| 1. Share capital
Terms Rights attached to equity shares
The Company has only one class of equity shares having a par value of
Rs. 10 per share. Each holder of equity share is entitled to one vote
per share. The Company declares and pays dividends in Indian Rupees.
The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of all preferential amounts.
The distribution will be in proportion to the no. of equity shares held
by the shareholder.
2. EMPLOYEE BENEFITS
i) Short Term Employee Benefits.
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits.
Benefits such as salaries, wages, short terms compensated absences,
etc., and the expected cost of bonus, ex-gratia are recognised in the
period in which the employee renders the related service.
ii) Long Term Employee Benefits
The disclosures as per the revised AS-15 are as under:
A. Brief description of the Plans
Gratuity: 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 [last drawn
salary] for each completed year of service.
The scheme is funded with an insurance company in the form of a
qualifying insurance policy.
Leave Wages: The leave wages are payable to all eligible employees at
the rate of daily salary for each day of accumulated leave on death or
on resignation or upon retirement on attending superannuation age.
C. Defined Benefit Plan:
The employees' gratuity fund scheme managed by Life Insurance
Corporation of India is a defined benefit plan.
The present value of obligation is determined based on actuarial
valuation using the Projected Unit Credit Method, which recognizes each
period of service giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation. The obligation for leave encashment is recognized in the
same manner as gratuity.
3. Contingent Liability and commitments
a) Guarantee given by Bank on behalf of the Company - Nil {Previous
Year Rs Nil }, against which the company has given counter guarantee.
b) Demands made by the Income Tax Department towards Wealth Tax - Rs.
15.43 Lacs {Previous Year Rs 15.43 Lacs),against which the Company has
preferred appeals.
c) Demands made by Employees State Insurance Corporation Rs 5.08 Lacs
(Previous Year Rs 5.08 Lacs) against which Company has preferred
appeals
d) Demands made by Service Tax Department Rs 0.98 Lacs (Previous Year
Rs Nil) against which Company has preferred appeals
4. The Company's business comprises entriely of manufacture and sale of
engineering goods, which is confined to the terriotorial, limits of the
country, where the risks and returns are largely similar.
As such, the Company has only one business segment and only one
georgraphical segment.
5. Related Party disclosure
Associated Companies
The Ravalgaon Sugar Farm Ltd
Carina Finvest Ltd
|