WABCO-TVS (INDIA) LIMITED INFORMATION MEMORANDUM ...

WABCO-TVS (INDIA) LIMITED INFORMATION MEMORANDUM
equity share of Rs.5/- credited as fully paid up for every one equity share of
Rs.10/- held in the Demerged Company.
2.3 In terms of the Scheme, the appointed date for the transfer of the demerged
undertaking, namely brakes business is 1 st January 2007, the shares were
deemed to have been allotted from the Appointed date.
2.4 In terms of the Scheme, the share capital of Rs.5.00 lakhs held by the
Demerged Company stood cancelled and got extinguished and
correspondingly, the aforesaid amount has been credited to ‘capital
reorganization reserve’ as stated in the financial accounts of the Company for
the year ended 31 st March 2008.
2.5 The general reserves of the Company for the year ended 31 st March 2008
include Rs.7,832.12 lakhs being the reserves and Rs.3,435.13 lakhs being
balance in the profit and loss account i.e. surplus transferred from the
Demerged Company in terms of the Scheme.
3. Secured Loans:
The Company did not have any outstanding secured loans as at March 31, 2005,
March 31, 2006 and March 31 2007. The secured loans as at 31 st March 2008
represents cash credit availed from the State Bank of India, CAG Branch, Chennai
600 006.
4. Unsecured Loans:
Unsecured loan for the year ended 31 st March 2008 represents unsecured loan
availed from State Bank of India, Chennai 600 006 against current account.
5. Inventories:
Inventories are valued in accordance with the method of valuation prescribed by
The Institute of Chartered Accountants of India at lower of weighted average cost
or net realisable value.
6. Retirement benefits:
i. Retirement benefits in the form of Provident Fund and Superannuation
Schemes are charged to the Profit and Loss Account of the year when the
contributions to the respective funds are due.
ii. Gratuity liability under the Payment of Gratuity Act 1972 and provision for
leave encashment is provided for on the basis of actuarial valuation made at
the end of each financial year.
iii. Retirement benefits also include payments made under the Voluntary
Retirement Scheme and senior staff pension.
7. Provisions:
A provision is recognised when an enterprise has a present obligation as a result
of past event; it is probable that an outflow of resources will be required to settle
the obligation, in respect of which a reliable estimate can be made. Provisions are
not discounted to its present value and are determined based on best estimate
required to settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best estimates.
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