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To the members,
Your Directors are pleased to present the Annual Report on the operations of your Company together with the Audited Statement of Accounts for the year ended 31st March 2009.
Financial Results
(Rs. in Lacs) 2008-09 Gross Sales Less :- Excise Duty Net Sales Other income Total Income Profit before Interest, Depreciation & Taxation Interest Net profit after interest but before Depreciation and Taxation Less Depreciation Profit before Taxation Less Taxation Net Profit After Tax Appropriation of Profits Balance Forward from Previous Year Profit for the year Balance carried over to balance sheet 1270.33 257.48 1,527.81 958.26 312.07 1,270.33 10,528.45 318.04 10,210.41 62.78 10,273.19 890.76 396.77 493.99 145.61 348.38 90.90 257.48 2007-08 10,649.44 984.37 9,665.06 56.05 9,721.11 862.78 317.55 545.23 108.48 436.75 124.68 312.07
Dividend
Keeping in view the expansion plans of the company & working capital requirement, the Board of Directors do not recommend any dividend for the financial year under review.
Auditors
M/s Dass & Co., Chartered Accountants, Jalandhar, the present Auditors of the Company are retiring at the forthcoming Annual General Meeting and being eligible, offer themselves for re-appointment. They have furnished a certificate to the effect that their re-appointment, if made, will be within the limits prescribed under Section 224(1B) of the Companies Act, 1956.
(ii)
(iii)
(iv)
1.2 Additional Investment and Proposals for Energy Conservation Your Company gives priority to energy conservation. For the purpose, your Company is regularly inviting and considering proposal and ideas on conservation of consumption of energy from the internal and external sources. The following measure is proposed : Installation of occupancy sensor in lights and fans for switch off automatically.
1.3 Impact of measure at (a) and (b) above for reduction of Energy Consumption and consequent impact on the cost of production of goods The energy conservation measures initiated has led to economy and efficiency.
Process Improvement a.) b.) c.) Implementation of Automatic Testing of MCBs Implementation of Automatic Calibration process Implementaion of SPM Printing, SPM Packing, SPM Fixed Contact Assay and SPM Bimetal Carrier Spotting
2.
Benefits derived as result of the above R&D The benefits as may accrue to the Company as a result of above R&D activities will be in the form of automation of manufacturing process, quality up-gradation, and reduction of scrap generation.
4.
A B C D
Capital Expenditure Revenue Expenditure Total Total R&D Expenditure as a percentage of Turnover
Technology Absorption, Adaptation and Innovation (1) Efforts in brief, made towards technology absorption, adaptation and Innovation : Nil (2) Benefits derived as a result of above efforts : Nil (3) Information on imported technology(Imported during the last 5 years) reckoned from the beginning of the financial year, if any Nil (4) Technology imported Nil (5) Year of import Nil (6) Has technology been fully absorbed? Nil (7) If not fully absorbed, areas where this has not taken place, reasons therefore and plans of action : Nil C. FOREIGN EXCHANGE EARNINGS AND OUTGO (a) Activities relating to Exports, initiatives taken to increase exports, development of new export markets for products and services and export plans The Companys export market is constantly increasing. The Company is exporting its products to many countries for last many years. During the financial year 2008-09 the exports have grown from Rs.498 Lacs in the previous financial year 2007-08 to Rs.517 Lacs. (b) Total Foreign exchange used and earned Foreign exchange earned Foreign exchange used 2008-09 516.84 52.81 (Rs.In Lacs) 2007-08 498.14 98.79
Particulars of Employees:
None of the employees is being paid in excess of the limit specified under section 217(2A) of the Companies Act 1956 read with the Companies (Particulars of Employees) Rules 1975.
Acknowledgments:
Your Directors express their thanks to the clients, vendors, Dealers/Authorised Distributors, customers, bankers and shareholders for their continued support to your companys growth. Your Directors wish to place on record their deep sense of appreciation for the contribution made by the employees at all levels, who through their competence, hard work, solidarity, cooperation and support, have enabled the Company to achieve the desired results.
