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Notes to Accounts of International Combustion (India) Ltd.
Mar 31, 2025
17.3 Securities Premium
Securities Premium represents the amount received in excess of par value of securities and is available for utilisation as specified under section 52 of Companies Act, 2013.
17.4 General Reserve
The General Reserve is used by appropriating profits from retained earnings. As the General Reserve is created by a transfer from one component of equity to another, it is not reclassified to the Statement of Profit and Loss.
17.5 Retained Earnings
Retained earnings represents the undistributed profit/ amount of accumulated earnings of the company.
17.6 Other Comprehensive Income
Other Comprehensive Income represents the balance in equity for items to be accounted in Other Comprehensive Income (OCI). The actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions have been recognised in OCI and will not be reclassified to Statement of Profit and Loss.
18.1 Term Loan Rs. 487.56 lakh from HDFC Bank is secured by hypothecation of stock of raw materials, work-inprogress, finished goods, stores and spares, trade receivables and other current assets of the Company and all moveable assets and by equitable mortgage by deposit of title deeds of immoveable properties comprising of land and buildings of the Companyâs factories situated at Nagpur, Ajmer & Aurangabad. The Interest rate is currently 9.59%. The outstanding as on March 31, 2025 is Rs. Nil (March 31, 2024: Rs. 448.67)
18.2 Term Loan Rs. 500 lakh from UCO Bank is secured by hypothecation of stock of raw materials, work-in-progress, finished goods, stores and spares, trade receivables and other current assets of the Company and all moveable assets and by equitable mortgage by deposit of title deeds of immoveable properties comprising of land and buildings of the Companyâs factories situated at Nagpur,Ajmer & Aurangabad. The Interest rate is currently 9.60%. The outstanding as on March 31, 2025 is Rs. 368.22 (March 31, 2024: Rs. 470.07)
21.1 Loans repayable on demand being Working Capital facilities from UCO Bank, HDFC Bank, ICICI Bank and Axis Bank (both fund based and non-fund based) are secured by hypothecation of stock of raw materials, work-in-progress, finished goods, stores and spares, trade receivables and other current assets of the Company and all moveable assets and by equitable mortgage by deposit of title deeds of immoveable properties comprising of land and buildings of the Companyâs factories situated at Nagpur, Ajmer and Aurangabad.
For short-term and low value leases, the Company recognises the lease payments as an operating expense.
Leasehold Land being perpetual in nature and having a term upto 99 years of lease with an option of renewal has not been amortised.
The Company does not have any lease liability as on March 31, 2025 and March 31, 2024. Accordingly, no disclosure is required as per Ind AS 116 in this regard.
The Company has not entered in any non-cancellable operating leases as a lessor. Accordingly, no disclosure is required as per Ind AS 116 in this regard.
Fair Valuation Techniques
The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The following methods and assumptions were used to estimate the fair values:
The fair value of cash and cash equivalents, trade receivables, trade payables, current financial liabilities/financial assets and borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The management considers that the carrying amounts of financial assets and financial liabilities recognised at nominal cost/ amortised cost in the financial statements approximate their fair values.
A substantial portion of the companyâs long-term debt has been contracted at floating rates of interest, which are reset at short intervals. Fair value of variable interest rate borrowings approximates their carrying value subject to adjustments made for transaction cost.
Investments in Mutual Funds are determined by reference to the quoted market prices (i.e. NAV) at the reporting date multiplied by the quantity held.
During the year ended March 31, 2025 and March 31, 2024, there were no transfers between Level 1, Level 2 and Level 3.
The Inputs used in fair valuation measurement are as follows:
Fair valuation of Financial assets and liabilities not within the operating cycle of the Company is amortised based on the borrowing rate of the Company.
Financial instruments are valued based on quoted price for similar assets and liabilities in active market or similar inputs that are directly or indirectly observable in the market place.
Financial Risk Factors
The Companyâs activities expose it to a variety of financial risks. The key financial risk includes market risk, credit risk and liquidity risk. The Companyâs focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Company has an Enterprise Risk Management (ERM) process which involves periodic identification of risks likely to affect the business adversely, rating the risks, their importance and likelihood, preparation of risk identification procedures, implementation of risk mitigation plans and its continuous monitoring by the Executive Management/Divisional Heads. The Risk Management Committee has already identified the risks in the various business areas and it also develops and monitors various mitigation strategies and plans in these areas to reduce or eliminate the likelihood of such risks. The presence in India of players with low cost products which has intensified the competition in the large domestic market consequently shrinking the margins for the Companyâs products is an area of risk. To mitigate the risk involved in this area, steps have been initiated to move ahead of the competition with the Companyâs strong brand image along with upgradation of technology, carving out a niche product portfolio and effective marketing framework.
Market Risk
Market risk is the risk or uncertainty arising from possible market price movements resulting in variation in the fair value of future cash flows of a financial instrument. The major components of Market risks are foreign currency risk, interest rate risk and other price risk. Financial instruments affected by market risk includes trade receivables, borrowings, investments and trade and other payables.
Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Companyâs exposure to the risk of changes in foreign exchange rates relates primarily to the Companyâs foreign currency denominated transactions.
The Company is having a net foreign exchange outflow and has adopted a comprehensive risk management review system wherein it evaluates exchange rate exposure arising from these transactions and follows established risk management policies.
There are deposits with banks which are for short term period are exposed to interest rate risk, falling due for renewal. These deposits are however generally for trade purposes and as such does not cause material implication.
With all other variables held constant, the following table demonstrates the impact of exposure of Companyâs borrowings to interest rate changes at the end of the reporting period. A hypothetical basis point shift, as detailed below, would result in a corresponding increase or decrease in interest costs for the Company on a yearly basis.
Other price risk
The investment in mutual funds which are fair valued through profit and loss are material as these are Fixed Maturity Plan(FMP) that are closed ended scheme with a pre-defined maturity which is subject to investment objective and allocation which is basically in debt instruments, Certificate of Deposits and Commercial papers. Accordingly, other price risk of the financial instrument to which the Company is exposed is not expected to be material.
Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables). To manage this, the management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Collection of sale proceeds promptly from the clients on sale of products is also an area where risk is involved. The Company has adopted various recovery measures for improvement in collection and liquidity position which is also monitored by the Executive Management at regular intervals.
The carrying amount of respective financial assets recognised in the financial statements, (net of impairment losses) represents the Companyâs maximum exposure to credit risk. The concentration of credit risk is limited due to the customer base being large and unrelated. Of the trade receivables balance at the end of the year, there are no single customer accounted for more than 10% of the accounts receivable and 10% of revenue as at March 31, 2025 and March 31, 2024 respectively.
The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables. Receivables from customers are reviewed/evaluated periodically by the management and appropriate provisions are made to the extent recovery thereagainst has been considered to be remote.
Financial assets that are neither past due nor impaired
Cash and Cash Equivalents, investment and deposits with banks are neither past due nor impaired. Cash and Cash Equivalents with banks are held with reputed and credit worthy banking institutions.
Financial assets that are past due but not impaired
Trade Receivables disclosed include amounts that are past due at the end of the reporting period but against which the Company has not recognised an allowance for doubtful receivables because there has not been a significant change in credit quality and the amounts are still considered recoverable.
Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Companyâs objective is to maintain optimum level of liquidity to meet itâs cash and collateral requirements at all times. The Company relies on borrowings and internal accruals to meet its fund requirement. The current committed line of credit are sufficient to meet its short to medium term fund requirement.
Liquidity and interest risk tables
The following tables detail the Companyâs remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows as at the Balance Sheet date:
The Company has current financial assets which will be realised in ordinary course of business. The Company ensures that it has sufficient cash on demand to meet expected operational expenses.
The Company relies on mix of borrowings and excess operating cash flow to meet its need for funds and ensures that it does not breach any financial covenants stipulated by the lender.
Capital Management
The primary objective of the Companyâs capital management is to ensure that it maintains a healthy capital ratio in order to support its business and maximise shareholder value. The Companyâs objective when managing capital is to safeguard their ability to continue as a going concern so that they can continue to provide returns for shareholders and benefits for other stake holders. The Company is focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without impacting the risk profile of the Company.
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40. Contingent Liabilities and Commitments (to the extent not provided for) in respect of: ('' in lakh) |
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Particulars |
As at March 31, 2025 |
As at March 31, 2024 |
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a) Contingent Liabilities |
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Outstanding Bank Guarantees* |
194.34 |
208.35 |
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b) Commitments |
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Estimated amount of contracts remaining to be executed on capital account and not provided for |
17.94 |
83.55 |
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* Does not include Advance and Performance Bank Guarantee issued in the normal course of business. |
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41.1 in respect of the above parties ,there is no provision for doubtful debts as on March 31, 2025 and no amount has been written off or written back during the year in respect of debt due from/to them.
41.2 The above related party information is as identified by the management and relied upon by the auditor.
42. Segment Information
a) Reportable Segments:
The Companyâs operating segment are established on the basis of those component of the Company that are evaluated regularly by the Board âThe Chief Operating Decision Makerâ as defined in Ind AS 108 âOperating Segmentsâ. The Company has three principal operating and reporting segments i.e.
i) Mineral & Material Processing and Handling Equipment
ii) Gear Box and Geared Motor Drive System
iii) Building Material Division
Segment revenue and results:
The expenses and income which are not directly attributable to any business segment are shown as unallocable expenditure (net of allocable income).
Segment assets and Liabilities:
Segment assets include all operating assets used by the operating segment and mainly consist of property, plant and equipments, trade receivables, Inventory and other operating assets. Segment liabilities primarily includes trade payable and other liabilities. Common assets and liabilities which can not be allocated to any of the business segment are shown as unallocable assets / liabilities.
Inter Segment Transfer:
Inter Segment revenues are recognised at sales price. The same is based on market price and business risks. Profit or loss on inter segment transfer are eliminated at the group level.
2) The Company has not revalued its Property,Plant & Equipment (including Right of Use Assets) and intangible assets during the financial year
3) No Loans and Advances in the nature of Loans have been granted to Promoters, Directors,KMPs and Related Parties either severally or jointly with any other person.
5) The Company does not have any Intangible assets under development
6) No proceedings have been initiated or is pending against the Company for holding any benami property under the Benami Transaction (Prohibition) Act,1988 (45 of 1988) and Rules made thereunder
7) The Company is not a wilful defaulter and has not been declared as such by any bank or financial institution
8) The Company did not have either any transaction with struck off companies during the current year and previous year or have any balance outstanding at the end of the year
9) The quarterly/monthly returns filed with the bank are not materially inconsistent with the reporting criterion established by the bank on net basis.
10) There are no charges or satisfaction of charges yet to be registered with the Registrar of Companies beyond the statutory period.
11) The Company does not have any layer of companies.
12) The Company has not entered into any scheme of arrangements in the financial year.
13) The Company has not advanced or loaned or invested fund (either borrowed fund or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the intermediary shall ;(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries), or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
14) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall ; (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries), or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
15) The Company did not have any transaction which were not recorded in the books of account and has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
16) During the Financial Year the Company is covered under section 135 of the Companies Act, 2013 in respect of spending on account of corporate social responsibility.
17) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
46. These financial statements have been approved by the Board of Directors of the Company on 26th May ,2025 for issue to the shareholders for their adoption. Previous yearâs figures have been regrouped / rearranged wherever necessary.
Mar 31, 2024
3.12 Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a legal or constructive obligation as a result of past events and it is probable that there will be an outflow of resources and a reliable estimate can be made of the amount of obligation. Provisions are not recognised for future operating losses. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.
Contingent liabilities are not recognized and are disclosed by way of notes to the financial statements when there is a possible obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or when there is a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the same or a reliable estimate of the amount in this respect cannot be made.
Contingent assets are not recognised but disclosed in the Financial Statements by way of notes to accounts when an inflow of economic benefits is probable.
3.13 Employee Benefits
Employee benefits are accrued in the year in which services are rendered by the employees. Short term employee benefits are recognized as an expense in the Statement of Profit and Loss for the year in which the related service is rendered. Contribution to defined contribution plans such as Provident Fund, Superannuation Fund and Pension Fund is being made in accordance with statute and are recognised as and when incurred.
Contribution to defined benefit plans such as Provident Fund, Superannuation Fund etc. and are recognized as and when incurred.
Contribution to defined benefit plans consisting of contribution to gratuity scheme and Interest Rate Guarantee on Provident Fund schemes are determined at close of the year at present value of the amount payable using the Projected Unit Credit Method with actuarial valuation techniques. Actuarial gain and losses arising from experience adjustments and changes in actuarial assumptions are recognized in Other Comprehensive Income.
Other long term employee benefits consisting of leave encashment are determined at close of the year at present value of the amount payable using actuarial valuation techniques. The changes in the amount payable including actuarial gain/loss are recognised in the Statement of Profit and Loss.
3.14 Revenue Sale of goods:
Revenue from contract with customers is recognised when the Company satisfies performance obligations by transferring promised goods and services to the customer. Performance obligations are said to be satisfied at a point of time when the customer obtains controls over the assets. Revenue is considered at the fair value of consideration received or receivable when the significant risk and rewards of goods and ownership of goods have been transferred and the amount thereof can be measured reliably. This represents the net invoice value of goods supplied after deducting discounts, rebates and taxes collected on behalf of third parties which the Company pays as principal.
Interest, Dividend and Claims
Dividend income is recognized when the right to receive payment is established. Interest has been accounted using effective interest rate method. Insurance claims/ other claims are accounted for as and when admitted / settled.
Export Benefits
Export benefits are accounted for as and when the ultimate realisability of such benefits are established.
3.15 Government Grants
Government grants are recognized on systematic basis when there is reasonable certainty of realization of the same. Revenue grants including subsidy/rebates are credited to the Statement of Profit and Loss under âOther Incomeâ or deducted from the related expenses for the period to which these are related. Grants which are meant for purchase, construction or otherwise, acquired non current assets are recognized as Deferred Income and disclosed under Non Current Liabilities and transferred to Statement of Profit and Loss on a systematic basis over the useful life of the respective asset. Grants relating to non-depreciable assets is transferred to Statement of Profit and Loss over the periods that bear the cost of meeting the obligations related to such grants.
3.16 Borrowing Costs
Borrowing cost comprises of interest and other costs incurred in connection with the borrowing of the funds. All borrowing costs are recognized in the Statement of Profit and Loss using the effective interest method except to the extent attributable to qualifying Property Plant Equipment (PPE) which are capitalized to the cost of the related assets. A qualifying PPE is an asset, that necessarily takes a substantial period of time to get ready for its intended use or sale. Borrowing cost also includes exchange differences to the extent considered as an adjustment to the borrowing costs.
3.17 Taxes on Income
Income tax expense representing the sum of current tax expenses and the net charge of the deferred taxes is recognized in the Statement of Profit and Loss except to the extent that it relates to items recognized directly in Equity or Other Comprehensive Income.
Current income tax is provided on the taxable income and recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the Financial Statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future economic benefits in the form of availability of set off against future income tax liability and such benefit can be measured reliably and it is probable that the future economic benefit associated with the same will be realised.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be utilized.
3.18 Earnings Per Share
Basic earnings per share are computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares
3.19 Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (CODM). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors.
Segments are organised based on business which have similar economic characteristics as well as exhibit similarities in nature of products and services offered, the nature of production processes, the type and class of customer and distribution methods. Segment revenue arising from third party customers is reported on the same basis as revenue in the financial statements. Inter-segment revenue is reported on the basis of transactions which are primarily market led. Segment results represent profits before finance charges, unallocated corporate expenses and taxes.
âUnallocated Corporate Expensesâ include revenue and expenses that relate to initiatives/ costs attributable to the enterprise as a whole and are not attributable to segmentsâ
3.20 Critical accounting judgments, assumptions and key sources of estimation and uncertainty
The preparation of the financial statements in conformity with the measurement principle of Ind AS requires management to make estimates, judgements and assumptions. These estimates, judgements and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized and, if material, their effects are disclosed in the notes to the financial statements. Application of accounting policies that require significant areas of estimation, uncertainty and critical judgments and the use of assumptions in the financial statements have been disclosed below. The key assumptions concerning the future and other key sources of estimation uncertainty at the Balance Sheet date, that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are discussed below:
(i) An arrangement containing leases and classification of leases
The Company enters into service / hiring arrangements for various assets / services. The determination of lease and classification of the service / hiring arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lesseeâs option to purchase and estimated certainty of exercise of such option, proportion of lease term to the assetâs economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset.
(ii) Depreciation / amortization and impairment loss on property, plant and equipment
Property, plant and equipment and intangible assets are depreciated/ amortized on straightline /written down value basis over the estimated useful lives (or lease term if shorter) in accordance with Schedule II of the Companies Act, 2013, taking into account the estimated residual value, wherever applicable.
The Company reviews its carrying value of its Tangible and Intangible Assets whenever there is objective evidence that the assets are impaired. In such situation the amount recoverable is estimated which is higher of assetâs or cash generating unitâs (CGU) fair value less cost of disposal and its value in use. In assessing value in use the estimated future cash flows are discounted using pre-tax discount rate which reflect the current assessment of time value of money. In determining fair value less cost of disposal, recent market realisations are considered or otherwise in absence of such transactions appropriate valuations are adopted. The Company reviews the estimated useful lives of the assets regularly in order to determine the amount of depreciation / amortization and amount of impairment expense to be recorded during any reporting period. This reassessment may result in change estimated in future periods.
(iii) Impairment loss on trade receivables
The Company evaluates whether there is any objective evidence that trade receivables are impaired and determines the amount of impairment loss as a result of the inability of the customers to make required payments. The Company bases the estimates on the ageing of the trade receivables balance, credit-worthiness of the trade receivables and historical writeoff experience. If the financial conditions of the trade receivable were to deteriorate, actual write-offs would be higher than estimated.
(iv) Income taxes
The Company provides for tax considering the applicable tax regulations and based on reasonable estimates. Management periodically evaluates positions taken in the tax returns giving due considerations to tax laws and establishes provisions in the event, if required, as a result of differing interpretation or due to retrospective amendments, if any.
The recognition of deferred tax assets is based on availability of sufficient taxable profits in the Company against which such assets can be utilized. MAT (Minimum Alternate Tax) is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax and will be able to utilize such credit during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset, the said asset is created by way of a credit to the Statement of Profit and Loss and is included in Deferred Tax Assets. The Company reviews the same at each Balance Sheet date and if required, writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that Company will be able to absorb such credit during the specified period.
(v) Provisions and Contingencies
Management judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations/ against the Company as it is not possible to predict the outcome of pending matters with accuracy. Based on management best estimates the same does not qualify for recognition in the financial statements.
(vi) Insurance Claim and Liquidated damages
Insurance claims are accounted as and when admitted/settled. Liquidated damages and penalties are accounted for in accordance with the terms of agreement for loss of opportunity/ profit of the Company due to delay in completion. Subsequent changes in value if any are provided for.
(vii) Defined benefit obligation (DBO)
Critical estimate of the DBO involves a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate, anticipation of future salary increases etc. as estimated by Independent Actuary appointed for this purpose by the Management. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.
(viii) Fair Value Measurement of Financial Instruments
When the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including Discounted Cash Flow Model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair value. Judgements include considerations of inputs such as liquidity risks, credit risks and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
4 Recent Pronouncements
The Ministry Of Corporate Affairs (MCA) notifies new standards or amendments to the existing
standards under the Companies (Indian Accounting Standards) Rules as issued from time to time.
For the year ended 31.03.2024, MCA has not notified any new standards or amendments to the
exsting standards applicable to the Company.
18.3 Securities Premium
Securities Premium represents the amount received in excess of par value of securities and is available for utilisation as specified under section 52 of Companies Act, 2013.
18.4 General Reserve
The General Reserve is used from time to time by appropriating profits from retained earnings. As the General Reserve is created by a transfer from one component of equity to another, it is not reclassified to the Statement of Profit and Loss.
18.5 Retained Earnings
Retained earnings generally represents the undistributed profit/ amount of accumulated earnings of the company.
18.6 Other Comprehensive Income
Other Comprehensive Income represents the balance in equity for items to be accounted in Other Comprehensive Income (OCI). The actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions have been recognised in OCI and will not be reclassified to Statement of Profit and Loss.
The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The following methods and assumptions were used to estimate the fair values:
The fair value of cash and cash equivalents, trade receivables, trade payables, current financial liabilities/financial assets and borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The management considers that the carrying amounts of financial assets and financial liabilities recognised at nominal cost/ amortised cost in the financial statements approximate their fair values.
A substantial portion of the companyâs long-term debt has been contracted at floating rates of interest, which are reset at short intervals. Fair value of variable interest rate borrowings approximates their carrying value subject to adjustments made for transaction cost.
Investments in Mutual Funds are determined by reference to the quoted market prices (i.e. NAV) at the reporting date multiplied by the quantity held.
Fair valuation of Financial assets and liabilities not within the operating cycle of the Company is amortised based on the borrowing rate of the Company.
Financial instruments are valued based on quoted price for similar assets and liabilities in active market or similar inputs that are directly or indirectly observable in the market place.
Financial Risk Factors
The Companyâs activities expose it to a variety of financial risks. The key financial risk includes market risk, credit risk and liquidity risk. The Companyâs focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Company has an Enterprise Risk Management (ERM) process which involves periodic identification of risks likely to affect the business adversely, rating the risks, their importance and likelihood, preparation of risk identification procedures, implementation of risk mitigation plans and its continuous monitoring by the Executive Management/Divisional Heads. The Risk Management Committee has already identified the risks in the various business areas and it also develops and monitors various mitigation strategies and plans in these areas to reduce or eliminate the likelihood of such risks. The presence in India of players with low cost products which has intensified the competition in the large domestic market consequently shrinking the margins for the Companyâs products is an area of risk. To mitigate the risk involved in this area, steps have been initiated to move ahead of the competition with the Companyâs strong brand image along with upgradation of technology, carving out a niche product portfolio and effective marketing framework.
