1. Terms/rights attached to Equity shares
(i) The company has only one class of Equity shares having a par value of '''' 10 per share. Each shareholder is entitled to one vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors of '''' 6.25 per share (March 31, 2016: '''' 6.25 per share) 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 of the Company, the holders of equity shares will be entitled to receive any of the 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.
2. Defined Benefit plans
Gratuity Scheme: The employee''''s gratuity fund scheme managed by Life Insurance Corporation is a defined benefit funded plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employees benefit entitlement and measures each unit separately to built up the final obligation. The obligation for leave encashment is a defined unfunded benefit plan, which is recognized in the same manner as gratuity.
Leave Encashment/Compensated Absences: Short term compensated absences are recognized in the statement of profit and loss of Rs. 32.62 Lakhs (March 31, 2016: Rs. 33.71 Lakhs)on the basis of actual liability and long term compensated absences are recognized on the basis of actuary valuation which is an unfunded defined benefit plan.
The following tables summarize the components of net benefit expense recognized in the profit and loss account and the funded status and amounts recognized in the balance sheet for the respective plans (as per Actuarial Valuation as on March 31, 2017).
In accordance with the Accounting Standard (revised 2005), an actuarial valuation was carried out in respect of the aforesaid defined benefit plans based on following assumptions:
Note 3: Segment Reporting
4. Based on the guiding principles given in Accounting Standard on “Segment Reporting” (AS-17) as notified under Companies (Accounts) Rules, 2014, the Company’s primary business segment involves manufacturing and trading of auto component parts mainly with similar risks and returns. As the Company’s business activities fall within a single primary business segment, i.e. sale of auto component parts, the disclosure requirements of AS-17 in this regard are not applicable.
5. The Company sells its products mostly within India and does not have any operations in economic environments with different risks and returns. Hence it is considered to be operating in single geographical segment.
6. Figures in brackets () relate to previous year
7. Share of Contingent liabilities incurred in relation to interests in joint ventures as at March 31, 2017 : Rs. NIL ( March 31, 2016 Rs. NIL )
8. Share of Capital Commitments incurred in relation to interests in joint ventures as at March 31, 2017 : Rs. NIL ( March 31, 2016 Rs. NIL )
Note 9: CSR Expenditure
10. Gross amount required to be spent by the Company during the year (i.e. 2% of Average Net profits u/s 198 of Companies Act, 2013 of last three years): Rs. 64.54 Lakhs.
In the opinion of the Board, the current assets, loans and advances are approximate of the value stated if realized in the ordinary course of business. The provision for all known liabilities are adequate and not in excess of the amount reasonably necessary.
The balances of debtors, creditors and loans and advances are awaiting confirmation.
‘Relying on the judgment of Honorable Supreme Court of India in “Kedar Nath Yadav Vs. State of West Bengal & Ors.” the company has written off an amount of Rs. 7.38 Cr. incurred in respect of setting up of Singur facility and disclosed under the head ‘Exceptional item''''. Exceptional items for the current quarter ended March 31, 2017 includes 1.76 Cr. as diminution in value of assets held for sale at Korin Unit for sale. Exceptional items for the year ended contains sum of both the above amounts.''''
Figures are rounded off to nearest rupee in Lakhs . Previous year figures has been re-grouped or re-classified where ever considered necessary.