1 Corporate information
Five Core Electronics Ltd ("the Company") was incorporated on 11th April, 2002. The Company is mainly engaged in Manufacturing & Trading of Electronics & Electricals items with their components.
(d) Rights, preferences and restrictions attached to shares
The Company has one class of equity shares having a par value of Rs. 10 each. 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.
- Details of Security
Cash Credit facilities and packing credit is secured by way of hypothecation of stock-in-trade both present & future, present & future book debts, outstanding monies, receivables, claims due or which may at any time become due and first pari passu charge on the entire surrent assets both present and future of the Company other than exclusively charged under term loans. Further deposits of Rs 12.78 cr and following immovable properties are given as collateral security -
2. Outstanding foreign currency exposures
The Company does not use foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions.
3. The Company does not have any reportable business segments. Operations of the Company do not qualify for reporting as geographic segments, as per the criteria set out under Accounting Standard 17 on Segment reporting.
4. Disclosures as per Micro, Small and Medium Enterprises Development (MSMED) Act, 2006
The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/ payable as required under the Act have not been given. Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.
5. Details of Related Party Transaction are as per Annexure A attached
6. Disclosure of Retirement Benefits and Leave Encashment as per AS 15-Employee Benefits - Refer Annexure B
7. The Holding Company has allotted 1,763,217 equity share during the year against the share application money pending allotment received during previous year @ 70 per share (Including Rs. 60 Per share as Share Premium)
Further the company has allotted 2,021,693 equity shares to the shareholders of 5 Core Acoustics Private Limited as consideration for acquiring equity shares of 5 Core Acoustics Private Limited. The Share swap ratio is 0.643:1.
8. The operating cycle of the Company has been considered as 12 months for the purpose of current and non-current classification in the financial statements.
9. In the opinion of the Board, and to the best of their knowledge and belief the value of the realization of current assets, loans and advances in the ordinary course of the business would not be less that the amount at which they are stated in the balance sheet and the provisions for all known and determined liabilities are adequate and not in excess of the amount reasonably required.
10. The Company completed an initial Public offer, ('the Offer') of 33,33,000 Equity Shares of Rs. 10/- each at a price of Rs. 140/- aggregating Rs. 12.620 Cr. The Equity Shares of the Company was Listed on NSE EMERGE on 21st day of May 2018
11. Pursuant to the press released issued by MCA dated 2nd January,2015(press release No.11/10/2009 CL-V) the Shares of the Company are listed on NSE Emerge/SME Platform shall not required to apply Indian Accounting Standard.
12. Previous period figures have been reclassified and regrouped, wherever necessary, to confirm to the current period's presentation. Amounts have been rounded off to nearest rupee.
Disclosure of Retirement Benefits under AS 15-Employee Benefits
a. Defined contribution plan
The Company's contribution to the Employees Provident Fund is deposited with Provident Fund Commissioner which is recognised by the Income Tax authorities. The Company recognised Rupees 11,48,932(Previous year Rupees 11,59,122) for Provident Fund contributions in the Statement of Profit and Loss Account.
b. Description of Defined Benefit Plans
i. Gratuity plan
The Company's gratuity scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of 6 months subject to maximum of Rs 10 lacs. Vesting occurs upon completion of 5 years of service.
The present value of the defined benefit obligation and the related current service cost are measured using the Projected Unit Credit Method with actuarial valuation being carried out at each balance sheet date.
ii. Long term compensated absences plan
The earned leave liability arises as and when services are performed by an employee. The aforesaid liability is calculated on the basis of actuarial valuation as per projected unit credit method.
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