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Notes to Accounts of Thejo Engineering Ltd.
Mar 31, 2025
3.8 Provisions and Contingent Liabilities
Provisions are recognized if the Company has a reliably estimated present obligation (legal or
constructive) as a result of a past event and it is probable that an outflow of resources will be
required to settle the obligation. Provisions are measured based on the best estimate of expenditure
required to settle the obligation as at the date of balance sheet. In cases where the effect of the
time value of money is material, provisions are discounted to reflect its present value using current
pre-tax rate reflecting the risk specific to the obligation. When discounting is used, the increase in
the amount of provision due to the passage of time is recognized as finance cost.
When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, a receivable is recognised as an asset if it is virtually certain that
reimbursement will be received and the amount of the receivable can be measured reliably.
Contingent liabilities are disclosed when there is a possible obligation arising from past events,
which is contingent upon the occurrence or non-occurrence of one or more uncertain future events,
which are not fully within the control of the Company or when there is a present obligation arising
from past events where it is either not probable that an outflow of resources will be required to
settle the obligation or the amount cannot be reliably estimated.
A contingent asset is not recognised but disclosed in the fl nancial statements where an inflow
of economic benefit is probable. Commitments includes the amount of purchase order (net of
advance) issued to counterparties for supplying/ development of assets and amounts pertaining
to Investments which have been committed but not called for.
Provisions, contingent assets, contingent liabilities and commitments are reviewed at each balance
sheet date.
3.9 Revenue Recognition
Sale of goods
Revenue is recognised at transaction value when the performance obligations are satisfied and
the control of the product is transferred, being when the goods are delivered as per the relevant
terms of the contract at which point in time the Company has a right to payment for the asset,
customer has legal title of the asset, customer bears significant risk and rewards of ownership
and the customer has accepted the asset or the Company has objective evidence that all criteria
for acceptance have been satisfied. Payment for the sale is made as per the credit terms in the
agreements with the customers. The credit period is generally short term, thus there is no significant
financing component.
Rendering of services
The performance obligation under service contracts are provision of various services as set forth
in the contracts. Revenue from rendering of services are recognised over a period of time by
reference to the stage of completion as the customer simultaneously receives and consumes the
benefit provided by the Companyâs performance. Payment for the service rendered is made as per
the credit terms in the agreements with the customers. The credit period is generally short term,
thus there is no significant financing component.
Dividend and interest income
Dividend income from investments is recognised when the shareholderâs right to receive payment
has been established (provided that it is probable that the economic benefits will flow to the Company
and the amount of income can be measured reliably).
Interest income from a financial asset is recognised when it is probable that the economic benefits
will flow to the Company and the amount of income can be measured reliably. Interest income
is accrued on a time basis, by reference to the principal outstanding and at the effective interest
rate applicable, which is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to that assetâs net carrying amount on initial recognition.
Revenue disaggregation as per business segment and geography are contained in the segment
information given in Note 26.3.
3.10 Employee Benefits
Short-term benefits
All short-term employee benefit obligations are measured on an undiscounted basis and expensed
as the related services are rendered.
Defined contribution plans
Contribution to defined contribution plans like provident fund, superannuation fund, employee state
insurance, etc are charged as an expense to the extent of periodic contribution required to be made
as and when services are rendered to the Company. The Company has no further obligations
beyond the periodic contribution in respect of defined contribution plans.
Defined benefit plans
The Company provides for gratuity, a defined benefit plan, to all eligible employees. The amount
recognized as employee benefit expense in the Statement of Profit and Loss is the cost of accruing
employee benefits promised to the eligible employees over the year and costs of past/future service
benefit changes and similar costs. The defined benefit plan surplus or deficit as on the date of
balance sheet comprises the difference between fair value of plan assets and present value of the
defined benefit liabilities, discounted at the yield rate at the reporting date on risk free government
bonds.
All re-measurements of defined benefit liabilities and assets are recognized in other comprehensive
income and are subsequently not reclassified to the Statement of Profit and Loss. The Company
has an employeesâ gratuity fund managed by the Life Insurance Corporation of India.
3.11 Share-based Payments
Equity-settled share-based payments to employees are measured at the fair value of the equity
instruments at the grant date. Details regarding the determination of the fair value of equity-settled
share-based transactions are set out in Note 26.9.
The Company makes equity settled share based payment to selected employees under its ESOP
program. The fair value of options granted as on grant date, calculated by an independent valuer on
the basis of Black Scholes model, is recognized as employee benefit expense with a corresponding
increase in equity over the vesting period. At the end of each reporting period, the expense is
reviewed and adjusted to ref i ect changes to the level of options expected to vest. Fresh equity
shares are issued upon exercise of vested options.
3.12 Income-tax Expenses
Income-tax expenses comprises current tax and deferred tax and is recognized in the Statement
of Profit and Loss except to the extent that it relates to an item which is recognized directly in
equity or in other comprehensive income. Current tax is the expected tax payable on the taxable
income using applicable tax rates enacted or substantively enacted as at the reporting date and
any adjustments relating to income-tax of previous years.
Deferred tax is recognized in respect of temporary difference between the carrying amounts of
assets and liabilities as per the fi nancial statements and taxation laws. Deferred tax liability is
recognized based on the expected manner of realization or settlement of the difference in carrying
amounts applying tax rates enacted or substantively enacted as at the reporting date. Deferred
tax assets are recognized only to the extent that it is probable that future taxable profits will be
available to utilize the same. Deferred tax assets are reviewed at each reporting date and reduced
to the extent that it is no longer probable that it will be realized.
Current tax assets and liabilities are offset when there is a legally enforceable right to set them off
and there is an intent to settle them on a net basis. Deferred tax assets and liabilities are set off
when they are related to income-tax levied by the same taxation authority and there is a legally
enforceable right to set off current tax assets and liabilities.
3.13 Foreign Currency
In preparing the fi nancial statements of the Company, transactions in currencies other than the
entityâs functional currency (foreign currencies) are recognised at the rates of exchange prevailing at
the dates of the transactions. The income and expense of foreign branch operations are translated
using average exchange rates. At the end of each reporting period, monetary items denominated in
foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried
at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at
the date when the fair value was determined. Non-monetary items that are measured in terms of
historical cost in a foreign currency are not retranslated. Exchange differences on monetary items
are recognised in the Statement of Profit and Loss in the period in which they arise.
3.14 Earnings Per Share
The Company presents the basic earnings per share by dividing the net profit for the period
attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding
during the period. Where ordinary shares are issued without a corresponding change in resources
like bonus issue, the weighted number of equity shares outstanding during the period as well as
all periods presented are adjusted for such events.
Diluted earnings per share is computed by dividing the net profit after tax by the weighted average
number of equity shares considered for deriving basic earnings per share and also weighted average
number of equity shares that could have been issued upon conversion of all dilutive potential equity
shares. Dilutive potential equity shares are deemed converted as of the beginning of the period,
unless issued at a later date. Dilutive potential equity shares are determined independently for each
period presented. The number of equity shares and potentially dilutive equity shares are adjusted
for bonus shares, consolidation of shares, etc. as appropriate.
3.15 Segment Reporting
The Company reports business and geographic segments in a manner consistent with the reporting
provided to the Chief Operating Decision Maker, in line with Ind-AS 108.
3.16 Dividend Distributed to Equity Shareholders
Dividend distributed to equity shareholders is recognized as distribution to owners of capital in the
Statement of Changes in Equity after it is approved by the Members.
3.17 Borrowings and related costs
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are
subsequently measured at amortised cost. Any difference between the proceeds (net of transaction
costs) and the redemption amount is recognised in the Statement of Profit and Loss over the
period of the borrowings using the effective interest method. Fees paid on the establishment of
loan facilities are recognised as transaction costs of the loan to the extent that it is probable that
some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down
occurs. To the extent there is no evidence that it is probable that some or all of the facility will be
drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the
period of the facility to which it relates.
Borrowings are removed from the balance sheet when the obligation specified in the contract is
discharged, cancelled or expired. The difference between the carrying amount of a financial liability
that has been extinguished or transferred to another party and the consideration paid, including
any non-cash assets transferred or liabilities assumed, is recognised in the Statement of Profit
and Loss as other gains/(losses).
Borrowings are classified as current liabilities unless the Company has an unconditional right to
defer settlement of the liability for at least 12 months after the reporting period. Where there is a
breach of a material provision of a long-term loan arrangement on or before the end of the reporting
period with the effect that the liability becomes payable on demand on the reporting date, the entity
does not classify the liability as current, if the lender agreed, after the reporting period and before
the approval of the financial statements for issue, not to demand payment as a consequence of
the breach.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended
use or sale, are added to the cost of those assets, until such time as the assets are substantially
ready for their intended use or sale. Interest income earned on the temporary investment of specific
borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs
eligible for capitalization. All other borrowing costs are recognised in the Statement of Profit and
Loss in the period in which they are incurred.
3.18 Cash flow statement
Cash flows are reported using the indirect method, whereby profit/(loss) before tax is adjusted
for the effects of transactions of non-cash nature and any deferrals or accruals of past or future
cash receipts or payments. The cash flows from operating, investing and financing activities of the
Company are segregated based on the available information. Cash and cash equivalents includes
balances in current accounts, debit balance in cash credit accounts, cash on hand and cheques/
drafts on hand. Bank overdrafts are shown within borrowings in current liabilities in the balance
sheet.
26.1.3 Commitments
Estimated amount of contracts remaining to be executed on capital account: '' 489.70 lakhs (Previous Year - '' 49.19 lakhs).
Note. 26.2 Employee Benefits
The Company has accounted for the Long term defined benefits and contribution schemes as under:
26.2.1 Defined Contribution Schemes
Contributions to Provident Fund and Employee State Insurance are made monthly to the respective Authorities.
Contribution to Superannuation fund for eligible employees is made by way of premium to Life Insurance Corporation
of India through the Trust and charged to the Statement of Profit and Loss for the year.
26.2.2 Defined Benefit Scheme
The Company has defined benefit scheme in the form of gratuity to employees.
