at March 31,2018.
43 Segment Reporting
The Company''s operations falls under single segment namely "Manufacturing of Auto Components", taking into account the risks and returns, the organization structureand the internal reporting systems. Segment revenuefrom "Manufacturing of Auto Components" represents revenue generated from external customers which is attributable to the Company''s country of domicile i.e. India and external customers outside India as under:
Particulars |
For the year ended March 31, 2018 |
For the year ended March 31, 2017 |
Revenue from: |
(Amount Rs in Lacs) | (Amount Rs in Lacs) |
Outside India |
139.56 |
551.38 |
In India |
105,507.58 |
92,418.02 |
All assets are located in the Company''s country of domicile i.e. India.
The Company''s significant revenues (more than 90%) are derived from single entity. The total revenue from such entities amounted to Rs. 1,00,102.52 Lacs (for the year ended March 31, 2017: Rs 87,343.59 Lacs)
44 Related Party Disclosures:
Name of related parties and description of their relationships are as under: (A) Holding Company:
Thakurdevi Investments Private Limited
(B) Key Managerial Personnel: |
|
Mr. Sudhir Kumar Munjal |
Chairman and Managing Director |
Mrs. Anju Munjal |
Whole-time Director |
Mr. Anuj Munjal |
Whole-time Director |
Mr. S. K. Sharma |
Chief Financial Officer |
Mr. Rakesh Johari |
Company Secretary |
Mr. Vikram Shah |
Independent Director |
Mr. Naresh Kumar Chawla |
Independent Director |
Mr. Mahendra Sanghvi |
Independent Director |
Mr. Ramkisan Devidayal |
Independent Director |
Mr. Sudesh Kumar Duggal |
Independent Director |
Mr. Jal Ratanshaw Patel |
Independent Director |
(C) Enterprise in which directors and their relatives are directors Sara Investment Private Limited The following transactions were carried out with the related parties in ordinary course of business during the year:
(Amount Rs. in Lacs) |
||||
Nature of Transaction |
Holding Company |
Enterprise in which directors and their relatives are directors |
Key Managerial personnel |
Total |
Remuneration paid |
- |
- |
817.43 |
817.43 |
(652.22) |
(652.22) |
|||
Mr. Sudhir Kumar Munjal |
- |
- |
272.17 |
272.17
|
(209.53) |
(209.53) |
|||
Mrs. Anju Munjal |
_ |
_ |
238.15 |
238.15 |
(190.84) |
(190.84) |
|||
Mr. Anuj Munjal |
- |
- |
238.15 |
238.15 |
- |
- |
(189.52) |
(189.52) |
|
Mr. S. K. Sharma |
- |
- |
50.07 |
50.07 |
- |
- |
(45.48) |
(45.48) |
|
Mr. Rakesh Johari |
- |
- |
18.89 |
18.89 |
- |
- |
(16.85) |
(16.85) |
|
Sitting Fees paid |
- |
- |
19.12 |
19.12 |
- |
- |
(18.28) |
(18.28) |
|
Mr. Vikram Shah |
- |
- |
4.72 |
4.72 |
- |
- |
(4.08) |
(4.08) |
|
Mr. Naresh Kumar Chawla |
- |
- |
3.40 |
3.40 |
- |
- |
(3.80) |
(3.80) |
|
Mr. Mahendra Sanghvi |
- |
- |
3.60 |
3.60 |
- |
- |
(3.80) |
(3.80) |
|
Mr. Ramkisan Devidayal |
_ |
_ |
3.80 |
3.80 |
- |
- |
(3.40) |
(3.40) |
|
Mr. Sudesh Kumar Duggal |
_ |
_ |
2.20 |
2.20 |
- |
- |
(1.40) |
(1.40) |
|
Mr. Jal Ratanshaw Patel |
- |
- |
1.40 |
1.40 |
- |
- |
(1.80) |
(1.80) |
|
Payments made by the Company on behalf of |
96.25 |
42.68 |
- |
(3.49) |
(5.29) |
(7.68) |
|||
Sara Investments |
. |
30.88 |
. |
. |
Sudhir Kumar & Sons HUF |
- |
(0.79) 11.80 |
- |
(3.49) |
- |
(6.89) |
- |
- |
|
Thakurdevi Investments Private Limited |
ed 96.25 |
- |
- |
138.93 |
(5.29) |
- |
- |
(9.30) |
|
Dividend Paid |
743.06 |
- |
- |
748.06 |
Thakurdevi Investments Private Limilted |
748.06 |
- |
- |
748.06 |
Amounts in bracket indicate previous year figures.
|
(Amount Rs in Lacs) |
||
Particulars |
As at |
As at |
As at |
|
March 31, 2018 |
March 31, 2017 |
April 1,2016 |
Remuneration payable |
34.01 |
83.72 |
33.37 |
Mr. Sudhir Kumar Munjal |
15.93 |
40.58 |
3.08 |
Mrs. Anju Munjal |
4.86 |
6.91 |
21.98 |
Mr. Anuj Munjal |
9.55 |
32.94 |
5.53 |
Mr. S. K. Sharma |
2.56 |
2.41 |
1.98 |
Mr. Rakesh Johari |
1.11 |
0.88 |
0.80 |
Category-wise break up of compensation to key management personnel during the year is as follows:
Particulars |
For the year ended March 31, 2018 |
For the year ended March 31, 2017 |
Short-term employee benefits |
728.17 |
571.48 |
Post-employment benefits (excluding Leave encashment) |
89.76 |
81.06 |
45 The Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses.
46 The Company has a system of physical verification of Inventory and Stores on regular intervals and of Fixed assets in a phased manner to cover all items over a period of two years. Adjustment differences, if any, are carried out on completion of reconciliation.
47 Financial Instrument Disclosure: (a) Capital Management
The Company''s capital management is intended to create value for shareholders by facilitating the meeting of long term and short term goals of the Company, safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital.
The Company determines the amount of capital required on the basis of annual business plan coupled with long term and short term strategic investment and expansion plans. The funding needs are met through equity, cash generated from operations, long term and short term bank borrowings.