For & on behalf of Board of Directors Sd/(Surjit Gupta) Chairman Din : 00002810 Delhi, August 17, 2009
3 Deferred Income Tax TOTAL II. APPLICATION OF FUNDS 1 FIXED ASSETS Gross Block Less : Accumulated Depreciation Net Block Add: Capital Work-in-Progress Total Fixed Assets 2 INVESTMENT 3 CURRENT ASSETS, LOANS AND ADVANCES Inventories Sundry Debtors Cash and Bank Balances Loan and Advances LESS : CURRENT LIABILITIES AND PROVISIONS Current Liabilities Provisions NET CURRENT ASSETS TOTAL Accounting Policies, Contingent Liabilities and notes on accounts For and on behalf of Board of Directors 17 8 6 7 5
22,132,596 396,763,303
159,610,236 30,087,656 64,716,118 17,833,652 272,247,662 165,665,118 5,414,600 171,079,718 101,167,943 396,763,303
243,577,407 40,097,807 58,102,561 37,552,848 379,330,623 181,692,587 6,938,750 188,631,337 190,699,287 475,985,376
-sdAmeet Gupta Director DIN No: 00002838 For Dass & Company Chartered Accountants
2 EXPENDITURES Materials Manufacturing Office and Administration Selling and Distribution Interest and Financial Managerial Remuneration 3 PROFIT BEFORE TAX Income Tax Expense Current Tax Fringe Benefit Tax Deferred Tax Wealth Tax 4,100,000 4,975,581 14,700 9,090,281 4 PROFIT AFTER TAX 5 PROFIT FOR APPROPRIATION Brought Forward from Previous Year Profit for the Year Profit avaibale for Appropriation APPROPRIATION Balance Carried Over to Balance Sheet TOTAL Basic and Diluted Earnings per Shares Accounting Policies, Contingent Liabilities and notes on accounts For and on behalf of Board of Directors 17 152,781,076 152,781,076 8.12 127,032,809 127,032,809 9.84 127,032,809 25,748,267 152,781,076 95,826,279 31,206,530 127,032,809 25,748,267 4,890,370 2,100,000 5,463,870 13,750 12,467,990 31,206,530 11 12 13 14 15 16 586,328,578 119,540,749 128,071,393 114,664,062 42,076,423 1,800,000 992,481,205 34,838,548 616,712,671 91,744,926 86,577,030 97,159,583 34,292,867 1,950,000 928,437,077 43,674,520
-sdAmeet Gupta Director DIN No: 00002838 For Dass & Company Chartered Accountants
Issued, Subscribed and Paid Up 31,70,000 Equity Shares of Rs.10/- each fully paid up Shares held by M/s QRG Enterprises Limited and its nominees 31,70,000 Equity Shares ( Previous yesr 31,70,000 Equity Shares ) 31,700,000 SCHEDULE NO. 2 RESERVE AND SURPLUS Capital reserve Security premium account General reserve As per last Balance Sheet 42,422,301 42,422,301 Profit and loss account Balance as per Profit and loss account 152,781,076 152,781,076 196,603,377 SCHEDULE NO. 3 SECURED LOANS From Bank : Working capital Borrowings Excternal Commercial Borrowings Against hypothecation on Motor Cars 66,644,877 79,609,375 73,079 146,327,331 NOTE: a) Working Capital Limits from State Bank of India, Jalandhar and IDBI Bank Limited, New Delhi are secured as under:: i) Pari-passu first charge on Stock of Raw Material, Semi Finished, Finished Goods, Stores and Spares, Book Debts of the Company. ii) Pari-passu first charge on entire Fixed Assets of the Company except fixed assets of Uttranchal plant hypotheciated to ABN Amro Bank, Singapore. iii) pari-passu first charge on Factory & Land and Building at Nakodar Road, Jalandhar. b) External Commercial Borrowing is from ABN Amro Bank,Singapore secured by way of : i) Pari-passu first charge on present and future moveable fixed assets of the plant stituated at Plot No. 2 & 2 A, Sector 12, SIDCUL, Industrial Area, Haidwar, Uttranchal. ii) Pari-passu first charge on factory, Land and Building at Haridwar, Uttranchal. iii) Personal guarantee of Sh. Anil Gupta & Ameet Gupta, Directors. 117,487,985 87,434,375 350,891 205,273,251 127,032,809 127,032,809 170,855,110 42,422,301 42,422,301 1,400,000 1,400,000 1,400,000 1,400,000 31,700,000 31,700,000 31,700,000
8,879,185 1,806,846 45,951,156 93,766 100,169 4,164,609 574,032 3,048 9,166,842 3,561,867 393,495 2,507,502 4,102,101 81,304,618 81,304,618 70,600,716
As At 31.03.2009 13,633,858 1,867,934 38,894,827 378,209 191,252 4,706,307 1,313,674 6,604 9,918,397 3,665,978 478,430 2,889,693 4,379,118 82,324,281 82,324,281 81,304,618
As At 01.04.2008 255,132 44,086,357 134,581,019 1,945,184 62,655,861 5,722,440 1,806,587 5,273,261 15,089,659 74,421 3,414,824 1,080,229 1,974,870 3,320,560 3,979,394 285,259,798 285,259,798 237,345,331
Note : -
Depreciation has been provided on the rates prescribed in Schedule XIV of the Companies Act 1956 on SLM basis.