Contribution to gratuity is made to Life Insurance Corporation of India through the Gratuity Fund as per the scheme
framed by the Corporation. The disclosure under Ind-AS 19 in this regard is given hereunder:
Note 26.3 Segment Reporting
The Chief Operating Decision Maker evaluates the Companyâs performance and allocates resources based on the
analysis of various performance indicators by business segments and geographic segments. Accordingly, information
has been presented both along business segments and geographic segments. The accounting principles used in the
preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments
and are as set out in the material accounting policies.
Accordingly, the business segments of the Company are:
(i) Manufacturing Units
(ii) Service Units
(iii) Others
and the geographic segments of the Company are:
(i) India
(ii) Outside India
Reporting for business segment is on the following basis:
Segment Revenue relating to individual segment is recorded in accordance with accounting policies followed by the
Company. All expenditure, which are directly attributable to a business segment is charged to the respective segment.
The income and costs which cannot be reasonably attributed to any specific business segment are shown as unallocable
expenses (net of income)
Segment Results represents the profit before tax earned by each segment excluding fi nance costs and unallocable
expenses (net of income).
For the purpose of monitoring segment performance and allocating resources between segments:
Property, plant and equipment employed in the operations are allocated to the segment to which the activity relates.
The depreciation on the corresponding assets is charged to the respective segments.
All other assets that are directly attributable to a particular segment of operations are allocated to the respective
reportable segments.
All liabilities (other than borrowings, current and deferred tax liabilities) that are directly attributable to a particular segment
of operation are allocated to the respective reportable segments.
The following is an analysis of the Companyâs revenue and results from operations by reportable segment.
Note 26.4 Financial Instruments
Capital Management
The Companyâs business model is working capital centric. The Company manages its working capital needs and long-term
capital expenditure, through a balanced mix of capital (including retained earnings), short term debt and long-term debt.
The capital structure of the Company comprises of net debt (borrowings reduced by cash and bank balances) and equity.
The Company is not subject to any externally imposed capital requirements.
The Company reviews its capital requirements on an annual basis as part of its Annual Operating Plan. As part of the
Annual Operating Plan, the Company estimates the capital required and formulates the broad financing mechanism
for the same.
Investment in subsidiaries are carried at cost net of accumulated impairment losses, if any. All other financial assets
and liabilities are carried at amortized cost.
Financial Risk Management
The Companyâs activities expose it to market risk (including currency risk, interest rate risk and other price risk), credit
risk and liquidity risk. The Company seeks to minimise the effects of these risks by taking various measures.
The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative
purposes.
Market risk
The Companyâs activities expose it primarily to the financial risks of changes in foreign currency exchange rates and
interest rates. The Company manages such risks through natural hedge.
Foreign Currency risk management
The Company undertakes transactions denominated in foreign currencies, resulting in exposure to exchange rate
fluctuations. The foreign currency transactions primarily relate to imports and exports. Considering the volume of imports
and exports, exchange rate exposures of the Company are managed through natural hedge..
The carrying amounts of the Companyâs foreign currency denominated monetary assets and monetary liabilities at the
end of the reporting period are as follows:
Interest rate risk management
The Companyâs exposure to interest rate risk is limited to the extent of Working capital and Term Loan funding availed
from the Bankers, which is at the External Benchmark Lending rate subject to a periodic reset.
Interest rate sensitivity analysis
The interest rate sensitivity analysis is being done based on the assumption that the amount of liability outstanding at
the end of the period was outstanding for the whole year and all other variables remaining constant:
If interest rates had been 50 basis points higher: The fi nance cost, for the financial year 2024-25, would have been
higher and profits (pre-tax) would have been lesser by '' Nil (FY 2023-24: '' 4.32 lakhs).
If interest rates had been 50 basis points lower: The finance cost, for the financial year 2024-25, would have been lower
and profits (pre-tax) would have been higher by '' Nil (FY 2023-24: '' 4.32 lakhs).
This is mainly attributable to Companyâs exposure to interest rates on its variable rate borrowings.
Other price risks
Companyâs investments in equity instruments are restricted to its investment in its subsidiaries, which are held for strategic
purposes rather than for trading. The Company, as on the reporting date of March 31,2025 has five subsidiaries. All
the five subsidiaries are incorporated abroad, closely held companies and unlisted.
As the purpose of all such investments are strategic rather than for trading, the Company does not recognise any impact
of sensitivity in the equity prices.
Credit Risk Management
The credit risk to the Company arises primarily from customers defaulting on their contractual obligations, thus resulting
in financial loss to the Company.
As part of mitigation process to address the risk, the Company evaluates the credentials of a customer before participating
in the tender or before quoting for their order. The Company evaluates the potential customersâ credentials by considering
various factors such as:
(i) their financial health based on the publicly available financial statements;
(ii) their credit rating, available in the public domain;
(iii) their repute in the market; and
(iv) past experience, if the Company has done any business with them earlier.
The Company makes provision on its financial assets, on every reporting period, as per Expected Credit Loss Method.
The percentage at which the provision is made, is determined on the basis of historical experience of such provisions,
modified to the current and prospective business and customer profile.
Trade receivables consist of large number of customers, spread across diverse industries and geographical areas.
Many of the customers of the Company comprise of Public Sector Undertakings, with whom the Company does not
perceive any major risk.
Liquidity Risk Management
The liquidity requirements of the Company are met by Equity (including internal accruals) and working capital funding
from the banks. The liquidity requirements for the operations are met by allocating the cash flows from the customers.
The Company has established a practice of prioritising the regulatory payments, employee related payments and
supplier/ site level payments.
Fair value measurements
Fair value of financial assets and liabilities measured at amortised cost: Trade receivables, cash and cash equivalents,
other bank balances, loans and other financial assets are at carrying values that approximate fair value. Borrowings,
trade payables and other financial liabilities are at carrying values that approximate fair value. If measured at fair value
in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy.
Note 26.14 Details of security provided for Borrowings
Loans repayable on demand from bank represents cash credit facility enjoyed by the Company from its working capital
bankers and is secured by pari passu charge on the current assets of the Company with collateral security comprising
immovable properties of the Company, second charge on plant & machinery purchased out of subsisting term loan, first
charge on other plant & machinery. The security coverage also extends to non-fund based facilities extended by the
working capital bankers. The cash credit facility carry interest rate linked to benchmark lending rates. The facilities are
also secured by personal guarantee of Mr. Thomas John, Mr. Manoj Joseph, Mr. Rajesh John and Mr. Manesh Joseph.
Term loan from bank comprise of a) loan availed to procure fixed assets that are secured by first charge on the assets
purchased from the term loan and repayable in 48 to 60 equal monthly instalments (plus interest) and b) working capital
term loan (WCTL) under Emergency Credit Line Guarantee Scheme secured by second charge on the security offered
for cash credit. The repayment term for the WCTL is 36 equal monthly instalments (plus interest) after a principal
moratorium for 12 months from the date of first drawdown.
Term loan from financial institution comprise of facilities availed for purchase of vehicle and is secured by vehicle purchased
and personal guarantee of Mr. Thomas John. The loans are repayable in 35 to 60 Equated Monthly Instalments.
Residual value:
In respect of Property, Plant and Equipment which have completed the useful life, the carrying amount as on 01.04.2014
or 5% of the cost, whichever is lower, is retained as residual value in the books.
26.19.3 As the estimated recoverable amounts of the assets / cash generating units of the Company are higher than their
carrying amount, no impairment of assets has been reocgnised in the accounts of the Company in line with relevent Ind AS.
26.19.4 The Company did not have any outstanding loan or advance due from any of the Promoters, Directors, Key
Management Personnel or other related parties as at 31st March, 2025, nor was any loan or advance extended during
the year.
26.19.5 The Company has duly hied necessary quarterly returns to the banks which have extended credit facilities on
the basis of security of current assets of the Company and such quarterly statements are in agreement with the books of
account. The Company has used its borrowed funds only for the purposes for which they were borrowed. The Company
has not been declared as a wilful defaulter by any bank or financial institution or other lender.
26.19.6 The Company did not have anything to report in respect of the following:
(a) Benami properties
(b) Trading or investment in crypto or virtual currency
(c) Giving/receiving of any loan or advance or funds with the understanding that the recipient shall lend, invest, provide
security or guarantee on behalf of the Company/funding party
(d) Transactions not recorded in books that were surrendered or disclosed as income during income-tax assessment
(e) Charges or satisfaction not registered with ROC beyond statutory period
(f) Title deeds in respect of freehold immovable properties not being held in the name of the Company.
(g) Transactions with struck-off companies
(h) Non-compliance with number of layers as prescribed under the Companies Act, 2013, read with Companies
(Restriction on number of Layers) Rules, 2017.
26.19.7 During the FY 2024-25, the Company has incurred a revenue expenditure (excluding depreciation) of '' 250.44
lakhs and capital expenditure of '' 18.87 lakhs in relation to Research & Development. (FY 2023-24: '' 208.69 lakhs
and '' 32.30 lakhs, respectively).
26.19.8 During the FY 2022-23, the Board has approved the proposal of Bridgestone Mining Solutions Australia Pty
Ltd to sell its 26% stake in Thejo Australia Pty Ltd (TAPL) at the book value as on 31st March, 2022 with the shares
being purchased by the Company or bought back by Thejo Australia Pty Ltd or as a combination of both in one or more
tranches/transactions to be completed on or before 31st March 2025, subject to all necessary statutory compliances.
Accordingly, the Company has purchased 16% stake in TAPL during FY 2023-24 and remaining 10% stake during FY
2024-25. With this, the TAPL has become a wholly-owned subsidiary of the Company.
26.19.9 During the FY 2024-25, the Company has purchased 2 Nos of shares held by Mr. Alberto Roldan in Thejo Brasil
Comercio E Servicos Ltda (âThejo Brasilâ). With the purchase of shares held by Mr. Alberto, Thejo Brasil became a
wholly owned subsidiary of the Company. The Company has also subscribed 1,25,000 shares of Thejo Brasil at face
value of BRL 1/- each during the year.