The Company monitors capital using a ratio of net debt to equity. For this purpose, net debt is defined as liabilities, comprising interest-bearing loans less cash and cash equivalents, other bank balances (including earmarked balances) and current investments. Equity comprises all components of equity.
The table below summarises the capital, net debt and net debt to equity ratio of the Company.
|
(Amount Rs in Lacs) |
||
Particulars |
As at |
As at |
As at |
March 31, 2018 |
March 31, 2017 |
April 1,2016 |
|
Equity share capital |
2,000.00 |
1,000.00 |
1,000.00 |
Other Equity |
26,264.96 |
24,286.77 |
20,869.88 |
Total Equity (A) |
28,264.96 |
25,286.77 |
21,869.88 |
Non-current borrowings |
1,609.24 |
2,889.48 |
4,607.20 |
Short term borrowings |
8.69 |
59.82 |
781.61 |
Current maturities of long term borrowings |
1,258.61 |
1,463.97 |
1,607.33 |
Gross Debt (B) |
2,876.54 |
4,413.27 |
6,996.14 |
Gross Debt as above |
2,876.54 |
4,413.27 |
6,996.14 |
Less: Current investments |
6,266.17 |
4,807.45 |
2,326.94 |
Less: Cash and cash equivalents |
1,467.52 |
104.61 |
229.35 |
Less: Other balances with bank (including earmarked balances) |
104.93 |
95.48 |
126.62 |
Net Debt (C) |
(4,962.08) |
(594.27) |
4,313.23 |
Net debt to equity |
(0.18) |
(0.02) |
U.£U |
(b) Disclosures
This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.
The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial asset, financial liability and equity instrument are disclosed inNote4(xii), (xiii) and (xiv).
(i) Financial assets and liabilities
The following tables presents each category of financial assets and liabilities as at March 31,2018, March 31,2017 and April 1, 2016.
|
(Amount Rs in Lacs) |
||
Particulars |
As at |
As at |
As at |
|
March 31, 2018 |
March 31, 2017 |
April 1,2016 |
I. Financial Assets |
|||
Measured at fair value through profit or loss (FVTPL) |
6,266.17 |
4,807.45 |
2,326.94 |
Measured at amortised cost |
|||
Trade and other receivables |
15,819.88 |
13,295.98 |
12,783.73 |
Cash and cash equivalents |
1,467.52 |
104.61 |
229.35 |
Other bank balances |
104.93 |
95.48 |
126.62 |
Loans |
236.79 |
231.40 |
233.54 |
Other financial assets |
7.26 |
10.29 |
9.52 |
Total |
23,902.55 |
18,545.21 |
15,709.70 |
II. Financial Liabilities
Measured at amortised cost |
|||
Long term borrowings |
1,609.24 |
2,889.48 |
4,607.20 |
Short term borrowings |
8.69 |
59.82 |
781.61 |
Trade payables |
13,550.68 |
10,295.79 |
9,312.79 |
Otherfinancial liabilities |
2,371.40 |
2,902.57 |
2,649.50 |
Total |
17,540.01 |
16,147.66 |
17,351.10 |
(ii) Fair value measurement
This note provides information about how the Company determines fair values of various financial assets and liabilities.
Fair value measurements under Ind AS are categorised as below based on thedegree to which the inputs to thefair value measurements are observable and the significance of the inputs to thefair value measurement in its entirety:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the company can access at measurement date;
Level 2 inputs are inputs, other than quoted prices included in level 1, that are observable for the asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs forthe valuation of assets/liabilities.
Fair value of the Company''s financial assets that are measured atfair value on a recurring basis:
Followinq table qives information about how the fair values of the Company''s financial assets are determined:
(Amount Rs in Lacs) |
|||
Financial assets |
Fair value as at March 31, 2018 |
March 31, 2017 |
Fair value hierarchy |
Investment in mutual funds |
6,266.17 |
4,807.45 |
Level 1 |
Valuation technique and key input: NAV declared by respective Asset Management Companies.
Fair value of financial assets and financial liabilities that are not measured atfair value (but fair value disclosures are required):
Management considers that the carrying amounts of financial assets and financial liabilities recognized in the financial statements exceptfair value of investments in mutual funds approximate their fair values.
There have been no transfers between Level 1 and Level 2 for the years ended March 31,2018, March 31,2017 and April 1,2016.
(iii) Financial risk management objectives
The Company''s principal financial liabilities comprises of loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include mutual funds, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company is exposed to market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The senior management ensures that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.
(a) Market risk
Market risk is the risk that changes in market prices- such as foreign exchange rates, interest rates and equity prices- will affect theCompany''s income or the valueof its holdings of financial instrument. The objective of market risk management is to manage and control market risk exposures within acceptable parameters while optimising the return. The major components of market risk are foreign currency risk, interest rate risk and price risk.
(I) Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise.
Thecarrying amount of the Company''s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows:
|
(Amount Rs in Lacs) |
||
Foreign Currency Exposure |
As At |
As At |
As At |
March 31, 201 8 |
March 31, 2017 |
April 1,2016 |
|
Assets |
17.40 |
248.62 |
216.64 |
Liabilities |
11.06 |
50.56 |
42.84 |
The Company has not entered in to any forward contracts to hedge its foreign exposures and therefore there are no outstanding forward contract at the year end (as at March 31,2017: Nil, as at April 1,2016: Nil)
Foreign Currency Sensitivity:
The Company is principally exposed to foreign currency risk against USD. Sensitivity of profit or loss arises mainly from USD denominated receivables and payables. As per management''s assessment of reasonable possible changes in the exchange rate of /- 5% between USD-INR currency pair, sensitivity of profit or loss only on outstanding foreign currency denominated monetary items at the period end is presented below:
(Amount Rs in Lacs) |
||
USD sensitivity at year end |
For the year ended March 31, 2018 |
For the year ended March 31, 2017 |
Assets |
||
Weakening of INR by 5% |
0.87 |
12.43 |
Strengthening of I NR by 5% |
(0.87) |
(12.43) |
Liabilites |
||
Weakening of INR by 5% |
(0.55) |
(2.53) |
Strengthening of INR by 5% |
0.55 |
2.53 |
(II) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s main interest rate risk arises from the long term borrowings with fixed rates. The Company''s fixed rates borrowings are carried at amortised cost.
