FALCON TYRES LIMITED
ANNUAL REPORT 2009-2010
NOTES ON ACCOUNTS
A. SIGNIFICANT ACCOUNTING POLICIES:
Basis of Accounts:
The accounts have been prepared according to historical cost convention,
adjusted by revaluation of fixed assets. All expenses and income to the
extent considered payable and receivable, unless stated otherwise, have
been accounted for on accrual basis.
Use of Estimates:
The preparation of financial statement require management to make estimates
and assumptions that affect the reported amount of assets and liabilities
and disclosures relating to contingent liabilities and assets as at the
Balance Sheet date and the reported amounts of income and expenses during
the year.
Provision for contingencies are recorded when it is probable that a
liability will be incurred and the amounts can reasonably be estimated.
Differences between the actual results and estimates are recognized in the
year in which the results are known / materialised.
Sales:
Sales are accounted for on passing of title to the customers. Returns and
rebates and discounts against goods sold are recognised as and when
ascertained and deducted from sales. Sales includes excise duty.
Export Benefits:
Export benefits arising on account of entitlement for duty free imports are
accounted for at the time of receipt of material. Other export benefits are
accounted for as and when accrued.
Fixed Assets:
Fixed Assets are stated at cost of acquisition / construction (net of
CENVAT/VAT and other credits) or at revalued amount as the case may be and
inclusive of incidental expenses, erection / commissioning expenses,
revamping expenses, pre-operative expenses, interest, etc. upto the date
the asset is put to use.
Depreciation / Amortisation:
a) The classification of Plant & Machinery into continuous and non-
continuous is carried as per technical certification and depreciation
thereon, is provided accordingly, on straight-line method at the rates
prescribed in schedule XIV of the Companies Act, 1956.
b) Additional depreciation attributable to the increase in the value of
assets on account of revaluation is transferred from Revaluation Reserve to
the Profit and Loss account.
c) Computer software, Intangible assets are amortised over the period of
six years.
Impairment:
Fixed assets are reviewed at each balance sheet date for impairment. In
case events and circumstances indicate any impairment, recoverable amount
of fixed assets is determined. An impairment loss is recognized, whenever
the carrying amount of assets either belonging to Cash Generating Unit
(CGU) or otherwise exceeds recoverable amount. The recoverable amount is
the greater of assets net selling price or its value in use. In assessing
value in use, the estimated future cash flow from the use of the assets is
discounted to their present value at appropriate rate. An impairment loss
is reversed if there has been a change in the recoverable amount and such
loss either no longer exists or has decreased. Impairment loss/reversal
thereof, which in case of CGU, are allocated to its assets on a pro rata
basis, is adjusted to carrying value of its respective assets.
Investments:
Long Term Investments are valued 'at cost' except where there is a
diminution in value, other than temporary, in which case, adequate
provision is made against such shortfall.
Inventory:
Inventories are valued at lower of cost or estimated net realisable value.
Cost of inventories has been computed on weighted average basis. In case of
work in progress and finished goods cost represents materials, direct
labour and appropriate portion of factory overheads. Adequate provision for
defective, slow/non moving, obsolete stocks are made on the basis of
technical evaluation.
Transactions in Foreign Currency:
Transaction in foreign currency is accounted for at the exchange rate
prevailing on the date of the transaction. Foreign currency monetary assets
and liabilities at the year-end are translated using the closing exchange
rates whereas non-monetary assets are translated at the rate on the date of
the transaction. The gain and loss thereon and also on the exchange
differences on settlement of the foreign currency transactions during the
year are recognised as income or expense and are adjusted to the profit and
loss account.
Employee Benefits:
Employee benefits are accrued in the year in which the employees have
rendered services.
Contribution to defined contribution schemes such as Provident Fund,
Superannuation Fund etc. are recognized as and when incurred.
Long-term employee benefits under defined benefit scheme such as gratuity,
leave etc. are determined at the end of the year at present value of the
amount payable using actuarial valuation techniques.
Actuarial gain and losses are recognized in the year when they arise.
Research and development expenditure:
Research and development expenditure of revenue nature are charged to the
profit & loss account, while capital expenditures are added to fixed assets
in the year in which they are incurred.
Contingencies:
Liabilities which are material and whose future outcome cannot be
ascertained with reasonable certainty are treated as contingent and
disclosed by way of Notes to the Accounts.
Borrowing costs:
Borrowing costs incurred in relation to the acquisition, construction of
assets are capitalised as part of the costs of such assets upto the date
when such assets are ready for intended use. Other borrowing costs are
charged as an expense in the year in which these are incurred.
Taxes on Income:
Provision for Current Income Tax is made on the taxable income using the
applicable tax rates and tax laws. Deferred tax arising on account of
timing differences and which are capable of reversal in one or more
subsequent periods, is recognised using the tax rates and tax laws that
have been enacted or substantively enacted. Deferred tax assets are
recognised only to the extent that there is reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized. In situation where the company has
unabsorbed depreciation or carry forward tax losses, all deferred tax
assets are recognised only if there is virtual certainty supported by
convincing evidence that they can be realized against future taxable
profits.
