Mar 31, 2014
I) Basis of Accounting
The Financial Statements are prepared under historical cost convention
and generally on accrual basis and are in accordance with the
requirement of the Companies Act, 1956.
ii) Fixed Assets
Fixed Assets, other than those which have been revalued, are stated at
their original cost which includes expenditure incurred in the
acquisition and construction/installation and other related expenses.
Assets which have been revalued in the earlier years are accounted for
at values determined on the basis of such revaluation made by
professional valuers. Profit arising on revaluation has been credited
to Capital Reserve Account.
iii) Intangible Assets
Expenditure incurred for acquiring software is stated at acquisition
cost. They are amortised over their useful life not exceeding five
years.
iv) Depreciation
a. Depreciation on fixed assets has been provided on Straight Line
Method at the rates prescribed in Schedule XIV to the Companies Act,
1956. Depreciation on additions/deductions on Assets during the year
is provided on pro-rata basis and for low items costing up to Rs.
5,000/-, 100% depreciation has been provided.
b. In respect of revalued assets, depreciation is provided on the
revalued figures and an amount equal to the additional depreciation
consequent on such revaluation is charged to Capital reserve.
v) Inventories
a) Raw materials valued at cost or realisable value, whichever is less.
Work-in-process is valued at direct cost plus estimated overheads.
Scrap has been valued at realisable value.
b) Finished Goods - At direct cost plus estimated overheads or market
value whichever is lower.
vi) Investments
Long Term investments are stated at cost, temporary fall in market
value, if any, is not provided for.
Current investments are carried at lower of cost or fair value.
(vii) EMPLOYEE RETIREMENT BENEFITS:
1) Post-Employment Employee Benefits
a) Defined Contribution Plans:
The Company has Defined Contribution Plan for Post employment benefits
in the form of Provident Fund for all employees which is administered
by Regional Provident Fund Commissioner. Provident Fund is classified
as defined contribution plan as the Company has no further obligation
beyond making the contributions. The Company''s contribution to Defined
Contribution Plan is charged to the Profit and Loss Account as and when
incurred.
b) Defined Benefit Plans:
Funded Plan: The Company has defined benefit plan for Post-employment
benefit in the form of Gratuity for all employees which is administered
through Life Insurance Corporation (LIC).
Liability for above defined benefit plan is provided on the basis of
valuation, as at the Balance Sheet date, carried out by an independent
actuary. The actuarial method used for measuring the liability is the
Projected Unit Credit Method.
2) Other Long-term Employee Benefit:
Liability for Compensated Absences (unutilized leave benefit) is
provided on the basis of valuation, as at the Balance Sheet date,
carried out by an independent actuary. The actuarial valuation method
used for measuring the liability is the Projected Unit Credit Method in
respect of past service.
3) Termination benefits are recognized as an expense as and when
incurred.
4) The actuarial gains and losses arising during the year are
recognized in the Profit and Loss Account of the year without resorting
to any amortization.
viii) Impairment
Impairment of assets are assessed at each Balance Sheet date and loss
is recognized whenever the recoverable amount of an asset is less than
its carrying amount.
ix) Foreign Currencies Transactions
a) Foreign currency transactions completed during the year are recorded
at the exchange rate prevailing at the time of the transaction.
b) Foreign currency transactions remaining unsettled at the year end
and not covered by forward contract are translated at the exchange rate
prevailing at the year end. Premium/discount on forward contracts are
amortized over the period of the contract.
c) The difference in translation of monetary assets and liabilities and
realised gains and losses on foreign exchange transactions are
recognised in the Profit and Loss Account.
x) Sales
a) Sales are inclusive of excise duty and Sales tax, and net of return,
claims, discounts etc.
b) Sale is recognized at the point of dispatch/billing to customer.
c) Export Sales are shown on FOB basis.
xi) Other Income
a) Service income is recognized on completion of job.
b) Interest income is accounted for on time proportion basis.
c) Rent income is accounted for on time proportion basis.
xii) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition of
fixed assets are capitalized for the period until the asset is ready
for its intended use. Other borrowing costs are recognised as an
expense in the period in which they are incurred.
xiii) Taxes
Tax expense for the year comprises of current tax and deferred
tax/(credit). Current tax provision has been determined on the basis of
reliefs, deductions available under the Income Tax Act. Deferred Tax is
recognised for all timing differences between taxable income and
accounts income for the reporting period that originate in one period
and capable of reversal in one or more subsequent periods, subject to
the consideration of prudence, applying tax rates that are applicable
on Balance Sheet date.
(xiv) Provisions. Contingent Liabilities And Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it probable that there will be an outflow of resources.
Contingent Assets are neither recognized nor disclosed in the financial
statements.