The Company invests the surplus fund generated from operations in mutual funds. Considering these mutual funds are short term in nature, there is no significant interest rate risk.
The Company has laid policies and guidelines including tenure of investment made to minimise impact of interest rate risk.
(Ill) Price risk
The Company has deployed its surplus funds into units of mutual fund. The Company is exposed to NAV (net asset value) price risks arising from investments in these funds. The value of these investments is impacted by movements in liquidity and credit quality of underlying securities.
NAV price sensitivity analysis
The sensitivity analyses below have been determined based on the exposure to NAV price risks at the end of the reporting period. If NAV prices had been 1% higher/lower:
Profit for the year ended March 31, 2018 would increase/decrease by Rs 62.66 Lacs (for the year ended March 31, 2017: increase/decrease by Rs 48.07 Lacs)
(b) Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults. The Company''s exposure and wherever appropriate, the credit ratings of its counterparties are continuously monitored and spread amongst various counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the management of the Company. Financial instruments that are subject to concentrations of credit risk, principally consist of balance with banks, investments in mutual funds, trade receivables and loans and advances. None of the financial instruments of the Company result in material concentrations of credit risks.
Balances with banks were not past due or impaired as at the year end. In other financial assets that are not past dues and not impaired, there were no indication of default in repayment as at the year end.
The age analysis of trade receivables as of the balance sheet date have been considered from the due date and disclosed as under:
(Amount Rs in Lacs) |
|||
Particulars |
As At |
As At |
As At |
March 31, 201 8 |
March 31, 2017 |
April 1,2016 |
|
Within the credit period |
15,819.88 |
13,292.56 |
12,783.73 |
Upto 6 months past due |
- |
- |
- |
More than 6 months past due |
3.43 |
3.43 |
- |
Total |
15,823.31 |
13,295.99 |
12,783.73 |
The Company has used a practical expedient by computing the expected loss allowance for financial assets based on historical credit loss experience and adjustments for forward looking informations.
(c) Liquidity risk
The Company manages liquidity risk by maintaining sufficient cash and cash equivalents and availability of funding through an adequate amount of committed credit facilities to meet the obligations when due. Management monitors rolling forecasts of liquidity position and cash and cash equivalents on the basis of expected cash flows. In addition, liquidity management also involves projecting cash flows considering level of liquid assets necessary to meet obligations by matching the maturity profiles of financial assets & liabilities and monitoring balance sheet liquidity ratios.
The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The information included in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. The contractual maturity is based on the earliest date on which the Company may be required to pay.
|
(Amount Rs in Lacs) |
||
Particulars |
1 month -1 year |
1 year -3 years |
More than 3 years |
As at March 31, 2018 |
|||
Long term borrowings |
1,258.61 |
1,609.24 |
- |
Short term borrowings |
8.69 |
- |
- |
Trade payables |
13,550.68 |
- |
- |
Otherfinancial liabilities |
1,112.79 |
- |
- |
Total |
15,930.77 |
1,609.24 |
- |
Compiled by: Dion Global Solutions Limited
MUNJAL AUTO
|
(Amount Rs in Lacs) |
|
Particulars |
1 month -1 year |
1 year- 3 years More than 3 years |
As at March 31, 2017 |
||
Long term borrowings |
1,463.97 |
2,764.34 125.14 |
Short term borrowings |
59.82 |
- |
Trade payables |
10,295.79 |
- |
Otherfinancial liabilities |
1,438.60 |
- |
Total |
13,258.18 |
2,764.34 125.14 |
The following table details the Company''s expected maturity for its non-derivative financial assets. The information included in the table has been drawn up based on the undiscounted contractual maturities of the financial assets including interest that will be earned on those assets. The inclusion of information on non-derivative financial assets is necessary in order to understand the Company''s liquidity risk management as the liquidity is managed on a net asset and liability basis. Ind AS 107.34,35 B11(e)
As at March 31, 2018 |
||
Trade and other receivables |
15,819.88 |
- |
Investments in Mutual funds |
6,266.17 |
- |
Loans |
78.29 |
158.50 |
Other financial assets |
7.26 |
- |
Total |
22,171.60 |
158.50 |
As at March 31, 2017 |
||
Trade and other receivables |
13,295.98 |
- |
Investments in Mutual funds |
4,807.45 |
- |
Loans |
74.75 |
156.65 |
Other financial assets |
10.29 |
- |
Total |
18,188.47 |
156.65 |
The Company has access to committed credit facilities as described below, of which Rs 66.29 Lacs were unused at the end of the reporting year (as at March 31,2017 Rs 72.78 Lacs). The Company expects to meet its other obligations from operating cash flows and proceeds of maturing financial assets.
(Amount in lacs) |
|
|
Unsecured bank overdraft facility, reviewed annually and payable at call |
As at March 31, 2018 |
As at March 31, 2017 |
Amount used |
2,877.21 |
4,237.67 |
Amount unused |
3,751.79 |
3,040.33 |
Mar 31, 2017
1.ADDITIONAL INFORMATIONS
A The Company as well as various industrial units in Waghodia have disputed their liability to pay octroi duty and hence the company deposited the amount of Rs. 15.45 lacs under protest which is held in a separate bank account in the name of Sarpanch, the Waghodia Gram Panchayat and the Company as the second party under a Court directive. By virtue of a subsequent notification of the State Government of Gujarat, the company, like other industrial units in the notified area of Waghodia, is not required to pay the octroi Duty from 19th July, 1997. The company believes it has no liability for octroi duty even for the earlier period. Association for Industrial Units in Waghodia has filed a suit for recovery of amounts paid under protest, which is still pending for final decision. Therefore, the said amount of Rs.15.45 lacs (Previous Year Rs.15.45 lacs) is included in Balance Sheet under the head âLoans & Advancesâ and no provision is made for liability of octroi in this respect. In the absence of clarity regarding rights of respective parties, interest credited by the bank amounting to Rs.20.11 lacs (Previous Year: Rs.18.39 lacs) on the aforesaid amount till 31st March 2017 is not accounted for.