Warranties:
Warranty costs are accrued in the year of sale, based on past experience.
Miscellaneous Expenditure:
Expenses incurred under voluntary retirement scheme are amortized over a
period of five years unless required to be amortized over a shorter period
by the relevant accounting standard.
B. NOTES ON ACCOUNTS:
1. Contingent liabilities not provided for:
(Rs. In Lacs)
Particulars Amount as on Amount as on
30.09.2010 30.09.2009
Claims not acknowledged as debt 39.53 38.12
Input Tax Credit on Sales Tax - 132.99
Corporate Guarantee 4800.00 4800.00
2. Estimated amount of contracts remaining to be executed on Capital
account (net of advances) Rs. 5025.03 Lacs (Rs. 233.56 Lacs)
3. a) Pursuant to an agreement dated 20th December 2006 with Blessing
Commercial Private Limited (BCPL), a Group Company, the Company has agreed
to purchase 54 Lacs of equity shares of Monotona Tyres Limited (MTL) held
by BCPL and Rs. 7500 Lacs has been paid towards the same. 53,99,400 shares
are transferred in the name of Falcon Tyres Limited as on 21st May 2010.
b) Finance charges aggregating to Rs. 1357.03 Lacs on term loan taken for
acquiring the shares, have been shown as Investment along with above
Rs.7500 Lacs.
4. a) Major expansion projects undertaken by the company inter-alia
includes installation of various tyres curing presses.
b) Capital work in progress includes capital advances of Rs.2919.64 Lacs
(Rs. 30.39 Lacs).
5. Micro, Small and Medium Enterprise:
(Rs. In Lacs)
Particulars For the Period ended 30.09.2010
Principal Interest
Amount due to vendors 18.01 Nil
Principal amount and interest paid
beyond the appointment date Nil Nil
Interest accrued and remaining
unpaid beyond the appointment date
(other than interest specified u/s
18 of the Act) Nil Nil
Interest accrued and remaining
unpaid as at the end of the year
(As per the Act) Nil 0.22
6. Provisions of Accounting Standard 29 on Provision, Contingent
Liabilities and Contingent Assets:
Disclosures in this respect as required in terms of the said Accounting
Standard are as follows:
(Rs. in Lacs)
Nature of Item Warranty
2009-10 (12 months) 2008-09 (18 months)
Opening Provision 97.00 92.00
Provided during the Year 902.95 348.75
Amount Utilized 605.95 343.75
Closing Provision 394.00 97.00
The above Warranty Cost represents the expected cost of free replacement as
estimated in terms of the stipulation for sales / industry practice, on the
basis of the past experience in respect of the goods sold during the last
two years. Liability against such provision is expected to occur in the
next financial year.
7. Salary, Wages and bonus include retainer-ship fees amounting to Rs.69.60
Lacs (Rs. 33.43 Lacs).
8. The disclosures required under Accounting Standard 15 ' Employee
Benefits' notified in the Companies (Accounting Standards) Rules 2006, are
given below:
Defined Contribution Scheme:
Contribution to Defined Contribution Plan, recognised for the year are as
under:
(Rs. in Lacs)
As at 30.09.2010 As at 30.09.2009
i. Employer's Contribution to
Provident Fund 206.31 238.78
ii. Employer's Contribution to
Superannuation Fund 61.87 58.40
Defined Benefit Scheme:
The employee's 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 recognises each period of
services as giving rise to additional unit of employee benefit entitlement
and measures each unit seperately to build up the final obligation.
