Exedy India Ltd. के अकाउंट के लिये नोट

Mar 31, 2012

1. CORPORATE INFORMATION

Exedy India Limited (formerly known as Ceekay Daikin Limited) (''the Company'') was incorporated on November 3,1973 underthe Companies Act, 1956. The Company is a subsidiary of Exedy Corporation, Japan. The Company is in business of manufacturing and sale of clutches for automotive industry.

The Company''s manufacturing plants are located at Aurangabad and Greater Noida.

2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles of India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956 (''the Act''). The financial statements have been prepared on an accrual basis and underthe historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

During the year ended March 31,2012, the revised Schedule VI notified underthe Act, has become applicable to the Company, for preparation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However it has significant impact on presentation and disclosures made in financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

The financial statements are presented in Indian rupees and rounded off in Lacs unless otherwise stated.

a) Terms / rights attached to equity shares

The Company has one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board is subject to the approval of the share holders except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts in proportion to their shareholding.

Portion of long-term borrowings repayable within one year from the end of Balance sheet date is shown as current maturities of long-term debts under ''Other current liabilities'' - Note no. 11.

* The ECB loan was taken from the Exedy Corporation, Japan of USD 4,200,000 to finance the capitai expenditure. The loan is repayable in sixteen quarterly installments and the first installment started from September 30,2011.

Provision for warranty is estimated based on last two year''s actual warranty claims.

Provision for excise duty is an accounting adjustment representing provision made for excise duty on finished goods inventory lying as at Balance Sheet date.

The classification of security deposits between long-term and short-term are made as per the period of expected realisation from the Balance Sheet date.

* Advance recoverable in cash or kind includes balance with excise authorities which comprise of Cenvat credit available on input / capital goods. These balances will be utilised against the excise duty liability arising in the subsequent period. The balance is expected to be utilized within the twelve months from the end of Balance Sheet date and therefore it is classified as short-term.

The company had entered ''Technical Assistance Agreement'' with Exedy Corporation on October 7, 2004 and with Exedy (Thailand) Co Ltd. on September 28,2007. Based on which, the Company is required to pay a percentage of sales value as royalty. The total royalty expenses recorded in books is Rs. 248.84 (PY: Rs. 225.26).

3. CONTINGENT LIABILITIES

a) In respect of guarantees given by Banks and Letter of Credit opened by Banks is Rs. 281.98 lacs (PY: Rs. 161.85 lacs).

b) Income Tax department issued notices under section 148 for re-opening the assessment for the A.Y 1996-97, the Company filed writ petitions before Hon''ble High Court at Bombay. The Hon''ble High Court at Bombay admitted the writ petition and granted ad interim stay against the proceedings.

c) Income tax assessment of the Company has been completed under the assessment year 2007-08. The Income Tax Department has raised demand for that year of Rs. 49.51 lacs. The Company has preferred an appeal with the Appellate Tribunal and hearing for the same is pending.

d) The Company claimed the sales tax deferral loan for earlier years under the Package Scheme of Incentives 1993, Government of Maharashtra. However the Sales Tax Department had different opinion on the method of calculation of the deferrable amount, adopted by the Company. The total amount in dispute is Rs. 249.43 lacs till date. The Company has filed a writ petitions and also obtained an interim stay orders from Hon''ble High Court of Aurangabad fortheyearl995-96and 1997-98.

e) The Sales Tax Department of Maharashtra has issued a notice for assessment for the year 1996-97 to 2000-01. The Company has made an application to the Sales Tax Authority for keeping the said assessment in abeyance in view of pending proceeding in High Court. The said applications have been accepted by the Sales Tax Department and the assessments have been kept in abeyance.

f) Sales Tax assessment for the year 2005-06 and 2008-09 are under progress in view of notices received from Maharashtra Sales Tax department. For Greater Noida plant, sales tax assessments up to the year 2008-09 are completed.

g) The Joint commissioner of Sales Tax has passed order for the year ending March 31, 2003 and determined the sales tax payable at Rs.23.27 lacs. The Company has filed an appeal against the said order with Sales Tax Tribunal and the entire amount is disputed and part payment of Rs. 11.40 lacs is made.