-sdAmeet Gupta Director DIN No: 00002838 For Dass & Company Chartered Accountants
BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL BUSINESS PROFILE I. Registration Details Registration Number State Code Balance Sheet Date II. Capital raised during the year Public Issue Right Issue Bonus Issue Private Placement Rs. in '000s III. Position of Mobilisation and Development of Funds Total Liabilities Total Assets Source of Funds Paid Up Capital Reserve and Surplus Loans Deferred tax Liabilities Application of Funds Net Fixed Assets Investment Net Current Assets Accumulated Losses IVPerformance of the Company Turnover and other income(Net) Total Expenditure Profit before tax Profit after tax Earning per Share (Rs.) Dividend Rate ( % ) VGeneric name of three Principle Proucts/Services of the Company Product Description Miniature Circuit Breakers Rewirable Switches Cubicle Fuse Switches For and on behalf of the Board of Directors -sdAnil Gupta Director DIN No: 00011892 -sdAmeet Gupta Director DIN No: 00002838 For Dass & Company Chartered Accountants 8536 8536 8536 8536 8536 8536 1,027,320 992,481 34,839 25,748 8.12 Nil 972,112 928,437 43,675 31,207 9.84 Nil 295,569 26 101,168 Nil 285,260 26 190,699 Nil 31,700 196,603 146,327 22,133 31,700 170,855 256,273 17,157 396,763 396,763 475,985 475,985 Nil Nil Nil Nil Rs. in '000s Nil Nil Nil Nil U45203DL2002PLC116762 55 31.03.2009 55 31.03.2008
A. SIGNIFICANT ACCOUNTING POLICIES 1. Basis of preparation of Financial Statements The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act 1956 as adopted consistently by the Company.
2. Fixed Assets a) Fixed Assets are accounted at cost of acquisition inclusive of inward freight duties taxes and incidentals expenses related to acquisition and installation of the concerned assets. Fixed Assets are further adjusted by the amount of CENVAT credit availed and VAT credit whereever applicable and subsidy directly attributable to the cost of fixed assets. . b) Project under installation & other capital work in progress are carried at cost comprising direct cost ,related incidental expenses and interest on borrowing thereon. 3. Depreciation Depreciation has been provided on pro-rata basis on SLM Method at the rates prescribed under Schedule XIV to the Companies Act 1956 on the cost calculated as per accounting policy in point No.2(a) referred above. 4. Inventories Inventories are valued as under : i) Raw Materials, Stores Spare Parts and Packing Material At lower of cost or net realizable value.
ii) Work-in-progress
At lower of cost or net realizable value The excise duty on items manufactured has been added in the value of inventory of finished goods. At lower of cost or net realisable value. At net realisable Value. Valued as certified by the Tool Room Incharge
b) Bought out
5. Investments Investments are long term and stated at cost. 6. Revenue Recognition Sale of goods are recognised at the point of despatch of finished goods to customers. Sales are inclusive of excise duty and exclusive of sales tax. Dividends are recognized in the profit at the time of right to receive dividend is established. Valuation of DEPB Licences in hand are taken as per prevailing rules of Import and export policy. 7. Prior Period Items Prior period expenses / income is accounted for under the respective heads. There is no material item related to prior period 8. Research and Development Capital expenditure on Research & Development is treated in the same way as expenditure on fixed assets. The revenue expenditure on Research & Development is charged as an expense in the year in which it is incurred. Research and development expenses includes salaries and other related cost of personnel, cost attributable to materials, services consumed and depreciation of capital assets used for research and development purposes and other direct expenses related to research and development.
9. Transactions in Foreign Currency Transactions in foreign currency are recorded at the exchange rate prevailing at the date of transaction.At year end all monetary assets and liabilites are restated as per Accounting Standard 11 of the ICAI at the rate prevaling as on Balance Sheet date.
