000_GMM Directors Report-Pg-1-18.indd - GMM Pfaudler Ltd

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GMM PFAUDLER LIMITEDAnnual Report 2009 - 2010g) Foreign Exchange TransactionsTransactions in foreign currency are recorded at rates prevailing on the date of the transaction. Monetary assets and liabilitiesdenominated in foreign currency are translated at the period end exchange rates. Exchange gains/losses are recognized in theprofit and loss account. Non monetary foreign currency items are carried at cost and expressed in Indian currency at the rateof exchange prevailing at the time of transactions.h) Revenue RecognitionSales of products and services are recognized on dispatch/delivery of the goods or when services are rendered, except largecontracts, exceeding the Rupee equivalent of USD 1 million at the time of order receipt and the contract term is at least sixmonths from contract signing through product delivery, which are recognized on percentage of completion basis. Sales arerecorded net of trade discounts, sales tax and excise duties.Dividend income is recognized when the right to receive the same is established.Interest income is recognized on the time proportion method.i) Product Warranty ExpensesProvision is made in the financial statements for the estimated liability on account of costs that may be incurred on productssold under warranty. The costs to be incurred for providing free service under warranty are determined based on past experienceand are provided for in the year of sale.j) Employee BenefitsEmployee benefits in the form of provident fund, family pension fund and superannuation scheme which are defined contributionschemes are charged to the Profit and Loss account of the year when the contributions accrue.The liability for Gratuity, a defined benefits scheme and provision for Leave Encashment is accrued and provided for in theaccounts on the basis of actuarial valuation as at the year end.Actuarial gains and losses comprising of experience adjustments and the effects of changes in actuarial assumptions arerecognised in the Profit and Loss account for the year as income or expense.k) Provisions and Contingent LiabilitiesProvisions are recognised in the accounts in respect of present probable obligations, the amount of which can be reliablyestimated.Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmedby the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company.l) TaxationTax expense comprises of both current and deferred tax.Provision for current income tax is made on the basis of assessable income under the Income Tax Act, 1961.Deferred income tax arising on account of timing differences between taxable income and accounting income that originate inone period and are capable of reversal in one or more subsequent periods is accounted for by applying the income tax ratesand laws enacted or substantially enacted on the Balance Sheet date. Deferred tax assets, other than un-absorbed tax lossesand tax depreciation, subject to the consideration of prudence, are recognized and carried forward only to the extent that thereis a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can berealized.m) Segment reportingThe Accounting Policies adopted for segment reporting are in line with the Accounting Policies of the Company. Segmentassets include all operating assets used by the business segments and consist principally of fixed assets, debtors and inventories.Segment liabilities include the operating liabilities that result from operating activities of the business segment. Assets and36
Liabilities that cannot be allocated between the segments are shown as part of unallocated corporate assets and liabilitiesrespectively. Income/Expenses relating to the enterprise as a whole and not allocable on a reasonable basis to business segmentsare reflected as unallocated corporate income/expenses.3. CHANGE IN ACCOUNTING POLICYThe Company has changed its accounting policy for revenue recognition for large contracts, from recognition on completion basisto recognition on percentage of completion basis, with effect from April 1, 2009.Large contracts for said purpose are contracts exceeding Rupee equivalent of USD 1 million at the time of order receipt and thecontract term is at least six months from contract signing through product delivery.This change has neither resulted in any change in revenue nor on profits for the year ended March 31, 2010.4. INVESTMENTSThe Company has purchased and sold the following investments during the year:Name of the investment Current year Previous yearNo of Units Amount No of Units Amount` ‘000 ` ‘000Birla Freedom Fund - Dividend Cash Option 240,616 5,000,000 – –DSP Black Rock Tiger Fund Dividend Pay 317,420 5,000,000 – –HDFC Top 200 Fund - Dividend 187,037 7,125,000 – –DSP Black Rock Top 100 Equity Fund 328,515 6,000,000 – –5. SUNDRY DEBTORSSundry Debtors include the following amount due from a subsidiary company:Name of Company Maximum Balance As at 31.03.10 As at 31.03.09Mavag AG 3,705 3,705 1,3336. LOANS AND ADVANCESa. Advances to subsidiariesMaximum BalanceCurrent YearPrevious Yearduring the yearKaramsad Investments Ltd. 12,350 12,350 12,364Karamsad Holding Ltd. 250 250 1,403GMM Mavag AG 153,790 145,775 153,790` ‘000b. Deposits include earnest deposit of ` 961 thousand (Previous year ` 961 thousand) paid to Skyline Millars Limited (formerlyMillars India Limited) and ` 10,703 thousand (Previous year ` 9,411 thousand) to Ready Mix Concrete Limited, being companiesin which two directors of the Company are interested. Deposits given are for use of factory sheds under the lease agreements.7. CURRENT LIABILITIESDisclosure of sundry creditors under current liabilities is based on the information available with the company regarding the statusof the suppliers as defined under the “Micro, Small and Medium Enterprises Development Act, 2006”. Amount overdue as on March31, 2010 to Micro, Small and Medium Enterprises on account of principal amount together with interest, aggregate to ` Nil (Previousyear – ` Nil)The information regarding micro, small and medium enterprises have been determined to the extent such parties have been identifiedon the basis of information available with the Company, which has been relied upon by the auditors.37
Page 1 and 2: BOARD OF DIRECTORS P. KRISHNAMURTHY
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Page 76: GMM MAVAG AGTo the Board of Directo
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Page 81 and 82: MAVAG AGIncome Statement for the pe
Page 83 and 84: KARAMSAD HOLDINGS LIMITEDDIRECTORS
Page 85 and 86: KARAMSAD HOLDINGS LIMITEDAUDITORS
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KARAMSAD HOLDINGS LIMITEDCASH FLOW
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KARAMSAD INVESTMENTS LIMITEDDIRECTO
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KARAMSAD INVESTMENTS LIMITEDAUDITOR
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KARAMSAD INVESTMENTS LIMITEDCASH FL
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KARAMSAD INVESTMENTS LIMITEDREGISTE
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000_GMM Directors Report-Pg-1-18.indd - GMM Pfaudler Ltd

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