h) The Joint Commissioner Sales Tax at Aurangabad has passed assessment order for the year ending March 31, 2004 and determined sales tax payable at Rs. 2.27 lacs. The Company has filed an appeal before the Appellate Tribunal of sales tax and disputed the entire said tax liability. This matter is referred back for reworking to the assessing authority.

i) The Greater Noida Plant has an arrangement with The Pradeshiya Industrial and Investment Corporation of UP Ltd (''PICUP'') under the Deferment Benefit Scheme for the deferment of sales tax liability under the provisions of Section 4-A of the Uttar Pradesh Trade Tax Act. The Company has deposited through PICUP Rs. Nil (Previous year Rs. 58.13 Lacs) on account of sales tax collected from customers during the period from 1st April, 2009 to 31st December, 2009 as per the benefits available under the Scheme. The amount collected till 31st December, 2009 and paid through PICUP to the Sales Tax Department is shown as '' Secured Loan'' and the amount of Rs. Nil Lacs (previous year Rs.12.83 lacs) collected after January 1,2009 is shown under borrowings.

j) The Company has revised the Sales Tax Return both for Aurangabad and Noida plant with effect from April 1,1999 till the date of amalgamation, in view of the amalgamation of Exedy Ceekay Limited. Hence all the sales made between two plants have now been shown as stock transfer under the revised return instead of Central Sales1 as shown earlier.

k) The Provident Fund Authorities have raised a demand of Rs.12.33 Lacs in respect of earlier years. The matter is pending before Appellate Tribunal and the Company has deposited Rs. 6.17 lacs as per requirements.

I) The Greater Noida Plant acquired land on leasehold basis from Greater Noida Industrial Development Authority (GNIDA) on 90 years lease commencing form the date of execution of the lease deed. GNIDA has the right of possession of property on default of payment of two consecutive installments as per clause II (c) of the agreement.

4. COMMITMENTS

Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. 182.69 lacs (PY: Rs. 186.98 lacs).

5. DISCLOSURE PURSUANT TO ACCOUNTING STANDARD - 15 ''EMPLOYEE BENEFITS''

a. General description

i. Contribution to Provident Fund (Defined Contribution)

The Company''s provident fund scheme (including pension fund scheme for eligible employees) is a defined contribution plan. The expenses charged to the Statement of Profit and Loss under the head Contribution to Provident Fund is Rs. 88.34.

ii. Gratuity (Defined benefit plan)

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on death or resignation or retirement at 15 days salary (last drawn salary) for each completed year of service. The Company during the year provided Rs. 58.12 towards gratuity.

6. Borrowing costs

As per Accounting Standard 16 on "Borrowing Cost", interest amounting to Rs. 74.92 (PY Rs. 15.97) charged on long term loan taken from Bank for the purpose of capital expenditure has been capitalised along with the cost of fixed assets.

7. As per Accounting Standard 28 on ''Impairment of Assets'' no indications have been identified from the external as well as internal sources of information that an asset may be impaired as on Balance Sheet date.

8. Transfer pricing

The transactions entered with related parties are at arm''s length and the plant is in compliance with the transfer pricing legislation of the Income Tax Act, 1961.

9. The company is in the process of obtaining external balance confirmations and preparing the reconciliation statement for trade receivables, advance to suppliers, capital advances and trade payables. Accordingly, the need to make provision for doubtful debts/loans and advances or other adjustment, if any, will be assessed upon completion of the reconciliation exercise.

10. The company is in process of reconciling the inter-plant accounts balances of Aurangabad plant and Greater Noida plant. Currently, no adjustment has been made in the books of accounts.

11. The Board of Directors of the Company had approved the delisting proposal and subsequently obtained approval from shareholders through postal ballot on July 25, 2011. Subsequently, during the year, the Company has been delisted from Bombay Stock Exchange.

12. Prior period comparatives

Till the year ended March 31, 2011, the Company was using pre-revised Schedule VI to the Act, for preparation and presentation of its financial statements. During the year ended March 31, 2012, the revised Schedule VI notified under the Act, has become applicable to the Company. The Company has reclassified previous year figures to confirm this year''s classification.