10. Provision for Retirement Benefits Gratuity liability in respect of employees of the company is covered through a policy taken by a trust established under the Group Gratuity Scheme of LIC of India. The liabilities with respect to the gratuity plan are determined by Acturial Valuation as on the Balance Sheet date, based upon which, the company contributes to the employees Group Gratuity Scheme. The contribution towards the preimum of the policy paid to the trust is treated as Revenue Expenses. Contribution to the Provident Funds and Emplyees State insurance Scheme is made in accordance with relevant fund/scheme and is treated as revenue expenditure. Leave encashment is provided on the basis of earned leave standing to the credit of the employees and the same is discharged by the company by the year end. 11.Taxes on income Current tax is determined as the amount of tax payable in respect of taxable income for the period as per provisions of Income Tax Act,1961. Deferred tax is recognised subject to consideration of prudence on timing difference being difference between taxable and accounting income/expenditure that originate in one period and are capable of reversal in one or more subsequent period(s). Provision for Fringe Benefit Tax has been made as per section 115W of the Income Tax Act ,1961 12. Borrowing Costs Borrowing costs are recognized as an expense in the period in which they are incurred. 13. Contingent Liabilities and Provisions Contingent liabilities are disclosed by way of notes and are not recognised as an item of expense in the profit and loss account. Provisions for Bad & Doubtful Debts are recognised as liability only when they can be measured by using a substantial degree of estimation and where present obligations of the enterprise arise from past events the settlement of which is expected to result in an outflow of resources embodying economic benefits. B. NOTES TO THE ACCOUNTS 1.Contingent Liabilities i. Bank Guarantees Net of Margin Money Rs. 34.64 Lacs ( Last year Rs.86.94 lacs). ii.Bonds to Excise Department against export of excisable goods without payment of duty is of Rs.50 lacs ( last year Rs. 50 lacs ). iii.There is a contingent liability around Rs.271.47 lacs (Previous Year Rs.253 lacs) in respect of labour dispute in the year 1999. The case is pending in the Court of Law. No provision in respect of the said liability is provided as per legal opinion of Labour Law Advocate. iv. Estimated amount of capital contract remaining to be executed and not provided for (net of advances) is Nil (Last year Rs.77.07 Lacs)
In the opinion of Board the current assets, loans and advances are approximately of the value stated if realised in the ordinary course of business. The provision for depreciation and all known liabilities are adequate. The company has been following the practice of including excise duty payable on finished goods lying in the factory. In view of this a provision of Rs.Nil amount (Last year Rs.9261343/-) has been made towards excise duty payable on closing stock of finished goods and included in the value of the closing stock as per Accounting Standard no. 2 of the Institute of Chartered Accountants of India read with section 145A of the Income Tax Act 1961. Excise duty is considered as an element of cost at the time of manufacture of goods.
The valuation of the raw material ,components, stores ,spare parts, die tools, packing material and semi finished goods are made net of Excise Duty, Cess and VAT thereon.The CENVAT credit and Cess thereon receivable for Rs.87778/-l (Rs.2256278/- as on 31.03.2008) and Nil amount ( Rs.3686433/- as on 31.03.2008) towards VAT available on 31.03.2009 which is included under the head Loans and Advances in Balance with Excise Department / Sales Tax Department. The CENVAT credit and VAT credit in respect of Capital goods has been adjusted @ 100% in cost of Fixed Assets the same has been availed @ 50% during the year and balance will be claimed in the subsequent year subject to the provision of Excise Law.The VAT credit has been availed as per the VAT rules applicable in the respective states. Companies (accounting Standard) Amendment Rules, 2009 issued by Ministry of Corporate Affairs vide notification no. G.S.R. 225 (E) dated march 31, 2009, has amended the Accounting Standard -11 on " The Effect of Changes in Foreign Exchange Rates" and given an option to the companies to adopt the treatment prescribed in the said notification in reference to its foreign currency trasactions. The company has consistently followings the provisions of AS-11 as in the past, chosen not to adopt the alternate treatment prescribed under the above transcation. In accordance with the accounting policy of the Company, a sum of Rs.170,93,977/- has been recognized as echange loss (net) and debited to the profit and loss account.