1.2 The Company revalued its factory building, plant & machinery and
electric installation in earlier years. Consequently their gross values
net of transfers, have increased by Rs. 52,89,706/, Rs. 27,55,912/- and
Rs. 3,68,880/- respectively. Depreciation on revalued amount has been
directly charged to Capital Reserve account. Consequently Fixed Assets
and Reserves & Surplus are still higher by Rs. 13,00,648/- (PY Rs.
14,77,325/-).
1.3 Related parties disclosures:-
1) (a) Key Management Personnel:
Shri Rajendra C. Saraf.
(b) Associate Concerns:
Remi Edelstahl Tubulars Ltd., Remi Elektrotechnik Ltd.,
(c) Relatives of key management personnel and their enterprises where
transactions have taken place:
Rajendra Electrical Motor Industries, Rishabh R. Saraf, Ritvik V.
Saraf, Minakshi R. Saraf, Vishwambhar C. Saraf, Dholishakti
International and Remi International.
Note: Related party relationship is as identified by the Company and
relied upon by the Auditors.
1.4 Disclosures in accordance with Revised AS - 15 on "Employee
Benefits":
(A) Defined Benefits Plans:
(i) The overall expected rate of return on assets is based on the
expectation of the average long term rate of return expected on
investments of the Fund during the estimated term of the obligations.
(ii) Following are the Principal Actuarial Assumptions used as at the
balance sheet date:
The estimates of future salary increases considered in actuarial
valuation takes into account inflation, seniority, promotion and other
relevant factors.
1.5 Segment information for the year ended 31st March, 2014.
During the year there are no separately identifiable geographical
segment hence disclosure as per geographical market is not required.
1.6 Contingent Liabilities not provided for:
a) Guarantees given by the Bankers on behalf of the Company Rs.
2,17,66,780/- (P.Y. Rs. 87,89,889/-).
b) Letters of Credit Rs. 2,78,71,015/- (P.Y. Rs. 15,72,050/-).
c) Sales Tax demands disputed in appeals Rs. 69,16,776/- (P.Y. Rs.
13,483/-).
d) Liability in respect of Lease rent including interest thereon
disputed by the Company Rs. 2,54,24,073/- (P.Y. Rs. 2,34,86,874/-).
e) Demand of Excise Duty and penalty disputed in appeal Rs. 19,584/-
(P.Y.Rs. 19,584/-).
f) Bills discounting of Rs. NIL (P.Y. Rs. 88,59,364/-).
g) Show cause notice in respect of excise duty amounting to Rs.
5,23,617/- (P.Y Rs. 5,23,617/-).
1.7 Confirmations have not been received of debit and credit balances
of the parties'' accounts. Hence, the said balances are as per books of
account only.
1.8 In the opinion of the Board, the current assets, loans and advances
are approximately of the values stated if realised in the ordinary
course of business. The provisions for all known liabilities are
adequate and not in excess of the amounts reasonably necessary. There
are no contingent liabilities other than those stated hereinabove.
1.9 The company has exposure to National Spot Exchange Ltd. (NSEL) of
Rs. 2,11,56,663/- (Net of w/off) as on 31st March, 2014 for commodity
trade. NSEL has not been able to adhere to its payment obligations over
the past few months. The Company has pursued legal action against NSEL
& others by filing writ petition in Bombay High Court and criminal
complaint in Economic Offence Wing (EOW) through NSEL Investors'' Forum,
of which company is a member. Based on the information available with
the Company, it was decided to write off an amount of Rs. 74,04,140/-
in respect of its exposure to NSEL in the quarter ended 30th September,
2013 (current quarter NIL) which is disclosed under the head
"Exceptional Items". The Company is hopeful for recovery of the balance
amount of Rs. 2,11,56,663/- in view of the steps taken by the EOW of
Mumbai Police, legal case in the High Court and steps taken by Govt.
1.10 Details of Micro, Small and Medium Enterprises are not available.
As per the management payment to Micro, Small and Medium Enterprises
are made in accordance with the agreed credit terms and to the extent
ascertained from available information. There is no overdue payable to
MSME units beyond the period specified in Micro, Small and Medium
Enterprises Development Act, 2006.
1.11 a) Imports of Materials on C.I.F basis Rs. 10,15,872/- (P.Y. Rs.
1,78,71,232/-).
b) Foreign Exchange Earnings:
* FOB Value of Exports Rs. 13,06,788/- (P.Y. Rs. 2,17,795/-).
c) Expenditure in Foreign Currency:
* Travelling Expenses Rs. 6,53,832/- (P.Y. Rs. 6,14,125/-).
* Payment for Material Rs. 16,86,732/- (P. Y. Rs. 3,38,94,034/-).
1.12 Figures within brackets are for previous year and in case of loss
same has been shown double brackets.
