Mar 31, 2018
NOTE 1 - EMPLOYEE BENEFIT OBLIGATIONS
a) Compensated absences
Accumulated compensated absences, which are expected to be availed or encased within 12 months from the end of the year are treated as current employee benefits. The obligation towards the same is measured at the expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused entitlement as at the year end.
Accumulated compensated absences, which are expected to be availed or encashed beyond 12 months from 31stMarch 2018 are treated as non-current employee benefits. The Companyâs liability is actuarially determined (using the Projected Unit Credit method) by an independent actuary at the end of each year. Actuarial losses / gains are recognized in the Statement of Profit and Loss in the year in which they arise.
(All amounts in '' Lakhs, unless otherwise stated)
b) Post employment obligations
i) Gratuity-Defined benefit plan
The Company provides for gratuity to employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement / termination is the employees last drawn basic salary per month computed proportionately for 15 days salary of staff and workers. The ceiling of 15 days for workers is only up to 1st July 2006 and 20 days thereafter for workers multiplied for the number of years of service subject to payment ceiling of '' 20 Lakhs. The gratuity plan is a funded plan and the Company makes contributions to Saint-Gobain Sekurit India Limited Employee Group Gratuity Trust. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.
ii) Provident fund - Defined contribution plan
The Company also has certain defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to the registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognized during the period towards defined contribution plan is Rs, 44.90 Lakhs (31st March 2017: Rs, 43.80 Lakhs).
The Company in 2011 had imported assets under the Export Promotion Capital Goods Scheme (Scheme) whereby it received a benefit of waiver of payment of custom duty amounting to Rs, 287.66 Lakhs. Out of the total duty, the duty which is not refundable/ non-convertible has been recognized as a government grant. According to the terms of the Scheme, the Company has to fulfill an export obligation of Rs, 1,753.94 Lakhs (USD 38.98 Lakhs) over the period of license in order to avail the benefits of the government grant. The period of license expired in June 2017 and the Company has sought an extension for fulfilling the export obligation, from the respective authority. The Company has fulfilled export obligation amounting to Rs, 1,666.23 Lakhs (USD 25.83 Lakhs), up to June 2017, against the required export obligation mentioned above. The order from the respective authority for the extension is awaited as at the date of Balance Sheet.
Financial assets and liabilities measured at Amortized cost:
The fair values of all financial instruments carried at amortized cost are not materially different from their carrying amounts since they are either short-term in nature or the interest rates applicable are equal to the current market rate of interest.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. The Company does not have any financial asset in this measurement category.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, mutual funds, over-the counter derivatives) is determined using this valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. The Company does not have any financial asset in this measurement category.
Valuation techniques used to determine fair value
Specific valuation techniques used to value financial instruments include:
- the use of net asset value for mutual funds.
- the fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date. Note 33 - Financial Risk Management
The Companyâs activities expose it to market risk, liquidity risk and credit risk. In order to minimize any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts are entered to hedge certain foreign currency risk exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.
This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements.
A. Credit Risk
Credit risk is the risk of incurring a loss that may arise from a borrower or debtor failing to make required payments. Credit risk arises mainly from outstanding receivables from free market dealers, cash and cash equivalents, employee advances and security deposits. The Company manages and analyses the credit risk for each of its new clients before standard payment and delivery terms and conditions are offered.
The Company considers the probability of default upon recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information. Especially the following indicators are incorporated:
- Internal credit rating for free market dealers.
- External credit rating (as far as available for OEMs)
- Actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the customerâs ability to meet its obligations
- Actual or expected significant changes in the operating results of the customer
- Significant changes in the expected performance and behavior of the customer, including changes in the payment status of customers
Macroeconomic information (such as regulatory changes, market interest rate or growth rates) is incorporated as part of the internal rating model.
In general, it is presumed that credit risk has significantly increased since the initial recognition if the payments are more than 120 days past due.
Company has a history of limited write off for doubtful debts. Company on a monthly basis review aging of receivables and rigorous follow-up is performed by credit controller along with the help of key accounts manager. Quality/ breakage claims received from the customer are reviewed and approved by quality manager, accordingly credit memos are issued as per policy of the company. At the end of every month credit memos raised during that month is also reviewed by Chief Financial Officer. Appropriate provision is made for each receivable based on review of supporting documents with credit controller. Any exception is justified and documented.
Credit risk on cash and cash equivalents is limited as company generally invests in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies. Investments primarily include investment in liquid mutual fund units.
B. Liquidity risk
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Companyâs objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements.
Management monitors rolling forecasts of the Companyâs liquidity position and cash and cash equivalents on the basis of expected cash flows. The Companyâs liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal requirements and maintaining debt financing plans.
a. Financing arrangements
The Company had access to bank overdraft facilities. These facilities may be drawn at any time and may be terminated by the bank without notice.
b. Maturities of financial liabilities
The tables below analyse the Companyâs financial liabilities into relevant maturity groupings based on their contractual maturities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.
C. Market risk
Foreign currency risk
1. Foreign currency exposure
Currency risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency sales and purchases, primarily with respect to EUR, USD, CHF and GBP. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the companyâs functional currency ('').