B Nature of security and terms of repayment for long term secured borrowings including current maturities Nature of security Terms of Repayment
Term loan outstanding Rs.1.25 Crores Repayable in 20 equal quarterly installments of Rs.25
lacs commencing from September, 2013
Term loan outstanding Rs.6.12 Crores Repayable in 24 equal quarterly installments of Rs.46.88
lacs commencing from January, 2016.
Above loans are secured by way of mortgage/charge created on Fixed Assets of the Company''s plant at Bawal, District - Rewari, Haryana.
Term loan outstanding Rs.4.73 Crores secured by way of mortgage / Repayable in 20 equal quarterly installments of
charge created Plant and Machinery acquired out of the sanctioned Rs.78.75 lacs commencing from September, 2013 Term Loan for Waghodia, District- Vadodara, Gujarat.
Term loan outstanding Rs.6.33 Crores secured by way of mortgage / Repayable in initial two quarterly installments of Rs. 25
charge created Plant and Machinery acquired out of the sanctioned lacs and remaining 22 quarterly installment of Rs.66.00
Term Loan for Waghodia, District- Vadodara, Gujarat. lacs commencing from December, 2013
Term loan outstanding Rs.7.92 Crores secured by way of mortgage / Repayable in 24 equal quarterly installments of
charge created Plant and Machinery acquired out of the sanctioned Rs.41.66 Lacs commencing from January, 2016 Term Loan for Waghodia, District- Vadodara, Gujarat.
Term loan outstanding Rs.17.19 Crores secured by way of charge Repayable in 24 equal quarterly installments of
created on fixed assets funded out of term loan pertaining to the Rs. 114.58 lacs commencing from December, 2014 Company''s plant at Dharuhera, District - Rewari, Haryana.
C The Company has amounts due to Micro, Small and Medium Enterprises under Micro, Small and Medium Enterprises Development Act, 2006 as at 31st March, 2017 as identified to the extent of information available as per following details
N The Company has taken premises under operating lease. Rental expenses towards cancellable operating leases charged to profit and loss account amounts to Rs.1,31,12,485/- (previous year Rs.1,31,70,514/-)
O As the Company''s business activity falls within a single primary business segment viz. Automobile Parts and single geographical segment, the disclosure requirements of Accounting Standard (AS-17) âSegment Reportingâ, issued by the Institute of Chartered Accountants of India are not applicable.
P Related Party Disclosure
a) Key Management Personnel
Mr. Sudhir Kumar Munjal Chairman and Managing Director
Mrs. Anju Munjal Whole Time Director
Mr. Anuj Munjal Whole Time Director
b) Enterprise which has ability to control the Company
Thakurdevi Investments Pvt. Ltd. Holding Company
Mar 31, 2016
2.28 ADDITIONAL INFORMATIONS
A Addition to Fixed Assets and Capital work in progress during the year included Rs.Nil (previous year Rs.89,26,780/-) being borrowing cost capitalized in accordance with Accounting standard (AS-16) on borrowing cost as specified in the Companies (Accounting Standard) Rules, 2006.
B The Company as well as various industrial units in Waghodia have disputed their liability to pay octroi duty and hence the Company deposited the amount of Rs. 15.45 Lacs under protest which is held in a separate bank account in the name of Sarpanch, the Waghodia Gram Panchayat and the Company as the second party under a Court directive. By virtue of a subsequent notification of the State Government of Gujarat, the Company, like other industrial units in the notified area of Waghodia, is not required to pay the octroi Duty from 19th July, 1997. The Company believes it has no liability for octroi duty even for the earlier period. Association for Industrial Units in Waghodia has filed a suit for recovery of amounts paid under protest, which is still pending for final decision. Therefore, the said amount of Rs.15.45 Lacs (Previous Year Rs.15.45 lacs) is included in Balance Sheet under the head âLoans & Advancesâ and no provision is made for liability of octroi in this respect. In the absence of clarity regarding rights of respective parties, interest credited by the bank amounting to Rs.18.39 Lacs (Previous Year: Rs.17.07 Lacs) on the aforesaid amount till 31st March 2016 is not accounted for.
M The Company has taken premises under operating lease. These lease agreements are normally for a period of less than one year. These are generally not ânon-cancellableâ and are renewable by mutually agreed terms. Rental expenses towards cancellable operating leases charged to profit and loss account amounts to Rs.1,31,70,514/- (previous year Rs.1,28,82,696/-)
N Segment Reporting
As the Company''s business activity falls within a single primary business segment viz. Automobile Parts and single geographical segment, the disclosure requirements of Accounting Standard (AS-17) âSegment Reportingâ, issued by the Institute of Chartered Accountants of India are not applicable.
Q Figures of the previous year have been regrouped and / or recast, wherever considered necessary to conform to the grouping of the current year.
Mar 31, 2015
1 Company Overview
Munjal Auto Industries Limited is a manufacturing company engaged in
manufacture of Exhaust systems, Wheels, Rims, Fuel tanks and other
components for Auto Industries.
2 Rights, preferences and restrictions attached to shares
The Company has only one class of shares referred to as equity shares
having a par value of Rs.2/- (Previous year Rs.2/-). Each holder of
Equity Shares is entitled to one vote per share.
3 ADDITIONAL INFORMATIONS
A Addition to Fixed Assets and Capital work in progress during the year
included Rs.89,26,780/- (previous year Rs.1,18,92,521/-) being
borrowing cost capitalised in accordance with Accounting Standard
(AS-16) on borrowing cost asspecified in the Companies (Accounting
Standard) Rules, 2006.