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Mar 31, 2011

31st March 2011 31st March 2010 (Rs. in Lacs) (Rs. in Lacs)

1. Contingent liabilities not provided for:

a) In respect of guarantees given by banks and letter of credit opened by banks 161.85 114.31

b) Interest (if any) payable in respect of amount of sales tax to be decided under Deferral Package Scheme of Incentives, 1993, of Maharashtra Government, amount indeterminate. [See note No. 9 (a) and 9 (b)]

c) Claim against the Company not acknowledged as debts [See Note No. 9 (d)]

d) In respect of provident fund [see note No. 9 (e)]

2. In the opinion of the Board, the current assets, loans and advances, are approximately of the value stated, if realised in the ordinary course of business. The provisions for depreciation and for all the known liabilities is adequate and not in excess of the amount reasonably necessary.

3. Confirmation of balances are being obtained from Debtors, Creditors and for Deposits, loans and advances paid and received. The balances are therefore, as per books of accounts only and as such no provision for doubtful debts has been made in the accounts as the amount in respect of which is indeterminate at present.

4 (a) Income Tax Department has issued notices under Section 148 re-opening the assessment for the assessment year 1996-97. The Company filed writ petitions before Hon'ble High Court at Bombay. The Hon'ble High Court at Bombay admitted the writ petition for the assessment year 1996-97 and granted ad interim stay against the proceedings.

(b) Income Tax assessment of the company has been completed upto the assessment year 2007-08. The Income Tax department has raised demand for that year Rs. 49.51 lacs. The Compnay has preferred an appeal with the Appellate Tribunal and hearing for the same is pending.

5. (a) The Company claimed the sales tax defferral loan for earlier years under the Package Scheme of Incentives, 1993 of the Government of Maharashtra. However, the Sales Tax Department had different opinion on the method of calculation of the deferrable amount, adopted by the Company. The total amount in dispute is Rs.249.43 Lacs till date. The Company has filed a writ petition and also obtained interim stay orders from the Hon'ble Aurangabad High Court for the year 1995-96 and 1997-98.

(b1) The Sales Tax Department of Maharashtra has issued notices for assessment for the years 1996-97 to 2000-01. The Company has made an application to the Sales Tax Authority for keeping the said assessment in abeyance in view of pending proceeding in High Court. The said application have been accepted by the Sales Tax Department and the assessments have been kept in abeyance.

(b2) Sales Tax assessment for the year 2001-02 and 2004-05 are completed.

(b3) The Jt. Commissioner of Sales Tax has passed assessment order for the year ending 31.03.2003 and determined the sales tax payable at Rs. 23.27 lacs. The company has filed an appeal against the said order with Sales Tax Tribunal and the entire amount is disputed and part payment of Rs. 11.40 lacs is made.

(b4) The Sales Tax Department has passed assessment order for the year ending 31.03.2004 and determined the sales tax payable at Rs. 2.27 lacs. The company has filed an appeal before the Appellate Tribunal of Sales Tax and disputed the entire liability.

(c) The Greater Noida Plant has an arrangement with The Pradeshiya Industrial and Investment Corporation of UP Ltd. ('PICUP') under the Deferment Benefit Scheme for the deferment of sales tax liability under the provisions of Section 4-A of the Uttar Pradesh Trade Tax Act. The amount collected till 31st December, 2008 and paid through PICUP to the Sales Tax Department is shown as 'Secured Loan' and the amount of NIL Lacs (previous year Rs. Nil lacs) collected after 1st January, 2009 is classified as an unsecured loan.

(d) The Company has revised the Sales Tax Return both for Aurangabad and Noida plant with effect from 1st April 1999 till the date of amalgamation, in view of the amalgamation of Exedy Ceekay Limited. Hence all the sales made between two plants have now been shown as 'stock transfer' under the revised return instead of 'Central Sales' as shown earlier.

(e) The Provident Fund Authorities have raised a demand of Rs.12.33 Lacs in respect of earlier years. The matter is pending before Appellate Tribunal and the Company has deposited Rs. 6.17 lacs as per requirement.