The risk is measured through a forecast of foreign currency sales and purchases for the Companyâs operations. The Company uses foreign exchange forward contracts to manage its exposure in foreign currency risk.
As of 31st March 2018, the Companyâs exposure to foreign currency risk, expressed in Rs,, is given in the table below. The amounts represent only the financial assets and liabilities that are denominated in currencies other than the functional currency of the Company.
(All amounts in Rs, Lakhs, unless otherwise stateuj
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. Since the Company does not have any non-current borrowings, it is not exposed to cash flow interest rate risk.
Investment in Mutual Funds:
The Companyâs exposure to price risk arises from investments held by the Company and classified in the balance sheet as fair value through profit or loss. To manage its price risk arising from investments in mutual funds, the group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.
NOTE 2- CAPITAL MANAGEMENT
The Companyâs objectives when managing capital are to:
- Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and
- Maintain an optimal capital structure to reduce the cost of capital.
Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio:
Net debt (total borrowings net of cash and cash equivalents) divided by Total âequityâ (as shown in the Balance Sheet).
The Companyâs revenue from external customer attributed to countries other than India are not material. The Companyâs non-current assets (other than financial instruments, deferred tax assets, post-employment benefit assets) in countries other than India are not material. Revenue of approximately Rs, 4,381.82 Lakhs (31st March 2017: Rs, 3,744.81 Lakhs) are derived from a single external customer which represents 10% or more of the total revenue for the year ended 31st March 2018 and 31st March 2017.
NOTE 3 - SEGMENT INFORMATION
The Companyâs Managing Director (MD) - Mr. A. Dinakar is identified as the Chief Operating Decision Maker, examines the Companyâs performance on an entity level. The Company has only one reportable segment i.e. âAutomotive Glassâ.
NOTE 4 - OFFSETTING FINANCIAL ASSETS AND LIABILITIES
The following table presents the recognized financial instruments that are offset, or subject to enforceable master netting arrangements and other similar agreements but not offset, as at 31st March 2018 and 31st March 2017. The column ânet amountâ shows the impact on the Companyâs balance sheet if all set-off rights were exercised.
# Company has arrangement with the group company, whereas per agreed terms company set off its receivable against payable made to such group company. The relevant amounts have therefore been presented net in the Balance Sheet.
Note 5 - Subsequent Events
There are no subsequent events that would require adjustments or disclosure in the financial statements as on the balance sheet date.
Note 6 - General
i) Previous yearâs figures have been regrouped / restated wherever necessary to conform to current yearâs presentation.
ii) Previous yearâs figures have been audited by a firm of Chartered Accountants other than Kalyaniwalla & Mistry LLP, Chartered Accountants.
Mar 31, 2016
Notes:
1. Rights, preferences and restrictions attached to the shares
Equity Shares: The Company has one class of equity shares having a par value of ''10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Note:
Details of provisions and movements in each class of provisions as required by the Accounting Standard on Provisions, Contingent Liabilities and Contingent Assets (Accounting Standard-29) - Provision for litigation / disputes represents civil suits and Provision for indirect tax matters represents demands for excise duty under litigation and differential sales tax demands on account of non collection of declaration forms that are expected to materialize.
B. Defined Benefit Plans:
Gratuity: The Company operates a gratuity plan through the âSaint-Gobain Sekurit India Employees Gratuity Trustâ. Every eligible employee is entitled to a benefit equivalent to fifteen days salary last drawn for each completed year of service in line with the Payment of Gratuity Act, 1972. The same is payable at the time of separation from the Company or retirement, whichever is earlier. The benefits vest after five years of continuous service. Valuation in respect of Gratuity has been carried out by independent actuary, as at the Balance Sheet date.
Note : Fair value of Plan Assets at the yearend as confirmed by Life Insurance Corporation of India.
NOTE 2 - SEGMENT INFORMATION
The Company is engaged in the business of âAutomotive Glassâ which, in the context of Accounting Standard 17 âSegment Reporting constitutes a single reportable business segment. Thus the segment revenue, segment results, total carrying value of segment asset and segment liabilities, total cost incurred to acquire segment assets, total amount of charge of depreciation during the period are a reflected in financial statements as at and for the period ended 31st March 2016.
Geographical segment is considered as secondary segment. The Company''s sales are predominantly in India and accordingly there is no other secondary reportable segment. Thus, segment revenue, segment assets and capital expenditure are all reflected i financial statements as at and for the period ended 31st March 2016.