B The Company as well as various industrial units in Waghodia have
disputed their liability to pay octroi duty and hence the company
deposited the amount of Rs. 15.45 lac under protest which is held in a
separate bank account in the name of Sarpanch, the Waghodia Gram
Panchayat and the Company as the second party under a Court directive.
By virtue of a subsequent notification of the State Government of
Gujarat, the company, like other industrial units in the notified area
of Waghodia, is not required to pay the octroi Duty from 19th July,
1997. The company believes it has no liability for octroi duty even for
the earlier period. Association for Industrial Units in Waghodia has
filed a suit for recovery of amounts paid under protest, which is still
pending for final decision. Therefore, the said amount of Rs.15.45 Lac
(Previous Year Rs.15.45 lac) is included in Balance Sheet under the
head "Loans & Advances" and no provision is made for liability of
octroi in this respect. In the absence of clarity regarding rights of
respective parties, interest credited by the bank amounting to Rs.
17.07 Lac (Previous Year: Rs.15.83 Lac) on the aforesaid amount till
31st March 2015 is not accounted for.
C Details of Contingent Liabilities
I Unexpired Bank Guarantee
(Net of Margin Money) 3,308,000 6,188,000
II Unexpired Letter of Credit
(Net of Margin Money) 1,608,285 60,100,000
III Estimated amount of
Contracts remaining
to be executed on
Capital Account and
not provided for
(Net of Advances) 50,965,144 73,514,001
IV Estimated amount on
Account of pending
cases under the
Labour Laws 5,496,489 9,553,531
V Income Tax Matters
in dispute 4,764,957 8,400,087
VI Sales Tax Matters
in dispute 3,188,704 3,188,704
VII Excise Matters 23,696,013 5,901,332
D The Company has taken premises under operating lease. These lease
agreements are normally for a period of less than one year. These are
generally not "non-cancellable" and are renewable by mutually agreed
terms. Rental expenses towards cancellable operating leases charged to
profit and loss account amounts to Rs.1,28,82,696/- (previous year
Rs.1,28,61,012/-)
E Segment Reporting
As the Company''s business activity falls within a single primary
business segment viz. Automobile Parts and single geographical segment,
the disclosure requirements of Accounting Standard (AS-17) "Segment
Reporting", issued by the Institute of Chartered Accountants of India
are not applicable.
F Related Party Disclosure
a) Key Management Personnel
Mr. Sudhir Kumar Munjal Chairman & Managing Director
Mrs. Anju Munjal Whole Time Director
Mr. Anuj Munjal Whole Time Director
b) Enterprise which has ability to control the Company
Thakurdevi Investments Pvt. Ltd. Holding Company
G Pursuant to the enactment of the Companies Act, 2013 (The "Act''), the
company has applied and estimated useful life as specified in schedule
II. Accordingly the carrying value is being depreciated over the
revised / remaining useful life. The written down value after retaining
the residual value of fixed assets whose life have been expired as on
1st April, 2014 have been recognised net of tax in the opening retained
earnings.
H Figures of the previous year have been regrouped and / or recast,
wherever considered necessary to oonform to the grouping of the current
year.
Mar 31, 2014
1. Additional Informations
A Addition to Fixed Assets and Capital work in progress during the year
included Rs.1,18,92,521/- (previous year Rs.19,07,935/-) being
borrowing cost capitalised in accordance with Accounting standard (As
16) on borrowing cost as specified in the Companies (Accounting
Standard) Rules, 2006.
B Company has paid excise duty of Rs.23.61 lacs (previous year Rs.23.61
lacs) which is claimed by the company to be refundable and shown under
loans and advances. The company has filed an appeal and the matter is
pending with the Custom, Excise & Service tax Appellate Tribunal.
C The Company as well as various industrial units in Waghodia have
disputed their liability to pay octroi duty and hence the Company
deposited the amount of Rs. 15.45 lac under protest which is held in a
separate bank account in the name of Sarpanch, the Waghodia Gram
Panchayat and the Company as the second party under a Court directive.
By virtue of a subsequent notification of the State Government of
Gujarat, the company, like other industrial units in the notified area
of Waghodia, is not required to pay the octroi Duty from 19th
July,1997. The company believes it has no liability for octroi duty
even for the earlier period. Association for Industrial Units in
Waghodia has filed a suit for recovery of amounts paid under protest,
which is still pending for final decision. Therefore, the said amount
of Rs.15.45 Lac (Previous Year Rs.15.45 lac) is included in Balance
Sheet under the head and no provision is made for liability of octroi
in this respect. In the absence of clarity regarding rights of
respective parties, interest "Loans & Advances" credited by the bank
amounting to Rs.15.83 Lac (Previous Year: Rs.14.61 Lac) on the
aforesaid amount till 31st March 2014 is not accounted for.
D In respect of an interest-free LEEP loan availed at the time of the
setting up a project at Waghodia, Gujarat by the Company, GIIC (A
Government of Gujarat undertaking that had disbursed the said LEEP loan
on its behalf) had raised a claim of interest amounting to Rs.17 lac
payable since 1997. GIIC has claimed that there was a delay in
repayment of first 2 installments of the said LEEP loan repaid by the
company in earlier years. The Company disputed this. Negotiation in the
matter is continuing. Meanwhile, after adding interest @ 24% on the
aforesaid disputed amount of interest; GIIC has raised its claim
further to Rs. 194 Lac up to 31.12.05 (Previous Year: Rs. 194 Lac). No
provision is made in books of accounts for the above interest claim as
the Company expects that such a claim of GIIC is not tenable.
E These lease agreements are normally for a period of less than one
year. These are generally not Ânon-cancellable and are renewable by
mutually agreed terms. Rental expenses towards cancellable operating
leases charged to profit and loss account amounts to Rs.1,28,61,012/-
(previous year Rs.1,28,61,012/-)
F Other Income includes Rs.Nil (Previous year Rs. 1,83,00,000
represents amount received by the company on maturity of Key Man
Insurance policy). As the CompanyÂs business activity falls within a
single primary business segment viz. Automobile Parts and single
geographical
G Segment Reporting
segment, the disclosure requirements of Accounting Standard (AS-17)
ÂSegment ReportingÂ, issued by the Institute of Chartered Accountants
of India are not applicable.