(Rs. in Lacs)
Gratuity (Funded)
As at 30.09.2010 As at 30.09.2009
i. Change in the present value of
the defined benefit obligation
representing reconciliation of
opening and closing balances
thereof are as follows:
Liability at the beginning of
the year 660.32 529.87
Interest Cost 71.91 44.24
Current Cost 52.07 31.08
Actuarial (gain) / loss on
obligations 271.76 129.76
Past Service Cost 10.73 -
Benefits paid (75.70) (74.63)
Liability at the end of
the year 991.09 660.32
ii. Change in the Fair Value
of Plan Asset representing
reconciliation of opening and
closing balances thereof are
as follows:
Fair value of Plan Assets at
the beginning of the year 431.65 386.20
Expected Return on Plan Assets 45.13 29.87
Contributions by the Company 35.69 85.64
Benefits paid (75.70) (74.63)
Actuarial gain/(loss) on the
Plan Assets 7.30 4.57
Fair Value of Plan Assets at
the end of the year 444.07 431.65
Total actuarial gain/(loss)
to be Recognised 264.59 125.19
iii. Actual return on Plan
Assets
Expected return on Plan Assets 45.13 29.87
Actual gain/(loss) on Plan Assets 7.30 4.57
Actual Return on Plan Assets 52.43 34.44
iv. Amount Recognised in Balance
Sheet
Liability at the end of the year 991.09 660.32
Fair value of Plan Assets at the
end of the year 444.07 431.65
Unrecognised Past service Cost 3.93 -
Amount Recognised in the
Balance Sheet 543.09 228.67
v. Expenses Recognised in the
Income Statement
Current Service Cost 52.07 31.08
Interest Cost 71.91 44.24
Expected Return on Plan Assets (45.13) (29.87)
Net Actuarial (gain)/loss to
be Recognised 264.59 125.19
Past Service Cost 6.67 -
Expenses Recognised in Profits
& Loss Account 350.11 170.64
vi. Balance Sheet Reconciliation
Opening Net Liability 228.67 143.67
Expenses as above 350.11 170.64
Employers Contribution (35.69) (85.64)
Amount Recognised in Balance Sheet 543.09 228.67
vii. Prinicipal Actuarial
assumptions at the Balance Sheet
Discount Rate 7.95% 7.05%
Rate of Return on Plan Assets 7.50% 7.50%
viii. Experience Adjustment
Experience adjustments on
Plan liabilities 72.55 39.61
Experience adjustments on
Plan Assets (7.30) (4.57)
65.25 35.04
Compensated Absences:
The obligations for compensated absences is recognised in the same manner
as gratuity. The actuarial liability of Compensated Absences (unfunded) of
accumulated privileged, sick and casual leaves of the employees of the
Company as at 30th September 2010 is given below:
(Rs. in Lacs)
Particulars Amount as at Amount as at
30.09.2010 30.09.2009
Privileged Leave 187.42 133.35
Sick Leave 19.93 18.72
Casual Leave 21.59 18.39
Total 228.94 170.46
9. The break up of deferred tax Assets and Liabilities are as under:
(Rs. in Lacs)
Provision for Deferred Tax Opening as at Charge / (Credit) Closing as at
01.10.2009 30.09.2010
Deferred Tax Assets
Expenses allowable on
Payment basis:
- Retirement benefits 107.36 18.81 126.17
- Unabsorbed Depreciation 361.48 (361.48) -
- Amount Inadmissible
under Sec 43B - - -
Sub Total 468.84 (342.67) 126.17
Deferred Tax Liabilities
Depreciation 1263.00 (409.88) 853.12
Net Deferred Tax Liability 794.16 (67.21) 726.95
10. Earning per share has been calculated on the basis of number of equity
shares outstanding during the period ended 30th September, 2010 in
accordance with the provisions of Accounting Standard-20 'Earning Per
Share'.
30.09.2010 30.09.2009
(12 months) 18 months
Profit attributable to Equity
Shareholders (Rs. in lacs) 5163.46 3001.82
No. of shares @ basic value Rs.5/- each 34085532 34085532
Basic and diluted earning per share (in Rs.) 15.15 8.81
11. Remuneration paid to Executive Chairman & Executive Director:
(Rs. in Lacs)
30.09.2010 30.09.2009
12 months 18 months
Salary 318.86 305.08
Perquisites 43.02 42.32
Contribution to PF & other funds 67.30 52.16
Total 429.18 399.56
12. Auditors' Remuneration (included in Miscellaneous expenses):
(Rs. in Lacs)
30.09.2010 30.09.2009
12 months 18 months
Audit Fees 3.50 5.25
In other Capacity (excluding service tax ) 1.75 2.62
Total 5.25 7.87
13. Related party disclosures as required as per Accounting Standard (AS-
18) on 'Related Party Disclosures' are as below:
a) All the Companies in the group as discussed below are directly /
indirectly controlled by the Ruia Group of Companies under the Leadership
of Sri Pawan Kumar Ruia and its various Subsidiary / Associate Companies
which held the controlling stake in the Company during the year ended 30th
September 2010.
b) Holding company:
Wealth Sea Pte. Ltd., (Singapore) through DIL Rim and Wheel Corporation
Limited, Mauritius.
c) Associates / Group Companies:
i. With whom the Company has transaction:
Anoush Traders Pvt. Ltd., Dunlop India Limited, Dunlop Polymers Pvt. Ltd.,
Falcon Tyres & Rubber Pvt. Ltd., Falcon Tyres Impex Pvt. Ltd., Global
Finvest Ltd., Jessop & Co. Ltd., Manali Properties & Finance Pvt. Ltd.,
Ruia Sons Pvt. Ltd., Ruia Corporate Services Pvt. Ltd., Sanjose Polymers
Pvt.Ltd., Suryamani Financing Company Ltd., Tulip Machineries Pvt Ltd.,
Vidyuth Petrochem Pvt. Ltd., Walker Properties Pvt. Ltd.
ii. Subsidiary :
Monotona Tyres Limited
iii. Others:
Aparupa Properties Pvt. Ltd.; Alpha Airwayys Pvt. Ltd. ; Acurate Traders
Pvt. Ltd. ; American Merchandising Ltd. ; Aakashdeep Properties Pvt. Ltd. ;
Ayodhya Properties & Finance Pvt. Ltd. ; Alwaye Properties & Finance Pvt.
