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EVEREST KANTO CYLINDER LIMITED
20. In accordance with Accounting Standard – 17 ‘Segment
Reporting’ segment information has been given in the
consolidated financial statements of the Company and
therefore, no separate disclosure on Segment information
is given in these financial statements.
21. Considering foreign exchange exposures and the volatility
in exchange rates, mark to market losses during the year on
outstanding foreign currency derivative contracts to hedge
highly probable forecast transactions have been charged
to the Profit and Loss Account, discontinuing the Hedge
Accounting principles followed upto 31st March, 2010.
Accordingly, debit balance in the Hedging Reserve, as at
31st March, 2011, representing mark to market losses,
considered as probable hedge transactions as at 31st March,
2010, contracts of which are maturing upto December, 2012,
stands at Rs. 365.43 Lac.
22. The Company has an investment of Rs. 200 Lac in 2,000,000
Equity Shares of GPT Steel Industries Private Limited (GPT).
As per the latest audited financial statements of GPT, the
networth has fully eroded. The Company has during the
year made an assessment and has accordingly provided
for diminution in value of investments made in GPT.
23. The Company has investments of Rs. 238.88 Lac in and
loans and other receivables aggregating Rs. 853.34 Lac
recoverable from Calcutta Compressions & Liquefaction
Engineering Limited (CC&L), a subsidiary with a majority
stake. The networth of CC&L has fully eroded mainly on
account of pre-operating losses. In the opinion of the
management, after considering the projected earnings and
cash flows of CC&L, the improvements in its operational
performance during the last quarter of the current financial
year and the intention to hold this investment on a long term
and strategic basis, no provision for diminution in the value
of investment or for losses on account of loans and other
receivables is considered necessary, at present.
24. As a part of its global expansion plans, the Company has
formed a wholly owned subsidiary in Thailand viz., EKC
Industries (Thailand) Company Limited on 7th October, 2010.
The said Company will cater to the needs of Thailand market,
since Thailand is promoting Natural Gas Vehicles in a big
way.
25. The Company, during Financial Year 2009 - 2010, changed
its method of providing for depreciation on fixed assets, from
Written Down Value Method (WDV) to Straight Line Method
(SLM). Accordingly, depreciation was recalculated in
accordance with SLM from the date the assets were put to
use and surplus of Rs. 1,986.69 Lac (net of tax) in respect of
earlier years was credited to the Profit and Loss Account.
26. With a view to consolidate and promote synergy amongst
similar facilities and effective utilisation of the manufacturing
facilities, it was considered prudent to shift the entire activities
of Aurangabad plant to larger unit located at Gandhidham,
during the quarter ended 31st December, 2010.
27. Previous year figures have been regrouped / recast wherever
necessary.
28. Significant Accounting Policies followed by the Company
are as stated in the Statement annexed to this Schedule as
Annexure I.
As per our report of even date
For DALAL & SHAH For and on behalf of the Board
Firm Registration No. 102021W
Chartered Accountants P.K. Khurana
Chairman & Managing Director
S. Venkatesh Chanda Makhija Thadani Bimal Desai P.M. Samvatsar
Partner Company Secretary Chief Financial Officer Whole - Time Director
Membership No. F-037942
Mumbai
27 th May, 2011
Annual Report 2010-11 Schedules forming part of Financial Statements
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