1. Terms / Rights attached to Equity Shares:
The Company has only one class of equity shares having a par value of Rs. 10/- per share. All these shares have the same rights and preferences with respect to payment of dividend, repayment of capital and voting. The dividend proposed by the Board of Directors is subject to the approval of the share holders in the ensuing Annual General Meeting, except in the case of interim dividend.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. There are no restrictions attached to the equity shares.
2. There is no change in the number of shares at the beginning of the year and end of the year.
3. Capital Redemption Reserve represents amount transferred from Statement of Profit and Loss in accordance with Section 80(1)(d) of the Companies Act, 1956 on redemption of preference shares in the prior years.
4. General Reserve on merger represents Rs.819 Lakhs 819 Lakhs) arising out of the amalgamation of Rane Investments Limited, a wholly owned subsidiary as approved by the shareholders of the Company and sanctioned by the High Court of Judicature at Madras with effect from 1 April, 2009.
5. The Board of Directors, in the meeting held on 26 May, 2017, have recommended a final dividend of Rs. 5 Per Share amounting to Rs.714 Lakhs 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.145 Lakhs. This final dividend on shares will be recorded as a liability on the date of approval by the Shareholders.
6. The Company had accrued for an amount of Rs.59 Lakhs in the earlier years towards arrears of lease rent for the land taken under lease, as demanded by the Collector of Chennai District. The Company had filed a writ petition and obtained a stay order from the Honourable High Court of Judicature at Madras.
7. Based on, and to the extent of information received from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act), and relied upon by the auditors there are no dues as at 31 March, 2017 and 31 March, 2016.
8. EMPLOYEE BENEFIT PLANS
(i) Defined Contribution Plan
The Company makes Provident Fund, Pension Fund and Superannuation Fund contributions which are defined contribution plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs.74.30 Lakhs (Rs.61.72 Lakhs) towards Provident Fund and Pension Fund contributions and Rs.25.93 Lakhs 22.22 Lakhs) towards Superannuation Fund in the Statement of Profit and Loss. The contributions payable to these plans by the Company is at rates specified in the rules of the scheme.
The following table sets out the funded status of the defined benefit schemes and the amount recognized in the financial statements:
(i) The discount rate is based on the prevailing market yields of Government of India securities as at the Balance Sheet date for the estimated term of the obligations.
(ii) The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.
(iii) The entire Plan Assets are managed by Life Insurance Corporation of India (LIC). The data on Plan Assets has not been furnished by LIC.
(iv) Experience adjustments has been disclosed based on the information available in the acturial valuation report.
i. The discount rate is based on the prevailing market yields of Government of India securities as at the Balance Sheet date for the estimated term of the obligations.
ii. The estimate of future salary increases considered, takes into account the inflation, seniority, promotion, increments and other relevant factors.
9. SEGMENT REPORTING
The Company holds strategic investments in subsidiaries, joint ventures and associates (collectively called "the Group”) that are primarily engaged in single segment viz., manufacture and marketing of components for Transportation industry and also provides consultancy and other services to the Group. Further the Company does not have any operations outside India. As such there are no separate reportable segments as per AS 17 "Segment Reporting”.
10. The Company did not have any unhedged Foreign currency exposure as at 31 March, 2017 and 31 March 2016. The company did not have any derivatives.
11. AMOUNT SPENT ON CSR ACTIVITIES:
(i) Gross amount required to be spent by the Company during the year is Rs.69.70 Lakhs 62.84 Lakhs)
(ii) Amount spent during the year on revenue expenditure is Rs.69.70 Lakhs 62.91 Lakhs)
12. Details of Specified Bank Notes held & transacted during the period 8 November 2016 to 30 December, 2016, pursuant to the requirement of notification G.S.R 308 E dated 30 March, 2017.
13. PREVIOUS YEAR''''S FIGURE
Previous year''''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''''s classification/disclosure.