26.19.10 The Board has recommended a dividend of '' 5/- (Rupees Five Only) per equity share of face value of '' 10/-
each (fully paid) for the FY 2024-25. Dividend will be treated as an appropriation from Reserves & Surplus during the
period in which it is approved by the Members. No provision is being made in the accounts for the current financial year
in respect of dividend recommended by the Board after the balance sheet date.
Note 27 Previous Year Figures
Previous yearâs figures have been regrouped / reclassified wherever necessary to correspond with the current yearâs
classification / disclosure.
As per our report of even date For and on behalf of the Board
For BRAHMAYYA & CO.
Chartered Accountants V A GEORGE THOMAS JOHN
Firm Registration IMo. 000511S Executive Chairman Vice Chairman
L RAV| SANKAR DIN 01493737 DIN 00435035
Partner
M N°. 025929 MANOJ JOSEPH M D RAVIKANTH
Place : Chennai Managing Director Chief Financial Officer and
Date : 28th May, 2025 DIN 00434579 Secretary
Mar 31, 2024
The Company has one class of equity shares of face value of '' 10/- each with one share entailing one vote. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company in proportion to their shareholding after distribution of all preferrential amounts as per extant statutory provisions..
Details of allotment of shares for consideration other than cash, bonus issue and buy back of share in the last five years:
70,94,756 equity share of face value of '' 10/- each were allotted as fully paid bonus shares on 15th October 2021 by capitalising securities premium
26.1.3 Commitments
Estimated amount of contracts remaining to be executed on capital account: '' 49.19 lakhs (Previous Year - '' 285.13 lakhs). Note. 26.2 Employee Benefits
The Company has accounted for the Long term defined benefits and contribution schemes as under:
26.2.1 Defined Contribution Schemes
Contributions to Provident Fund and Employee State Insurance are made monthly to the respective Authorities. Contribution to Superannuation fund for eligible employees is made by way of premium to Life Insurance Corporation of India through the Trust and charged to the Statement of Profit and Loss for the year.
26.2.2 Defined Benefit Scheme
The Company has defined benefit scheme in the form of gratuity to employees.
Contribution to gratuity is made to Life Insurance Corporation of India through the Gratuity Fund as per the scheme framed by the Corporation. The disclosure under Ind-AS 19 in this regard is given hereunder:
Note 26.3 Segment Reporting
The Chief Operating Decision Maker evaluates the Companyâs performance and allocates resources based on the analysis of various performance indicators by business segments and geographic segments. Accordingly, information has been presented both along business segments and geographic segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the material accounting policies.
Accordingly, the business segments of the Company are:
(i) Manufacturing Units
(ii) Service Units
(iii) Others
and the geographic segments of the Company are:
(i) India
(ii) Outside India
Reporting for business segment is on the following basis:
Segment Revenue relating to individual segment is recorded in accordance with accounting policies followed by the Company. All expenditure, which are directly attributable to a business segment is charged to the respective segment. The income and costs which cannot be reasonably attributed to any specific business segment are shown as unallocable expenses (net of income)
Segment Results represents the profit before tax earned by each segment excluding fi nance costs and unallocable expenses (net of income).
For the purpose of monitoring segment performance and allocating resources between segments:
Property, plant and equipment employed in the operations are allocated to the segment to which the activity relates. The depreciation on the corresponding assets is charged to the respective segments.
All other assets that are directly attributable to a particular segment of operations are allocated to the respective reportable segments.
All liabilities (other than borrowings, current and deferred tax liabilities) that are directly attributable to a particular segment of operation are allocated to the respective reportable segments.
The following is an analysis of the Companyâs revenue and results from operations by reportable segment.
Note 26.4 Financial Instruments
Capital Management
The Companyâs business model is working capital centric. The Company manages its working capital needs and long term capital expenditure, through a balanced mix of capital (including retained earnings), short term debt and long term debt.
The capital structure of the Company comprises of net debt (borrowings reduced by cash and bank balances) and equity. The Company is not subject to any externally imposed capital requirements.
The Company reviews its capital requirements on an annual basis as part of its Annual Operating Plan. As part of the Annual Operating Plan, the Company estimates the capital required and formulates the broad financing mechanism for the same.
Gearing Ratio
As the cash and cash equivalents were greater than debt, the Gearing Ratio is Nil.
Investment in subsidiaries are carried at cost net of accumulated impairment losses, if any. All other financial assets and liabilities are carried at amortized cost.
Financial Risk Management
The Companyâs activities expose it to market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The Company seeks to minimise the effects of these risks by taking various measures.
The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.
Market risk
The Companyâs activities expose it primarily to the fi nancial risks of changes in foreign currency exchange rates and interest rates. The Company manages such risks through natural hedge.
Foreign Currency risk management
The Company undertakes transactions denominated in foreign currencies, resulting in exposure to exchange rate fluctuations. The foreign currency transactions primarily relate to imports and exports. Considering the volume of imports and exports, exchange rate exposures of the Company are managed through natural hedge.
The carrying amounts of the Companyâs foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows:
Interest rate risk management
The Companyâs exposure to interest rate risk is limited to the extent of Working capital and Term Loan funding availed from the Bankers, which is at the External Benchmark Lending rate subject to a periodic reset.
Interest rate sensitivity analysis
The interest rate sensitivity analysis is being done based on the assumption that the amount of liability outstanding at the end of the period was outstanding for the whole year and all other variables remaining constant:
If interest rates had been 50 basis points higher: The finance cost, for the financial year 2023-24, would have been higher and profits (pre-tax) would have been lesser by '' 4.32 lakhs (FY 2022-23: '' 3.60 lakhs).
If interest rates had been 50 basis points lower: The finance cost, for the financial year 2023-24, would have been lower and profits (pre-tax) would have been higher by '' 4.32 lakhs (FY 2022-23: '' 3.60 lakhs).
This is mainly attributable to Companyâs exposure to interest rates on its variable rate borrowings.
Other price risks
Companyâs investments in equity instruments are restricted to its investment in its subsidiaries, which are held for strategic purposes rather than for trading. The Company, as on the reporting date of March 31,2024 has five subsidiaries. All the five subsidiaries are incorporated abroad, closely held companies and unlisted.
As the purpose of all such investments are strategic rather than for trading, the Company does not recognise any impact of sensitivity in the equity prices.
Credit Risk Management
The credit risk to the Company arises primarily from customers defaulting on their contractual obligations, thus resulting in financial loss to the Company.
As part of mitigation process to address the risk, the Company evaluates the credentials of a customer before participating in the tender or before quoting for their order. Company evaluates the potential customersâ credentials by considering various factors such as:
(i) their financial health based on the publicly available financial statements;
(ii) their credit rating, available in the public domain;
(iii) their repute in the market; and
(iv) past experience, if the Company has done any business with them earlier.
The Company makes provision on its financial assets, on every reporting period, as per Expected Credit Loss Method. The percentage at which the provision is made, is determined on the basis of historical experience of such provisions, modified to the current and prospective business and customer profile.
Trade receivables consist of large number of customers, spread across diverse industries and geographical areas.
Many of the customers of the Company comprise of Public Sector Undertakings, with whom the Company does not perceive any major risk.
Liquidity Risk Management
The liquidity requirements of the Company are met by Equity (including internal accruals) and working capital funding from the banks. The liquidity requirements for the operations are met by allocating the cash flows from the customers.
The Company has established a practice of prioritising the regulatory payments, employee related payments and supplier/ site level payments.
Fair value measurements
Fair value of financial assets and liabilities measured at amortised cost: Trade receivables, cash and cash equivalents, other bank balances, loans and other fi nancial assets are at carrying values that approximate fair value. Borrowings, trade payables and other financial liabilities are at carrying values that approximate fair value. If measured at fair value in the financial statements, these financial instruments would be classified as Level 3 in the fair value hierarchy.
1) Remuneration excludes retirement benefits.
2) Outstanding amount in brackets represents amount payable.
3) Remuneration and outstanding as on 31st March, 2024 excludes commission approved by the Board for FY 2023-24 that would be paid in FY 2024-25 to Mr. V.A. George ('' 15 lakhs); Mr. Manoj Joseph ('' 14 lakhs); Mr. Rajesh John ('' 12 lakhs) and Mr. Manesh Joseph ('' 9 lakhs).
* Remuneration of Mr. M.D. Ravikanth excludes '' 69.81 lakhs of taxable value of perquisite on exercise of options under ESOP.
** Mr. Manesh Joseph served as Whole-time Director till 31st December 2023 and continues as a Non-Executive Director from 1st January, 2024. A Transaction during the year represents purchase of shares in Thejo Australia Pty Ltd from Bridgestone Mining Solutions Australia Pty Ltd.
Additional Note on Key Ratios:
Net Profit = Net Profit after taxes (and does not include items of Other Comprehensive Income)
Earnings available for debt service = Net Profit Non-cash operating expenses like depreciation Interest Other adjustment like profit/loss on sale of fixed assets, etc.
Notes forming part of the Financial Statements for the year ended 31st March, 2024
Average Inventory = (Opening Inventory Closing Inventory)/2
Average Trade Receivables = (Opening Trade Receivables Closing Trade Receivables)/2 Average Trade Payables = (Opening Trade Payables Closing Trade Payables)/2 Working Capital = Current Assets - Current Liabilities
T1 = End of time period; T0 = Beginning of time period; t = specific date between T1 and T0; MV(T1) = Market Value at T1; MV(T0) = Market Value at T0; C(t) = Cash inflow/outflow on specific date; W(t) = Weight of net cash flow (either inflow or outflow) on day âtâ, calculated as (T1-t)/T1
Total debt includes Lease Liabilities
Interest includes other finance cost
The Company does not have any financial investment as part of treasury activity. The investments are in the nature of trade investment (Investment in subsidiaries) and Fixed Deposit with banks for the purpose of security/margin money for non-fund based limits. Hence, Return on Investment is given as Not Applicable (NA).