NOTE 3 - RELATED PARTY DISCLOSURES
(As per Accounting Standards 18)
Related Party Disclosures:
1 (a) Name of the Related Party and the nature of relationship where control exists: Name of the Related Party Nature of Relationship
Compagnie de Saint-Gobain, France Ultimate Holding Company
Saint-Gobain Sekurit France S.A., France Holding Company
(b) Other Relationships (to the extent there were transactions during the year):
i) Fellow Subsidiaries
Saint-Gobain India Private Limited, India
Saint-Gobain Glass, France
Saint-Gobain Seva, France
Grindwell Norton Limited, India
Saint-Gobain Sekurit (Thailand) Co. Limited, Thailand
Saint-Gobain Autover International B.V., Belgium
Saint-Gobain Sekurit Deutschland Gmbh & Co KG, Germany
Saint-Gobain Consulting Information Organization, France
ii) Key Managerial Personnel
Mr. A. Dinakar (Managing Director)
b) Commitments:
a) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs,1,03,57,222 (31st March 2015: Rs,18,929,394) [Net of Advance of Rs, 11,016,490 (31st March 2015 - Rs, 2,916,373)]
b) During the earlier years, the Company had imported assets costing Rs, 165,055,220 under Export Promotion Capital Goods Scheme by not paying duty amounting to Rs, 38,192,341 and accordingly, had an export obligation of Rs, 229,154,046.
During the current year, due to closure of Bhosari location, the Company has surrendered two licences pertaining to the unit by paying requisite import duties together with interest. In respect of unit at Chakan, the obligation for license is Rs, 175,393,560 (USD 3,897,000), which is required to be fulfilled by June 2017.
Against the obligation for Chakan unit, the Company has met an export obligation subject to documentation and DGFT Audit of Rs, 92,023,328 (USD 1,493,334 at Average rate) up to 31st March 2016 (31st March 2015 - Rs, 37,012,565) and has provided a bond of Rs, 32,238,198 (31st March 2015: Rs, 32,238,198) to the Commissioner of Customs. In the opinion of the Management, the Company will be able to fulfil its obligation over the prescribed time limit. The total duty liability with respect to this obligation is Rs, 28,766,198 excluding interest and penalty.
NOTE 4
As it was economically unviable to continue the operations of the Bhosari plant of the Company, the Board of Directors, in its meeting held on 31st August 2015 decided to discontinue the operations with effect from 1st September 2015. Subsequently, the plant was closed with effect from 30th November 2015. Consequently:
i) an aggregate expenditure of Rs,149,167,106 is recognized in Statement of Profit and Loss as Exceptional Item being write off towards carrying value of certain fixed assets & inventory, compensation paid on settlement with workmen and other related costs.
ii) Fixed assets aggregating Rs, 86,321,941 are classified as âAssets held for saleâ under âOther current assetsâ; this includes ''56,705,618 in respect of KT to BT equipment situated at Bhosari plant which is proposed to be sold to Saint-Gobain India Private Limited (SGIPL) pursuant ot shareholders'' approval on 1st August 2015 and other assets, which are also proposed to be sold to SGIPL valued at ''29,616,323, being lower of cost or net realizable value.
NOTE 5
Previous year figures have been regrouped and reclassified to conform to the current year''s classification.
Mar 31, 2015
I. GENERAL INFORMATION:
Saint-Gobain Sekurit India Limited (the 'Company') is engaged
primarily in business of automotive glass. The Company has two
manufacturing plants in Pune at Bhosari and Chakan and sells primarily
in India. The Company is a public limited company and is listed on the
Stock Exchange, Mumbai (BSE).
1. Rights, preferences and restrictions attached to the shares
Equity Shares: The Company has one class of equity shares having a par
value of Rs. 10 per share. Each shareholder is eligible for one vote
per share held. The dividend proposed by the Board of Directors is
subject to the approval of the shareholders in the ensuing Annual
General Meeting, except in case of interim dividend. In the event of
liquidation, the equity shareholders are eligible to receive the
remaining assets of the Company after distribution of all preferential
amounts, in proportion to their shareholding.
Note: Saint-Gobain India Private Limited (Formerly Saint-Gobain Glass
India Limited) had diluted their shareholding in the Company via Offer
for sale on May 30, 2013 from 24.5% to 13.74% to comply with the Clause
40 A of Listing agreement.
As per Accounting Standard-22 'Accounting for Taxes on Income', the
Company had recorded the cumulative deferred tax liability as at March
31, 2014 of Rs. 43,557,998 and recognized the cumulative deferred tax
asset on the basis of prudence, only to the extent of the cumulative
deferred tax liability as at March 31, 2014.
Details of provisions and movements in each class of provisions as
required by the Accounting Standard on Provisions, Contingent
Liabilities and Contingent Assets (Accounting Standard-29):
Provision for litigation/disputes represents civil suits and Provision
for excise disputes are for Excise demands related to claims against
the Company not acknowledged as debts that are expected to materialise
in respect of matters in litigation respectively.
Notes:
1. Interest rates on the above loans range between 0.99% to 1.26%
(March 31,2014: 0.82% to 1.30%)
2. Buyers' Line of Credit from bank is secured by hypothecation of
stocks and book debts on a pari passu basis.
Disclosures required under the Micro, Small and Medium Enterprises
Development Act, 2006
The above information has been determined to the extent such parties
have been identified on the basis of information available with the
Company.
Note:
* Plant and Machinery includes Machinery costing Rs. 5,436,927 (March
31,2014: Rs. 5,436,927) Net block Rs. 447,755 (March 31, 2014: Rs.
706,008) and depreciation for the year Rs. 258,253 (March 31, 2014: Rs.
258,255) given under operating lease arrangement.
