Annual Report-FY 2011-12 - Timex Group India

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36. The Company has taken land and building, office premises, showrooms, other business premises and residentialaccommodation for some of its employees under operating lease arrangements, with an option of renewal at the end ofthe lease term and escalation clause in some of the cases. Lease payments charged during the year to the Statement ofProfit and Loss aggregate Rs. 309 lakhs (previous year Rs. 296 lakhs). The future minimum lease payments under noncancellableoperating leases are as follows:(Rs. in lakhs)As atAs atFuture lease payments due 31 March 2012 31 March 2011Within one year 200 224Later than one year and not later than five years 61 256Total 261 48037. The Company has given certain items of plant and machinery on operating lease, with an option of renewal at the endof the lease term. However, the lease agreements entered into with the lessees do not provide for any escalation. Leaserentals recognised during the year in the Statement of Profit and Loss account amount to Rs.10 lakhs (previous year Rs.9 lakhs). The future lease payments receivable under non-cancellable operating leases are as follows:(Rs. in lakhs)As atAs atFuture lease payments receivable 31 March 2012 31 March 2011Within one year 4 5Later than one year and not later than five years - 4Total 4 938. a. Provision for warranties has been recognised for expected warranty claims on products sold during the year. Theprovision has been created based on estimates and past trend. Following is the movement of the provision duringthe year:(Rs. in lakhs)Year endedYear endedParticulars 31 March 2012 31 March 2011Opening provision 96 128Add: Provision for the year 157 122Less: Utilised/reversal during the year (184) (154)Closing provision 69 96b. Provision for sales returns has been created for estimated loss of margin on expected sales returns in future periodagainst products sold during the year. The provision has been created based on management’s estimates and pasttrends. Following is the movement in the provision during the year:(Rs. in lakhs)Year endedYear endedParticulars 31 March 2012 31 March 2011Opening provision 182 149Add: Provision for the year 34 42Less: Utilised/reversal during the year - (9)Closing provision 216 182c. Provision for litigations has been recognised for various litigations with the tax authorities. Although the Companyis contesting the cases at the relevant forum, the management believes that the outflow of resources embodyingeconomic benefits is probable and has accordingly, created a provision towards the obligations that may arise. Thetable below gives information about movement in the provision for litigations:(Rs. in lakhs)Year endedYear endedParticulars 31 March 2012 31 March 2011Opening provision 31 31Add: Provision for the year 12 -Less: Utilised/reversal during the year - -Closing provision 43 3150
39. Segment informationThe Company’s business segment comprises:- Watches: Manufacturing and trading of watches;- Others: Providing IT and finance related back office support to other group companies.Segment revenue in the geographical segments considered for disclosure are as follows:- Revenues within India (Domestic) includes sale of watches and spares to consumers located within India; and- Revenues outside India (Overseas) includes sale of watches manufactured in India and service income earned fromcustomers located outside India.Segments have been identified in line with the Accounting Standard 17 on “Segment Reporting” notified by theCompanies (Accounting Standards) Rules, 2006, taking into account the nature of products and services, the risks andreturns, the organisation structure and the internal financial reporting system.Secondary segment reporting is performed on the basis of the geographical segments.Primary segment reporting (by business segment):(Rs. in lakhs)Watches Others Total2011-12 2010-11 2011-12 2010-11 2011-12 2010-11Segment revenuesExternal sales (gross) 18,356 17,248 177 261 18,533 17,509Excise duty (235) (252) - - (235) (252)External sales (net) 18,121 16,996 177 261 18,298 17,257Other business related income 83 62 - - 83 62Total revenue 18,204 17,058 177 261 18,381 17,319ResultsSegment results 1,214 1,845 23 18 1,237 1,863Unallocated income - 32Unallocated expenses (533) (177)Profit before interest and tax 1,214 1,845 23 18 704 1,718Interest expense (109) - #Interest income 10 40Profit before tax 1,214 1,845 23 18 605 1,758Income taxes- Minimum alternate tax 152 357Net profit 453 1,401Other informationAssetsSegment assets 15,985 12,611 388 142 16,373 12,753Unallocated corporate assets 484 1,876Total assets 16,857 14,629# Amount is below rounding off threshold adopted by the Company.(Rs. in lakhs)Watches Others Total2011-12 2010-11 2011-12 2010-11 2011-12 2010-11LiabilitiesSegment liabilities 8,406 6,473 13 13 8,419 6,486Unallocated corporate liabilities 1,195 1,034Share capital (including sharepremium amount and balance inStatement of Profit and Loss) 7,243 7,109Total liabilities 16,857 14,62951
Page 5 and 6: and / or Agreement in such manner a
Page 9 and 10: working. He put in rigorous systems
Page 11 and 12: investments made by several Indian
Page 13 and 14: has sharpened its bell curve to imp
Page 15 and 16: REPORT ON CORPORATE GOVERNANCEYour
Page 17 and 18: Committee Membership1. Timex Group
Page 19 and 20: Reviewing the adequacy of internal
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Page 23 and 24: Listing Fees : Listing fees as pres
Page 25 and 26: DEMATERIALISATION OF SHARESDemateri
Page 27 and 28: CERTIFICATETo the Members of Timex
Page 29 and 30: Annexure referred to in para 3 of t
Page 31 and 32: * Represents additions made to the
Page 33 and 34: Statement of Profit and Loss for th
Page 35 and 36: Notes to the financial statements f
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Page 39 and 40: (Rs. in lakhs)Year endedYear ended3
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Page 43 and 44: As at 31 March 2011(Rs. in lakhs)Gr
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Annual Report-FY 2011-12 - Timex Group India

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