Ltd. ; Anchita Commercials Pvt. Ltd. ; Angan Properties Private Limited;
Ajit Commercials Pvt. Ltd. ; Anish Traders Pvt. Ltd. ; Aniket Traders Pvt.
Ltd. ; Anumala Traders Pvt. Ltd. ; Adhishwar Nivesh Pvt. Ltd. ; Brawany
Nivesh Pvt. Ltd. ; Blackstone Holdings Private Ltd. ; Bhartiya Hotels
Limited; Borneo Traders Pvt. Ltd. ; Banalata Traders Pvt. Ltd. ; Beadon
Traders Pvt. Ltd. ; Bandana Commercials Pvt. Ltd. ; Bipul Commercials Pvt.
Ltd. ; Ballard Commercials Pvt Ltd. ; Bharat Vidyut Co. Ltd. ;.. Blessings
Commercials Pvt. Ltd. ; Bengal Institute of Neurosciences Ltd. ; Bloom
Billions Sdn Bhd-Malaysia; BTR Sealing System UL Ltd. - UK; Chinsurah
Chemicals Pvt. Ltd. ; Climber Properties Pvt. Ltd. ; Chemical Corporation
of India Ltd. ; Chaman Trade Links Pvt. Ltd. ; Chorus Trade Links Pvt. Ltd.
; Chambal Marketing Pvt. Ltd. ; Chaity Commercials Pvt. Ltd. ; Camac
Traders Pvt. Ltd. ; Dunlop Latex Foam Europe Ltd. ; Draftex Automitive ,
GMBH; Dunlop UK Ltd. - ..Mauritius; Dunlop Tyres Limited; Dunlop Rubbers
Limited; Dunlop Investments Limited; Dunlop Estates Private Limited; Dunlop
Infrastructure Private Limited; Dunlop Properties Pvt. Ltd. ; Deblok
Traders Pvt. Ltd. ; Dadar Properties & Finance Pvt. Ltd. ; Deoghar
Properties & Finance Pvt. Ltd. ; Durg Properties & Finance Pvt. Ltd. ;
Dipti Commercials Pvt. Ltd. ; Divya Mercantile Ltd. ; Dhan E Commerce Pvt.
Ltd. Double Plus Software (P) Ltd.; D K Properties Pvt. Ltd.; Eco Traders
Pte Ltd.; Elloit Mercantile Pvt. Ltd.; Enormous Nivesh Pvt. Ltd. ; Edina
Marketing Pvt. Ltd. ; Empire Minerals Pvt. Ltd. ; Eyelid Mercantile Pvt.
Ltd. ; Electric Corporation of India Ltd. ; Ebony Commercials Pvt. Ltd. ;
eMotions Media Pvt. Ltd. ; Fiber Foam (Bombay) Pvt. Ltd. ; Fabulous Nivesh
Pvt. Ltd. ; Fragment Nivesh Pvt. Ltd. ; Gain Dot Com Pvt. Ltd. ; Gain E-
Commerce Pvt. Ltd. ; Gyan Website Pvt. Ltd. ; Global Fin Pro Ltd. ; Globe
Sugar Refinery Ltd. ; Goldman Securities Ltd. ; Goldman Stocks & Share
Brokers Pvt. Ltd. ; Hardcore Viniyog Pvt. Ltd. ; Himadri Properties Pvt
Ltd. ; Hirakud Industrial Works Ltd. ; Hirakud Rolling Mills Ltd. ; Hiland
Traders Pvt. Ltd. ; Hiker Properties Pvt. Ltd. ; Hriday Commercials Pvt.
Ltd. ; Herald Investments Pvt. Ltd. ; Hindustan Texknit Pvt. Ltd. ;
Hindustan Bauxite Ltd. ; India Tyre & Rubber Co. (India) Ltd. ; Indo Wagon
Engineering Ltd. ; Ibcon(Calcutta) Pvt. Ltd. ; India Finance Ltd. ; Jessop
Infotech Pvt. Ltd. ; Jessop Shipyard Limited; Jessop Estates Pvt. Ltd. ;
Jessop Properties Pvt. Ltd. ; Jessop Infrastructure Pvt. Ltd. ; Jessop
Wagons & Coaches Ltd. ; Jai Gokul Towers Pvt. Ltd. ; Jai Brijmohan Niketan
Pvt. Ltd. ; Jai Badrinath Niketan Pvt. Ltd. ; Jai Raghuvir Enclave Pvt.