Depreciation of Rs. 1,463,724 with respect to assets whose useful
life is already completed as on April 1, 2014 has been charged to
Retained Earnings as on that date. Refer Note 34.
All Intangible assets held by the Company are purchased and not
internally generated.
NOTE 2 - DETAILS OF EMPLOYEE BENEFITS AS REQUIRED BY THE ACCOUNTING
STANDARD 15 (REVISED) EMPLOYEE BENEFITS
A. Defined Contribution Plans:
The Company has recognised the following amounts in the Statement of
Profit and Loss for the year:
B. Defined Benefit Plans:
Gratuity: The Company operates a gratuity plan through the
"Saint-Gobain Sekurit India Employees Gratuity Trust". Every
eligible employee is entitled to a benefit equivalent to fifteen days
salary last drawn for each completed year of service in line with the
Payment of Gratuity Act, 1972. The same is payable at the time of
separation from the Company or retirement, whichever is earlier. The
benefits vest after five years of continuous service. Valuation in
respect of Gratuity has been carried out by independent actuary, as at
the Balance Sheet date.
Note - Fair value of plan asset at the year end is as confirmed by Life
Insurance Corporation.
NOTE 3 - SEGMENT INFORMATION
The Company is engaged in the business of "Automotive Glass" which,
as per the Accounting Standard - 17 Segment Reporting is considered as
the only reportable primary business segment. The geographical segment
is not considered as reportable segment as exports are insignificant.
NOTE 4 - RELATED PARTY DISCLOSURES (As per AS 18)
Related Party Disclosures:
1. (a) Name of the related party and the nature of relationship where
control exists:
Name of the related Party Nature of Relationship
Compagnie de Saint-Gobain, France Ultimate Holding Company
Saint-Gobain Sekurit S.A. France Holding Company
(b) Other Relationships (to the extent there were transactions during
the year):
(i) Fellow Subsidiaries
Saint-Gobain India Private Limited (Formerly Saint-Gobain Glass India
Limited)
Saint-Gobain Glass, France
Saint-Gobain Seva, France
Grindwell Norton Limited, India
Saint-Gobain Autover International B.V.
Saint-Gobain Sekurit Deutschland Gmbh & Co KG, Germany
Saint-Gobain Consulting Information Organization, France
(ii) Key Managerial Personnel
Mr. A. Dinakar (Managing Director)
(Conversion done using the closing exchange rates of March 31, 2015 and
March 31,2014 respectively)
NOTE 5 - CONTINGENT LIABILITIES AND COMMITMENTS (a) Contingent
liabilities:
Claims against the Company not acknowledged as debts (Amount in Rupees)
Particulars As at As at
March 31,2015 March 31,2014
Bills discounted (With recourse) 8,126,988 55,410,615
Income Tax Matters 20,066,750 -
Sales Tax Matters 12,281,098 9,454,061
Excise Matters 32,906,732 20,286,563
Entry Tax Matters (Octroi) 56,213 56,213
Total 73,437,781 85,207,452
* Claims not acknowledged as debts with respect to Excise matters does
not include Interest since it has not been quantified in the Order.
It is not practicable for the Company to estimate the timings of each
outflow (if any) in respect of the above, pending resolution of the
respective proceedings.
(b) Commitments:
(a) Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs. 18,929,394 (March 31, 2014: Rs.
34,548,883) [Net of Advance of Rs. 2,916,373 - (March 31, 2014 - Rs.
5,265,617)]
(b) During the earlier years, the Company had imported an asset costing
Rs. 165,055,220 under Export Promotion Capital Goods Scheme by not
paying duty amounting to Rs. 38,192,341 and accordingly had an export
obligation of Rs. 229,154,046. Against the obligation, the Company has
met an export obligation subject to documentation and DGFT Audit of Rs.
37,012,565/- up to March 31, 2015 (March 31, 2014 - Rs. 11,484,969) and
has provided a bond of Rs. 32,238,198 (March 31, 2014: Rs. 32,238,198)
to the Commissioner of Customs. In the opinion of the management, the
Company will be able to fulfil its obligation over the prescribed time
limit. However, for one of the license, on November 1, 2014, the
Company has filed for extension of timeline for fulfillment of the
obligation which had an export obligation of Rs. 17,835,429 to be
fulfilled by October 2014. The said license has been endorsed for
further period of 2 years. The net duty liability with respect to
unfulfilled obligation as on March 31, 2015 is Rs. 32,023,580 excluding
interest and penalty.
NOTE 6
Pursuant to notification dated August 29, 2014 issued by the Ministry
of Corporate Affairs (MCA) amending the Schedule II of the Companies
Act, 2013 (the "Act"), the Company during the current year has
revised the useful lives of its fixed assets (effective April 01, 2014)
to those specified in Schedule II of Companies Act, 2013 or useful life
as assessed by the Company based on a technical evaluation, as
considered appropriate. The carrying amount of the fixed assets as at
April 1, 2014 will be depreciated over the remaining revised useful
lives. The summary of the differences in the revised useful lives of
assets compared to those mentioned in Schedule II of Companies Act,
2013 is as follows:
The Depreciation amount for the year ended March 31, 2015 is higher by
Rs. 189.11 Lacs on account of the revision. Further, depreciation of
Rs. 14.63 lacs with respect to the assets whose useful life is already
completed as on April 1, 2014 has been charged to the retained earnings
as on that date.