Market Risk
Market risk is the risk or uncertainty arising from possible market price movements resulting in variation in the fair value of future cash flows of a financial instrument. The major components of Market risks are foreign currency risk, interest rate risk and other price risk. Financial instruments affected by market risk includes trade receivables, borrowings, investments and trade and other payables.
Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Companyâs exposure to the risk of changes in foreign exchange rates relates primarily to the Companyâs foreign currency denominated transactions.
The Company is having a net foreign exchange outflow and has adopted a comprehensive risk management review system wherein it evaluates exchange rate exposure arising from these transactions and follows established risk management policies.
Interest rate risk
The Companyâs exposure in market risk related to change in interest rate primarily arises from floating rate borrowing with banks and financial institutions. Borrowings at fixed interest rate exposes the Company to the fair value interest rate risk.
Further, there are deposits with banks which are for short term period are exposed to interest rate risk, falling due for renewal. These deposits are however generally for trade purposes and as such does not cause material implication. With all other variables held constant, the following table demonstrates the impact of exposure of Companyâs borrowings to interest rate changes at the end of the reporting period. A hypothetical basis point shift, as detailed below, would result in a corresponding increase or decrease in interest costs for the Company on a yearly basis.
Other price risk
The investment in mutual funds which are fair valued through profit and loss are material as these are Fixed Maturity Plan(FMP) that are closed ended scheme with a pre-defined maturity which is subject to investment objective and allocation which is basically in debt instruments, Certificate of Deposits and Commercial papers. Accordingly, other price risk of the financial instrument to which the Company is exposed is not expected to be material.
Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables). To manage this, the management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Collection of sale proceeds promptly from the clients on sale of products is also an area where risk is involved. The Company has adopted various recovery measures for improvement in collection and liquidity position which is also monitored by the Executive Management at regular intervals.
The carrying amount of respective financial assets recognised in the financial statements, (net of impairment losses) represents the Companyâs maximum exposure to credit risk. The concentration of credit risk is limited due to the customer base being large and unrelated. Of the trade receivables balance at the end of the year, there are no single customer accounted for more than 10% of the accounts receivable and 10% of revenue as at March 31, 2024 and March 31, 2023 respectively.
The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables. Receivables from customers are reviewed/evaluated periodically by the management and appropriate provisions are made to the extent recovery thereagainst has been considered to be remote.
Financial assets that are neither past due nor impaired
Cash and Cash Equivalents, investment and deposits with banks are neither past due nor impaired. Cash and Cash Equivalents with banks are held with reputed and credit worthy banking institutions.
Financial assets that are past due but not impaired
Trade Receivables disclosed include amounts that are past due at the end of the reporting period but against which the Company has not recognised an allowance for doubtful receivables because there has not been a significant change in credit quality and the amounts are still considered recoverable.
Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Companyâs objective is to maintain optimum level of liquidity to meet itâs cash and collateral requirements at all times. The Company relies on borrowings and internal accruals to meet its fund requirement. The current committed line of credit are sufficient to meet its short to medium term fund requirement. The Company has laid down procedure for smooth servicing of the Term Loan for Building Material Division through the maturity proceeds of the Investment in FMP.
Liquidity and interest risk tables
The following tables detail the Companyâs remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows as at the Balance Sheet date:
The Company has current financial assets which will be realised in ordinary course of business. The Company ensures that it has sufficient cash on demand to meet expected operational expenses.
The Company has laid down procedure for smooth servicing of the Term Loan for Building Material Division through the maturity proceeds of the Investment in FMP. Further, the Company relies on mix of borrowings and excess operating cash flows to meet its need for funds and ensures that it does not breach any financial covenants stipulated by the lender.
Capital Management
The primary objective of the Companyâs capital management is to ensure that it maintains a healthy capital ratio in order to support its business and maximise shareholder value. The Companyâs objective when managing capital is to safeguard their ability to continue as a going concern so that they can continue to provide returns for shareholders and benefits for other stake holders. The Company is focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without impacting the risk profile of the Company.
43. Segment Information
a) Reportable Segments:
The Companyâs operating segment are established on the basis of those component of the Company that are evaluated regularly by the Board âThe Chief Operating Decision Makerâ as defined in Ind AS 108 âOperating Segmentsâ. The Company has three principal operating and reporting segments i.e.
i) Mineral & Material Processing and Handling Equipment
ii) Gear Box and Geared Motor Drive System
iii) Building Material Division
Segment revenue and results:
The expenses and income which are not directly attributable to any business segment are shown as unallocable expenditure (net of allocable income).
Segment assets and Liabilities:
Segment assets include all operating assets used by the operating segment and mainly consist of property, plant and equipments, trade receivables, Inventory and other operating assets. Segment liabilities primarily includes trade payable and other liabilities. Common assets and liabilities which can not be allocated to any of the business segment are shown as unallocable assets / liabilities.
Inter Segment Transfer:
Inter Segment revenues are recognised at sales price. The same is based on market price and business risks. Profit or loss on inter segment transfer are eliminated at the group level.
45. These financial statements have been approved by the Board of Directors of the Company on 30th May, 2024 for issue to the shareholders for their adoption. Previous yearâs figures have been regrouped / rearranged wherever necessary
As per our report of even date For and on behalf of the Board of Directors
For Ray & Ray I. Sen S. Bagaria
Chartered Accountants Managing Director Chairman
(Firmâs Registration No 301072E) (DIN No 00216190) (DIN No 00233455)
K.K. Ghosh
Partner P.R. Sivasankar A.K. Neogi
(Membership No. 059781) Company Secretary Chief Financial Officer
Place: Kolkata Date: 30 th May, 2024
Mar 31, 2023
3.12 Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a legal or constructive obligation as a result of past events and it is probable that there will be an outflow of resources and a reliable estimate can be made of the amount of obligation. Provisions are not recognised for future operating losses. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.
Contingent liabilities are not recognized and are disclosed by way of notes to the financial statements when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or when there is a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the same or a reliable estimate of the amount in this respect cannot be made.
Contingent assets are not recognised but disclosed in the Financial Statements by way of notes to accounts when an inflow of economic benefits is probable.
3.13 Employee Benefits
Employee benefits are accrued in the year in which services are rendered by the employees. Short term employee benefits are recognized as an expense in the Statement of Profit and Loss for the year in which the related service is rendered. Contribution to defined contribution plans such as Provident Fund, Superannuation Fund and Pension Fund is being made in accordance with statute and are recognised as and when incurred.
Contribution to defined benefit plans consisting of contribution to gratuity scheme and Interest Rate Guarantee on Provident Fund schemes are determined at close of the year at present value of the amount payable using actuarial valuation techniques. Actuarial gain and losses arising from experience adjustments and changes in actuarial assumptions are recognized in Other Comprehensive Income.
Other long term employee benefits consisting of leave encashment are determined at close of the year at present value of the amount payable using actuarial valuation techniques. The changes in the amount payable including actuarial gain/loss are recognised in the Statement of Profit and Loss.
3.14 Revenue Sale of goods:
Revenue from contract with customers is recognised when the Company satisfies performance obligations by transferring promised goods and services to the customer. Performance obligations are said to be satisfied at a point of time when the customer obtains controls over the assets.
Revenue is considered at the fair value of consideration received or receivable when the significant risk and rewards of goods and ownership of goods have been transferred and the amount thereof can be measured reliably. This represents the net invoice value of goods supplied after deducting discounts, rebates and taxes collected on behalf of third parties which the Company pays as principal.
Interest, Dividend and Claims
Dividend income is recognized when the right to receive payment is established. Interest has been accounted using effective interest rate method. Insurance claims/ other claims are accounted for as and when admitted / settled.
Export Benefits
Export benefits are accounted for as and when the ultimate realisability of such benefits are established.
3.15 Government Grants
Government grants are recognized on systematic basis when there is reasonable certainty of
realization of the same. Revenue grants including subsidy/rebates are credited to the Statement of Profit and Loss under âOther Incomeâ or deducted from the related expenses for the period to which these are related. Grants which are meant for purchase, construction or otherwise, acquired non current assets are recognized as Deferred Income and disclosed under Non Current Liabilities and transferred to Statement of Profit and Loss on a systematic basis over the useful life of the respective asset. Grants relating to non-depreciable assets is transferred to Statement of Profit and Loss over the periods that bear the cost of meeting the obligations related to such grants.
3.16 Borrowing Costs
Borrowing cost comprises of interest and other costs incurred in connection with the borrowing of the funds. All borrowing costs are recognized in the Statement of Profit and Loss using the effective interest method except to the extent attributable to qualifying Property Plant & Equipment (PPE) which are capitalized to the cost of the related assets. A qualifying PPE is an asset, that necessarily takes a substantial period of time to get ready for its intended use or sale. Borrowing cost also includes exchange differences to the extent considered as an adjustment to the borrowing costs.
3.17 Taxes on Income
Income tax expense representing the sum of current tax expenses and the net charge of the deferred taxes is recognized in the Statement of Profit and Loss except to the extent that it relates to items recognized directly in Equity or Other Comprehensive Income.
Current income tax is provided on the taxable income and recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the Financial Statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future economic benefits in the form of availability of set off against future income tax liability and such benefit can be measured reliably and it is probable that the future economic benefit associated with the same will be realised.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be utilized.
3.18 Earnings Per Share
Basic earnings per share are computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.
3.19 Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (CODM). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors.
Segments are organised based on business which have similar economic characteristics as well as exhibit similarities in nature of products and services offered, the nature of production processes, the type and class of customer and distribution methods. Segment revenue arising from third party customers is reported on the same basis as revenue in the financial statements. Inter-segment revenue is reported on the basis of transactions which are primarily market led. Segment results represent profits before finance charges, unallocated corporate expenses and taxes.
âUnallocated Corporate Expensesâ include revenue and expenses that relate to initiatives/ costs attributable to the enterprise as a whole and are not attributable to segments.
4. Critical accounting judgments, assumptions and key sources of estimation and uncertainty
The preparation of the financial statements in conformity with the measurement principle of Ind AS requires management to make estimates, judgements and assumptions. These estimates, judgements and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized and, if material, their effects are disclosed in the notes to the financial statements.
Application of accounting policies that require significant areas of estimation, uncertainty and critical judgments and the use of assumptions in the financial statements have been disclosed below. The key assumptions concerning the future and other key sources of estimation uncertainty at the Balance Sheet date, that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are discussed below:
4.1 An arrangement containing leases and classification of leases
The Company enters into service / hiring arrangements for various assets / services. The determination of lease and classification of the service / hiring arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lesseeâs option to purchase and estimated certainty of exercise of such option, proportion of lease term to the assetâs economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset.
4.2 Depreciation / amortization and impairment loss on property, plant and equipment
Property, plant and equipment and intangible assets are depreciated/ amortized on straightline /written down value basis over the estimated useful lives (or lease term if shorter) in accordance with Schedule II of the Companies Act, 2013, taking into account the estimated residual value, wherever applicable.