Note 26.14 Details of security provided for Borrowings
Loans repayable on demand from bank represents cash credit facility enjoyed by the Company from its working capital bankers and is secured by pari passu charge on the current assets of the Company with collateral security comprising immovable properties of the Company, second charge on plant & machinery purchased out of subsisting term loan, first charge on other plant & machinery. The security coverage also extends to non-fund based facilities extended by the working capital bankers. The cash credit facility carry interest rate linked to benchmark lending rates. The facilities are also secured by personal guarantee of Mr. Thomas John, Mr. Manoj Joseph, Mr. Rajesh John and Mr. Manesh Joseph. Term loan from bank comprise of a) loan availed to procure fixed assets that are secured by first charge on the assets purchased from the term loan and repayable in 48 to 60 equal monthly instalments (plus interest) and b) working capital term loan (WCTL) under Emergency Credit Line Guarantee Scheme secured by second charge on the security offered for cash credit. The repayment term for the WCTL is 36 equal monthly instalments (plus interest) after a principal moratorium for 12 months from the date of first drawdown.
Term loan from financial institution comprise of facilities availed for purchase of vehicle and is secured by vehicle purchased and personal guarantee of Mr. Thomas John. The loans are repayable in 35 to 60 Equated Monthly Instalments.
Residual value:
In respect of Property, Plant and Equipment which have completed the useful life, the carrying amount as on 01.04.2014 or 5% of the cost, whichever is lower, is retained as residual value in the books.
26.19.3 As the estimated recoverable amounts of the assets/cash generating units of the Company are higher than their carrying amount, no impairment of assets has been recognized in the accounts of the Company in line with relevant Ind-AS.
26.19.4 The Company did not have any outstanding loan or advance due from any of the Promoters, Directors, Key Management Personnel or other related parties as at 31st March, 2024, nor was any loan or advance extended during the year.
26.19.5 The Company has duly filed necessary quarterly returns to the banks which have extended credit facilities on the basis of security of current assets of the Company and such quarterly statements are in agreement with the books of account. The Company has used its borrowed funds only for the purposes for which they were borrowed. The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender.
26.19.6 The Company did not have anything to report in respect of the following:
(a) Benami properties
(b) Trading or investment in crypto or virtual currency
(c) Giving/receiving of any loan or advance or funds with the understanding that the recipient shall lend, invest, provide security or guarantee on behalf of the Company/funding party
(d) Transactions not recorded in books that were surrendered or disclosed as income during income-tax assessment
(e) Charges or satisfaction not registered with ROC beyond statutory period
(f) Title deeds in respect of freehold immovable properties not being held in the name of the Company.
(g) Transactions with struck-off companies
(h) Non-compliance with number of layers as prescribed under the Companies Act, 2013, read with Companies (Restriction on number of Layers) Rules, 2017.
26.19.7 During the FY 2023-24, the Company has incurred a revenue expenditure (excluding depreciation) of '' 208.69 lakhs and capital expenditure of '' 32.30 lakhs in relation to Research & Development. (FY 2022-23: '' 219.94 lakhs and '' 23.36 lakhs, respectively).
26.19.8 During the FY 2022-23, the Board has approved the proposal of Bridgestone Mining Solutions Australia Pty Ltd to sell its 26% stake in Thejo Australia Pty Ltd (TAPL) at the book value as on 31st March, 2022 with the shares being purchased by the Company or bought back by Thejo Australia Pty Ltd or as a combination of both in one or more tranches/transactions to be completed on or before 31st March 2025, subject to all necessary statutory compliances. Accordingly, the Company has purchased 16% stake in TAPL during FY 2023-24. Currently, the Company holds 90% stake in Thejo Australia Pty Ltd.
26.19.9 During the FY 2023-24, the Company has incorporated TE Global FZ-LLC (âTE Globalâ) at Ras Al-Khaimah in October 2023. The Company has subscribed and has been allotted 1000 shares in TE Global at the face value of AED 1000/- each in January 2024, representing 100% shareholding in TE Global. Accordingly, TE Global is a wholly-owned subsidiary of the Company.
26.19.10 The Board has recommended a dividend of '' 3/- (Rupees Three Only) per equity share of face value of '' 10/- each (fully paid) for the FY 2023-24. Dividend will be treated as an appropriation from Reserves & Surplus during the period in which it is approved by the Members. No provision is being made in the accounts for the current financial year in respect of dividend recommended by the Board after the balance sheet date.
Note 27 Previous Year Figures
Previous yearâs figures have been regrouped / reclassified wherever necessary to correspond with the current yearâs classification / disclosure.
Mar 31, 2023
Provisions and Contingent Liabilities
Provisions are recognized if the Company has a reliably estimated present obligation (legal or
constructive) as a result of a past event and it is probable that an outflow of resources will be
required to settle the obligation. Provisions are measured based on the best estimate of expenditure
required to settle the obligation as at the date of balance sheet. In cases where the effect of the
time value of money is material, provisions are discounted to reflect its present value using current
pre-tax rate reflecting the risk specific to the obligation. When discounting is used, the increase in
the amount of provision due to the passage of time is recognized as finance cost.
When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, a receivable is recognised as an asset if it is virtually certain that
reimbursement will be received and the amount of the receivable can be measured reliably.
Contingent liabilities are disclosed when there is a possible obligation arising from past events,
which is contingent upon the occurrence or non-occurrence of one or more uncertain future events,
which are not fully within the control of the Company or when there is a present obligation arising
from past events where it is either not probable that an outflow of resources will be required to
settle the obligation or the amount cannot be reliably estimated.
A contingent asset is not recognised but disclosed in the financial statements where an inflow
of economic benefit is probable. Commitments includes the amount of purchase order (net of
advance) issued to counterparties for supplying/ development of assets and amounts pertaining
to Investments which have been committed but not called for.
Provisions, contingent assets, contingent liabilities and commitments are reviewed at each balance
sheet date.
Notes forming part of the Financial Statements for the year ended 31st March, 2023
Onerous contracts
A contract is considered to be onerous when the expected economic benefits to be derived by the
Company from the contract are lower than the unavoidable cost of meeting its obligations under
the contract. The provision for an onerous contract is measured at the present value of the lower
of the expected cost of terminating the contract and the expected net cost of continuing with the
contract. Before such a provision is made, the Company recognizes any impairment loss on the
assets associated with that contract.
3.9 Revenue Recognition
Sale of goods
Revenue is recognised when the performance obligations are satisfied and the control of the product
is transferred, being when the goods are delivered as per the relevant terms of the contract at
which point in time the Company has a right to payment for the asset, customer has legal title of the
asset, customer bears significant risk and rewards of ownership and the customer has accepted the
asset or the Company has objective evidence that all criteria for acceptance have been satisfied.
Payment for the sale is made as per the credit terms in the agreements with the customers. The
credit period is generally short term, thus there is no significant financing component.
Rendering of services
The performance obligation under service contracts are provision of various services as set forth
in the contracts. Revenue from rendering of services are recognised over a period of time by
reference to the stage of completion as the customer simultaneously receives and consumes the
benefit provided by the Companyâs performance. Payment for the service rendered is made as per
the credit terms in the agreements with the customers. The credit period is generally short term,
thus there is no significant financing component.
Dividend and interest income
Dividend income from investments is recognised when the shareholderâs right to receive payment
has been established (provided that it is probable that the economic benefits will flow to the Company
and the amount of income can be measured reliably).
Interest income from a financial asset is recognised when it is probable that the economic benefits
will flow to the Company and the amount of income can be measured reliably. Interest income
is accrued on a time basis, by reference to the principal outstanding and at the effective interest
rate applicable, which is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to that assetâs net carrying amount on initial recognition.
Revenue disaggregation as per business segment and geography are contained in the segment
information given in Note 26.3.
3.10 Employee Benefits
Short-term benefits
All short-term employee benefit obligations are measured on an undiscounted basis and expensed
as the related services are rendered.
Defined contribution plans
Contribution to defined contribution plans like provident fund, superannuation fund, employee state
insurance, etc are charged as an expense to the extent of periodic contribution required to be made
as and when services are rendered to the Company. The Company has no further obligations
beyond the periodic contribution in respect of defined contribution plans.
Notes forming part of the Financial Statements for the year ended 31st March, 2023
Defined benefit plans
The Company provides for gratuity, a defined benefit plan, to all eligible employees. The amount
recognized as employee benefit expense in the Statement of Profit and Loss is the cost of accruing
employee benefits promised to the eligible employees over the year and costs of past/future service
benefit changes and similar costs. The defined benefit plan surplus or deficit as on the date of
balance sheet comprises the difference between fair value of plan assets and present value of the
defined benefit liabilities, discounted at the yield rate at the reporting date on risk free government
bonds.
All re-measurements of defined benefit liabilities and assets are recognized in other comprehensive
income and are subsequently not reclassified to the Statement of Profit and Loss. The Company
has an employeesâ gratuity fund managed by the Life Insurance Corporation of India.
3.11 Share-based Payments
Equity-settled share-based payments to employees are measured at the fair value of the equity
instruments at the grant date. Details regarding the determination of the fair value of equity-settled
share-based transactions are set out in Note 26.9.
The Company makes equity settled share based payment to selected employees under its ESOP
program. The fair value of options granted as on grant date, calculated by an independent valuer on
the basis of Black Scholes model, is recognized as employee benefit expense with a corresponding
increase in equity over the vesting period. At the end of each reporting period, the expense is
reviewed and adjusted to reflect changes to the level of options expected to vest. Fresh equity
shares are issued upon exercise of vested options.
3.12 Income-tax Expenses
Income-tax expenses comprises current tax and deferred tax and is recognized in the Statement
of Profit and Loss except to the extent that it relates to an item which is recognized directly in
equity or in other comprehensive income. Current tax is the expected tax payable on the taxable
income using applicable tax rates enacted or substantively enacted as at the reporting date and
any adjustments relating to income-tax of previous years.
Deferred tax is recognized in respect of temporary difference between the carrying amounts of
assets and liabilities as per the financial statements and taxation laws. Deferred tax liability is
recognized based on the expected manner of realization or settlement of the difference in carrying
amounts applying tax rates enacted or substantively enacted as at the reporting date. Deferred
tax assets are recognized only to the extent that it is probable that future taxable profits will be
available to utilize the same. Deferred tax assets are reviewed at each reporting date and reduced
to the extent that it is no longer probable that it will be realized.