NOTE 7
The Company in the earlier years purchased certain equipment from a
Saint-Gobain Group company in order to increase its existing tempered
glass facility at Bhosari plant. The equipment was received in the
years 2012 and 2015 and has a carrying value of Rs. 54,935,541 as on
March 31, 2015. In the current year, the Company has reassessed its
plans in view of the decline in the market conditions for tempered
glass and has proposed to sell these back to the Saint-Gobain Group
owing to the proprietary nature of these assets, and has accordingly
classified these assets as "Assets Held for Sale" under Other
current assets as at March 31.2015. The sale is subject to approval of
the shareholders.
NOTE 8
Previous year figures have been regrouped and reclassified to conform
to the current year's classification.
Mar 31, 2014
I. GENERAL INFORMATION:
Saint-Gobain Sekurit India Limited (the ''Company'') is engaged primarily
in business of automotive glass. The Company has two manufacturing
plants in Pune at Bhosari and Chakan and sells primarily in India. The
Company is a public limited company and is listed on the Stock
Exchange, Mumbai (BSE).
NOTE 1 - SEGMENT INFORMATION
The Company is engaged in the business of "Automotive Glass" which, as
per the Accounting Standard - 17 Segment Reporting is considered as the
only reportable primary business segment. The geographical segment is
not considered as reportable segment as exports are insignificant.
NOTE 2 - RELATED PARTY DISCLOSURES Related Party Disclosures:
1. (a) Name of the related party and the nature of relationship where
control exists:
Name of the related Party
Compagnie de Saint-Gobain, France Saint-Gobain Sekurit S.A. France
Nature of Relationship
Ultimate Holding Company Holding Company
(b) Relationships:
(i) Entity in respect of which the Company is an Associate
Saint-Gobain Glass India Limited, India (ii) Fellow Subsidiaries
Saint-Gobain Glass, France
Saint-Gobain Seva, France
Grindwell Norton Limited, India
Saint-Gobain Sekurit Italia, SRL
Saint-Gobain Autover International B.V.
Saint-Gobain Sekurit Deutschland Gmbh & Co. KG, Germany
Saint-Gobain Consulting Information Organization, France
Saint-Gobain Research (Shanghai) Co. Ltd.
(iii) Key Managerial Personnel
Mr. A. Dinakar (Managing Director)
NOTE 3 - CONTINGENT LIABILITIES AND COMMITMENTS:
a) Contingent liabilities:
(Amount in Rupees)
Particulars As at As at
March 31, 2014 March 31, 2013
Bills discounted not matured 55,410,615 47,284,017
Disputed Central Excise Duty
and Service Tax 20,286,56 3 20,286,563
Sales Tax Matters 9,454,061 2,285,445
Octroi 56,213 56,213
Total 85,207,452 69,912,238
b) Commitments:
(a) Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs 34,548,883 (March 31, 2013: Rs.
26,109,186).
(b) During the earlier year, the Company imported an asset costing Rs.
165,055,220 under Export Promotion Capital Goods Scheme and accordingly
had an export obligation of Rs. 229,154,046. Against the obligation,
the Company has met an export obligation subject to documentation and
DGFT Audit of Rs.11,484,969 up to March 31, 2014 (March 31, 2013 - Nil)
and has provided a bond of Rs. 32,238,198 (March 31, 2013: Rs.
32,238,198) to the Commissioner of Customs. In the opinion of the
management, the Company will be able to fulfl its obligation over the
prescribed time limit. However, for one of the license, on March 28,
2014, the Company has fled for extension of timeline for fulfllment of
the obligation which had an export obligation of Rs 17,835,429 to be
fulflled by October 2014. Approval from the authorities for the
extension is awaited.
NOTE 4
The Board of Directors of the Company in their meeting dated April 19,
2013 approved a scheme of amalgamation to merge the Company, on a going
concern basis, with Grindwell Norton Limited, to be effective from the
appointed date of April 1, 2013, subject to approval of the members of
the Company, High Court of judicature of Bombay and other regulatory
compliances as may be necessary. The Shareholders of the Company
approved the Scheme vide court convened meeting held on November 27,
2013 and through Postal ballot. However the shareholders of Transferee
Company ( other than promoter and promoter group company) did not pass
the resolution by postal ballot with the requisite majority.
NOTE 5
The Management has carried out the analysis of the impact of transfer
pricing rules on its transactions with associated persons Defined in
relevant rules, in the last fiscal year, which did not result in any
accounting adjustments. The management is currently analysing the
continuing impact thereof on similar and new transactions together with
new associated persons Defined in the relevant rules, for the period
from April 01, 2013 to March 31, 2014. In the opinion of the
management, no such transfer pricing related adjustments for the
current year are anticipated and accordingly no provision has been
considered on account of transfer pricing adjustments while determining
tax liability for the current period.
NOTE 6
Previous year figures have been reclassified to conform to this year''s
classification.
