| 1.1 Terms/ rights attached to Equity Shares:
Each holder of equity shares is entitled to one vote per share.
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 number of equity shares held by the shareholders.
1.2 Notes on Share Capital
The Company has not issued any securities convertible into equity/
preference shares.
During any of the last five years from year ended 31st March, 2009:
No shares were allotted as fully paid up pursuant to contract(s)
without payment being received in cash.
No shares were allotted as fully paid up by way of bonus shares.
No shares were bought back.
1.3 Final dividend of Rs.2.50 per share (P.Y. Rs. 2.50) proposed by Board
is subject to approval of shareholders in the ensuing Annual General
Meeting.
1.4 Nature of security of long term borrowings and other terms of
repayment
i Term loans from banks are secured by first charge on pari passu basis
on all immoveable and moveable fixed assets, present and future, of the
company's Peenya Unit and Tumkur Unit and second charge on pari passu
basis on all current assets, present and future, of the Company.
ii None of the above loans have been guaranteed by any Directors or
others except for counter guarantee given by the Company.
iii Term loan from Standard Chartered Bank is repayable in 16 equal
quarterly installments from April 18, 2012 along with interest rate of
8.95% (P.Y. 8.95%).
iv Term loan from Karur Vysya Bank is repayable in 11 equal quarterly
installments from January 5, 2014 along with interest rate of 12.00%
(P.Y. Nil).
v There has been no continuing default as on Balance Sheet date in
repayment of loans and interest.
vi During the earlier years, the company had availed foreign currency
denominated loans towards capital investment/ expansion of its plants.
It has also entered into a back to back cross currency rate swaps with
the banks for the repayment of its commitments against the said loans.
Consequently, the exposure of the company against the loan commitments
is fixed in Indian Rupees and there is no possibility of any further
exposure to the company in this regard and hence no foreign exchange
fluctuation has been recognised on this transaction and corresponding
changes in the fair value of the contracts have also not been
recognised.
1.5 Short Term borrowings from State Bank of India and Hongkong
Shanghai Banking Corporation Limited are secured by hypothecation of
stock of raw materials, consumables, spares, semi finished goods and
book debts wherever located on pari passu basis. Further, short term
borrowings from State Bank of India is also secured by second charge on
land and buildings and plant and machineries of the company's Peenya
and Tumkur Units.
1.6 None of the above loans have been guaranteed by any Directors or
others except for counter guarantee given by the Company.
(Rs. in Crores)
Year ended 31st Year ended 31st
March, 2014 March, 2013
2 Contingent Liabilities and commitments:
2.1 Contingent Liabilities
a Claims against the Company not acknowledged as debts:
Service tax/ Customs Duty
disputed 0.19 0.13
Sales tax disputed (Against this
a sum of Rs.0.05 Crores
has been deposited under protest) 0.05 0.05
Income Tax Disputed 0.08 -
b On account of LCs and Bank
Guarantees issued by bank 0.73 1.20
Subtotal 1.05 1.38
2.2 Commitments
a Expenditure on capital account remaining to be executed,
net of advances 2.11 1.16
Total Contingent Liabilities and
Commitments 3.16 2.54
2.3 The Company has dismissed four employees for the misconduct during
strike period in 2009-10, after completing the necessary enquiry
procedures. The aggrieved employees had challenged the dismissal in the
labour court which has awarded reinstatement of the workmen without
back wages. The company has filed a writ petition before the Honourable
High Court of Karnataka challenging a portion of the award of the
labour court. The company has neither made any provision for this in
its books of account nor shown a contingent liability since the amount
involved cannot be ascertained.
3 In the opinion of the Board, none of the assets have a value lower
on realization in the ordinary course of business than the amount at
which they are stated in the Balance Sheet.
4 Some of the Trade Receivables, Loans and Advances and Trade Payables
shown in the Balance Sheet are subject to confirmation/ reconciliation
5 The company has adopted Accounting Standard AS 30 "Financial
Instruments: Recognition and Measurement" and designated all
outstanding forward contracts entered into to hedge highly probable
forecast transactions as cash flow hedges. The changes in fair value of
forward contracts designated as cash flow hedges to the extent they are
related to forecast transactions that have occurred by the year end
amounting to Rs.0.35 gain (PY - Rs. 0.13 gain) are recognised in the
Statement of Profit and Loss and included in Net foreign exchange loss
in Note No. 23 - Other Expenses. In respect of those contracts which
relate to forecast transactions pending to be undertaken and considered
as effective hedges, the changes in fair value of the forward contracts
are recognised directly in Hedging Reserve Account in Note No.3 -
Reserves and Surplus.
6 Provision for current Income Tax liability is made on the basis of
assessment / appellate orders received/ company's own estimates. In
respect of cases, wherein refunds due to the Company are continued to
be held in the books, even though some of these orders are very old.
The Company has initiated specific steps for follow up and is confident
of receiving them.
7 Employee benefits
a. Details of the employee benefits are given below:
i. Defined Contribution Plans
During the year the following amounts have been recognised in the
Statement of Profit and Loss on account of defined contribution plans
8 Segment Reporting
Primary Segment (Business)
The entire operation of the Company relates to only one segment viz.
Components for transportation Industry. In respect of Secondary Segment
information, the Company has identified its geographical segments as
Within India and Outside India.
9 The figures for the previous year have been regrouped wherever
necessary to conform to current year's classification.
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