Current tax assets and liabilities are offset when there is a legally enforceable right to set them off
and there is an intent to settle them on a net basis. Deferred tax assets and liabilities are set off
when they are related to income-tax levied by the same taxation authority and there is a legally
enforceable right to set off current tax assets and liabilities.
3.13 Foreign Currency
In preparing the financial statements of the Company, transactions in currencies other than the
entityâs functional currency (foreign currencies) are recognised at the rates of exchange prevailing at
the dates of the transactions. The income and expense of foreign branch operations are translated
using average exchange rates. At the end of each reporting period, monetary items denominated in
foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried
Notes forming part of the Financial Statements for the year ended 31st March, 2023
at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at
the date when the fair value was determined. Non-monetary items that are measured in terms of
historical cost in a foreign currency are not retranslated. Exchange differences on monetary items
are recognised in the Statement of Profit and Loss in the period in which they arise.
3.14 Earnings Per Share
The Company presents the basic earnings per share by dividing the net profit for the period
attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding
during the period. Where ordinary shares are issued without a corresponding change in resources
like bonus issue, the weighted number of equity shares outstanding during the period as well as
all periods presented are adjusted for such events.
Diluted earnings per share is computed by dividing the net profit after tax by the weighted average
number of equity shares considered for deriving basic earnings per share and also weighted average
number of equity shares that could have been issued upon conversion of all dilutive potential equity
shares. Dilutive potential equity shares are deemed converted as of the beginning of the period,
unless issued at a later date. Dilutive potential equity shares are determined independently for each
period presented. The number of equity shares and potentially dilutive equity shares are adjusted
for bonus shares, consolidation of shares, etc. as appropriate.
3.15 Segment Reporting
The Company reports business and geographic segments in a manner consistent with the reporting
provided to the Chief Operating Decision Maker, in line with Ind-AS 108.
3.16 Dividend Distributed to Equity Shareholders
Dividend distributed to equity shareholders is recognized as distribution to owners of capital in the
Statement of Changes in Equity after it is approved by the Members.
3.17 Borrowings and related costs
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are
subsequently measured at amortised cost. Any difference between the proceeds (net of transaction
costs) and the redemption amount is recognised in the Statement of Profit and Loss over the
period of the borrowings using the effective interest method. Fees paid on the establishment of
loan facilities are recognised as transaction costs of the loan to the extent that it is probable that
some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down
occurs. To the extent there is no evidence that it is probable that some or all of the facility will be
drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the
period of the facility to which it relates.
Borrowings are removed from the balance sheet when the obligation specified in the contract is
discharged, cancelled or expired. The difference between the carrying amount of a financial liability
that has been extinguished or transferred to another party and the consideration paid, including
any non-cash assets transferred or liabilities assumed, is recognised in the Statement of Profit
and Loss as other gains/(losses).
Borrowings are classified as current liabilities unless the Company has an unconditional right to
defer settlement of the liability for at least 12 months after the reporting period. Where there is a
breach of a material provision of a long-term loan arrangement on or before the end of the reporting
period with the effect that the liability becomes payable on demand on the reporting date, the entity
does not classify the liability as current, if the lender agreed, after the reporting period and before
Notes forming part of the Financial Statements for the year ended 31st March, 2023
the approval of the financial statements for issue, not to demand payment as a consequence of
the breach.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended
use or sale, are added to the cost of those assets, until such time as the assets are substantially
ready for their intended use or sale. Interest income earned on the temporary investment of specific
borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs
eligible for capitalization. All other borrowing costs are recognised in the Statement of Profit and
Loss in the period in which they are incurred.
3.18 Government Grants
Government grants are not recognised until there is reasonable assurance that the Company will
comply with the conditions attaching to them and that the grants will be received. Government
grants are recognised in the Statement of Profit and Loss on a systematic basis over the periods
in which the Company recognises as expenses the related costs for which the grants are intended
to compensate. Government grants that are receivable as compensation for expenses or losses
already incurred or for the purpose of giving immediate financial support to the company with no
future related costs are recognised in the Statement of Profit and Loss in the period in which they
become receivable. Government grant is recognised either as other operating income, or other
income or adjusted against expenses depending upon the nature of the grant and the same is
followed consistently. The benefit of a government loan at a below-market rate of interest is treated
as a government grant, measured as the difference between proceeds received and the fair value
of the loan based on prevailing market interest rates.
3.19 Cash flow statement
Cash flows are reported using the indirect method, whereby profit/(loss) before tax is adjusted
for the effects of transactions of non-cash nature and any deferrals or accruals of past or future
cash receipts or payments. The cash flows from operating, investing and financing activities of the
Company are segregated based on the available information. Cash and cash equivalents includes
balances in current accounts, cash on hand and cheques/drafts on hand. Bank overdrafts are
shown within borrowings in current liabilities in the balance sheet.
Mar 31, 2021
Residual value:
In respect of Fixed Assets which have completed the useful life, the carrying amount as on 01.04.2014 or 5% of the cost, whichever is lower, is retained as residual value in the books.
24.13.3 The Company has not received any communication from its suppliers claiming that they are micro, small scale or medium enterprises.
24.13.4 As the estimated recoverable amounts of the assets/cash generating units of the Company are higher than their carrying amount, no impairment of assets has been recognized in the accounts of the Company in line with AS - 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India.
24.13.5 During the FY 2020-21, the Company has incurred a revenue expenditure (excluding depreciation) of '' 128.41 lakhs and capital expenditure of '' 0.37 lakhs in relation to Research & Development. (FY 2019-20: '' 158.29 lakhs and '' 1.31 lakh, respectively).
24.13.6 During the initial weeks of FY 2020-21, there was a nation-wide lockdown announced by the Central Government to tackle COVID-19. The manufacturing operations, which were temporarily closed in the last week of March, 2020, resumed its operations by the first week of April 2020, as the Company manufactures rubber products and adhesives, which were essential for the maintenance and continuous operations of the conveyor systems in the power generation utilities. The Services and O&M divisions of the Company continued to serve its customers, as most of them fell under essential services and continuous process plants. The business momentum which dipped in the first few months of FY 2020-21, gradually bounced back by the second half of the financial year.
During the second wave of COVID-19 in April-May 2021, the lockdowns/restrictions were more localized and the Company carried its operations in line with statutory restrictions/guidelines. As on date, the Company is carrying its operations complying with the applicable statutory guidelines and following all required safety and sanitary norms.
Based on the current trends and estimates, taking into account external and internal information that are available up to the date of the approval of the financial statements, the Company expects the carrying amount of its assets to be recovered and believes that there is no impact on its ability to continue as a going concern. The Company would continue to closely monitor any material changes to future economic/business conditions.
24.13.7 Other income for the year ended 31st March, 2021 includes an amount of '' 94.80 lakhs (AUD 1.84 lakhs) received by Perth Branch as Jobkeeper Subsidy and ATO (Australian Tax Office) Cash Booster as part of the stimulus/ relief package extended by the Australian/West Australian Government to support the business entities to overcome the adverse impact of COVID-19.
24.13.8 The Board has recommended a dividend of '' 6/- (Rupees Six only) per equity share of face value of '' 10/- each (fully paid) for the FY 2020-21. Dividend will be treated as an appropriation from Reserves & Surplus during the period in which it is approved by the Members. No provision is being made in the accounts for the current financial year in respect of dividend recommended by the Board after the balance sheet date.
Note 25 Previous Year Figures
Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.
Mar 31, 2018
CORPORATE INFORMATION
Thejo Engineering Limited (formerly known as Thejo Engineering Services Private Limited) (âthe Companyâ) was incorporated on 26th March, 1986 as a private limited company, with its Registered Office at Aysha Building, No. 41, Whites Road, Royapettah, Chennai, 600014. The name of the Company was changed to Thejo Engineering Private Limited vide Certificate of Incorporation dated 17th June, 2008. The Company was subsequently converted into a public limited company with consequent change of name as Thejo Engineering Limited vide special resolution passed by the Members at their meeting held on 20th June, 2008. Thejo Engineering Limited made an Initial Public Offer (IPO) of 4,72,800 equity shares of the face value of Rs. 10/- each at a premium of Rs. 392/- per share in September 2012 and the shares got listed on the EMERGE SME platform of NSE. The share capital of the Company increased to Rs. 171.68 lakhs in the Financial Year 2012-13. During the year 2013-14, the Company issued Bonus Shares to the existing shareholders in the ratio of 1:1 and the paid-up capital of the Company further increased to Rs. 343.36 lakhs. The Company shifted its Registered Office to VDS House, 41, Cathedral Road, Chennai 600086 with effect from 28th May, 2018 vide a resolution passed by the Board of Directors at their meeting held on that date.
The Company is an Engineering Solutions provider for Bulk Material Handling, Mineral Processing and Corrosion Protection to the Core Sector Industries like mining, power, steel, cement, ports and fertilizers. The Companyâs services include belt conveyor installation, maintenance and operations, while its product portfolio covers design, manufacture and supply of engineering products for Bulk Material Handling, Mineral Processing and Corrosion Protection.
The Company has a Branch in Perth, Australia and four overseas subsidiaries namely, Thejo Hatcon Industrial Services Company, Saudi Arabia, Thejo Australia Pty Ltd, Australia, Thejo Brasil Comercio E Servicos Ltda, Brazil and Thejo Engineering Latinoamerica SpA, Chile. Thejo Hatcon Industrial Services Company is primarily engaged in rubber lagging and industrial services, Thejo Australia Pty Ltd in conveyor splicing, maintenance and related services, Thejo Brasil Comercio E Servicos Ltda and Thejo Engineering Latinoamerica SpA in sale of products used in core sector industries for Bulk Material Handling, Mineral Processing and Corrosion Protection.
1.1.1.Commitments
Estimated amount of contracts remaining to be executed on capital account: Rs. 3.50 lakhs (Previous Year -Rs. 106.37 lakhs
Note 1.2 Employee Benefits
The Company has accounted for the Long term defined benefits and contribution schemes as under:
1.2.1 Defined Contribution Schemes
Contribution to Provident Fund is made monthly to the Provident Fund Authorities. Contribution to Superannuation fund for eligible employees is made by way of premium to Life Insurance Corporation of India through the Trust and charged to the Statement Profit and Loss for the year.