Mar 31, 2013
NOTE 1 - SEGMENT INFORMATION
The Company is engaged in the business of "Automotive Glass" which, as
per the Accounting Standard - 17 Segment Reporting is considered as the
only reportable primary business segment. The geographical segment is
not considered as reportable segment as exports are insignificant.
NOTE 2 - RELATED PARTY DISCLOSURES Related Party Disclosures:
1. (a) Name of the related party and the nature of relationship where
control exists:
(b) Relationships:
i) Holding Company
Saint-Gobain Sekurit S.A., France
ii) Entity in respect of which the Company is an Associate
Saint-Gobain Glass India Limited, India
iii) Fellow Subsidiaries
Saint-Gobain Glass, France
Saint-Gobain Seva, France
Grindwell Norton Limited, India
Saint-Gobain Sekurit (Thailand) Co. Limited, Thailand
Saint-Gobain Seva Engineering India Limited, India
Saint-Gobain Sekurit Deutschland Gmbh & Co. KG, Germany
Saint-Gobain Hanglass Clfg Qingdao Glass Co. Ltd., China
Saint-Gobain Sekurit Italia, Italy
Saint-Gobain Hanglass Sekurit (Shanghai)
Hankuk Sekurit Limited, Korea
CDI Saint-Gobain Glass, France
Saint-Gobain Research (Shanghai) Co.
iv) Key Managerial Personnel:
Mr. A. Dinakar (Managing Director)
NOTE 3 - CONTINGENT LIABILITIES AND COMMITMENTS
a) Contingent liabilities:
(Amount in Rupees)
Particulars As at As at
March 31,
2013 March 31, 2012
Bills discounted not matured 47,284,017 39,363,617
Claims against the Company not
acknowledged as debts 183,384
Disputed Central Excise
Duty Service Tax 20,286,563 19,879,053
Sales Tax Matters 2,285,445 3,460,240
Octroi 56,213 56,213
Total 69,912,238 62,942,507
b) Commitments:
a) Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs. 26,109,186 (March 31, 2012: Rs.
15,199,069).
b) The Company has imported an asset costing Rs. 165,055,220 (March 31,
2012: Rs. 165,055,220) under Export Promotion Capital Goods Scheme and
accordingly has an export obligation of Rs. 193,429,188 (March 31,
2012: Rs. 193,429,188). Against the obligation, the Company has met Rs.
NIL up to March 31, 2013 and has provided a bond of Rs. 32,238,198
(March 31, 2012: Rs. 32,238,198) to the Commissioner of Customs. In the
opinion of the management, the Company will be able to fulfil its
obligation over the defined period of 6 years.
NOTE 4
The Board of Directors of the Company in their meeting dated April 19,
2013 have, subject to approval of the members of the Company, High
Court of judicature of Mumbai and other regulatory compliances as may
be necessary, approved a scheme of amalgamation to merge the Company,
on a going concern basis, with Grindwell Norton Limited, to be
effective from the appointed date of April 1, 2013. Since the proposed
merger is prospective to the date of the balance sheet on a going
concern basis, no adjustments to the financial statements for the year
ended March 31, 2013 are considered necessary.
NOTE 5
The Management has carried out the analysis of the impact of transfer
pricing rules on its transactions with associated persons defined in
relevant rules, in the last fiscal year, which did not result in any
accounting adjustments. The management is currently analysing the
continuing impact thereof on similar and new transactions together with
new associated persons defined in the relevant rules, for the period
from April 01, 2012 to March 31, 2013. In the opinion of the
management, no such transfer pricing related adjustments for the
current year are anticipated and accordingly no provision has been
considered on account of transfer pricing adjustments while determining
tax liability for the current period.
NOTE 6
Previous year figures have been reclassified to conform to this year''s
classification.
Mar 31, 2012
Notes:
1. Rights, preferences and restrictions attached to the shares
Equity Shares: The Company has one class of equity shares having a par
value of Rs.10 per share. Each shareholder is eligible for one vote per
share held. The dividend proposed by the Board of Directors is subject
to the approval of the shareholders in the ensuing Annual General
Meeting, except in case of interim dividend. In the event of
liquidation, the equity shareholders are eligible to receive the
remaining assets of the Company after distribution of all preferential
amounts, in proportion to their shareholding.
Note:
Details of provisions and movements in each class of provisions as
required by the Accounting Standard on Provisions, Contingent
Liabilities and Contingent Assets (Accounting Standard-29):
Provision for litigation/disputes represents claims against the Company
not acknowledged as debts that are expected to materialise in respect
of matters in litigation
Notes:
1. Buyers' Line of Credit and Cash Credit Facilities from banks are
secured by hypothecation of stocks & book debts on a pari passu basis.
2. Interest rates on the above loans range between 3.00% to 15.50%.
Note:
Disclosure under Micro, Small & Medium Enterprises Development Act,
2006:
The above information has been determined to the extent such parties
have been identified on the basis of information available with the
Company.