The Company reviews its carrying value of its Tangible and Intangible Assets whenever there is objective evidence that the assets are impaired. In such situation the amount recoverable is estimated which is higher of assetâs or cash generating unitâs (CGU) fair value less cost of disposal and its value in use. In assessing value in use the estimated future cash flows are discounted using pre-tax discount rate which reflect the current assessment of time value of money. In determining fair value less cost of disposal, recent market realisations are considered or otherwise in absence of such transactions appropriate valuations are adopted. The Company reviews the estimated useful lives of the assets regularly in order to determine the amount of depreciation / amortization and amount of impairment expense to be recorded during any reporting period. This reassessment may result in change estimated in future periods.
4.3 Impairment loss on trade receivables
The Company evaluates whether there is any objective evidence that trade receivables are impaired and determines the amount of impairment loss as a result of the inability of the customers to make required payments. The Company bases the estimates on the ageing of the trade receivables balance, credit-worthiness of the trade receivables and historical write-off experience. If the financial conditions of the trade receivable were to deteriorate, actual writeoffs would be higher than estimated.
4.4 Income taxes
The Company provides for tax considering the applicable tax regulations and based on reasonable estimates. Management periodically evaluates positions taken in the tax returns giving due considerations to tax laws and establishes provisions in the event, if required, as a result of differing interpretation or due to retrospective amendments, if any.
The recognition of deferred tax assets is based on availability of sufficient taxable profits in the Company against which such assets can be utilized. MAT (Minimum Alternate Tax) is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax and will be able to utilize such credit during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset, the said asset is created by way of a credit to the Statement of Profit and Loss and is included in Deferred Tax Assets. The Company reviews the same at each Balance Sheet date and if required, writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that Company will be able to absorb such credit during the specified period.
4.5 Provisions and Contingencies
Management judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations/ against the Company as it is not possible to predict the outcome of pending matters with accuracy. Based on management best estimates the same does not qualify for recognition in the financial statements.
4.6 Insurance Claim and Liquidated damages
Insurance claims are accounted as and when admitted/settled. Liquidated damages and penalties are accounted for in accordance with the terms of agreement for loss of opportunity/ profit of the Company due to delay in completion. Subsequent changes in value if any are provided for.
4.7 Defined benefit obligation (DBO)
Critical estimate of the DBO involves a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate, anticipation of future salary increases etc. as estimated by Independent Actuary appointed for this purpose by the Management. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.
The Companyâs exposure in market risk related to change in interest rate primarily arises from floating rate borrowing with banks and financial institutions. Borrowings at fixed interest rate exposes the Company to the fair value interest rate risk.
Further, there are deposits with banks which are for short term period are exposed to interest rate risk, falling due for renewal. These deposits are however generally for trade purposes and as such does not cause material implication.
With all other variables held constant, the following table demonstrates the impact of exposure of Companyâs borrowings to interest rate changes at the end of the reporting period. A hypothetical basis point shift, as detailed below, would result in a corresponding increase or decrease in interest costs for the Company on a yearly basis.
The investment in mutual funds which are fair valued through profit and loss are material as these are Fixed Maturity Plan(FMP) that are closed ended scheme with a pre-defined maturity which is subject to investment objective and allocation which is basically in debt instruments, Certificate of Deposits and Commercial papers. Accordingly, other price risk of the financial instrument to which the Company is exposed is not expected to be material.
Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables). To manage this, the management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Collection of sale proceeds promptly from the clients on sale of products is also an area where risk is involved. The Company has adopted various recovery measures for improvement in collection and liquidity position which is also monitored by the Executive Management at regular intervals.
The carrying amount of respective financial assets recognised in the financial statements, (net of impairment losses) represents the Companyâs maximum exposure to credit risk. The concentration of credit risk is limited due to the customer base being large and unrelated. Of the trade receivables balance at the end of the year, there are no single customer accounted for more than 10% of the accounts receivable and 10% of revenue as at March 31, 2023 and March 31, 2022 respectively.
The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables. Receivables from customers are reviewed/evaluated periodically by the management and appropriate provisions are made to the extent recovery thereagainst has been considered to be remote.
Financial assets that are neither past due nor impaired
Cash and Cash Equivalents, investment and deposits with banks are neither past due nor impaired. Cash and Cash Equivalents with banks are held with reputed and credit worthy banking institutions.
Financial assets that are past due but not impaired
Trade Receivables disclosed include amounts that are past due at the end of the reporting period but against which the Company has not recognised an allowance for doubtful receivables because there has not been a significant change in credit quality and the amounts are still considered recoverable.
Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Companyâs objective is to maintain optimum level of liquidity to meet itâs cash and collateral requirements at all times. The Company relies on borrowings and internal accruals to meet its fund requirement. The current committed line of credit are sufficient to meet its short to medium term fund requirement. The Company has laid down procedure for smooth servicing of the Term Loan for Building Material Division through the maturity proceeds of the Investment in FMP.
45. Segment Information
a) Reportable Segments:
The Companyâs operating segment are established on the basis of those component of the Company that are evaluated regularly by the Board âThe Chief Operating Decision Makerâ as defined in Ind AS 108 âOperating Segmentsâ. The Company has three principal operating and reporting segments i.e.
i) Mineral & Material Processing and Handling Equipment
ii) Gear Box and Geared Motor Drive System
iii) Building Material Division
Segment revenue and results:
The expenses and income which are not directly attributable to any business segment are shown as unallocable expenditure (net of allocable income).
Segment assets and Liabilities:
Segment assets include all operating assets used by the operating segment and mainly consist of property, plant and equipments, trade receivables, Inventory and other operating assets. Segment liabilities primarily includes trade payable and other liabilities. Common assets and liabilities which can not be allocated to any of the business segment are shown as unallocable assets / liabilities.
Inter Segment Transfer:
Inter Segment revenues are recognised at sales price. The same is based on market price and business risks. Profit or loss on inter segment transfer are eliminated at the group level.
47. These financial statements have been approved by the Board of Directors of the Company on 25th May, 2023 for issue to the shareholders for their adoption. Previous yearâs figures have been regrouped / rearranged wherever necessary.
As per our report of even date
For and on behalf of the Board of Directors
For Ray & Ray I. Sen S. Bagaria
Chartered Accountants Managing Director Chairman
(Firmâs Registration No 301072E) (DIN No 00216190) (DIN No 00233455)
K.K. Ghosh
Partner P.R. Sivasankar A.K. Neogi
(Membership No. 059781) Company Secretary Chief Financial Officer
Place: Kolkata Date: 25th May,2023
Mar 31, 2018
1 Corporate Information
International Combustion (India) Limited is a public limited company in India, having its registered office in Kolkata, West Bengal located in India engaged in the manufacture and supply of Heavy Engineering Equipment, Geared Motors and Gear Boxes and Dry Mix Products. The Companyâs shares are listed and publicly traded on the Bombay Stock Exchange Limited.
The Consolidated Financial Statements relates to International Combustion (India) Limited (hereinafter referred to as âthe Companyâ) and its joint ventures as detailed below:
2 Statement of Compliance and Recent Pronouncements
2.1 Statement of Compliance
The Company has adopted Indian Accounting Standards (referred to as âInd ASâ) notified under the Companies (Indian Accounting Standards) Rules, 2016 (as amended) read with Section 133 of the Companies Act, 2013 (âthe Actâ) with effect from April 1, 2017 and therefore Ind ASs issued, notified and made effective till the financial statements are authorized have been considered for the purpose of preparation of these financial statements.
These are the Companyâs first Ind AS Standalone Financial Statements and the date of transition to Ind AS as required has been considered to be April 1, 2016.
The financial statement up to the year ended March 31, 2017, were prepared under the historical cost convention on accrual basis in accordance with the Generally Accepted Accounting Principles and Accounting Standards as prescribed under the provisions of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014 then applicable (Previous GAAP) to the Company. Previous period figures in the Financial Statements have been recasted/restated to make it comparable with current year figures.
In accordance with Ind AS 101-âFirst Time adoption of Indian Accounting Standardsâ (Ind AS 101), the Company has presented (Note No 47), a reconciliation of Shareholdersâ equity as given earlier under Previous GAAP and those considered in these accounts as per Ind AS as at March 31, 2017, and April 1, 2016 and also the Net Profit as per Previous GAAP and that arrived including Other Comprehensive Income under Ind AS for the year ended March 31, 2017.The mandatory exceptions and optional exemptions availed by the Company on First-time adoption have been detailed in Note No. 47(b) of the financial statement.
2.2 Recent Pronouncements
On March 28, 2018, Ministry of Corporate Affairs (âMCAâ) has issued the Companies (Indian Accounting Standards) Amendment Rules, 2018 notifying Ind AS 115, âRevenue from Contract with Customersâ and Appendix B to Ind AS 21 âForeign currency transactions and advance considerationâ which are applicable with effect from financial periods beginning on or after April 1, 2018.
Ind AS 115 - Revenue from Contract with Customers
The standard requires that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entityâs contracts with customers. The effect of this amendment on the financial statements of the company is being evaluated.
Ind AS 21 - Appendix B âForeign currency transactions and advance considerationâ
This Appendix applies to a foreign currency transaction (or part of it) when an entity recognises a non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration before the entity recognises the related asset, expense or income (or part of it). The effect of this amendment on the financial statements of the company is being evaluated.
Notes:
3. The Company has elected to continue with the carrying value of its Property, Plant & Equipment (PPE) recognised as of April 1, 2016 (transition date) measured as per the Previous GAAP and used that carrying value as its deemed cost as on the transition date (Refer note no. 47).
4. The Building Material Division of the Company for the manufacture of dry mix product has been commissioned on March 31, 2016
5. Refer Notes 20.2, 20.3 and 24.1 to financial statements in respect of charges created against borrowings
6. Details of assets under lease included above
A. Finance Lease disclosures:
The leasehold lands located at Nagpur, Aurangabad, Ajmer and Kolkata has been classified under finance lease. The lease term ranges from 89 to 99 years.
The net carrying amount of the leasehold land, classified as finance lease, is Rs. 548.95 lac as at March 31, 2018 (March 31, 2017: Rs. 549 lac and April 1, 2016: Rs. 549.05 lac).
7. Capital Work-in-Progress includes Plant and Equipments, construction including material and other costs and other assets amounting to Rs. 38.79 lac (March 31, 2017: Rs. 70.23 lac and April 1, 2016: Rs 577.64 lac) under installation and the following pre-operative expenditure incurred towards construction and other activities directly attributable to construction of said assets pending completion of the project. Details of such expenditure are as follows:
Notes:
8. The Company has elected to continue with the carrying value of its Intangible Assets recognised as on April 1, 2016 (transition date) measured as per the Previous GAAP and used that carrying value as its deemed cost as on the transition date (Refer note no. 47).