1.2.2 Defined Benefit Scheme
The Company has defined benefit scheme in the form of gratuity to employees.
Contribution to gratuity is made to Life Insurance Corporation of India through the Gratuity Fund as per the scheme framed by the Corporation. The disclosure under AS -15(Revised) in this regard is given hereunder:
Note 1.3 Leases
The Company has taken various commercial premises under cancellable leases. These lease agreements are normally renewed on expiry.
The rentals are expensed with reference to the lease terms and conditions.
Note 1.4 Other Disclosures
1.4.1 The Company has sent letters for confirmation to debtors, based on materiality. While a few parties have confirmed the balance, confirmations from the remaining parties are awaited.
1.4.2 The estimated useful life of the following assets has been arrived at on the basis of technical evaluation/ advice different from prescribed useful life as given in Schedule II and, as approved by the Management.
Residual value:
In respect of Fixed Assets which have completed the useful life, the carrying amount as on 01.04.2014 or 5% of the cost, whichever is lower, is retained as residual value in the books.
1.4.3 The Company has not received any communication from its suppliers claiming that they are micro, small scale or medium enterprises.
1.4.4 As the estimated recoverable amounts of the assets/cash generating units of the Company are higher than their carrying amount, no impairment of assets has been recognized in the accounts of the Company in line with AS - 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India.
1.4.5 During the FY 2017-18, the Company has incurred a revenue expenditure (excluding depreciation) of Rs. 111.65 lakhs and capital expenditure of Rs. 3.60 lakhs in relation to Research & Development. (FY 2016-17: Rs. 96.07 lakhs and Rs. 1.78 lakhs respectively).
1.4.6 The Board has recommended a dividend of Rs. 4/- per equity share of face value of Rs. 10/- each (fully paid) for the FY 2017-18 aggregating to Rs. 137.34 lakhs on the total number of shares outstanding as on 31/3/2018. Dividend and Dividend Distribution Tax will be treated as an appropriation from Reserves & Surplus during the period in which it is approved by the Members. No provision is being made in the accounts for the current financial year in respect of dividend recommended by the Board after the balance sheet date.
Note 2 Previous Year Figures
Previous yearâs figures have been regrouped / reclassified wherever necessary to correspond with the current yearâs classification / disclosure.
Mar 31, 2017
Note 1. Employee Benefits
The Company has accounted for the Long term defined benefits and contribution schemes as under:
2. Defined Contribution Schemes
Contribution to Provident Fund is made monthly to the Provident Fund Authorities. Contribution to Superannuation fund for eligible employees is made by way of premium to Life Insurance Corporation of India through the Trust and charged to the Profit & Loss Statement for the year.
3. Defined Benefit Scheme
The Company has defined benefit scheme in the form of gratuity to employees.
Contribution to gratuity is made to Life Insurance Corporation of India through the Gratuity Fund as per the scheme framed by the Corporation. The disclosure under AS -15(Revised) in this regard is given hereunder:
There is no reportable secondary segment, i.e., geographic segment.
Note 4. Related Party Disclosures
List of Related Parties
Name of the Party Relationship
Thejo Hatcon Industrial Services Company Subsidiary
Thejo Australia Pty Ltd Subsidiary
Thejo Brasil Comercio E Servicos Ltda Subsidiary
Thejo Engineering LatinoAmerica SpA Subsidiary
Mr. K.J. Joseph Key Management Personnel
Mr. Thomas John Key Management Personnel
Mr. V.A. George Key Management Personnel
Mr. Manoj Joseph Key Management Personnel
Mr. Rajesh John Key Management Personnel
Mr. M.D. Ravikanth Key Management Personnel
Mr. Manesh Joseph Relative of Key Management Personnel
Mrs. Rosamma Joseph Relative of Key Management Personnel
Mrs. Celinamma John Relative of Key Management Personnel
Note 5. Thejo Employee Stock Option Plan 2015
Information in respect of Options granted under Thejo Employee Stock Option Plan 2015
Name of the Plan Thejo Employee Stock Option Plan 2015 (âESOP 2015â)
Date of Shareholdersâ Approval August 26, 2015
Number of options approved under 3,00,000 options equivalent to 3,00,000 Equity shares of '' 10/- each.
the Scheme
Vesting Schedule 1/6th of Options granted on completion of one year of grant; balance in 6
equal installments on completion of 18, 24, 30, 36, 42 and 48 months of grant.
Pricing Formula The Members have approved the Board to decide the Pricing in line with
SEBI guidelines. The Board has decided that the pricing will be not less than 75% of the prevailing market value of the Shares on the date of grant of Options as fixed by Compensation Committee based on the closing market price one day prior to date of grant.
Maximum Term of Options granted 60 Months from the date of granting of the Options.
Source of Shares Primary
Method of Settlement Equity Shares
Variation in terms of Options None
Method used for accounting Intrinsic Value Method
Impact of Fair Value Method Had the Company used Fair Value Method (under Black Scholes Method)
to expense the employee compensation cost, the Employee Stock Option Expense would have been Rs, 51.44 lakhs, which is Rs, 21.16 lakhs higher than the expense under Intrinsic Value Method of Rs, 30.28 lakhs. Had fair value been considered for expensing ESOP cost, the profit for the year and EPS (Basic and Diluted. FV of Rs, 10/- each fully paid) would have been Rs, 539.73 lakhs and Rs, 15.72/- respectively (as against Rs, 560.89 lakhs and Rs, 16.34/under intrinsic value method).
Option Movement during the year Number of Options at the beginning of the period - Nil
Number of Options Granted during the year - 1,50,007
Number of Options forfeited/lapsed during the year - 10,451
Number of Options vested during the year - Nil
Number of Options exercised during the year - Nil
Number of Shares arising as a result of exercise of options - Nil
Money Realized by exercise of Option - Nil
Loan Repaid by the Trust from exercise price received - NA
Number of Options outstanding at the end of the year - 1,39,556
Number of Options exercisable at the end of the year - Nil
Weighted Average Exercise Price Rs, 153.75/- per share
Weighted Average Fair Value/Option Rs, 88.87/Details of Options Granted to (A) Senior Managerial Personnel: specified employees Employee-Designation-Options granted-Exercise Price
Mr. M.D. Ravikanth - CfO & Secretary - 12,295 - Rs, 153.75/Mr. S. Premjit - VP (Services) - 7,377 - Rs, 153.75/Mr. Thomas K Abraham - VP (HR & Admin) - 8,607 - Rs, 153.75/Mr. S. Satish - VP (Commercials) - 7,377 - Rs, 153.75/Mr. Dinesh Bennet Fernandez (AVP - Materials) - 6,148 - Rs, 153.75/Mr. S. Suryanarayanan - Sr. Manager (Accounts) - 3,689 - Rs, 153.75/-
(B) Any other employee granted options amounting to 5% or more of option granted during the year
Employee-Designation-Options granted-Exercise Price Mr. Shine James - MD, TAPL - 9,221 - Rs, 153.75/-
(C) There is no identified employee who was granted option during the year __equal to or exceeding 1% of issued capital._
Method and Significant Assumptions Method Used: Black Scholes Method to estimate fair value Significant Assumptions Used:
Weighted Average Value of Share Price: Rs, 205/Weighted Average Price of Exercise Price: Rs, 153.75/Expected Volatility: 35.40%-38.50%
Expected Option Life: 3-4.5 years Expected Dividends: 1.81%
Risk-free interest rate: 6.93%-7.07%
Method to determine Expected Volatility: Standard deviation of the continuously compounded rate of return of the stock during the expected __option life based on historic value._
Note 6.Corporate Social Responsibility
The Company has spent Rs, 20.00 lakhs for various CSR activities.
Note 7. Other Disclosures
8. The Company has sent letters for confirmation to debtors, based on materiality. While few parties have confirmed the balance, confirmations from the remaining parties are awaited.
9. The estimated useful life of the following assets has been arrived at on the basis of technical evaluation different from prescribed useful life as given in Schedule II and, as approved by the Management.
Residual value:
In respect of Fixed Assets which have completed the useful life, the carrying amount as on 01.04.2014 or 5% of the cost, whichever is lower, is retained as residual value in the books.
10. The Company has not received any communication from its suppliers claiming that they are micro, small scale or medium enterprises.
11. As the estimated recoverable amounts of the assets/cash generating units of the Company are higher than their carrying amount, no impairment of assets has been recognized in the accounts of the Company in line with AS - 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India.
12.5 During the FY 2016-17, the Company has incurred a revenue expenditure (excluding depreciation) of Rs, 90.67 lakhs and capital expenditure of Rs, 1.78 lakhs in relation to Research & Development. (FY 15-16: Rs, 88.12 lakhs and Rs, 0.20 lakhs respectively).
13. The Board has recommended a dividend of Rs, 3.50/- per equity share of face value of Rs, 10/- each (fully paid) for the FY 2016-17 aggregating to Rs, 120.17 lakhs on the total number of shares outstanding as on 31/3/2017. Dividend and Dividend Distribution Tax will be treated as an appropriation from Reserves & Surplus during the period in which
Notes forming part of Financial Statements for the year ended 31st March, 2017
it is approved by the Members. No provision is being made in the accounts for the current financial year in respect of dividend recommended by the Board after the balance sheet date. For the previous year, provision was made in the accounts for the dividend recommended by the Board of Directors, pending approval of the Members at the Annual General Meeting. Provision for Dividend Distribution Tax was made at appropriate rate on the amount of provision made for dividend.
Note 14.Previous Year Figures
Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current yearâs classification / disclosure.
Mar 31, 2016
1 Short term employee benefits:
All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits. The benefits like salaries, wages and short term compensated absences as also the expected cost of bonus and ex-gratia are recognized in the period in which the employee renders the related service.
2 Post employment benefits:
3 Defined Contribution Schemes: Contribution to Provident Fund is made monthly to the Provident Fund Authorities. Contribution to Superannuation Fund for eligible employees is made by way of premium to Life Insurance Corporation of India through the Trust and charged to the Profit and Loss Statement, for the year.