During the year, the Company has utilised deferred tax asset of Rs
32,826,078 (March 31, 2011: Rs. 2,319,281). Based on the orders on
hand, growth prospects of the automobile industry, the demand for the
Company's products, the long term plans of the Company's customers and
the history of order fulfillment by the Company's customers, the
Company is positive of generating adequate profits in the years to
come, to fully set off the balance deferred tax assets.Deferred Tax
Assets and Deferred Tax Liabilities have been offset as they relate to
the samegoverning taxation laws.
Note:
THE NET EXCHANGE DIFFERENCES ARISING DURING THE YEAR:
(i) Recognised appropriately in the Statement of Profit and Loss - net
gain - Rs. NIL (March 31, 2011: Rs.2,653,268).
2. THE NET EXCHANGE DIFFERENCES ARISING DURING THE YEAR:
(i) Recognised appropriately in the Statement of Profit and Loss - net
loss - Rs. 5,402,958 (March 31, 2011: Rs.NIL).
Additional Information pursuant to the requirements of Schedule VI and
Accounting Standards:
NOTE 1 - DETAILS OF EMPLOYEE BENEFITS AS REQUIRED BY THE ACCOUNTING
STANDARD 15 (REVISED) EMPLOYEE BENEFITS:
The Company has classified various employee benefits as under:
A. Defined Contribution Plans:
The Company has recognised the following amounts in the Statement of
Profit and Loss for the year:
NOTE 2 - SEGMENT INFORMATION
The Company is engaged in the business of "Automotive Glass" which, as
per the Accounting Standard - 17 Segment Reporting is considered as the
only reportable primary business segment. The geographical segment is
not considered as reportable segment as exports are insignificant.
(b) Relationships:
i) Holding Company
Saint-Gobain Sekurit S.A., France
ii) Entity in respect of which the Company is an Associate Saint-Gobain
Glass India Limited, India
iii) Fellow Subsidiaries
Saint-Gobain Glass, France
Saint-Gobain Seva, France
Grindwell Norton Limited, India
Saint-Gobain Sekurit (Thailand) Co. Limited, Thailand
Saint-Gobain Seva Engineering India Limited, India
Saint-Gobain Sekurit Deutschland Gmbh & Co KG, Germany
iv) Key Managerial Personnel:
Dr. Sreeram Srinivasan -Managing Director (upto June 11, 2011) Mr A
.Dinakar (w.e.f. October 25, 2011)
NOTE 3 - CONTINGENT LIABILITIES AND COMMITMENTS:
a) Contingent liabilities:
(Amount in Rupees)
Particulars As at As at
31st March, 2012 31st March, 2011
a) Bills discounted not matured 39,363,617 78,081,397
b) Claims against the Company not
acknowledged as debts 183,384 183,384
c) Bank Gurantees 8,214,850 8,214,850
d) Disputed Central Excise Duty
Service Tax 19,879,053 19,879,053
e) Sales Tax Matters 3,460,240 4,294,440
f) Octroi 56,213 56,213
b) Commitments:
a) Estimated amount of contracts remaining to be executed on capital
account and not provided for Rs.15,199,069 (March 31, 2011:
Rs.82,111,360).
b) The Company has imported an asset costing Rs. 165,055,220 (March 31,
2011: Rs. 37,074,106) under Export Promotion Capital Goods Scheme and
accordingly has an export obligation of Rs. 193,429,188 (March 31,
2011: Rs. 35,724,858). Against the obligation, the Company has met
Rs.NIL up to March 31, 2012 and has provided a bond of Rs. 32.238.198
(March 31, 2011: Rs. 5,954,143) to the Commissioner of Customs. In the
opinion of the management, the Company will be able to fulfill its
obligation over the defined period of 6 years.
NOTE 4 - The financial statements for the year ended March 31, 2011
had been prepared as per the then applicable, pre- revised Schedule VI
to the Companies Act, 1956. Consequent to the notification of Revised
Schedule VI under the Companies Act, 1956, the financial statements for
the year ended March 31,2012 are prepared as per Revised Schedule VI.
Accordingly, the previous year figures have also been reclassified to
conform to this year's classification. The adoption of Revised Schedule
VI for previous year figures does not impact recognition and
measurement principles followed for preparation of financial
statements.
Signatures to Notes 1 to 34 forming part of Financial Statements
1 The above Cash Flow has been prepared under the 'Indirect Method' as
set out in Accounting Standard - 3 on Cash Flow Statements issued by
the Institute of Chartered Accountants of India.
Previous period figures have been regrouped / rearranged , wherever
considered necessary. This is the Cash Flow Statement referred to in
our report of even date.
Mar 31, 2011
1) Contingent Liabilities :
Particulars As at As at
31st March, 31st March,
2011 2010
(Rs.) (Rs.)
a) Bills Discounted and outstanding 78,081,397 65,246,786
b) Claims against the Company not
Acknowledged as debts 183,384 2,713,464
c) Bank Guarantees 8,214,850 -
d) Disputed Central Excise Duty / 19,879,053 19,879,053
Service Tax
e) Sales Tax Matters 4,294,440 4,294,440
f) Octroi 56,213 56,213
2) Estimated amount of contracts remaining to be executed on Capital
Account and not provided for [Net of advance Rs.41,505,056 (Previous
Year Rs. 1,467,049] is Rs.82,111,360 (Previous Year: Rs. 1,549,312)].