9. The Company as on the transition date has adopted to measure investment in Joint Venture at Cost (Refer note no. 47)
10. Particulars of Investments as required under section 186(4) of the Companies Act, 2013 has been disclosed herein above
11. Refer Note No. 20.1 and 24.2 to financial statements in respect of charges created against borrowings
12. Details of Joint Venture in accordance with Ind AS 112 â Disclosure of Interest in other entitiesâ
13. The Company has recognised the surrender value of Keyman insurance policy considering the expected accrual of proceeds thereof on maturity in favour of the company.
14. Refer Note No. 20.1 and 24.2 to financial statements in respect of charges created against borrowings
15. Particulars of investments as required under Section 186(4) of the Companies Act, 2013 have been disclosed in Note No. 7 and 11
16. Fixed Deposits with banks in Margin Money Account includes Rs.146.48 lac (March 31, 2017: Rs 135.83 lac and April 1, 2016: Rs. 239.98 lac) including Rs 110.33 lac (March 31, 2017: Rs 33.94 lac and April 1, 2016: Rs. 168.98 lac) disclosed under âOther Non-current Financial Assetsâ have been lodged with Banks against guarantee issued by them.
17. The Company has one class of shares referred to as equity shares having a par value of Rs. 10/-. Each holder of equity shares is entitled to one vote per share. 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 of their shareholding.
18. Refer Statement of changes in Equity for movement in balances of reserves
19. Securities Premium Reserve
Securities Premium Reserve represents the amount received in excess of par value of securities and is available for utilisation as specified under section 52 of Companies Act, 2013.
20. General Reserve
The General Reserve is used from time to time by appropriating profits from Retained Earnings. As the General Reserve is created by a transfer from one component of equity to another and accordingly it is not reclassified to the Statement of Profit and Loss.
21. Retained Earnings
Retained earnings generally represents the undistributed profit/ amount of accumulated earnings of the company.
22. Other Comprehensive Income
Other Comprehensive Income Reserve represent the balance in equity for items to be accounted in Other Comprehensive Income (OCI). The actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions have been recognised in OCI and will not be reclassified to statement of Profit and Loss.
23. The amount that can be distributed by the Company as dividends to its equity shareholders is determined considering the requirements of the Companies Act, 2013 and the dividend distribution policy of the Company. Thus, the amount reported above are not entirely distributable.
24. Term Loan from Kotak Bank is secured by way of lien on investments in units of mutual fund held by the Company and is repayable in 60 monthly instalments starting from January, 2016. The Interest rate is Base Rate 185 basis points which is currently 11.35%. The outstanding as on March 31, 2018 is Rs. 1032.91 lac (March 31, 2017: Rs. 1,341.97 lac and April 1, 2016 Rs.1,611.12 lac)
25. Term Loan from Axis Bank is secured by way of exclusive hypothecation charge over movable fixed assets at Ajmer unit, equitable mortgage over Companyâs leasehold land and building thereon situated at Ajmer and second charge as collateral securities by way of equitable mortgage on immovable assets located at Nagpur and Aurangabad units on which first charge is held for working capital facilities for Baidyabati, Nagpur and Aurangabad units. The Interest rate is Base Rate 250 basis points which is currently 12.00%. The outstanding as on March 31, 2018 is Rs.929.19 lac (March 31, 2017: Rs. 1,229.19 lac and April 1, 2016 Rs. 1,167.19 lac)
26. Finance lease obligation is secured against car taken on two finance lease and are repayable in 60 and 36 monthly instalments starting from July, 2014 and March,2016 respectively. The Interest rate is 10.51% and 9.40% respectively. The outstanding as on March 31, 2018 is Rs 4.75 lac (March 31, 2017: Rs 9.10 lac and April 1, 2016 Rs 13.03 lac)
27. Loans repayable on demand being Working Capital facilities from UCO Bank and Axis Bank (both fund based and non-fund based) are secured by hypothecation of stock of raw materials, work-in-progress, finished goods, stores and spares, trade receivables and other current assets of the Company and all moveable assets and by equitable mortgage by deposit of title deeds of immoveable properties comprising of land and buildings of the Companyâs factories situated at Nagpur and Aurangabad.
28. Loans repayable on demand being Working Capital facilities from Kotak Mahindra Bank is secured by way of lien on investments in units of mutual funds held by the Company.
29. Buyerâs Credit is secured against hypothecation of the plant and equipment purchased there against.
30. Disclosure of Trade payables as required under section 22 of Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, based on the confirmation and information available with the company regarding the status of suppliers.
31. During the year, the Company has incurred Rs. 2.12 lac (March 31, 2017 Rs. 4.15 lac) on account of Corporate Social Responsibility (CSR).
32. Operating Lease disclosures:
The Company has operating lease arrangements for office accommodations etc. with tenure extending upto 1 or 3 or 5 yrs. Term of certain lease arrangements include escalation clause for rent on expiry of 12 or 24 or 36 months as the case may be from the commencement date of such lease and deposit / refund of security deposit etc. Expenditure incurred on account of rent during the year and recognized in the Profit and Loss account amounts to Rs. 26.11 lac (March 31, 2017 Rs. 22.17 lac).
33. Reconciliation of Income tax expense for the year with accounting profit is as follows:
Taxable Income differs from âProfit Before Taxâ as reported in the statement of Profit and Loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. Details in this respect are as follows: ,
* The tax rate used for reconciliations above is the corporate tax rate of 30.90% payable by corporate entities in India on taxable profits under the Indian tax laws.
Fair Valuation Techniques
The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The following methods and assumptions were used to estimate the fair values:
The fair value of cash and cash equivalents, trade receivables, trade payables, current financial liabilities/financial assets and borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The management considers that the carrying amounts of financial assets and financial liabilities recognised at nominal cost/ amortised cost in the financial statements approximate their fair values.
A substantial portion of the companyâs long-term debt has been contracted at floating rates of interest, which are reset at short intervals. Fair value of variable interest rate borrowings approximates their carrying value subject to adjustments made for transaction cost.
Investments (other than Investments in Joint Venture) i.e. Mutual Funds are determined by reference to the quoted market prices (i.e. NAV) at the reporting date multiplied by the quantity held.
During the year ended March 31, 2018 and March 31, 2017, there were no transfers between Level 1, Level 2 and Level 3.
The Inputs used in fair valuation measurement are as follows:
Fair valuation of Financial assets and liabilities not within the operating cycle of the company is amortised based on the borrowing rate of the company.
Financial instruments are valued based on quoted price for similar assets and liabilities in active market or similar inputs that are directly or indirectly observable in the market place.
Financial Risk Factors
The Companyâs activities expose it to a variety of financial risks. The key financial risk includes market risk, credit risk and liquidity risk. The Companyâs focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Company has an Enterprise Risk Management (ERM) process which involves periodic identification of risks likely to affect the business adversely, rating the risks, their importance and likelihood, preparation of risk identification procedures, implementation of risk mitigation plans and its continuous monitoring by the Executive Management/ Divisional Heads. The Risk Management Committee has already identified the risks in the various business areas and it also develops and monitors various mitigation strategies and plans in these areas to reduce or eliminate the likelihood of such risks. The presence in India of players with low cost products which has intensified the competition in the large domestic market consequently shrinking the margins for the Companyâs products is an area of risk. To mitigate the risk involved in this area, steps have been initiated to move ahead of the competition with the Companyâs strong brand image along with upgradation of technology, carving out a niche product portfolio and effective marketing framework.
Market Risk
Market risk is the risk or uncertainty arising from possible market price movements resulting in variation in the fair value of future cash flows of a financial instrument. The major components of Market risks are foreign currency risk, interest rate risk and other price risk. Financial instruments affected by market risk includes trade receivables, borrowings, investments and trade and other payables.
Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Companyâs exposure to the risk of changes in foreign exchange rates relates primarily to the Companyâs foreign currency denominated transactions.
The Company is having a net foreign exchange inflow and has adopted a comprehensive risk management review system wherein it evaluates exchange rate exposure arising from these transactions and follows established risk management policies.
A 5% stregthening of INR would have an equal and opposite effect on the Companyâs financial statements Interest rate risk
The company exposure in market risk related to change in interest rate primarily arises from floating rate borrowing with banks and financial institutions. Borrowings at fixed interest rate exposes the company to the fair value interest rate risk.
Further, there are deposits with banks which are for short term period are exposed to interest rate risk, falling due for renewal. These deposits are however generally for trade purposes and as such does not cause material implication.
With all other variables held constant, the following table demonstrates the impact of exposure of Companyâs borrowings to interest rate changes at the end of the reporting period. A hypothetical basis point shift, as detailed below, would result in a corresponding increase or decrease in interest costs for the company on a year basis.
A decrease in 0.50 basis point in Rupee Loan and 0.25 basis point in foreign currency loan would have an equal and opposite effect on the Companyâs financial statements
Other price risk
The companyâs exposure in Joint Venture are carried at cost and these are subject to impairment testing as per the policy followed in this respect. Further, the investment in mutual funds which are fair valued through profit and loss are material as these are Fixed Maturity Plan(FMP) that are closed ended scheme with a predefined maturity which is subject to investment objective and allocation which is basically in debt instruments, Certificate of Deposits and Commercial papers. Accordingly, other price risk of the financial instrument to which the company is exposed is not expected to be material.
Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables). To manage this, the management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Collection of sale proceeds promptly from the clients on sale of products is also an area where risk is involved. The Company has adopted various recovery measures for improvement in collection and liquidity position which is also monitored by the Executive Management at regular intervals.
The carrying amount of respective financial assets recognised in the financial statements, (net of impairment losses) represents the Companyâs maximum exposure to credit risk. The concentration of credit risk is limited due to the customer base being large and unrelated. Of the trade receivables balance at the end of the year, there are no single customer accounted for more than 10% of the accounts receivable and 10% of revenue as at March 31, 2018 and March 31, 2017 respectively.
The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables. Receivables from customers are reviewed/evaluated periodically by the management and appropriate provisions are made to the extent recovery there against has been considered to be remote.
Financial assets that are neither past due nor impaired
Cash and cash equivalents, investment and deposits with banks are neither past due nor impaired. Cash and cash equivalents with banks are held with reputed and credit worthy banking institutions.
Financial assets that are past due but not impaired
Trade receivables disclosed include amounts that are past due at the end of the reporting period but against which the Company has not recognised an allowance for doubtful receivables because there has not been a significant change in credit quality and the amounts are still considered recoverable.
Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Companyâs objective is to maintain optimum level of liquidity to meet itâs cash and collateral requirements at all times. The company relies on borrowings and internal accruals to meet its fund requirement. The current committed line of credit are sufficient to meet its short to medium term fund requirement. The Company has laid down procedure for smooth servicing of the Term Loan for Building Material Division through the maturity proceeds of the Investment in FMP.
Liquidity and interest risk tables
The following tables detail the Companyâs remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows as at the Balance Sheet date:
The company has current financial assets which will be realised in ordinary course of business. The Company ensures that it has sufficient cash on demand to meet expected operational expenses.
The Company has laid down procedure for smooth servicing of the Term Loan for Building Material Division through the maturity proceeds of the Investment in FMP. Further, the Company relies on mix of borrowings and excess operating cash flows to meet its need for funds and ensures that it does not breach any financial covenants stipulated by the lender.