a) Infomration required to be furnised as per Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) for the year ended 31st march, 2009 as given below. This information has been determined to the extent such parties have been identified on the basis of information available with the Company. Year ended Year ended Particulars 31st March, 2009 31st March, 2008 1) Principal amount and interest due thereon remaining unpaid to any supplier. Principal (Ref table (b) below Interest 2) The amount of interest paid by the buyer in terms of Section 16, of the Micro Small and Medium Enterprise Development Act, 2006 along the amounts of the payment made to the supplier beyond the appointed day during each accounting year. 3) The amount of interest due and payable for the peirod of delay in making paymeny (which have been paid but beyond the appointed day during the year) but without adding the interest specified under Micro Small and Medium Enterprises Development Act, 2006 4) Te amount interest accured and remaining unpaid at the end of each accounting year 5) The amount of interest further interest remaining due and payable even in the suceeding years, until such date when the interest dues as above are actually paid to the small enterprise for the purpose of disallowance as a deductible expenditure under Section 25 of the MSMED Act. b) Vendors -wise Outstanding Principal Amount : ADVENT ENTERPRISES FARIDABAD AJANTA INDS ARORA PACKWELL JASWAL CYCLE PVT LTD JAIN PACKWELL INDS
Nil Nil
Nil
Nil
Nil
Nil
Nil
Nil
Rs. 7.43 lacs Rs.2.66 lacs Rs. 4.62 lacs Rs. 0.47 lacs Rs. 5.74 lacs
Deferred Tax a) CurrenT tax The Company has made a provision for current tax in accordance with the provision of Section 115JB of the Income Tax Act 1961 Break up of Deferred Tax assets and Deferred Tax Liabilities Accumulated Deferred Tax Liability 31.03.2009 31.03.2008 1 Deferred Tax Liability a) On account of difference in rates and methods of depreciation c) On Account of Difference in Closing balance of Excise and Service Tax Total 2 Deferred Tax Assets a) On account of different Treatment of certain expenses under section 43 B of Income Tax Act 1961 c) On account of Excise and Vat on Closing Inputs Total Adjustement for Mat Credit Deferred Tax Liability:- at the end of year - for the year 24,006,706 392,975 24,399,681 1,041,472 177,168 1,218,640 (1,048,445) 18,160,258 1,328,475 19,488,733 1,668,120 663,598 2,331,718 -
22,132,596 4,975,581
17,157,015 5,463,870
Related Party Transactions As per Accounting standard No. 18 issued by the Institute of Chartered accountants of India related parties in terms of said Standard are disclosed below (A) Name of related parties and description of relationship: 1. Holding Company 2. Associates 3. Key Management Personnel M/s QRG Enterprises Limited M/s Havells India Limited Mr. Anil Gupta Mr. Ameet Gupta (B) Transactions :
HOLDING COMPANY ASSOCIATES KEY MANAGEMENT PERSONNEL TOTAL
1. Purchases of goods / Tools 2. Sale of goods 3. Purchases of fixed assets 3. Sale of Fixed Assets 5. Commission (including Service Tax) 5. Director Remuneration 6. Reimbursement of Rent 7. Reimbursement of Other Expenses TOTAL
Nil (Nil) Nil (Nil) Nil (Nil) Nil (Nil) 10,214,847 (11,713,503) Nil (Nil) 10,020,000 (120000) Nil Nil 20,234,847 (10,796,691) Nil (615925)
228,744,001 (323193722) 52,541,800 (7,135,484) 135,111 (1,052,786) 7,338,911 (Nil) Nil (Nil) Nil (Nil) 480,000 (1440000) Nil (666,667) 289,239,823 (333,054,038) 2,277,451 (579,329)
Nil (Nil) Nil (Nil) Nil (Nil) Nil (Nil) Nil (Nil) 1,800,000 (1950000) Nil (NIL) Nil Nil 1,800,000 (1,900,000) Nil (Nil)
228,744,001 (323193722) 52,541,800 (7,135,484) 135,111 (1,052,786) 7,338,911 (Nil) 10,214,847 (11,713,503) 1,800,000 (1900000) 10,500,000 (1,560,000) Nil Nil 311,274,670 (345,750,729) 2,277,451 (1,195,254)
(C) Balance payable at the year end 10 A) Segment Reporting: Revenue Segment Revenue Switchgears Wires CFL Others Total Result Switchgears Wires CFL Others Total Unallocated Expenses net of Unallocable Income Operating Profit Interest Expenses Profit Before Tax Income Taxes and Deferred Taxes Profit
B)
314,718,495 18,564,340 (2,708,144) (9,124,266) 321,450,426 246,935,273 74,515,152 39,676,605 34,838,547 9,090,281 25,748,266 2008-09
247,019,078 11,231,491 3,269,814 2,133,616 263,654,000 188,223,985 75,430,015 31,755,496 43,674,519 12,467,990 31,206,529 2007-08 503,963,369 17,265,310 6,879,980 728,545 528,837,204
C) i)
ii) Unallocated Corporate Assets Total D) i) Segment liabilities Switchgears Wires CFL Others Total
112,663,718 567,843,021