6. Sundry Creditors in Schedule '11' to the accounts includes Rs. 219.55 Lacs (Previous year Rs.257.82 Lacs) due to creditors registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSME) and is based on the informations received from the suppliers. There is no liability towards interest on delayed payments.

7. The Greater Noida Plant acquired land on leasehold basis from Greater Noida Industrial Development Authority (GNIDA) on 90 years lease commencing from the date of execution of the lease deed. GNIDA has the right of possession of property on default of payment of two consecutive installments as per Clause II(c) of the agreement.

8. In view of the clarification issued by The Institute of Chartered Accountant of India, on 2nd April 2005 interdivision transfer which hitherto was considered as part of turnover and correspondingly in raw material purchases, are reduced from respective heads. Due to this changes there is no effects on the profits.

9. Related Party Information

1. Relationships :

(1) Where significant influence exists : M/s Exedy Corporation, Japan

(2) Key Management Personnel :

Shri Mahesh B. Kothari

Shri Pradeep B. Chinai

Shri Akira Hirai

Shri Hideshi Shiba

(3) Relatives of Key management personnel and their enterprises, where transactions have taken place

Exedy Corporation

Exedy Friction Materials Ltd

Exedy Thailand Co Ltd.

Asin Chemical Co Ltd.

Note : Related party relationship on the basis of the requirements of Accounting Standards 18 (AS18) as in 1 to 3 above is pointed out and relied upon by the Auditors.

10. Taxation :

Income Tax :

No Provision for current income tax is made on the basis of relevant provisions of Income Tax Act, 1961 as applicable to the financial year.

Deferred Taxation :

The timing differences related mainly to depreciation and unabsorbed losses and the net effect of such differences will result in deferred tax assest. As a measure of prudence such net deferred tax assets relating to the above period has not been recognised in the accounts.

11. Disclosure pursuant to Accounting Standard 15 (Revised) "Employee Benefits".

a) An amount of Rs. 55.08 lacs as contribution towards defined contribution plans is recognised as expense in the Profit & Loss Account

12. According to the company, there is no impairment in carrying cost of cash generating units of the Company in terms of accounting standard (AS-28), issued by The Institute of Charterred Accountants of India.

13. Previous year figures have been regrouped wherever necessary to conform to this year's presentation.

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Mar 31, 2010

31st March 2010 31st March 2009 (Rs.in Lacs) (Rs.in Lacs)

I.Contingent liabilities not provided for:

a)In respect of guarantees given by banks and letter of credit opened by banks 114.31 143.80

b)Interest (if any)payable in respect of amount of sales tax to be decided under Deferral Package Scheme of Incentives,1993,of Maharashtra Government,amount indeterminate.[See note No.9 (a)and 9 (b)]

c)Claim against the Company not acknowledged as debts [See Note No.9 (d)]

d)In respect of provident fund [see note No.9 (e)]

1. In the opinion of the Board, the current assets, loans and advances, are approximately of the value stated, if realised in the ordinary course of business. The provisions for depreciation and for all the known liabilities is adequate and not in excess of the amount reasonably necessary.

2. Confirmation of balances are being obtained from Debtors, Creditors and for Deposits, loans and advances paid and received. The balances are therefore, as per books of accounts only and as such no provision for doubtful debts has been made in the accounts as the amount in respect of which is indeterminate at present.

3 (a) Income Tax Department has issued notices under Section 148 re-opening the assessment for the assessment year 1996-97. The Company filed writ petitions before Honble High Court at Bombay. The Honble High Court at Bombay admitted the writ petition for the assessment year 1996-97 and granted ad interim stay against the proceedings.

(b) Income Tax assessment of the company has been completed upto the assessment year 2007-08. The Income Tax department has raised demand for that year Rs. 49.51 lacs. The Compnay has preferred an appeal with the Appellate Commissioner and hearing for the same is pending.