Capital Management
The primary objective of the Companyâs capital management is to ensure that it maintains a healthy capital ratio in order to support its business and maximise shareholder value. The Companyâs objective when managing capital is to safeguard their ability to continue as a going concern so that they can continue to provide returns for shareholders and benefits for other stake holders. The Company is focused on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for potential future borrowings, if required without impacting the risk profile of the Company.
b) Defined Benefit Plans
The employeeâs gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit 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 employee benefit entitlement and measures each unit separately to build up the final obligation.
Interest Rate Guarantee
The obligation for provident fund trustees set up by the employer for Interest Rate guarantee in respect of shortfall in respect of in a defined benefit plan and is recognized in the same manner as gratuity. The actuarial valuation of such provident fund liability on account of shortfall of interest as determined by the acturial is Rs. Nil (March 31, 2017 - Rs. 3.13 lac) has been recognised in the Statement of Profit and Loss.
Compensated Absences
The obligation for compensated absences is recognized in the same manner as gratuity except remeasurement benefit which is treated as part of OCI. The actuarial liability of Compensated Absences (unfunded) of accumulated priviliged and sick leaves of the employees of the Company as at March 31, 2018 is given below:
Notes:
i) Assumptions relating to future salary increases, attrition, interest rate for discount & overall expected rate of return on Assets have been considered based on relevant economic factors such as inflation, market growth & other factors applicable to the period over which the obligation is expected to be settled.
The above sensitivity analysis is based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (Projected Unit Credit Method) has been applied as when calculating the defined benefit obligation recognised within the Balance Sheet.
34. Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. Nil (March 31, 2017 Rs. Nil and April 1, 2016 Rs. 1,151.86 lac)
* Post-employment benefits and other long-term benefits have been disclosed based on actual payment made on retirement/resignation of services, but does not includes provision made on actuarial basis as the same is available for all the employees together.
35. In respect of the above parties, there is no provision for doubtful debts as on March 31, 2018 and no amount has been written off or written back during the year in respect of debt due from/to them
36. The above related party information is as identified by the management and relied upon by the auditor
37. Segment Information
a) Reportable Segments:
The Companyâs operating segment are established on the basis of those component of the Company that are evaluated regularly by the Board (âThe Chief Operating Decision Makerâ) as defined in Ind AS 108 âOperating Segmentsâ. The Company has three principal operating and reporting segments i.e.
i) Mineral & Material Processing and Handling Equipment
ii) Gear Box and Geared Motor Drive System
iii) Building Material Division
Segment revenue and results:
The expenses and income which are not directly attributable to any business segment are shown as unallocable expenditure (net of allocable income).
Segment assets and Liabilities:
Segment assets include all operating assets used by the operating segment and mainly consist of property, plant and equipments, trade receivables, Inventory and other operating assets. Segment liabilities primarily includes trade payable and other liabilities. Common assets and liabilities which can not be allocated to any of the business segment are shown as unallocable assets / liabilities.
Inter Segment Transfer:
Inter Segment revenues are recognised at sales price. The same is based on market price and business risks. Profit or loss on inter segment transfer are eliminated at the group level.
b) FIRST-TIME ADOPTION - Mandatory Exceptions and optional Exemptions
These financial statements are covered by Ind AS 101, âFirst Time Adoption of Indian Accounting Standardsâ, as they are the Companyâs first Ind AS financial statements for the year ended March 31, 2018.
i) Overall principle:
The Company has prepared the opening Balance Sheet as per Ind AS as at April 1, 2016 (the transition date) by recognizing all assets and liabilities whose recognition is required by Ind AS, not recognizing items of assets or liabilities which are not permitted by Ind AS, by reclassifying certain items from Previous GAAP to Ind AS as required under the Ind AS, and applying Ind AS in the measurement of recognized assets and liabilities. The accounting policies that the Company used in its opening Ind-AS Balance Sheet may have differed from those that it used for its previous GAAP. The resulting adjustments arise from events and transactions before the date of transition to Ind-AS had recognized directly in retained earnings at the date of transition.
However, this principle is subject to certain mandatory exceptions and certain optional exemptions availed by the Company as detailed below.
ii) Derecognition of financial assets and financial liabilities
The Company has applied the derecognition requirements of financial assets and financial liabilities prospectively for transactions occurring on or after April 1, 2016 (the transition date).
iii) Deemed cost for Property, Plant and Equipment and Intangible assets:
The Company has elected to continue with the carrying value of all of its property, plant and equipments and intangible assets recognized as of transition date measured as per the Previous GAAP and used that carrying value as its deemed cost as of the transition date.
iv) Investment in Joint Venture
The Company has elected to measure its investment in joint venture, Mozer Process Technology Private Limited, at the previous GAAP carrying amount as its deemed cost on the date of transition to Ind AS
v) Impairment of financial assets
Ind AS 109 âFinancial Instrumentsâ requires the impairment to be carried out retrospectively; however, as permitted by Ind AS 101, the Company, has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments were initially recognized in order to compare it with the credit risk at the transition date. Further, the Company has not undertaken an exhaustive search for information when determining, at the date of transition to Ind AS, whether there have been significant increases in credit risk since initial recognition, as permitted by Ind AS 101.
vi) Determining whether an arrangement contains a lease
The Company as on the date of transition complied with Ind AS 17 âLeasesâ to determine whether an arrangement contains a Lease on the basis of facts and circumstances existing at the date of transition to Ind AS.
c) Explanatory Notes to reconciliation between Previous GAAP and Ind AS
(i) Property, Plant and Equipment
Under the previous GAAP, leasehold land was shown as a part of Property, Plant and Equipment at a carrying value consisting of the initial costs incurred and was amortised over the period of lease. Under Ind AS 101, the Company has recognized the present value of minimum lease payments to its carrying value with corresponding recognition of lease liability. On transition, this has resulted in capitalization of Rs.3.97 lac in Property Plant and Equipment with corresponding recognition of lease liabilty of Rs.3.05 lac as on April 1, 2016.
(ii) Fair Valuation of financial assets and liabilities
Under previous GAAP, receivables and payables were measured at transaction cost less allowances for recoverability, if any.
Under Ind AS, financial assets and liabilities are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate method, less allowances for impairment, if any. The resulting changes are recognised either under finance income or expenses in the Statement of Profit and Loss.
On transition, the Company has fair valued certain financial assets including Security deposits. This has resulted in decrease in total equity by Rs. 11.32 lac and Rs. 11.32 lac as on March 31, 2017 and April 1, 2016 respectively. Further, the Company has provided for expected credit losses on trade receivables based on past five years trend of bad debts as a percentage of debts due over a period of 180 days which resulted in decrease in total equity by Rs. 56.68 lac and Rs. 54.96 lac as on March 31, 2017 and April 1, 2016 respectively
(iv) Fair valuation of Investment in Mutual Funds
Under previous GAAP, Current investments were measured at lower of cost or market price.
Under Ind AS, these investments are measured at fair value through Profit and Loss and accordingly, difference betwen the fair value and carrying value is recognised in the Statement of Profit and Loss. On transition, the Company has fair valued through Profit and Loss these investment resulting in increase in total equity by Rs.561.50 lac and Rs. 413.90 lac as on March 31, 2017 and April 1, 2016 respectively.
(v) Borrowings
Under previous GAAP, transaction costs incurred in connection with borrowings are accounted upfront and charged to Profit and Loss for the period in which such transaction costs is incurred. Under Ind AS, Finance Liabilities consisting of Long Term Borrowings to be designated and measured at amortised cost based on Effective Interest Rate (EIR) method. The transaction costs so incurred are required to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognized in Profit and Loss over the tenure of the borrowing as part of the interest expense by applying the effective interest rate method.
On transition, the Company has adjusted the unamortised portion of outstanding borrowings based on EIR resulting in reduction of its borrowings by Rs.10.89 lac and Rs.16.70 lac as on March 31, 2017 and April 1, 2016 respectively with corresponding increase in total equity by Rs.3.94 lac as on April 1, 2016 and decrease by Rs.2.08 lac as on March 31, 2017 Further, Rs.12.76 lac and Rs.12.76 lac as on March 31, 2017 and April 1, 2016 respectively has been reduced from the carrying amount of Property, Plant and Equipment relating to borrowings for Building Material Division.
(vi) Taxation
Deferred tax has been recognized in respect of on accounting differences between previous GAAP and Ind AS. These adjustments have resulted increase in deferred tax liability and decrease in equity by Rs.95.16 lakhs and Rs.70.15 lakhs as on March 31, 2017 and April 1, 2016 respectively.
(vii) Remeasurement of Defined Benefit Plan
Under previous GAAP and Ind AS, the Company recognizes cost related to its post-employment defined benefit plan on an actuarial basis.
Under previous GAAP, the entire cost, including re-measurement, are charged to Statement of Profit and Loss. Under Ind AS, the actuarial gain and losses form part of re-measurements of net defined benefit liability/ asset which is recognised in Other Comprehensive Income (OCI). Consequently, the tax effect on the same has also been recognised in OCI instead of statement of Profit and Loss.
Under Ind AS, the entity is permitted to transfer amounts recognized in the Other Comprehensive Income within equity. The Company has taken recourse of the said provision and has transferred all re-measurement costs recognized relating prior to the transition date from Retained Earnings as on the date of transition as permitted under Ind AS.
On transition, this has resulted in reclassification and re-measurement of losses on defined benefit plans of Rs.17.08 lac for the year ended March 31, 2017 from Statement of Profit and Loss to OCI.
(viii) Previous GAAP figures have been reclassifed/regrouped wherever necessary to confirm with financial statements prepared under Ind AS.
38. These financial statements have been approved by the Board of Directors of the Company on 23rd May, 2018 for issue to the shareholders for their adoption.
Mar 31, 2016
(c) The Company has only one class of equity shares having a par value of Rs. 10/- each. Each holder of equity shares is entitled for one vote per share.
(d) 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 of their shareholding.
(e) There is no movement in the number of shares outstanding at the beginning and at the end of the year.
(f) Details of Shareholders holding more than 5% of the shares along with number of shares held :
(b) Cash Credit from UCO Bank and Axis Bank are secured by hypothecation of stock of raw materials, work-in-progress, finished goods, stores and spares, book debts and other current assets of the Company and all moveable assets and by equitable mortgage by deposit of title deeds of immoveable properties comprising of land and buildings of the Company''s factories situated at Baidyabati, Nagpur and Aurangabad.
(a) The Building Material Division of the Company for the manufacture of dry mix product has been commissioned on 31st March, 2016
(b) Certain Buildings and Plant and Equipments had been revalued on 31st October, 1991 by an approved valuer on market value basis, resulting in an increase in value of such assets by Rs.437.37 lakhs
(c) Refer Notes 4(b), 4(e) and 8(b)
(d) Capital Work-in-Progress includes Rs.529.00 lakhs (2014-15- Rs.95.51 lakhs) for cost of equipment, construction including material and other costs, interest and following pre-operative expenses, which will be allocated to respective fixed assets on the completion of the project.