Ltd. ; Jai Vaibhav Niketan Pvt. Ltd. ; Jai Tridev Vihar Pvt. Ltd. ; Jai
Ganga Nirman Pvt. Ltd. ; Jai Harihor Tower Pvt. Ltd. ; Janaki Marketing
Pvt. Ltd. ; Kailash Enterprises(ND) Pvt. Ltd. ; Kulu Properties & Finance
Pvt. Ltd. ; Kothi Lefin Pvt. Ltd. ; Kamlapur Alcohol Limited; Kamlapur
Sugar & Industries Ltd; Kanti Commercials Pvt. Ltd. ; Lona Commercials Pvt.
Ltd. ; ..Liluah Ceramics Pvt. Ltd. ; Manavendra Commercials Pvt. Ltd. ;
Mayank Services Ltd. ; Mandhatri Traders Pvt. Ltd. ; Metropole Hills Hotels
Pvt. Ltd. ; Mudrika Commercials Pvt. Ltd. ; Mugdha Properties Pvt. Ltd. ;
Malini Properties Pvt. Ltd. ; Manjari Properties Pvt. Ltd. ; Manidipa
Properties Pvt. Ltd. ; Metro Developers Ltd. ; Mahant Merchandise Pvt. Ltd.
; Moulishree Electricals & Electronics Ltd. ; Monarch Exim Pvt. Ltd. ;
Mridula Marketing Pvt. Ltd. ; Nivedita Properties Pvt. Ltd. ; Nandini
Properties Pvt. Ltd. ; Nandan Suppliers & Contractors Pvt. Ltd. ; Onix
Business Services Ltd. ; Ocean Cement Limited; Ocean Constructions Pte Ltd.
; Our Films Productions Pvt. Ltd. ; OM Cotex Ltd. (Formerly Ruia Cotex
Ltd.) ; Olivia Tours & Travels Pvt. Ltd.; Pacific Website Pvt. Ltd. ;
Pacific Apparels Ltd. ; Pawan Herbals Pvt. Ltd. ; Parnika Marketing Private
Ltd. ; P.K. Constructions Pvt. Ltd. ; Payneganga Sugars & Chemicals Ltd. ;
Power Corporation of India Ltd. ; Pallavi Manufacturers Pvt. Ltd. ; Rose E-
Commerce Pvt. Ltd. ; Radient Investment Ltd.-Mauritius; Raghav Industries
Ltd. ; Rapid Investment Ltd.-Mauritius; Ruia Agro Products Pvt. Ltd. ; Ruia
Hospital & Educational Research Institution; Ryham Pte Ltd. - Singapore;
Rose Investment Ltd.- Mauritius; Ruia Hotels Pvt. Ltd. ; Ruia Electronics
Pvt. Ltd. ; Renuka Resorts Pvt. Ltd. ; Resource Cement Ltd. ; Ruia Iron &
Steel Co. Pvt. Ltd. ; Ruia Overseas Private Limited; Ruia Technologies Ltd.
; Ruia Marketing Ltd. ; Satarupa Properties Pvt. Ltd. ; Shalini Properties
& Developers Pvt. Ltd. ; Sheetal Exports Ltd. ; SPR Resorts Ltd. ;
Securities Brokers of India Ltd. ; Sagarika Properties Pvt. Ltd. ;
Shakambari Communications Pvt. Ltd. ; Shankar Traders & Dealers Ltd. ;
Sarvan Commercials Pvt. Ltd. ; Shresth (India) Pvt. Ltd. ; Skypak
Properties & Finance Pvt. Ltd. ; Subhlaxmi Compusis Pvt. Ltd. ; Sayaji
Marketing Pvt. Ltd. ; Stephen Financial Services Pvt. Ltd. ; SPR Sugar &
Chemicals Ltd. ; Sterling Share Brokers (P) Ltd. ; Shalimar Towers Pvt.