4 Defined Benefit Scheme: The Company extends defined benefit plan in the form of gratuity to eligible employees. Contribution to gratuity is made to Life Insurance Corporation of India through the Gratuity Fund in accordance with the scheme framed and administered by the Corporation. The present value of the obligation is determined based on actuarial valuation using Projected Unit Credit Method as per the report given by the Corporation.
5 Foreign Currency Transactions
Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transaction or the average opening and closing rates. The difference in the rate of exchange, if any, is accounted at the time of realization or settlement and is recognized in the Profit and Loss Statement. Monetary Assets and Liabilities denominated in foreign currencies are translated at year-end rates. The exchange differences for the period end balances are recorded at a group level and are reversed at the beginning of the next accounting period.
6 Taxes on Income
Current tax is determined on the amount of tax payable in respect of taxable income for the year. Deferred Tax is recognized on timing differences, being difference between taxable income and the accounting income that originates in one year and reverses in another. Deferred Tax Assets and liabilities are computed on the timing differences applying the tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred Tax Asset arising on account of unabsorbed depreciation or carry forward of business loss is recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.
7 Impairment of Assets
Fixed Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability of assets is measured in line with the relevant Accounting Standard. An impairment loss is recognized in the Profit and Loss Statement if the carrying amount of an asset exceeds its recoverable amount.
8 Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognized when there is a present obligation as a result of a past event and it is probable that outflows will be required to settle the obligation, which can be readily estimated. Contingent liabilities are disclosed after an evaluation of the fact and legal aspects of the matter involved. Even if there is certainty of the obligation not falling on the Company, the same is considered as contingent liability. Contingent assets are neither recognized nor disclosed.
9. Dividend
Provision is made in the accounts for the dividend recommended by the Board of Directors, pending approval of the Shareholders at the Annual General Meeting. Provision for Dividend Distribution Tax is made at appropriate rate on the amount of provision made for dividend.
The Company was sanctioned Working capital facilities by consortium of bankers namely, State Bank of India, Axis Bank Limited and Indian Overseas Bank.
Limit / Liability, Terms of Repayment & Security State Bank of Mysore
Liability - Rs, Nil (Rs, 1,644.22 Lakhs)
Overdues / Defaults : Nil (Nil)
The Company has shifted its working capital facilities to the new consortium -State Bank of India, Axis Bank Limited and Indian Overseas Bank from its earlier consortium comprising State Bank of Mysore and Axis Bank Limited.
State Bank of India
Date of Sanction : 09.01.2015 Ref No. RM1/337
Limit: Cash Credit of Rs, 1,360 Lakhs Stand by CC Rs, 136 Lakhs
Period of Repayment : On Demand
Security :
Charge on all the current assets on pari-passu basis. EM of immovable properties belonging to the Company and of plots nos. 41 & 42 and 39 & 40 at Kuttisseril Lake View Garden, Korattur Village, Saidapet Taluk in the name of Mr. Manesh Joseph and Mrs.Celinamma John respectively on pari-passu basis.
Hypothecation of movable fixed assets on pari-passu basis (Security to be shared with Axis Bank Limited and Indian Overseas Bank)
Personal guarantee of : Mr. K.J. Joseph, Mr.Thomas John, Mr. Manoj Joseph,
Mr. Rajesh John, Mr. Manesh Joseph and Mrs.Celinamma John Rate of Interest - 2.00% above base rate Margin - Cash credit - 25% LC and BG - 15%
Liability - Rs, 1,050.47 Lakhs (Rs, 384.73 Lakhs)
Overdues / Defaults : Nil (Nil)
Axis Bank Limited
Date of Sanction : 03.02.2015 Ref No. AXISB/SME/S/MEG/CHN/2014-15/69 Limit : Cash Credit of Rs, 1,020 Lakhs Stand by CC Rs, 102 Lakhs Period of Repayment : On Demand Security :
Same as given to State Bank of India
Personal guarantee of : Mr. K.J. Joseph, Mr. Thomas John, Mr. Manoj Joseph,
Mr. Rajesh John, Mr. Manesh Joseph and Mrs.Celinamma John Rate of Interest - 1.85% above base rate Margin - Cash credit - 25% LC and BG - 15%
Liability - Rs, 909.79 Lakhs (Rs, 868.39 Lakhs)
Overdues / Defaults : Nil (Nil)
Indian Overseas Bank
Date of Sanction : 03.03.2015 Limit : Cash Credit of Rs, 1,000 Lakhs
Note 10 Employee Benefits
The Company has accounted for the Long term defined benefits and contribution schemes as under:
11 Defined Contribution Schemes
Contribution to Provident Fund is made monthly to the Provident Fund Authorities. Contribution to Superannuation fund for eligible employees is made by way of premium to Life Insurance Corporation of India through the Trust and charged to the Profit & Loss Statement for the year.
12 Defined Benefit Scheme
The Company has defined benefit scheme in the form of gratuity to employees.
Contribution to gratuity is made to Life Insurance Corporation of India through the Gratuity Fund as per the scheme framed by the Corporation. The disclosure under AS -15(Revised) in this regard is given hereunder:
There is no reportable secondary segment, i.e., geographic segment.
Note 13 Related Party Disclosures
List of Related Parties
Name of the Party Relationship
Thejo Hatcon Industrial Services Company Subsidiary
Thejo Australia Pty Ltd Subsidiary
Thejo Brasil Comercio E Servicos Ltda Subsidiary
Thejo Engineering LatinoAmerica SpA Subsidiary
Mr. V.A. George Key Management Personnel
Mr. K.J. Joseph Key Management Personnel
Mr. Thomas John Key Management Personnel
Mr. Manoj Joseph Key Management Personnel
Mr. Rajesh John Key Management Personnel
Mr. M.D. Ravikanth Key Management Personnel
Mr. Manesh Joseph Relative of Key Management Personnel
Mrs. Rosamma Joseph Relative of Key Management Personnel
Mrs. Celinamma John Relative of Key Management Personnel
14 The Company has sent letters for confirmation to debtors, based on materiality. While few parties have confirmed the balance, confirmations from the remaining parties are awaited.
15 The estimated useful life of the following assets has been arrived at on the basis of technical evaluation different from prescribed useful life as given in Schedule II and, as approved by the Management.
Residual value:
In respect of Fixed Assets which have completed the useful life, the carrying amount as on 01.04.2014 or 5% of the cost, whichever is lower, is retained as residual value in the books.
16 The Company has not received any communication from its suppliers claiming that they are micro, small scale or medium enterprises.
17 As the estimated recoverable amounts of the assets/cash generating units of the Company are higher than their carrying amount, no impairment of assets has been recognized in the accounts of the Company in line with AS - 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India.
18 The Company has incurred a revenue expenditure (excluding depreciation) of Rs, 88.12 lakhs and capital expenditure of Rs, 0.20 lakhs in relation to Research and Development.
Note 19 Previous Year Figures
Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current yearâs classification / disclosure.
Mar 31, 2015
1. CORPORATE INFORMATION
Thejo Engineering Limited (formerly known as Thejo Engineering Services
Private Limited) (the Company) was incorporated on 26th March, 1986 as
a private limited company, with its Registered Office at Aysha
Building, No. 41, Whites Road, Royapettah, Chennai - 600 014. The name
of the Company was changed to Thejo Engineering Private Limited vide
Certificate of Incorporation dated 17th June, 2008. The Company was
subsequently converted into a public limited company with consequent
change of name as Thejo Engineering Limited vide special resolution
passed by the Members at their meeting held on 20th June, 2008. Thejo
Engineering Limited made an Initial Public Offer (IPO) of 4,72,800
equity shares of the face value of Rs. 10/- each at a premium of Rs.
392/- per share in September 2012 and the shares got listed on the
EMERGE SME platform of NSE. The IPO was fully subscribed, and the
Company's shares got listed on the EMERGE SME platform of NSE. The
share capital of the Company increased to Rs. 171.68 lakhs in the
Financial Year 2012-13. During the year 2013-14, the Company issued
Bonus Shares to the existing shareholders in the ratio of 1:1 and the
paid-up capital of the Company increased to Rs. 343.36 lakhs.
The Company is an Engineering Solutions provider for Bulk Material
Handling, Mineral Processing and Corrosion Protection to the Core
Sector Industries like mining, power, steel, cement, ports and
fertilizers. The Company's services include belt conveyor installation,
maintenance and operations, while its product portfolio covers design,
manufacture and supply of engineering products for Bulk Material
Handling, Mineral Processing and Corrosion Protection. The Company has
opened a Branch in Perth, Australia during the year.
The Company has four overseas subsidiaries namely, Thejo Hatcon
Industrial Services Company, Saudi Arabia, Thejo Australia Pty Ltd,
Australia, Thejo Brasil Comercio E Servicos Ltda, Brazil and Thejo
Engineering Latinoamerica SpA, Chile. Thejo Hatcon Industrial Services
Company is primarily engaged in rubber lagging and industrial services.
Thejo Australia Pty Ltd is primarily engaged in conveyor splicing,
maintenance and related services. Thejo Brasil Comercio E Servicos Ltda
and Thejo Engineering Latinoamerica SpA are primarily engaged in sale
of products manufactured by the Company.
2. ADDITIONAL INFORMATION TO FINANCIAL STATEMENTS
Contingent Liabilities (to the extent not provided for)
Rs. in lakhs
Particulars 2014-15 2013-14
Claims against the company not acknowledged - -
as debts
Guarantees issued by the Banks 999.06 1,105.79
Guarantee provided by the Company
(for loan availed by
Thejo Australia Pty Ltd) 77.66 -
1,076.72 1,105.79
3.Commitments
Estimated amount of contracts remaining to be executed on capital
account: Rs. 236.08 lakhs (Previous Year - Rs. 337.49 lakhs)
4. Employee Benefits
The Company has accounted for the Long term defined benefits and
contribution schemes as under:
5. Defined Contribution Schemes
Contribution to Provident Fund is made monthly to the Provident Fund
Authorities. Contribution to Superannuation fund for eligible employees
is made by way of premium to Life Insurance Corporation of India and
charged to the Profit & Loss Statement for the year.
6. Defined Benefit Scheme
The Company has defined benefit scheme in the form of gratuity to
employees.