1.13 Figures have been rounded off to the nearest rupee.
Mar 31, 2012
I) Basis of Accounting
The Financial Statements are prepared under historical cost convention
and generally on accrual basis and are in accordance with the
requirement of the Companies Act, 1956.
ii) Fixed Assets
Fixed Assets, other than those which have been revalued, are stated at
their original cost which includes expenditure incurred in the
acquisition and construction/ installation and other related expenses.
Assets which have been revalued in the earlier years are accounted for
at values determined on the basis of such revaluation made by
professional valuers. Profit arising on revaluation has been credited
to Capital Reserve Account.
iii) Intangible Assets
Expenditure incurred for acquiring software is stated at acquisition
cost. They are amortised over their useful life not exceeding five
years.
iv) Depreciation
a. Depreciation on fixed assets has been provided on Straight Line
Method at the rates prescribed in Schedule XIV to the Companies Act,
1956. Depreciation on additions/deductions on Assets during the year
is provided on pro-rata basis and for low items costing up to Rs.
5,000/-, 100% depreciation has been provided.
b. In respect of revalued assets, depreciation is provided on the
revalued figures and an amount equal to the additional depreciation
consequent on such revaluation is charged to Capital reserve.
v) Inventories
a) Raw materials valued at cost or realisable value, whichever is less.
Work-in- process is valued at direct cost plus estimated overheads.
Scrap has been valued at realisable value.
b) Finished Goods à At direct cost plus estimated overheads or market
value whichever is lower.
vi) Investments
Long Term investments are stated at cost, temporary fall in market
value, if any, is not provided for.
Current investments are carried at lower of cost or fair value.
(vii) EMPLOYEE RETIREMENT BENEFITS:
1) Post-Employment Employee Benefits
a) Defined Contribution Plans:
The Company has Defined Contribution Plan for Post employment benefits
in the form of Provident Fund for all employees which is administered
by Regional Provident Fund Commissioner. Provident Fund is classified
as defined contribution plan as the Company has no further obligation
beyond making the contributions. The Company's contribution to Defined
Contribution Plan is charged to the Profit and Loss Account as and when
incurred.
b) Defined Benefit Plans:
Funded Plan: The Company has defined benefit plan for Post- employment
benefit in the form of Gratuity for all employees which is administered
through Life Insurance Corporation (LIC).
Liability for above defined benefit plan is provided on the basis of
valuation, as at the Balance Sheet date, carried out by an independent
actuary. The actuarial method used for measuring the liability is the
Projected Unit Credit Method.
2) Other Long-term Employee Benefit:
Liability for Compensated Absences (unutilized leave benefit) is
provided on the basis of valuation, as at the Balance Sheet date,
carried out by an independent actuary. The actuarial valuation method
used for measuring the liability is the Projected Unit Credit Method in
respect of past service.
3) Termination benefits are recognized as an expense as and when
incurred.
4) The actuarial gains and losses arising during the year are
recognized in the Profit and Loss Account of the year without resorting
to any amortization.
viii) Impairment
Impairment of assets are assessed at each Balance Sheet date and loss
is recognized whenever the recoverable amount of an asset is less than
its carrying amount.
ix) Foreign Currencies Transactions
a) Foreign currency transactions completed during the year are recorded
at the exchange rate prevailing at the time of the transaction.
b) Foreign currency transactions remaining unsettled at the year end
and not covered by forward contract are translated at the exchange rate
prevailing at the year end. Premium/discount on forward contracts are
amortized over the period of the contract.
c) The difference in translation of monetary assets and liabilities and
realised gains and losses on foreign exchange transactions are
recognised in the Profit and Loss Account.
x) Sales
a) Sales are inclusive of excise duty and Sales tax, and net of return,
claims, discounts etc.
b) Sale is recognized at the point of dispatch/billing to customer.
c) Export Sales are shown on FOB basis.
xi) Other Income
a) Service income is recognized on completion of job.
b) Interest income is accounted for on time proportion basis.
c) Rent income is accounted for on time proportion basis.
xii) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition of
fixed assets are capitalized for the period until the asset is ready
for its intended use. Other borrowing costs are recognised as an
expense in the period in which they are incurred.
xiii) Taxes
Tax expense for the year comprises of current tax and deferred
tax/(credit). Current tax provision has been determined on the basis of
reliefs, deductions available under the Income Tax Act. Deferred Tax is
recognised for all timing differences between taxable income and
accounts income for the reporting period that originate in one period
and capable of reversal in one or more subsequent periods, subject to
the consideration of prudence, applying tax rates that are applicable
on Balance Sheet date.
(xiv) Provisions, Contingent Liabilities And Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it probable that there will be an outflow of resources.
Contingent Assets are neither recognized nor disclosed in the financial
statements.