H Figurs of the previous year have been regrouped and / or recast,
wherever considered necessary to conform to to the grouping of the
current year.`
Mar 31, 2013
Company Overview
Munjal Auto Industries Limited is a manufacturing company engaged in
manufacture of Exhaust systems, Wheels, Rims, Fuel tanks and other
components for Auto Industries.
1.1 Additional Informations
A Addition to Fixed Assets and Capital work in progress during the year
included Rs.19,07,935.00 (previous year Rs.Nil) being borrowing cost
capitalised in accordance with Accounting standard (As 16) on borrowing
cost as specified in the Companies (Accounting Standard) Rules, 2006.
B Company has paid excise duty of Rs.23.61 lacs (previous year Rs.23.61
lacs) which is claimed by the company to be refundable and shown under
loans and advances. The company has filed an appeal and the matter is
pending with the Custom, Excise & Service tax Appellate Tribunal.
C The Company as well as various industrial units in Waghodia have
disputed their liability to pay octroi duty and hence the company
deposited the amount of Rs. 15.45 lac under protest which is held in a
separate bank account in the name of Sarpanch, the Waghodia Gram
Panchayat and the Company as the second party under a Court directive.
By virtue of a subsequent notification of the State Government of
Gujarat, the company, like other industrial units in the notified area
of Waghodia, is not required to pay the octroi Duty from 19th
July,1997. The company believes it has no liability for octroi duty
even for the earlier period. Association for Industrial Units in
Waghodia has filed a suit for recovery of amounts paid under protest,
which is still pending for final decision. Therefore, the said amount
of Rs.15.45 Lac (Previous Year Rs.15.45 lac) is included in Balance
Sheet under the head "Loans & Advances" and no provision is made for
liability of octroi in this respect. In the absence of clarity
regarding rights of respective parties, interest credited by the bank
amounting to Rs.14.61 Lac (Previous Year: Rs.13.44 Lac) on the
aforesaid amount till 31st March 2012 is not accounted for.
D In respect of an interest-free LEEP loan availed by the Company at
the time of the setting up a project at Waghodia, Gujarat by the
company, GIIC (A Government of Gujarat undertaking that had disbursed
the said LEEP loan on its behalf) had raised a claim of interest
amounting to Rs.17 lac payable since 1997. GIIC has claimed that there
was a delay in repayment of first 2 installments of the said LEEP loan
repaid by the company in earlier years. The Company disputed this.
Negotiation in the matter is continuing. Meanwhile, after adding
interest @ 24% on the aforesaid disputed amount of interest; GIIC has
raised its claim further to Rs. 194 Lac up to 31.12.05 (Previous Year:
Rs. 194.00 Lac). No provision is made in books of accounts for the
above interest claim as the Company expects that such a claim of GIIC
is not tenable.
E The Company has taken premises under operating lease. These lease
agreements are normally for a period of less than one year. These are
generally not "non-cancellable" and are renewable by mutually agreed
terms. Rental expenses towards cancellable operating leases charged to
profit and loss account amounts to Rs.1,28,61,012/- (previous year
Rs.1,15,10,784/-)
F Other Income includes Rs.1,83,00,000 (Prevoius year Rs. Nil)
represents amount received by the company on maturity of Key Man
Insurance policy.
G Segment Reporting
As the Company''s business activity falls within a single primary
business segment viz. Automobile Parts and single geographical segment,
the disclosure requirements of Accounting Standard (AS-17) "Segment
Reporting", issued by the Institute of Chartered Accountants of India
are not applicable.
H Related Party Disclosure
a) Key Management Personnel
Mr. Sudhir Munjal Managing Director
Mrs. Anju Munjal Whole Time Director
Mr. Anuj Munjal Whole Time Director
b) Enterprise which has ability to control the Company
Thakurdevi Investments Pvt. Ltd. Holding Company
I Figures of the previous year have been regrouped and / or recast,
wherever considered necessary to conform to to the grouping of the
current year.
Mar 31, 2012
Amount due within one year are included in other current liabilities.
Terms of repayment of remaining amount are as under : Term Loan of Rs.
11.94 Crores repayable in remaining 13 equal quarterly installments.
Term Loan of Rs.9.92 Crores repayable in remaining 19 equal quarterly
installments.
Above two loans are secured by way of mortgage/charge created on
immovable fixed assets of the Company's undertaking at Bawal, District
- Rewari, Haryana.
Term Loan of Rs.14.20 Crores is repayable in remaining 18 equal
quarterly installments. This loan is secured by way of mortgage/ charge
created plant and machinery acquired out of the sanctioned term loan
for Waghodia (Fuel Tank) project, District- Waghodia, Gujarat.
Term Loan of Rs.12.75 Crores is repayable in remaining 10 equal
quarterly installment. This loan is secured by way of mortgage/ charge
created on immovable fixed assets of the Company's undertaking at
Haridwar, District - Haridwar, Uttarakhand.
A Details of Contingent Liabilities
For the year For the year
ended Mar, ended Mar,
31, 2012 31, 2011
I Unexpired Letters of Credit
(Net of Margin Money) - 22,336,338
II Unexpired Bank Guarantee
(Net of Margin Money) 1,496,000 1,496,000
III Estimated amount of Contracts remaining
to be executed on Capital Account and not
provided for (Net of Advances) 6,962,343 80,255,538
IV Estimated amount on Account of pending
cases under the Labour Laws 10,554,853 2,589,816
V Income Tax Matters in dispute 8,467,627 4,144,819
VI Sales Tax Matters in dispute 5,789,729 5,789,729
VII Excise Matters 5,901,332 5,901,332
B In respect of an interest-free LEEP loan availed by the company at
the time of the setting up a project at Waghodia, Gujarat by the
company, GIIC (A Government of Gujarat undertaking that had disbursed
the said LEEP loan on its behalf) had raised a claim of interest
amounting to Rs.17 lac payable since 1997. GIIC has claimed that there
was a delay in repayment of first 2 installments of the said LEEP loan
repaid by the company in earlier years. The Company disputed this.
