1. Rights, preferences and restrictions attached to 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. 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.
2. The Board of Directors, in the meeting held on May 17, 2017, have recommended a final dividend of Rs.9 Per Share amounting to Rs.7.12 Crores on Equity Shares of Rs.10/- each for the year 2016-17, subject to the approval of the Shareholders. Dividend Distribution Tax on the same amounts to Rs.1.45 Crores. This final dividend on shares will be recorded as a liability on the date of approval by the Shareholders.
(a) Working Capital Loans, Buyers credit and PCFC, from 6 (March 31, 2016 - 6) banks, are secured on pari passu basis by way of hypothecation of all inventories, book debts and other current assets of the Company. Amount outstanding is Rs.40,000 which is below the rounding off norms adopted by the company
(b) Short term loan from banks are secured on a pari passu basis by way of hypothecation of inventories, book debts and other current assets of the Company..
(a) Net of provision for taxes Rs.91.05 Crs (March 31, 2016 : Rs.81.25 Crs)
(b) Includes rent deposit paid to a director - Rs.0.12 Crs (March 31, 2016 : Rs.0.12 Crs)
(c) Includes Sales tax and Excise deposit
(a) Represents deposit held by Electricity Department - for Puducherry Plant towards Security Deposit
(b) Amount is Rs..Nil (March 31 2016 : Rs.21,627) below the rounding off norm adopted by the Company
(a) It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings. Future cash outflows in respect of the above are determinable only on receipt of the judgements / decisions pending with various forums / authorities..
(b) The Company does not expect any reimbursements from third parties in respect of the above contingent liabilities.
(a) Defined Contribution Plans
During the year the following amounts have been recognized in the Profit and Loss Statement on account of defined contribution plans:
(b) Defined benefit Plans (Funded)
Gratuity : Every 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.
The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotions and other relevant factors, such as demand and supply in the employment market
The above disclosures are based on information furnished by the independent actuary and relied upon by the auditors.
(c) Compensated Absences (Vesting and Non-vesting unfunded)
Accumulated compensated absences, which are expected to be availed or encashed within 12 months from the end of the year are treated as short term employee benefits. The obligation towards the same is measured at the expected cost of accumulating compensation.
The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotions and other relevant factors, such as demand and supply in the employment market.
(a) Excise Duty on Sale of products has been deducted from sales revenue and Excise Duty shown under Other Expense represents the difference between Excise Duty on opening and closing stock of finished goods.
3. The company has incurred an amount of Rs.0.51 Crs (March 31, 2016 : Rs. 0.35 Crs) towards corporate social responsibility activities, during the current year ended March 31, 2017.
(a) Exceptional item represents the amount paid to 107 employees who have opted for early retirement in terms of a Voluntary Retirement Scheme introduced by the Company during the year
4. Dues to micro and small enterprises
Dues to Micro Small & Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Company. This has been relied upon by the auditors. According to the records available with the Company certain amount have been identified as dues to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 (''''MSMED Act''''). The disclosure pursuant to the said MSMED Act are as follows:
5. Segment Reporting
The Company is engaged in the business of manufacture of "Components for Transportation Industry” which is considered to be the only reportable business segment as per the Accounting Standard 17. As the exports are predominantly to developed countries, geographical risk is not different from domestic market and hence no separate secondary segment disclosure is required.
6. Derivative Instrument and hedge accounting
As per Accounting Standard AS 30 "Financial Instruments : Recognition and Measurement”, adopted with effect from 1st April 2014 the Company has provided for the effective portion amounting to Rs. Nil of the changes in the fair values of forward contracts designated as cash flow hedges directly in ‘Hedge Reserve Account'''' being part of the shareholders'''' funds the changes in fair value relating to the ineffective portion amounting to Rs. Nil of the cash flow hedges and forward contracts are recognized in the Profit and Loss Statement,
7. The figures for the previous year have been regrouped wherever necessary to conform to current year’s classification. Figures have also been rounded off to Crores of rupees.