Mar 31, 2010
I) Basis of Accounting
The Financial Statements are prepared under historical cost convention
and generally on accrual basis and are in accordance with the
requirement of the Companies Act, 1956.
ii) Fixed Assets
Fixed Assets, other than those which have been revalued, are stated at
their original cost which includes expenditure incurred in the
acquisition and construction/ installation and other related expenses.
Assets which have been revalued in the earlier years are accounted for
at values determined on the basis of such revaluation made by
professional valuers. Profit arising on revaluation has been credited
to Capital Reserve Account.
iii) Intangible Assets
Expenditure incurred for acquiring software is stated at acquisition
cost. They are amortised over their useful life not exceeding five
years.
iv) Depreciation
a. Depreciation on fixed assets has been provided on Straight Line
Method at the rates prescribed in Schedule XIV to the Companies Act,
1956. Depreciation on additions/deductions on Assets during the year
is provided on pro-rata basis and for low items costing up to
Rs.5,000/-, 100% depreciation has been provided.
b. In respect of revalued assets, depreciation is provided on the
revalued figures and an amount equal to the additional depreciation
consequent on such revaluation is charged to Capital reserve.
v) Inventories
a) Raw materials valued at cost or realisable value, whichever is less.
Work-in- process is valued at direct cost plus estimated overheads.
Scrap has been valued at realisable value
b) Finished Goods - At direct cost plus estimated overheads or market
value whichever is lower.
vi) Investments
Long Term investments are stated at cost temporary fall in market
value, if any, is not provided for. Current investments are carried at
lower of cost or fair value.
(vii) EMPLOYEE RETIREMENT BENEFITS:
1) Post-Employment Employee Benefits
a) Defined Contribution Plans:
The Company has Defined Contribution Plan for Post employment benefits
in the form of Provident Fund for all employees which is administered
by Regional Provident Fund Commissioner. Provident Fund is classified
as defined contribution plan as the Company has no further obligation
beyond making the contributions. The Companys contribution to Defined
Contribution Plan is charged to the Profit and Loss Account as and when
incurred.
b) Defined Benefit Plans:
Funded Plan: The Company has defined benefit plan for Post- employment
benefit in the form of Gratuity for all employees which is administered
through Life Insurance Corporation (LIC).
Liability for above defined benefit plan is provided on the basis of
valuation, as at the Balance Sheet date, carried out by an independent
actuary. The actuarial method used for measuring the liability is the
Projected Unit Credit method.
2) Other Long-term Employee Benefit:
Liability for Compensated Absences (unutilized leave benefit) is
provided on the basis of valuation, as at the Balance Sheet date,
carried out by an independent actuary. The actuarial valuation method
used for measuring the liability is the Projected Unit Credit method in
respect of past service.
3) Termination benefits are recognized as an expense as and when
incurred.
4) The actuarial gains and losses arising during the year are
recognized in the Profit and Loss Account of the year without resorting
to any amortization.
viii) Impairment
Impairment of assets are assessed at each Balance Sheet date and loss
is recognized whenever the recoverable amount of an asset is less than
its carrying amount.
ix) Foreign Currencies Transactions
a) Foreign currency transactions completed during the year are recorded
at the exchange rate prevailing at the time of the transaction.
b) Foreign currency transactions remaining unsettled at the year end
and not covered by forward contract are translated at the exchange rate
prevailing at the year end. Premium/discount on forward contracts are
amortized over the period of the contract.
c) The difference in translation of monetary assets and liabilities and
realised gains and losses on foreign exchange transactions are
recognised in the Profit and Loss Account.
d) Profit/Loss on foreign exchange derivative contract has been
considered in Profit & Loss Account.
x) Sales
a) Sales are inclusive of excise duty and Sales tax, and net of return,
claims, discounts etc.
b) Sale is recognized at the point of dispatch/billing to customer.
c) Export Sales are shown on FOB basis.
xi) Other Income
a) Service income is recognized on completion of job.
b) Interest income is accounted for on time proportion basis.
xii) Borrowing Costs
Borrowing costs that are directly attributable to the acquisition of
fixed assets are capitalized for the period until the asset is ready
for its intended use. Other borrowing costs are recognised as an
expense in the period in which they are incurred.
xiii) Taxes
Tax expense for the year comprises of current tax and deferred
tax/(credit). Current tax provision has been determined on the basis of
reliefs, deductions available under the Income Tax Act. Deferred Tax is
recognised for all timing differences between taxable income and
accounts income for the reporting period that originate in one period
and capable of reversal in one or more subsequent periods, subject to
the consideration of prudence, applying tax rates that are applicable
on Balance Sheet date.
(xiv) Provisions, Contingent Liabilities And Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it probable that there will be an outflow of resources.
Contingent Assets are neither recognized nor disclosed in the financial
statements.