1. Current portion of long term investments
2 Refer Note No.4(a)
3 Particulars of investments as required under Section 186(4) of the Companies Act, 2013 have been disclosed in Note 13 & 16
4 EMPLOYEE BENEFITS
a) The Company has Defined Contribution Schemes for its employees'' retirement benefits such as Provident Fund, Superannuation and defined Contribution Pension Schemes. For these Schemes, contributions are made by the Company for certain group of employees based on their current salary to recognized funds maintained by the Company and contributions are also made to the State funds for certain other employees. In case of Provident Fund Scheme, the contributions are also made by the employees.
Defined Benefit Scheme
The Employee''s gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligations 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 employee benefit entitlement and measures each unit separately to build up the final obligation.
*Included in âSalaries and Wagesâ and âContribution to Provident and Other Fundsâ under âEMPLOYEE
BENEFIT EXPENSESâ on Note 26.
Note:
5 Assumptions relating to future salary increases, attrition, interest rate for discount and overall expected rate of return on assets have been considered based on relevant economic factors such as inflation, market growth and other factors applicable to the period over which the obligation is expected to be settled.
6 The contributions expected to be made by the Company for the year 2016-17 is yet to be determined.
7 The guidance on implementing Accounting Standard (AS-15) (Revised 2005) on Employees'' Benefits issued by Accounting Standard Board (ASB) states that provident fund trustees set up by the employers which require the interest shortfall to be met by the employers need to be treated as âDefined Benefit Planâ. Accordingly the actuary in consultation with the management, has carried out the acturial valuation of such provident fund liability on account of shortfall of interest on the basis of the guidelines issued by Acturial Society of India. Such liability as determined by the actuary amounts to Rs.4.27 lacs (Previous Year- Rs.4.06 lacs) which has been provided in the Accounts for the year ended 31st March, 2016.
(a) The Company has identified business segments as primary segments. The reportable business segments are Mineral and Material Processing and Handling Equipment, Geared Motors and Building Material Division based on industry and product lines. Handling Equipment include Mineral, material processing and other handling equipment. Geared motors include Gear Box, Geared Motor Drive system.
(b) Assets and liabilities (including provision for income tax, deferred tax liability and advance tax) which are not attributable / identifiable / allocable to business segments are shown as unallocated / corporate assets / liabilities. ;
c) Secondary segment information - Geographical
Out of total Sales of Rs. 9132.44 lacs ( 2014-15- Rs. 8727.24 lacs), Sales outside India is Rs. 1047.67 lacs (2014-15 - Rs. 844.97 lacs)
8 In the opinion of the Board of Directors, Current Assets and Loans and Advances have a value at which these are stated in the Balance Sheet, unless otherwise stated and adequate provision for all known liabilities have been made and are not in excess of the amount reasonably required.
9 Related Party disclosures as identified by the management in accordance with the Accounting Standard 18 on Related Party Disclosures:
a) Key Management Personnel:
Mr. I. Sen - Managing Director
Mr. S. Saha - Executive Director (retired w.e.f.1st May, 2015)
b) Joint Venture Company - Mozer Process Technology Pvt.Ltd
Mozer Process Technology Pvt.Ltd
c) Chairman and non-executive Director - Mr. Sanjay Bagaria
10 LEASES
a) The Company had certain non-cancellable operating lease arrangements for residential and office premises which are renewable by mutual consent and mutually agreed terms.
b) The aggregate lease rentals payable are charged as âRentâ in Note 29
The future minimum lease payments under non-cancellable operating leases is Rs. Nil (2014-15 Rs. Nil)
c) The future obligation for vehicle taken on finance lease is given below: (Refer Note-4)
11 Previous year''s figures have been re-grouped wherever necessary.
Mar 31, 2015
Rs in lacs)
For the year ended For the year ended
31st March, 2015 31st March, 2014
1.01 CONTINGENT LIABILITIES AND COMMITMENTS
Contingent Liabilities
Outstanding Bank Guarantees 68.59 96.12
Commitments
Estimated amount of contracts remaining
to be executed on capital account 900.80 -
1.02 EMPLOYEE BENEFITS
a) The Company has Defined Contribution Schemes for its employees''
retirement benefits such as Provident Fund, Superannuation and defined
Contribution Pension Schemes. For these Schemes, contributions are made
by the Company for certain group of employees based on their current
salary to recognised funds maintained by the Company and contributions
are also made to the State funds for certain other employees.In case of
Provident Fund Scheme, the contributions are also made by the
employees.
Note:
1) Assumptions relating to future salary increases, attrition, interest
rate for discount and overall expected rate of return on assets have
been considered based on relevant economic factors such as inflatio,
market growth and other factors applicable to the period over which the
obligation is expected to be settled.
2) The contributions expected to be made by the Company for the year
2015-16 is yet to be determined.
3) The guidance on implementing Accounting Standard (AS-15) (Revised
2005) on Employees'' Benefits issued by Accounting Standard Board
(ASB) states that provident fund trustees set up by the employers which
require the interest shortfall to be met by the employers need to be
treated as ''''Defined Benefit Plan". Accordingly the actuary in
consultation with the management, has carried out the acturial
valuation of such provident fund liability on account of shortfall of
interest on the basis of the guidelines issued by Acturial Society of
India. Such liability as determined by the actuary amounts to Rs. 4.06
lacs (Previous Year - Rs. 4.20 lacs) which has been provided in the
Accounts for the year ended 31st March, 2015.
1.03 In the opinion of the Board of Directors, Current Assets and
Loans and Advances have a value at which these are stated in the
Balance Sheet, unless otherwise stated and adequate provision for all
known liabilities have been made and are not in excess of the amount
reasonably required.
1.04 Related Party disclosures as identified by the management in
accordance with the Accounting Standard 18
a) Key Management Personnel:
Mr. I. Sen - Managing Director Mr. S. Saha - Executive Director
b) Joint Venture Company having substantial interest in the Company
Mozer Process Technology Pvt. Ltd
c) Chairman and non-executive Director - Mr. Sanjay Bagaria
1.05 LEASES
a) The Company had certain not non-cancellable operating lease
arrangements for residential and office premises which are renewable by
mutual consent and mutually agreed terms.
b) The aggregate lease rentals payable are charged as "Rent" in
Note 28
The future minimum lease payments under non-cancellable operating
leases is Rs. Nil (2013-14 - Rs. Nil)
1.06 Previous year''s figures have been re-grouped wherever necessary.
Mar 31, 2014
1.01 CONTINGENT LIABILITIES AND COMMITMENTS Contingent Liabilities
Outstanding Bank Guarantees 96.12 102.18
Sales Tax demand under appeal  540.94
Commitments
Estimated amount of contracts
remaining to be executed on
capital account  13.62
1.02 EMPLOYEE BENEFITS
a) The Company has Defined Contribution Schemes for its employees''
retirement benefits such as Provident Fund, Superannuation and defined
Contribution Pension Schemes. For these Schemes, contributions are made
by the Company for certain group of employees based on their current
salary to recognised funds maintained by the Company and contributions
are also made to the State funds for certain other employees. In case
of Provident Fund Scheme, the contributions are also made by the
employees.
Defined Benefit Scheme
The Employee''s gratuity fund scheme managed by Life Insurance
Corporation of India is a defined benefit plan. The present value of
obligations is determined based on acturial valuation using the
projected Unit Credit Method which recognises each period of service as
giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation.
1.03 In the opinion of the Board of Directors, Current Assets and
Loans and Advances have a value at which these are stated in the
Balance Sheet and unless otherwise stated adequate provision for all
known liabilities have been made and are not in excess of the amount
reasonably required.
1.04 Related Party disclosures as identified by the management in
accordance with the Accounting Standard 18 issued by the Companies
Accounting Standard Rules 2006.
a) Key Management Personnel:
Mr. I. Sen - Managing Director Mr. S. Saha - Executive Director
b) Joint Venture Company having substantial interest in the Company
with effect from 23rd July, 2012 Mozer Process Technology Pvt. Ltd
c) Chairman and non-executive Director - Mr. Sanjay Bagaria
1.05 LEASES
a) The Company had certain not non-cancellable operating lease
arrangements for residential and office premises which are renewable by
mutual consent and mutually agreed terms.
b) The aggregate lease rentals payable are charged as "Rent" in
Note 28
The future minimum lease payments under non-cancellable operating
leases is Rs. Nil (2012-13 - Rs. Nil)
1.06 Previous year''s figures have been re-grouped wherever necessary.
Mar 31, 2013
1.01 CONTINGENT LIABILITIES AND COMMITMENTS
Contingent Liabilities
Outstanding Bank Guarantees 102.18 117.42
Sales Tax demand under appeal 540.94 540.94
Commitments
Estimated amount of contracts
remaining to be executed on
capital account 13.62 58.74
1.02 EMPLOYEE BENEFITS
a) The Company has Defined Contribution Schemes for its employeesÂ
retirement benefits such as Provident Fund, Superannuation and defined
Contribution Pension Schemes. For these Schemes, contributions are made
by the Company for certain group of employees based on their current
salary to recognised funds maintained by the Company and contributions
are also made to the State funds for certain other employees.In case of
Provident Fund Scheme, the contributions are also made by the
employees.
The expected return on Plan Assets is based on market expectations at
the beginning of the year. The rate of return on long term government
bonds is taken as reference for this purpose.
The contributions expected to be made by the Company for the year
2012-13 is yet to be determined.
c) The guidance on implementing Accounting Standard (AS-15) (Revised
2005) on Employees Benefits issued by Accounting Standard Board (ASB)
states that provident fund trustees set up by the employers which
require the interest shortfall to be met by the employers need to be
treated as "Defined Benefit Plan". Accordingly the actuary in
consultation with the management, has carried out the acturial
valuation of such provident fund liability on account of shortfall of
interest on the basis of the guidelines issued by Acturial Society of
India. Such liability as determined by the actuary amounts to Rs. 5.02
lacs (Previous Year - Rs. 1.59 lacs) which has been provided in the
Accounts for the year ended 31st March, 2013.
1.03 In the opinion of the Management / Board of Directors, the Loans
and Advances have a value on realisation in the ordinary course of
business at least equal to the amount at which they are stated and
adequate provision for all known liabilities have been made.
1.04 Related Party disclosures as identified by the management in
accordance with the Accounting Standard 18 issued by the Companies
Accounting Standard Rules 2006.
a) Key Management Personnel:
Mr. I. Sen - Managing Director Mr.S. Saha - Executive Director
b) Companies/Individuals/HUF/Body Corporate having substantial interest
in the Company:
Shiva Prasad Bagaria Sanjay Bagaria Purnima Bagaria Sanjay Bagaria -
HUF Shiva Prasad Bagaria - HUF Satyam Bagaria Benefit Trust Devanshi
Bagaria
1.05 LEASES
a) The Company had certain not non-cancellable operating lease
arrangements for residential and office premises which are renewable by
mutual consent and mutually agreed terms.
b) The aggregate lease rentals payable are charged as "Rent" in Note
27.