Ltd. ; Sugandha Industries Pvt. Ltd. ; Schlegal Automative Europe Ltd. -
U.K. ; Schlegal Automative India Pvt. Ltd. ; Spices Valley Estates Ltd. ;
SPR Textiles Pvt. Ltd., Subhra Marketing Ltd., Sukaram Marketing Ltd.,
Surag Commercial Pvt. Ltd. Tribhuban Marketing (p) Ltd., Udbav Commercials
Pvt. Ltd., U. P. Hydro Projects Ltd., U. P. Bio Chem Ltd., vantura Project
Pvt Ltd., Vilas Marketing Private Limited., Wealth sea Ltd., Mauritius
Wealth Overseas Ptc Ltd., Singapore Wealth Ocen Ptc Ltd., Singapore Wizer
Advertising Pvt. Ltd., Yamuna Website Pvt. Ltd., Zipco Industrial Finance
Pvt. Ltd., Zeal Infotech Pvt. Ltd.,
d) Key Management Personnel:
a) Mr. Pawan Kumar Ruia (Executive Chairman)
b) Mr. Sunil Bhansali (Executive Director)
RELATED PARTY TRANSACTION:
(Rs.in Lacs)
Nature of Transaction Subsidiary Associates
30.09.2010 30.09.2009 30.09.2010 30.09.2009
Income
Sale of Finished Goods:
Falcon Tyres Impex Pvt. Ltd. - - 1791.54 542.55
Sale of Materials
Dunlop India Ltd. - - 6.15 -
Dunlop Polymers Pvt. Ltd - - 4447.49
Debit note on RM Purchases
Dunlop India Ltd. - - 28.96 84.43
Others
Dunlop India Ltd. - - 0.31 -
Dunlop Polymers Pvt. Ltd. - - 33.31 -
Monotona Tyres Limited 120.88 - - -
Expenses:
Royalty
Ruia Sons Pvt. Ltd. - - 1193.89 775.01
Purchase of Traded Goods
Dunlop India Ltd. - - 15.30 -
Dunlop Polymers Pvt. Ltd. - - 4227.04 -
Monotona Tyre Limited 7,017.91 - - 5,834.71
Remuneration
Pawan Kumar Ruia - - - -
Sunil Bhansali - - - -
A. Sadasivam - - - -
Umesh Bhargava - - - -
Mixing Charges
Dunlop India Ltd. - - 577.42 -
Others
Anoush Traders Pvt. Ltd. - - - 4.00
Falcon Tyres Impex Pvt. Ltd. - - 69.44 8.13
Jessop & Co. Ltd. - - - 1.54
Ruia Corporate Services
Pvt. Ltd. - - 21.85 -
Ruia Sons Pvt. Ltd. - - 76.41 28.57
Misc Management Charges
Ruia Sons Pvt. Ltd. - - 431.96 518.58
Assets
Advance Paid
Dunlop India Ltd. - - 2289.94 50.00
Falcon Tyres Impex Pvt. Ltd. - - 3.15 2.37
Falcon Tyres Rubbers
Pvt. Ltd. - - 0.38 0.36
Jessop & Co. Ltd. - - 16.00 -
Tulip Machineries Pvt. Ltd. - - 1,067.52 -
Vidyuth Petrochem Pvt. Ltd. - - 62.50 -
Walker Properties Pvt. Ltd. - - - 80.00
Advance given for purchase
of shares
Blessing Comercials
Pvt. Ltd. - - - 652.52
Assignments Transfer
Manali Properties &
Finance Pvt. Ltd. - - - 1,373.51
Sanjose Polymers Pvt. Ltd. - - - 140.00
Suryamani Financing
Co. Ltd. - - - 375.00
Investments
Invested in shares
Global Finvest Limited - - - 4.00
Monotona Tyres Limited 8,857.03 - - -
Liabilities
Unsecured Loan Taken
Manali Properties &
Finance Pvt. Ltd. - - - 1,000.00
Transfer of C& F Deposits
Dunlop India Ltd. - - 48.39 112.90
Assignments Transfer
Walker Properties Pvt. Ltd. - - - 80.00
Manali Properties &
Finance Pvt. Ltd. - - - 3,428.31
Sanjose Polymers Pvt. Ltd. - - - 140.00
Balance as on 30.09.2010
Loans and Advances
Dunlop India Ltd. - - 2289.94 -
Jessop & Co. Ltd. - - 16.00 -
Falcon Tyres Impex
Pvt. Ltd. - - 4.78 2.37
Ruia Sons Pvt. Ltd. - - 144.42 -
Ruia Corporate
Services Pvt. Ltd. - - 2.90 0.36
Tulip Machineires
Pvt. Ltd. - - 1067.52 -
Vidyuth Petrochem Pvt. Ltd. - - 62.50 -
Creditor Balance:
Dunlop Polymers Pvt. Ltd. - - 242.34 -
Falcon Tyres Impex
Pvt. Ltd. - - 1.34 2.33
Falcon Tyres Rubbers
Pvt. Ltd. - - 0.63 190.83
Monotona Tyres Limited 842.36 - - 288.52
Current liabilities:
Dunlop India Ltd. - - - 4.45
Manali Properties &
Finance Pvt. Ltd. - - 5,696.80 5,654.80
Suryamani Financing
Co. Ltd. - - 75.00 -
Receivable:
Falcon Tyres Impex
Pvt. Ltd. - - 149.23 76.11
(Rs.in Lacs)
Nature of Transaction Key Management Total
Personnel
30.09.2010 30.09.2009 30.09.2010 30.09.2009
Income
Sale of Finished Goods:
Falcon Tyres Impex Pvt. Ltd. - - 1,791.54 542.55