Negotiation in the matter is continuing. Meanwhile, after adding
interest @ 24% on the aforesaid disputed amount of interest; GIIC has
raised its claim further to Rs. 194 Lacs up to 31.12.05 (Previous Year:
Rs. 194.00 Lacs). No provision is made in books of accounts for the
above interest claim as the Company expects that such a claim of GIIC
is not tenable.
I Related Party Disclosure
a) Key Management Personnel
Mr. Satyanand Munjal Chairman
Mr. Sudhir Munjal Managing Director
Mrs. Anju Munjal Whole Time Director
Mr. Anuj Munjal Whole Time Director
b) Enterprise which has ability to control the Company
Thakurdevi Investments Private Limited Holding Company
c) Enterprises over which Key Management Personnel and their relatives
are able to exercise significant influence Chopra Industries Private
Limited
Chopra Autotech Private Limited
Amar Autotech Private Limited (Formerly known as Amar Sons)
ii Defined Benefit Plans
The employees' gratuity fund scheme managed by a Trust is a defined
benefit plan. The present value of the 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 biuld
up final obligation. The obligation for leave encashment is recognized
in the same manner as gratuity. The related details are as under:
C Segment Reporting
As the Company's business activity falls within a single primary
business segment viz. Automobile Parts and single geographical segment,
the disclosure requirements of Accounting Standard (AS-17) "Segment
Reporting", issued by the Institute of Chartered Accountants of India
are not applicable.
D The Company as well as various industrial units in Waghodia have
disputed their liability to pay octroi duty and hence the company
deposited the amount of Rs. 15.45 lacs under protest which is held in a
separate bank account in the name of Sarpanch, the Waghodia Gram
Panchayat and the Company as the second party under a Court directive.
By virtue of a subsequent notification of the State Government of
Gujarat, the company, like other industrial units in the notified area
of Waghodia, is not required to pay the octroi Duty from 19th July,
1997. The company believes it has no liability for octroi duty even for
the earlier period. Association for Industrial Units in Waghodia has
filed a suit for recovery of amounts paid under protest, which is still
pending for final decision. Therefore, the said amount of Rs.15.45 Lacs
(Previous Year Rs.15.45 lacs) is included in Balance Sheet under the
head "Loans & Advances" and no provision is made for liability of
octroi in this respect. In the absence of clarity regarding rights of
respective parties, interest credited by the bank amounting to Rs.13.44
Lacs (Previous Year: Rs.12.37 Lacs) on the aforesaid amount till 31st
March 2012 is not accounted for.
E Company has paid excise duty of Rs.23.61 lacs (previous year Rs.23.61
lacs) which is claimed by the company to be refundable and shown under
loans and advances. The company has filed an appeal and the matter is
pending with the Custom, Excise & Service tax Appellate Tribunal.
F Figures of the previous year have been regrouped and / or recast,
wherever considered necessary to conform to to the grouping of the
current year.
G The Company has amounts dues to Micro, Small and Medium Enterprises
under Micro, Small and Medium Enterprises Development Act, 2006 as at
31st March, 2012
H The Company has taken premises under operating lease. These lease
agreements are normally for a period of less than one year. These are
generally not "non-cancellable" and are renewable by mutually
agreed terms. Rental expenses towards cancellable operating leases
charged to profit and loss account amounts to Rs.1,15,10,784/-
(previous year Rs.1,11,06,265/-)
Mar 31, 2011
1. In respect of an interest-free LEEP loan availed by the Company at
the time of the setting up a project at Waghodia, Gujarat by the
Company, GIIC (A Government of Gujarat undertaking that had disbursed
the said LEEP loan on its behalf) had raised a claim of interest
amounting to Rs.17 lacs payable since 1997. GIIC has claimed that there
was a delay in repayment of first 2 installments of the said LEEP loan
repaid by the company in earlier years. The Company disputed this.
Negotiation in the matter is continuing.
Meanwhile, after adding interest @ 24% on the aforesaid disputed amount
of interest; GIIC has raised its claim further to Rs. 194 Lacs up to
31.12.05 (Previous Year: Rs. 194.00 Lacs). No provision is made in
books of accounts for the above interest claim as the Company expects
that such a claim of GIIC is not tenable.
2. As the Company's business activity falls within a single primary
business segment viz. Automobile Parts and single geographical segment,
the disclosure requirements of Accounting Standard (AS-17) ÃSegment
ReportingÃ, issued by the Institute of Chartered Accountants of India
are not applicable.
3. The Company as well as various industrial units in Waghodia have
disputed their liability to pay octroi duty and hence the company
deposited the amount of Rs. 15.45 lacs under protest which is held in a
separate bank account in the name of Sarpanch, the Waghodia Gram
Panchayat and the Company as the second party under a Court directive.
By virtue of a subsequent notification of the State Government of
Gujarat, the Company, like other industrial units in the notified area
of Waghodia, is not required to pay the octroi Duty from 19th July,
1997. The Company believes it has no liability for octroi duty even for
the earlier period. Association for Industrial Units in Waghodia has
filed a suit for recovery of amounts paid under protest, which is still
pending for final decision. Therefore, the said amount of Rs.15.45 Lacs
(Previous Year Rs.15.45 lacs) is included in Balance Sheet under the
head ÃLoans & Advancesà and no provision is made for liability of
octroi in this respect. In the absence of clarity regarding rights of
respective parties, interest credited by the bank amounting to Rs.12.37
Lacs (Previous Year: Rs.11.42 Lacs) on the aforesaid amount till 31st
March 2011 is not accounted for.
4. Company has paid excise duty of Rs.23.61 lacs (previous year
Rs.23.61 lacs) which is claimed by the Company to be refundable and
shown under loans and advances. The Company has filed an appeal and the
matter is pending with the Custom, Excise & Service tax Appellate
Tribunal.