135,779,508 664,616,712
ii) Unallocated Liabilities Total E) F) Capital Expenditure Depreciation Switchgears Unallocated Total Non cash Expenses other than depreciation
G) 11
In accordance with accounting standard - AS-28 "Impairment of Assets" issued by the Institute of Chartered accountants of India and made applicable w.e.f 1st April 2004 the company has identified its divisions into cash generating units. The cash generating units have been identified on the basis of group of assets that includes the asset that generates cash inflows from continuing use that are largely independent of other assets or group of assets. As on 31st March 2008 the company has identified its principal cash generating units into MCB Division and Industrial Switchgear Division at company's Head office and branches at various locations. Each of the aforesaid cash generating units have been assessed at the balance sheet date and tested for impairment. The company has generally considered external factors influencing impairment of assets such as significant changes in market value of the assets changes in technological market economic or legal environment return on investment etc. and internal factors such obsolescence physical damage changes at operating level etc for assessment of impairment conditions existing in the cash generating units as on the balance sheet date. Further where production line itself is not impaired impairment conditions are not recognised in individual machine if any. After due consideration to above factors it is established that no impairment conditions exist in any of the cash generating units as on the balance sheet date.
12 13
Debit/Credit balances of parties are subject to confirmation. The IDBI Bank Ltd. has sanctioned a receivable buyout facility of Rs.2500 lacs to the Company. As per sanction, IDBI Bank Limited has 10% recourse on the Company. As per the terms of insurance company, debtors are insured to the extent of 100%, however first 5% loss or Rs.2 lacs which ever is higher on the account of the Company. As on the date of Balance Sheet total debtors assigned to the bankers are at Rs. 2045.16 Lacs ( previous year Rs. 1844.40 Lacs ), with the result debtors at the end of the year stand reduced by the said amount.
14
The Company has during the year compiled with the Accounting Stadard 15 (Revised 2005) on Employee Benefits issued by The Institute of Chartered Accountants of India. The adoption of the aforesaid accounting standard does not have a material impact on the profit for the year.
The long term defined benefits and contribution schemes of the Group are as under: a) Defined Benefits Schemes i) Gratuity The employees are entitled to gratuity that is computed as half month salary, for every completed year of service and is payable on retirement / termination. The Company pays contribution to Life Insuarcne Corporation of India.
ii) Leave encashment / Compensated Absences The employees are entitled for leave for each year of service and part thereof and subject to the limits specified, the un-availed portion of such leaves can be accumulated or encashed during the year or at the end of service. The plan is not funded. The reconcilitaion of opening and closing balances of the present vale of the defined benfit obligations are as below: a) Reconciliation of Opening and Closing Balances of Defined Benefit obligation 2008-09 Defined Benefit obligation at beginning of the year Current Service Cost Interest Cost Actuarial (gain) / loss Benefit paid Defined Benefit obligation at year end b) Reconciliation of Opening and Closing Balances of Fair Value of Plan Assets Fair value of plan assets at beginning of the year Expected return on plan assets Actuarial gain / (loss) Employer contribution Benefits paid Fair value of plan assets at year end Actual return on Plan Assets
54.67 29.27 3.28 (1.02) (30.74) 55.45
2007-08
48.78 14.09 2.93 (1.26) (9.86) 54.67
c) Reconciliation of Fair Value of Assets and Obligations Fair value of plan assets Present value of obligation Amount recognised in Balance Sheet- (Asset) / Liabilty d) Expenses Recognised during the Year Current Service Cost Interest Cost Expected return on plan assets Actuarial (gain) / loss Net Cost debited to profit and loss account Discount rate (per annum) Expected rate of return on plan assets (per annum) Rate of Escalation in Salary (Per Annum) 6.00% 7.87% 7.00%
Figures of the previous year have been regrouped/ reclassified wherever necessary to make them comparable with the current year's figures.