The future minimum lease payments under non-cancellable operating
leases is Rs. Nil (2011- 12 - Rs. Nil).
c) The future obligation for vehicle taken on finance lease is given
below: (Refer Note-4).
1.06 Previous year''s figures have been re-arranged and re-grouped
wherever necessary.
Mar 31, 2012
(a) The Company has only one class of equity shares having a par value
of Rs. 10/- each. Each holder of equity shares is entitled to one vote
per share.
(b) 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 of their shareholding.
(c) The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.
(d) Cash Credit from UCO Bank and Axis Bank are secured by
hypothecation of stock of raw materials, work-in-progress, finished
goods, stores and spares, book debts and other current assets of the
Company and all moveable assets and by equitable mortgage by deposit of
title deeds of immoveable properties comprising of land and buildings
at the Company's factories situated at Baidyabati, Nagpur and
Aurangabad.
1.1 During the year, Minimum Alternate Tax (MAT) has been provided.
The Company is entitled for MAT credit and the same has been recognised
accordingly.
2.01 CONTINGENT LIABILITIES AND COMMITMENTS
Contingent Liabilities
Outstanding Bank Guarantees 117.42 104.22
Bills discounted under Letter of Credit
(since realised) - 213.16
Sales Tax demand under appeal 540.94 134.00
Commitments
Estimated amount of contracts remaining to be
executed on capital account 58.74 83.30
2.02 EMPLOYEE BENEFITS
a) The Company has Defined Contribution Schemes for its employees'
retirement benefits such as Provident Fund, Superannuation and defined
Contribution Pension Schemes. For these Schemes, contributions are made
by the Company for certain group of employees based on their current
salary to recognised funds maintained by the Company and contributions
are also made to the State funds for certain other employees.In case of
Provident Fund Scheme, the contributions are also made by the
employees.
*Included in "Salaries and Wages" and "Contribution to Provident
and Other Funds" under "EMPLOYEE
BENEFIT EXPENSES" on Note 25.
The expected return on Plan Assets is based on market expectations at
the beginning of the year.
The rate of return on long term government bonds is taken as reference
for this purpose.
The contributions expected to be made by the Company for the year
2011-12 is yet to be determined.
c) The guidance on implementing Accounting Standard (AS-15) (Revised
2005) on Employees' Benefits issued by Accounting Standard Board
(ASB) states that provident fund trustees set up by the employers which
require the interest shortfall to be met by the employers need to be
treated as "Defined Benefit Plan". Accordingly the actuary in
consultation with the management, has carried out the acturial
valuation of such provident fund liability on account of shortfall of
interest on the basis of the guidelines issued by Acturial Society of
India. Such liability as determined by the actuary amounts to Rs. 1.59
lacs which has been provided in the Accounts for the year ended 31st
March, 2012.
2.03 In the opinion of the Management / Board of Directors, the Loans
and Advances have a value on realisation in the ordinary course of
business at least equal to the amount at which they are stated.
2.04 Related Party disclosures as identified by the management in
accordance with the Accounting Standard 18 issued by the Companies
Accounting Standard Rules 2006.
a) Key Management Personnel:
Mr. I. Sen - Managing Director
Mr.S. Saha - Executive Director
b) Companies/Individuals/HUF/Body Corporate having substantial interest
in the Company:
Shiva Prasad Bagaria
Sanjay Bagaria
Purnima Bagaria
Sanjay Bagaria - HUF
Shiva Prasad Bagaria - HUF
Satyam Bagaria Benefit Trust
2.05 LEASES
a) The Company had certain not non-cancellable operating lease
arrangements for residential and office premises which are renewable by
mutual consent and mutually agreed terms.
b) The aggregate lease rentals payable are charged as "Rent" in
Note 28.
The future minimum lease payments under non-cancellable operating
leases is Rs. Nil (2010-11 - Rs. Nil)
c) The future obligation for vehicle taken on finance lease is given
below: (Refer Note-4)
2.06 Previous year's figures have been re-arranged and re-grouped
wherever necessary.
2.07 Till the year ended 31st March, 2011, the Company was using
pre-revised Schedule VI to the Company's Act,1956 for the preparation
and presentation of its financial statements. During the year ended
31st March, 2012 the revised Schedule VI notified under the Companies
Act, 1956 has become applicable to the Company. The Company has
reclassified previous year's figures to conform to this year's
classification. The adoption of revised Schedule VI does not impact
recognition and measurement principles followed for preparation of
financial statements. However, it significantly impacts presentation
and disclosures made in the financial statements, particularly
presentation of Balance Sheet.
Mar 31, 2011
(Rs. in lac)
31st March,
2011 31st March,
2010
(1) Contingent liabilities not provided for :
Outstanding Bank Guarantees 104.22 92.82
Bills discounted under Letter of Credit
(since realised) 213.16 Ã
(2) Gross depreciation for the current year is Rs. 294.30 lacs (2010 -
Rs. 364.21 lacs) of which Rs. 13.20 lacs (2010 - Rs. 13.18 lacs) has
been transferred from revaluation reserve.
(3) Cash Credit from UCO Bank and Axis Bank are secured by
hypothecation of stock of raw materials, work-in-progress, finished
goods, stores and spares, book debts and other current assets of the
Company and all moveable assets and by equitable mortgage of immoveable
properties comprising of land and buildings at the Company's factories
situated at Baidyabati, Nagpur and Aurangabad.
(4) Fixed Deposit receipts of Rs.136.17 lacs (2010-Rs.114.48 lacs) have
been deposited with Banks against guarantees issued by them.
(5) Employee Benefits
a) The Company has Defined Contribution Schemes for its employees'
retirement benefits such as Provident Fund, Superannuation and defined
Contribution Pension Schemes. For these Schemes, contributions are made
by the Company for certain group of employees based on their current
salary to recognised funds maintained by the Company and contributions
are also made to the State funds for certain other employees. In case
of Provident Fund Scheme, the contributions are also made by the
employees.
(6) Related Party disclosures as identified by the management in
accordance with the Accounting Standard 18 issued by The Institute of
Chartered Accountants of India:
a) Key Management Personnel:
Mr. I. Sen - Managing Director
Mr. S. Saha - Executive Director
b) Companies/Individuals/HUF/Body Corporate having substantial interest
in the Company: Shiva Prasad Bagaria, Sanjay Bagaria, Purnima Bagaria,
Sanjay Bagaria - HUF, Shiva Prasad Bagaria - HUF, Satyam Bagaria
Benefit Trust.
(7) Leases
a) The Company has certain not non-cancellable operating lease
arrangements for residential and office premises which are renewable by
mutual consent and mutually agreed terms.
b) The aggregate lease rentals payable are charged as "Rent" in
Schedule 15.
The future minimum lease payments under non-cancellable operating
leases is Rs. Nil (2009-10 Ã Rs. Nil)
(8) Previous year's figures have been re-arranged and re-grouped
wherever necessary.
Mar 31, 2010
1
(Rs. in 000)
31st March, 2010 31st March, 2009
(1) Contingent liabilities not provided for:
Outstanding Bank Guarantees 9282 7443
(2) Estimated amount of contracts remaining
to be executed on capital à 8295
(3) Auditors Remuneration:
Audit Fees 175 175
Certification etc. 98 108
(4) Research and Development expenses
debited to respective heads of accounts 4641 5269
(5) Selling and Distribution Expenses comprise
of Travelling Expenses 23371 19686
Commission on Sales 7347 4520
Other Expenses 5491 5078
(6) Miscellaneous Expenses include prior period expenditure of Rs. Nil
(2008-09 - Rs. 2000 thousands).
(7) Gross depreciation for the current year is Rs.36421 thousands (2009
- Rs. 32770 thousands) of which Rs.1318 thousands (2009 - Rs.1274
thousands) has been transferred from revaluation reserve.
(8) Cash Credit / Working Capital Loan from UCO Bank and Axis Bank are
secured by hypothecation of stock of raw materials, work-in-progress,
finished goods, stores and spares, book debts and other current assets
of the Company and all moveable assets and by equitable mortgage of
immoveable properties comprising of land and buildings at the Companys
factories situated at Baidyabati, Nagpur and Aurangabad.
(9) Fixed Deposit receipts of Rs.11448 thousands (2009-Rs. 12204
thousands) have been deposited with Banks against guarantees issued by
them.
(10) Employee Benefits
a) The Company has Defined Contribution Schemes for its employees
retirement benefits such as Provident Fund, Superannuation and defined
Contribution Pension Schemes. For these Schemes, contributions are made
by the Company for certain group of employees based on their.current
salary to recognised funds maintained by the Company and contributions
are also made to the State funds for certain other employees. In case
of Provident Fund Scheme, the contributions are also made by the
employees.
Contributions to Defined Contribution Plan recognized for the year are
as under:
The expected return on Plan Assets is based on market expectations at
the beginning of the year. The rate of return on long term government
bonds is taken as reference for this purpose.
The contributions expected to be made by the Company for the year
2010-11 is yet to be determined.
c) The guidance on implementing Accounting Standard (AS-15) (Revised
2005) on Employees Benefits issued by Accounting Standard Board (ASB)
states that provident fund trustees set up by the employers which
require the interest shortfall to be met by the employers need to be
treated as "Defined Benefit Plan". According to the management, in
consultation with the actuary , it is not practical or feasible to
actuarially value the Provident Fund liability in the absence of any
guidance from Actuarial Society of India and also due to the fact that
the rate of interest as notified by the Government can vary annually.
Accordingly, the Company is currently not in a position to provide
other related disclosures as required by the aforesaid AS-15 read with
ASB guidance.
(2) Exchange difference of Rs. 526 thousands being net loss (2008-09 -
Gain - Rs. 1158 thousands) included in Miscellaneous expenditure.
(i) The above remuneration does not include provision for gratuity and
leave encashment as these are not separately ascertainable
(ii) The remuneration of Rs. 9192 thousands paid/ payable to the
Managing Director for the period from 1st May, 2009 to 31st March, 2010
is pending shareholders approval at the ensuing Annual General Meeting
(3) Related Party disclosures as identified by the management in
accordance with the Accounting Standard 18 issued by the Institute of
Chartered Accountants of India:
a) Key Management Personnel:
Mr. I. Sen - Managing Director
Mr. S. Saha - Wholetime Director
b) Companies/lndividuals/HUF/Body Corporate having substantial interest
in the Company: Shiva Prasad Bagaria,
Sanjay Bagaria, Purnima Bagaria, Sanjay Bagaria - HUF, Shiva Prasad
Bagaria - HUF, Satyam Bagaria Benefit Trust.
(11) Leases
a) The Company has certain not non-cancellable operating lease
arrangements for residential and office premises which are renewable by
mutual consent and mutually agreed terms.
b) The aggregate lease rentals payable are charged as "Rent" in
Schedule 15.
The future minimum lease payments under non-cancellable operating
leases is Rs. Nil (2008-09 - Rs. Nil)
(12) Previous years figures have been re-arranged and re-grouped
wherever necessary.
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