Sale of Materials
Dunlop India Ltd. - - 6.15 -
Dunlop Polymers Pvt. Ltd 4,447.49 -
Debit note on RM Purchases
Dunlop India Ltd. - - 28.96 84.43
Others
Dunlop India Ltd. - - 0.31 -
Dunlop Polymers Pvt. Ltd. - - 33.31 -
Monotona Tyres Limited - - 120.88 -
Expenses:
Royalty - -
Ruia Sons Pvt. Ltd. - - 1,193.89 775.01
Purchase of Traded Goods
Dunlop India Ltd. - - 15.30 -
Dunlop Polymers Pvt. Ltd. - - 4,227.04 -
Monotona Tyre Limited - - 7,017.91 5,834.71
Remuneration
Pawan Kumar Ruia 437.80 339.60 437.80 339.60
Sunil Bhansali 32.00 30.00 32.00 30.00
A. Sadasivam - 12.00 - 12.00
Umesh Bhargava - 17.96 - 17.96
Mixing Charges
Dunlop India Ltd. - - 577.42 -
Others
Anoush Traders Pvt. Ltd. - - - 4.00
Falcon Tyres Impex Pvt. Ltd. - - 69.44 8.13
Jessop & Co. Ltd. - - - 1.54
Ruia Corporate Services
Pvt. Ltd. - - 21.85 -
Ruia Sons Pvt. Ltd. - - 76.41 28.57
Misc Management Charges - -
Ruia Sons Pvt. Ltd. - - 431.96 518.58
Assets
Advance Paid
Dunlop India Ltd. - - 2,289.94 50.00
Falcon Tyres Impex Pvt. Ltd. - - 3.15 2.37
Falcon Tyres Rubbers
Pvt. Ltd. - - 0.38 0.36
Jessop & Co. Ltd. - - 16.00 -
Tulip Machineries Pvt. Ltd. - - 1,067.52 -
Vidyuth Petrochem Pvt. Ltd. - - 62.50 -
Walker Properties Pvt. Ltd. - - - 80.00
Advance given for purchase
of shares
Blessing Comercials
Pvt. Ltd. - - - 652.52
Assignments Transfer
Manali Properties &
Finance Pvt. Ltd. - - - 1,373.51
Sanjose Polymers Pvt. Ltd. - - - 140.00
Suryamani Financing
Co. Ltd. - - - 375.00
Investments
Invested in shares
Global Finvest Limited - - - 4.00
Monotona Tyres Limited - - 8,857.03 -
Liabilities:
Unsecured Loan Taken
Manali Properties &
Finance Pvt. Ltd. - - - 1,000.00
Transfer of
C & F Deposits
Dunlop India Ltd. - - 48.39 112.90
Assignments Transfer:
Walker Properties Pvt. Ltd. - - - 80.00
Manali Properties &
Finance Pvt. Ltd. - - - 3,428.31
Sanjose Polymers Pvt. Ltd. - - - 140.00
Balance as on 30.09.2010
Loans and Advances
Dunlop India Ltd. - - 2,289.94 -
Jessop & Co. Ltd. - - 16.00 -
Falcon Tyres Impex
Pvt. Ltd. - - 4.78 2.37
Ruia Sons Pvt. Ltd. - - 144.42 -
Ruia Corporate
Services Pvt. Ltd. - - 2.90 0.36
Tulip Machineires
Pvt. Ltd. - - 1,067.52 -
Vidyuth Petrochem
Pvt. Ltd. - - 62.50 -
Creditor Balance:
Dunlop Polymers Pvt. Ltd. - - 242.34 -
Falcon Tyres Impex
Pvt. Ltd. - - 1.34 2.33
Falcon Tyres Rubbers
Pvt. Ltd. - - 0.63 190.83
Monotona Tyres Limited - - 842.36 288.52
Current liabilities:
Dunlop India Ltd. - - - 4.45
Manali Properties &
Finance Pvt. Ltd. - - 5,696.80 5,654.80
Suryamani Financing
Co. Ltd. - - 75.00 -
Receivable:
Falcon Tyres Impex
Pvt. Ltd. - - 149.23 76.11
* Sales, Purchase & Other expenses are inclusive of Taxes
The above related party information have been disclosed to the extent such
parties have been identified by the management on the basis of information
available. This has been relied upon by the auditors.
14. Particulars in terms of disclosure required as per Clause 32 of the
Listing Agreement:
Amount of loans and advances in nature of loan to subsidiaries and
associates as on 30th September 2010
(Rs.in Lacs)
Party Name Maximum Outstanding Closing Outstanding
Dunlop India Limited 2289.94 2289.94
15. The Company's operations predominantly of only one product segment,
Tyres and Tubes. The export sales of the Company are insignificant as
compared to total sales during the year so as to constitute a geographical
segment. Therefore, seperate segment information as required in terms of
Accounting Standard (AS 17) on Segment Reporting has not been considered.
Further as income from Co-Gen is less than 10% of the total segment the
same has not been considered to be a separate segment.