5. Figures of the previous year have been regrouped and/or recast,
wherever considered necessary to conform to the groupings of the
current year.
6. The Company has taken premises under operating leases. These lease
agreements are normally for a period of less than one year. These are
generally not Ãnon-cancellableà and are renewable by mutual consent on
mutually agreed terms. Rental expenses towards cancellable operating
leases charged to profit & loss account amounts to Rs.1,11,06,265/-
(previous year Rs.1,04,98,982/-)
In determination of remuneration, certain perquisites have been valued
in accordance with the provisions of Income Tax Rules, 1962 applicable
when these were taxable. Expenses towards gratuity and leave encashment
provisions are determined acturially on an overall Company basis at the
end of the each year and accordingly, have not been considered in the
above.
II Additional Information pursuant to the provisions of 3, 4C and 4D
of Part II of Schedule VI of the Companies Act, 1956 :
(I) The installed capacity is as certified by the management and relied
upon by the auditors being a technical matter. The installed capacity
is calculated on triple shifts basis.
(ii) Actual production of various items depends on exact specifications
of the products. The quantities are indicative of production with
specifications, which are considered representative of estimated
average product mix.
Mar 31, 2010
1. In respect of an interest-free LEEP loan availed by the company at
the time of the setting up a project at Waghodia, Gujarat by the
company, GIIC (A Government of Gujarat undertaking that had disbursed
the said LEEP loan on its behalf) had raised a claim of interest
amounting to Rs.17 lac payable since 1997. GIIC has claimed that there
was a delay in repayment of first 2 installments of the said LEEP loan
repaid by the company in earlier years. The Company disputed this.
Negotiation in the matter is continuing. Meanwhile, after adding
interest @ 24% on the aforesaid disputed amount of interest; GIIC has
raised its claim further to Rs. 194 Lac up to 31.12.05 (Previous Year:
Rs. 194.00 Lac). No provision is made in books of accounts for the
above interest claim as the Company expects that such a claim of GIIC
is not tenable.
2. As the Companys business activity falls within a single primary
business segment viz. Motorcycles Parts and single geographical
segment, the disclosure requirements of Accounting Standard (AS-17)
"Segment Reporting", issued by the Institute of Chartered Accountants
of India are not applicable.
3. The Company as well as various industrial units in Waghodia have
disputed their liability to pay octroi duty and hence the company
deposited the amount of Rs. 15.45 lac under protest which is held in a
separate bank account in the name of Sarpanch, the Waghodia Gram
Panchayat and the Company as the second party under a Court directive.
By virtue of a subsequent notification of the State Government of
Gujarat, the company, like other industrial units in the notified area
of Waghodia, is not required to pay the octroi Duty from 19th
July,1997. The company believes it has no liability for octroi duty
even for the earlier period. Association for Industrial Units in
Waghodia has filed a suit for recovery of amounts paid under protest,
which is still pending for final decision. Therefore, the said amount
of Rs.15.45 Lac (Previous Year Rs.15.45 lac) is included in Balance
Sheet under the head "Loans & Advances" and no provision is made for
liability of octroi in this respect. In the absence of clarity
regarding rights of respective parties, interest credited by the bank
amounting to Rs.11.42 Lac (Previous Year: Rs.10.50 Lac) on the
aforesaid amount till 31st March 2010 is not accounted for.
4. Company has paid excise duty of Rs.23.61 lacs (previous year
Rs.23.61 lacs) which is claimed by the company to be refundable and
shown under loans and advances. The company has filed an appeal and the
matter is pending with the Custom, Excise & Service tax Appellate
Tribunal.
5. Expenditure on insurance includes Rs. NIL Lacs (previous year
Rs.17.91 Lacs) being premiums paid under Key man Insurance scheme to
cover risks on life of Key Management personnel (Total premium paid Rs.
112.68 lacs until 31.03.2010). Benefits to the Company under the said
scheme depend on various factors including resignation/survival of the
said personnel or premature surrender of the policy. Such benefits will
be accounted in the year in which they become due.
6. Figures of the previous year have been regrouped and/or recast,
wherever considered necessary to conform to the groupings of the
current year.
7. The company has taken premises under cancellable operating leases.
These lease agreements are normally for a period of less than one year.
Minimum future lease payments, payable as on March 31, 2010, are nil.
Rental expenses towards cancellable operating leases charged to profit
& loss account amounts to Rs.1,04,98,982/- (previous year
Rs.1,08,37,176/-)
8. Depreciation for the year ended 31st March, 2009 included a sum of
Rs.1,23,17,835/- on account of change in estimate of useful life of
vehicles.
9 Related Party Disclosure
a) Key Management Personnel
Mr. Satyanand Munjal Chairman
Mr. Sudhir Munjal Managing Director
Mrs. Anju Munjal Whole-time Director
b) Enterprises which are able to exercise significant influence over
the Company
Hero Cycles Limited
c) Enterprises over which key management personnel and their relatives
are able to exercise significant influence
Hero Honda Motors Limited
Rockman Cycle Industries Limited
Highway Cycles Industries Limited
Chopra Industries Private Limited
Majestic Auto Limited
Hero Corporate Services Limited
Satyam Auto Components Limited
Amarsons
Shivam Autotech Limited
Bhagyoday Investments Pvt. Ltd.
Munjal Investments Pvt. Ltd.
Puja Investments Pvt. Ltd.
Anadi Investments Pvt. Ltd.
Dayanand Munjal Investments Pvt. Ltd.
Hero Investments Pvt. Ltd.
Bahadur Chand Investments Pvt. Ltd.
Thakurdevi Investments Pvt. Ltd.
Munjal Acme Packaging Systems Ltd.
10 Disclosure pursuant to Accounting Standard - 15 (Revised) Employee
Benefits
ii Defined Benefit Plans
The employees gratuity fund scheme managed by a Trust is a defined
benefit plan. The present value of the 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 biuld
up final obligation. The obligation for leave encashment is recognized
in the same manner as gratuity. The related details are as under;