9. (a) The Company claimed the sales tax defferral loan for earlier years under the Package Scheme of Incentives, 1993 of the Government of Maharashtra. However, the Sales Tax Department had different opinion on the method of calculation of the deferrable amount, adopted by the Company. The total amount in dispute is Rs.249.43 Lacs till date. The Company has filed a writ petition and also obtained interim stay orders from the Honble Aurangabad High Court for the year 1995-96 and 1997-98.

(b1) The Sales Tax Department of Maharashtra has issued notices for assessment for the years 1996-97 to 2000-01. The Company has made an application to the Sales Tax Authority for keeping the said assessment in abeyance in view of pending proceeding in High Court. The said application have been accepted by the Sales Tax Department and the assessments have been kept in abeyance.

(b2) Sales Tax assessment for the year 2001-02 and 2004-05 are completed during the year.

(b3) The Jt. Commissioner of Sales Tax has passed assessment order for the year ending 31.03.2003 and determined the sales tax payable at Rs. 23.27 lacs. The company has filed an appeal against the said order with Sales Tax Tribunal and the entire amount is disputed and part payment of Rs. 11.40 lacs is made.

(b4) The Sales Tax Department has passed assessment order for the year ending 31.03.2004 and determined the sales tax payable at Rs. 4.30 lacs. The company has filed an appeal before the Jt. Commissioner of Sales Tax and disputed the entire sales tax liability.

(c) The Greater Noida Plant has an arrangement with The Pradeshiya Industrial and Investment Corporation of UP Ltd. (PICUP) under the Deferment Benefit Scheme for the deferment of sales tax liability under the provisions of Section 4-A of the Uttar Pradesh Trade Tax Act. The Company has deposited through PICUP Rs. NIL (Previous Year Rs. 58.13 Lacs) on account of sales tax collected from customers during the period from 1st April, 2009 to 31st December, 2009 as per the benefits available under the Scheme. The amount collected till 31 st December,

2008 and paid through PICUP to the Sales Tax Department is shown as Secured Loan and the amount of Rs. 12.83 Lacs (previous year Rs. 12.83 lacs) collected after 1st January,

2009 is classified as an unsecured loan.

(d) The Company has revised the Sales Tax Return both for Aurangabad and Noida plant with effect from 1st April 1999 till the date of amalgamation, in view of the amalgamation of Exedy Ceekay Limited. Hence all the sales made between two plants have now been shown as stock transfer under the revised return instead of Central Sales as shown earlier.

(e) The Provident Fund Authorities have raised a demand of Rs. 12.33 Lacs in respect of earlier years. The matter is pending before Appellate Tribunal and the Company has deposited Rs. 6.17 lacs as per requirement.

4. Sundry Creditors in Schedule 11 to the accounts includes Rs. 257.82 Lacs (Previous year Rs.493.88 Lacs) due to creditors registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSME) and is based on the informations received from the suppliers. There is no liability towards interest on delayed payments.

5. The Greater Noida Plant acquired land on leasehold basis from Greater Noida Industrial Development Authority (GNIDA) on 90 years lease commencing from the date of execution of the lease deed. GNIDA has the right of possession of property on default of payment of two consecutive installments as per Clause ll(c) of the agreement.

6. In view of the clarification issued by The Institute of Chartered Accountant of India, on 2nd April 2005 interdivision transfer which hitherto was considered as part of turnover and correspondingly in raw material purchases, are reduced from respective heads. Due to this changes there is no effects on the profits.

7. Related Party Information

1. Relationships:

(1) Where significant influence exists : M/s Exedy Corporation

8. Taxation :

Income Tax:

Provision for current income tax and fringe benefit tax is made on the basis of relevant provisions of Income Tax Act, 1961 as applicable to the financial year.

Deferred Taxation:

The timing differences related mainly to depreciation and unabsorbed losses and the net effect of such differences will result in deferred tax.

As a measure of prudence such net deferred tax assets relating to the above period has not been recognised in the accounts.

9.According to the company,there is no impairment in carrying cost of cash generating units of the Company in terms of accounting standard (AS-28),issued by The Institute of Charterred Accountants of India.

10.Previous year figures have been regrouped wherever necessary to conform to this years presentation.