3) Revenue Expenditure on Research & Development charged to the Profit
& Loss Account during the year in Schedule 14 aggregates Rs.787,548
(Previous period Rs.1,177,196).
4) TThe Company is engaged in the business of "Automotive Glass" which,
as per the Accounting Standard - AS-17 Segment Reporting is considered
as the only reportable primary business segment. The geographical
segment is not considered as a reportable segment as exports are
insignificant.
5) Related Party Disclosures:
1(a) Name of the related party and the nature of relationship where
control exists:
Name of the Nature of
related party relationship
Compagnie de Ultimate Holding
Saint-Gobain, France Company
Saint-Gobain Sekurit Holding Company
S.A., France
(b) Relationships:
i) Holding Company
Saint-Gobain Sekurit S.A., France
ii) Entity in respect of which the Company is an Associate
Saint-Gobain Glass India Limited, India
iii) Fellow Subsidiaries
Saint-Gobain Glass, France
Saint-Gobain Seva, France
Grindwell Norton Limited, India
Saint-Gobain Sekurit (Thailand) Co. Limited, Thailand
Saint-Gobain Seva Engineering India Limited, India
Saint-Gobain Sekurit Deutschland Gmbh & Co KG, Germany
Saint-Gobain Hanglass Clfg Qingdao Glass Co. Ltd, China
Saint-Gobain Sekurit Italia, Italy
Saint-Gobain Hanglass Sekurit (Shanghai)
Hankuk Sekurit Limited, Korea
iv) Key Management Personnel
Dr. Sreeram Srinivasan - Managing Director
6) The previous year's figures, wherever necessary, have been
regrouped to conform with the current year's classification.
Mar 31, 2010
1. EMPLOYEE BENEFITS
1) Post Employment Benefits a) Defined Contribution Plans:
The Company contributes on a defined contribution basis to the
Employees Provident Fund and Superannuation Fund (for few eligible
employees) towards post employment benefits, all of which are
administered by the respective Government authorities, and has no
further obligation beyond making its contribution. The contribution is
expensed in the year to which it pertains.
b) Defined Benefit Plans:
Funded Plan: The Company has a Defined Benefit Plan namely Gratuity for
all its employees. The liability for the defined benefit plan of
Gratuity is determined on the basis of an actuarial valuation by an
independent actuary at the year end, which is calculated using
projected unit credit method, which is administered through Life
Insurance Corporation (LIC).
Actuarial gains and losses which comprise experience adjustment and the
effect of changes in actuarial assumptions are recognised in the Profit
and Loss Account.
2) Other Long Term Employee Benefits
The employees of the Company are entitled to leave as per the leave
policy of the Company. The liability in respect of unutilised leave
balances is provided based on an actuarial valuation carried out by an
independent actuary as at the year end and charged to the Profit and
Loss Account.
3. LEASES
Lease Income from Operating Leases are recognised as rent income on a
straight line basis over the lease term.
4. TAXATION
a) Current Taxation:
Provision for current taxation is based on the taxable profits of the
current accounting year. Adjustments for taxation relating to previous
years, if any, are based on the returns filed for the fiscal year ended
March 31 and cognizance is taken of assessment/ appeal orders received
by the Company.
b) Deferred Taxation:
Deferred tax resulting from timing differences between book and tax
profits is accounted for under the Liability method at the current rate
of tax to the extent that the timing differences are expected to
crystallise/capable of reversal as a deferred tax charge/credit in the
Profit and Loss Account and as deferred tax liability/asset in the
Balance Sheet.
In cases where there is unabsorbed tax depreciation and unabsorbed
losses, deferred tax asset are recongnised only to the extent that
there is virtual certainty of their realisation supported by convincing
evidence.
5. IMPAIRMENT OF ASSETS
The Company assesses at each balance sheet date whether there is an
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the Profit and Loss Account. If at the Balance Sheet date
there is an indication that a previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount.
6. PROVISIONS & CONTINGENCIES
The Company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation but the likelihood of outflow of
resources is remote, no provision or disclosure is made, as required by
Accounting Standard 29 on Provisions, Contingent Liabilities and
Contingent Assets issued by the Institute of Chartered Accountants of
India.
7. ACCOUNTING ESTIMATES
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of financial statements and the reported
amounts of revenue and expenses during the reporting period. Difference
between the actual results and the estimates are recognized in the
period in which the results are known / materialised.
8) The previous financial statements are for the fifteen months period
from January 2008 to March 2009. Hence, previous period figures are not
strictly comparable with that of current year.
9) During the previous period, the Company had reassessed the
estimated useful lives of certain fixed assets like computers and
vehicles. Due to this reassessment, depreciation for the previous
period was higher by Rs. 1,386,603 and profit for the previous period
before tax was lower by the same amount.
10) During the previous period, management had scrapped certain assets
having written down value of Rs. 13,584,750. As a result, there was a
charge of Rs. 11,889,852 (net of recovery of Rs. 1,694,898) in the
Profit and Loss Account under the head Manufacturing & other
Expenses-Loss on Assets sold/written off (net).