7. Related Party Disclosures
List of Related Parties
Name of the Party Relationship
Thejo Hatcon Industrial Services Company Subsidiary
Thejo Australia Pty Ltd Subsidiary
Thejo Brasil Comercio E Servicos Ltda Subsidiary
Thejo Engineering LatinoAmerica SpA Subsidiary
Mr. V.A. George Key Management Personnel
Mr. K.J. Joseph Key Management Personnel
Mr. Thomas John Key Management Personnel
Mr. Manoj Joseph Key Management Personnel
Mr. Rajesh John Key Management Personnel
Mr. M.D. Ravikanth Key Management Personnel
Mr. Manesh Joseph Relative of Key Management
Personnel
Mrs. Rosamma Joseph Relative of Key Management
Personnel
Mrs. Celinamma John Relative of Key Management
Personnel
8. Leases
The Company has taken various commercial premises under cancellable
leases. These lease agreements are normally renewed on expiry.
The rentals are expensed with reference to the lease terms and
conditions.
9. The Company has sent letters for confirmation to debtors, based
on materiality. While few parties have confirmed the balance,
confirmations from the remaining parties are awaited.
10. Pursuant to the enactment of Companies Act, 2013, effective
from 01.04.2014, the Company has adopted the useful life of individual
tangible assets as specified below. Consequently, the depreciation for
the year ended 31.03.2015 was higher by about ' 89.63 lakhs as compared
to the depreciation calculated as per Schedule XIV of the Companies
Act, 1956.
11. Residual value:
In respect of Fixed Assets which have completed the useful life, the
carrying amount as on 01.04.2014 or 5% of the cost, whichever is lower,
is retained as residual value in the books.
The Written-down Value of Tangible Assets whose lives have expired as
at 01.04.2014 have been adjusted net-off tax, in the opening balance of
Retained Earnings amounting to Rs. 91.71 lakhs.
12. The Company has not received any communication from its
suppliers claiming that they are micro, small scale or medium
enterprises.
13. As the estimated recoverable amounts of the cash generating
assets of the Company are higher than their carrying amount, no
impairment of assets has been recognized in the accounts of the Company
in line with AS - 28 on Impairment of Assets issued by the Institute of
Chartered Accountants of India.
14. Previous Year Figures
Previous year's figures have been regrouped / reclassified wherever
necessary to correspond with the current year's classification /
disclosure.
Mar 31, 2014
Note: Closing Cash and Cash Equivalents includes Rs. 241.04 lakhs
(Previous Year: Rs. 186.23 lakhs) in Fixed Deposits with Banks held as
Margin Money for BG & LC.
Note 2 ADDITIONAL INFORMATION TO FINANCIAL STATEMENTS
Note 2.1 Contingent Liabilities (to the extent not provided for)
2.1.1 Claims against the company not
acknowledged as debts - -
2.1.2 Guarantees issued by the Banks 1,105.79 895.69
1,105.79 895.69
Note 2.3 Employee Benefits
The Company has accounted for the Long term defined benefits and
contribution schemes as under :
2.3.1 Defined Contribution Schemes
Contribution to Provident Fund is made monthly to the Provident Fund
Authorities. Contribution to Superannuation fund for eligible employees
is made by way of premium to Life Insurance Corporation of India and
charged to Statement of Profit & Loss for the year.
2.3.2 Defined Benefit Scheme
The Company has defined benefit scheme in the form of gratuity to
employees.
Contribution to gratuity is made to Life Insurance Corporation of India
through the Gratuity Fund as per the scheme framed by the Corporation.
The disclosure under AS -15(Revised) in this regard is given hereunder
Note 2.4 Related Party Disclosures
List of Related Parties
Name of the Party Relationship
Thejo Hatcon Industrial Services Co LLC, KSA Subsidiary
Thejo Australia Pty Limited Subsidiary
Mr. V.A. George Key ManagementPersonnel
Mr. K.J. Joseph Key Management Personnel
Mr. Thomas John Key Management Personnel
Mr. Manoj Joseph Key Management Personnel
Mr. Rajesh John Key Management Personnel
Mr. Manesh Joseph Relative of Key Management Personnel
Mrs. Rosamma Joseph Relative of Key Management Personnel
Mrs. Celinamma John Relative of Key Management Personnel
Note 2.5 Leases
Financial Leases: The company has not taken financial leases.
Operating Leases:
- The Company has taken various commercial premises and items of plant
and equipment under cancellable operating leases. These lease
agreements are normally renewed on expiry.
- The company has not entered into any non-cancellable leases.
2.5.1 There was a fire accident at the stores of the manufacturing
unit at Ponneri on 21st April, 2013 resulting in damage to /
destruction of raw material and finished goods. The stocks have been
adequately insured with United India Insurance Company and the
insurance claim has been settled for a sum of Rs.305.14 lakhs apart from
salvage worth Rs.29.44 lakhs being taken by the Company.The insurance
Company has made payment to an extent of Rs.250 lakhs as on 31st March,
2014 and the balance amount of Rs.55.14 lakhs has been received in April
2014. There was an ultimate loss of Rs.24.74 lakhs primarily on account
of policy excess and the same has been treated as an exceptional item.
There was no major disruption in the operations due to the accident.
2.5.2 The Company has sent letters for confirmation of balances from
debtors and creditors based on materiality and the age of receivables
and payables. While some parties have confirmed the balance,
confirmations from the remaining parties are awaited.
2.5.3 The Company has not received any communication from its
suppliers claiming that they are micro, small scale or medium
enterprises.
2.5.4 As the estimated recoverable amounts of the cash generating
assets of the Company are higher than their carrying amount, no
impairment of assets has been recognized in the accounts of the Company
in line with AS - 28 on Impairment of Assets issued by the Institute of
Chartered Accountants of India.
Note 3 Previous Year Figures
Previous year''s figures have been regrouped / reclassified wherever
necessary to correspond with the current year''s classification /
disclosure.
Mar 31, 2013
CORPORATE INFORMATION
Thejo Engineering Limited (formerly known as Thejo Engineering Services
Private Limited) (the Company) was incorporated on 26th March, 1986 as
a private limited company. The name of the Company was changed to Thejo
Engineering Private Limited vide a fresh certificate of incorporation
dated 17th June, 2008. The Company was subsequently converted into a
public limited company with consequent change of name as Thejo
Engineering Limited vide special resolution passed by the Members at
their meeting held on 20th June, 2008. Thejo Engineering Ltd made an
Initial Public Offer (IPO) of 4,72,800 equity shares of the face value
of Rs. 10/- each at a premium of Rs 392/- per share in September 2012
for getting its shares listed on the EMERGE SME platform of NSE. The
IPO was fully subscribed and the Company allotted 4,72,800 equity
shares of Rs. 10/- each on 12th September, 2012. The shares were listed
on 18th September, 2012. Prior to the IPO, the Company had also issued
59,236 equity shares of face value of Rs. 10/- each at a premium of Rs.
327.63/- per share on 27th August, 2012 to SIDBI Venture Capital Ltd
A/c India Opportunities Fund on preferential basis. Consequently, the
share capital of the Company increased from Rs. 118.47 lakhs to Rs.
171.68 lakhs.
The Registered Office of the Company is situated at Aysha Building, No.
41, Whites Road, Royapettah, Chennai, 600014. The Company is an
Engineering Solutions provider for Bulk Material Handling, Mineral
Processing and Corrosion Protection to the Core Sector Industries like
mining, power, steel, cement, ports, fertilizers etc. The Company''s
services include belt conveyor installation, maintenance and
operations, while its product portfolio covers design, manufacture and
supply of engineering products for Bulk Material Handling, Mineral
Processing and Corrosion Protection.
The Company has two overseas subsidiaries outside India namely, Thejo
Hatcon Industrial Services LLC, Saudi Arabia and Thejo Australia Pty
Limited, Australia. Thejo Hatcon Industrial Services LLC is primarily
engaged in rubber lagging and industrial services. Thejo Australia Pty
Limited is primarily engaged in conveyor splicing, maintenance and
related services.
Note 1.1 Employee Benefits
The Company has accounted for the Long term defined benefits and
contribution schemes as under:
A. Defined Contribution Schemes
Contribution to Provident Fund is made monthly to the Provident Fund
Authorities. Contribution to Superannuation fund for eligible employees
is made by way of premium to Life Insurance Corporation of India and
charged to Statement of Profit & Loss for the year.
B. Defined Benefit Scheme
The company has defined benefit scheme in the form of gratuity to
employees.
Contribution to gratuity is made to Life Insurance Corporation of India
through the Gratuity Fund as per the scheme framed by the Corporation.
The disclosure under AS -15(Revised) in this regard is given hereunder:
Note 1.2 Segment Reporting
The Company is primarily engaged in a single segment of activity which
encompasses a range of solutions to the maintenance needs of bulk
handling equipment, whose risks and rewards do not vary much. However,
considering the entry of the company into Saudi Arabian and Australian
markets through its subsidiaries focusing on service activities,
segment reporting based on manufacturing units and servicing units are
presented in both standalone and consolidated accounts.
1.2.2: Subsequent to the Balance Sheet date, there was a fire
accident at the stores of the manufacturing unit at Ponneri on 21st
April, 2013 resulting in damage to/destruction of raw material and
finished goods. The stocks have been adequately insured with United
India Insurance Company and insurance claim has been initiated for a
sum of Rs.422.02 lakhs (excluding duties and taxes). There is no major
disruption in the operations due to the accident.
1.2.3 The Company has sent letters for confirmation of balances from
debtors and creditors based on materiality and the age of receivables
and payables. While some parties have confirmed the balance,
confirmations from the remaining parties are awaited.
1.2.4 The Company has not received any communication from its
suppliers claiming that they are micro, small scale or medium
enterprises.
1.2.5 As the estimated recoverable amounts of the cash generating
assets of the Company are higher than their carrying amount, no
impairment of assets has been recognized in the accounts of the Company
in line with AS - 28 on Impairment of Assets issued by the Institute of
Chartered Accountants of India.
Note 2 Previous Year Figures
Previous year''s figures have been regrouped / reclassified wherever
necessary to correspond with the current year''s classification /
disclosure.
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