16. Quantitative & Other Information
TYRES TUBES
Qty Value Qty Value
Nos Rs. in lacs Nos Rs. in lacs
Installed Capacity 10800000 5400000
(Per annum)* (10200000) (5400000)
Production ** 10211634 7255101
(11341202) (12817718)
Purchases-Factored 565632 4,395.25 6186489 7997.65
Goods (1174611) (11,315.59) (1469946) (1870.26)
Opening Stock 173065 617.90 577711 471.26
(352020) (1410.61) (504632) (467.70)
Sales 10523463 66418.14 12952018 17613.46
(12694768) (68306.17) (14214585) (16834.31)
Closing Stock 426868 2318.08 1067283 1219.63
(173065) (617.90) (577711) (471.26)
FLAPS TOTAL
Qty Value Value
Nos Rs. in lacs Rs. in lacs
Installed Capacity
(Per annum)*
Production **
Purchases-Factored 1237 1.87 12,394.77
Goods (6216) (6.65) (13,192.50)
Opening Stock 2211 2.24 1,091.40
(1238) (0.49) (1,878.80)
Sales 866 1.21 84,032.81
(5243) (5.82) (85146.30)
Closing Stock 2582 3.15 3,540.86
(2211) (2.24) (1,091.40)
Tonnage Information (Metric Ton)
Tyres Tubes
Installed Capacity (Per annum) 36183 2566
(33528) (2495)
Production 34212 3448
(37980) (5987)
* The installed capacity is as certified by the management, and being a
technical matter reliance has been placed by the auditors.
** Production includes, Production on Job Work basis.
Previous year's figures are not comparable as current year figures are for
12 months and previous year figures are for 18 months.
17. Raw materials, stores and spares consumed:
Particulars 30.09.2010 30.09.2009
(12 months) (18 months)
QTY. VALUE QTY. VALUE
In M.T. Rs. in In M.T. Rs. in
lacs lacs
Rubber and Rubber products 21198 24743.79 23293 21982.65
Fabric 2330 5606.57 2699 5702.32
Carbon Black 10388 5812.58 11433 6150.87
Chemicals 4826 3709.21 5677 4238.68
Others 2109 2159.76 2337 2494.69
Total - Raw Materials 40851 42031.91 45439 40569.21
Stores and Spares 185.77 218.01
Total 42217.68 40787.22
Note: Consumption of Raw Materials includes sale of Raw Materials
18. Expenditure in foreign currency
- Travelling - Rs. 26.75 Lacs (Rs. 4.38 Lacs)
- Royalty - Rs.141.44 Lacs ( Rs. 57.92 Lacs)
- Others - Rs.Nil ( Rs. 0.71 Lacs)
19. Remittances in foreign currency for Dividends:
The Company has remitted the Dividend in foreign currency for the year
ended 30.09.2010 is as follows:
(Rs.in Lacs)
Particulars No.of Non-Resident No. of Equity Gross amount
Shareholders Shares held of Dividend
Final Dividend for
the period ended
30.09.2009 1 23513100 214.93
20. Research and Development Expenditure (charged to Profit and Loss
Account) - Rs.17.58 Lacs (Rs. 15.02 Lacs)
21. CIF Value of imports during the period
Particulars 30.09.2010 30.09.2009
(12 months) (18 months)
QTY. VALUE QTY. VALUE
In M.T. Rs. in In M.T. Rs. in
lacs lacs
Raw Materials 6242.50 7215.19 6121.40 6597.74
Capital Goods - 2.48 - 15.00
Stores & Spares - - - 0.34
Total 7217.67 6613.08
22. Value of Raw Materials, Spares and Components consumed
Particulars 30.09.2010 30.09.2009
(12 months) (18 months)
VALUE % of Total VALUE % of Total
Rs. in consumption Rs. in consumption
Lacs Lacs
Raw materials
a) Imported 6917.56 16.46% 6562.45 16.20%
b) Indigenous 35114.35 83.54% 34006.76 83.80%
Total 42031.91 100.00% 40569.21 100.00%
Stores & Spares
a) Imported - - 0.34 0.20%
b) Indigenous 185.77 100.00% 217.67 99.80%
Total 185.77 100.00% 218.01 100.00%
23. Earnings in Foreign Exchange on account of export of goods calculated
on FOB basis Rs. 1315.66 Lacs (Rs.3828.35 Lacs)
24.a) The Previous year's figures have been re-grouped/re-arranged wherever
considered necessary.
b) Figures in brackets relates to the previous year.
c) Previous year's figures are not comparable as current year figures are
for 12 months and previous year figures are for 18 months.
As per our report of
even date attached
For and on behalf of For and on behalf of the Board
K.N.Gutgutia & Co.
Chartered Accountants
Subhasish Pore M.C. Bhansali Sunil Bhansali S. Ravi
Partner Company Secretary Executive Director Director
Membership No.: 055862
Kolkata, 12th November, 2010
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