15 16
The figures have rounded off to the nearest rupees. (a) The breakup of Directors' remuneration is as under: Salary and Bonus Total 2008-09 1,800,000 1,800,000 2007-08 1,950,000 1,950,000
(b) Computation of Net Profit in accordance with Section 349 of the Companies Act 1956. PARTICULARS Net Profit as per Profit & Loss Account Add: Depreciation as per the Companies Act, 1956 Income Tax Whole-time Director Remuneration
2008-09 25,748,267 14,560,911 9,090,281 1,800,000 51,199,459 1,283,474 14,560,911 37,922,022 1,896,101
2007-08 31,206,530 10,848,569 12,454,240 1,950,000 56,459,339 25,060 10,848,569 45,635,830 2,281,792
Less: Profit on Sale Of Fixed Assets/Equity Shares Depreciation under Section 350 of the Companies Act, 1956. Net Profit Maximum remuneration Payable @ 5% of net profit.
17
Additional information pursuant to the provisions of paragraph 3, 4C and 4D of Part -II and Part IV of Schedule VI to the Companies Act 1956 (as certified by a Director). i) Turnover:Units Nos. Nos. Mtrs. Nos. Nos. Quantity 3,840,148 817,625 18,508,149 5,313,437 95,283 2008-09 Amount 517,737,582 422,806,029 108,911,281 157,175 3,232,986 1,052,845,053 Quantity 3,259,272 945,875 11,510,404 16,237 213,769 2007-08 Amount 527,232,882 383,441,523 128,830,763 6,990,235 18,448,385 1,064,943,788 Rs.306,729,629/-
ii) Material cost Rs. 332,781,760 * It is not practicable to furnish quantitative information in respect of raw materials and bought out components in view of considerable number and size of items consumed/sold. iii) Purchases Traded Purchases Domestic Switchgears Industrial Switchgears Wires Miscellaneous CFL Units Nos. Nos. Mtrs. Nos. Nos. Quantity 277,964 365,176 9,230,568 5,307,468 26,227 Amount 53,090,167 43,651,002 79,804,669 41,318,490 1,409,338 219,273,666 Quantity 287,595 768,431 20,237,988 5,985 172,479
iv) Stocks a) Opening Stocks Units Domestic Switchgears Industrial Switchgears Wires Miscellaneous CFL Nos. Nos. Mtrs. Nos. Quantity 552,247 183,782 9,822,254 7,610 105,877 Amount 70,318,935 46,606,416 17,265,310 728,545 6,892,844 141,812,050 Quantity 800,524 133,491 1,094,670 14,471 147,167 Amount 84,232,032 50,858,246 9,852,030 2,844,342 9,860,189 157,646,839
b) Closing Stocks Units Domestic Switchgears Industrial Switchgears Wires Miscellaneous CFL Nos. Nos. Mtrs. Nos. Nos. Quantity 357,279 123,932 544,673 1,641 36,821
v) Capacity and Production a) @ LICENSED CAPACITY * INSTALLED CAPACITY Units Domestic Switchgears Industrial Switchgears Miscellaneous Nos. Nos. Nos. Quantity 6,100,000 399,000 4,700,000 Quantity 6,100,000 399,000 4,700,000
b) ACTUAL PRODUCTION Units Domestic Switchgears Industrial Switchgears Miscellaneous Nos. Nos. Nos. Quantity 3,367,216 392,599 Quantity 2,723,400 227,735 3,391
@ No industrial license is required for the Industry. Installed capacity is as certified by the Production Head. 18 CIF Value of Imports Raw Material Tools Spares And Components Expenditure in foreign currency Travelling Interest Certification / License Fee 2008-09 Rs.5,78,400/2007-08 Rs.24,38,941/-
19
Rs.5,54,259/Rs.41,48,303/Nil
Rs,285,780/Rs.71,54,267/Nil
20
Earnings in foreign exchange F.O.B.Value of Exports ** ** Excluding Indirect Export Nil in Current Year (Previous Year Rs.4214175/)
Rs.516,84,374/-
Rs.498,13,660
21
Value of Imported/Indigenous materials consumed and Percentage thereof. % INDIGENOUS 99.83 IMPORTED 0.17 100
As per attached Auditors' Report of Even Date -sdAnil Gupta Director DIN No: 00011892 -sdAmeet Gupta Director DIN No: 00002838 For Dass &Company Chartered Accountants