Rico Auto

1.  Building includes cost of leasehold land & building at Ambernath
 (Mumbai) Maharashtra amounting to Rs.0.44 crore (Previous year Rs. 0.44
 crore).
 
 2.  Lease hold land includes Rs.15.30 crores (Gross) of land situated
 at Oragadam (Chennai), Bommasandra (Bangalore) and Singur (West Bengal)
 (Previous year Rs.12.26 crores).
 
 3.  The Company had acquired Land in Singur (West Bengal) for setting
 up the plant for supply of components to Tata Motors Limited for their
 Nano Car Project. The Company has invested some amount of money on this
 project. But due to some abnormal circumstances, beyond the control of
 the Company, the work of the project has been stopped.
 
 4.  In the opinion of the Board of Directors, the Current Assets, Loans
 and Advances are having the value at which they are stated in the
 Balance Sheet, if realized in the ordinary course of business save as
 otherwise stated in this Balance Sheet elsewhere.
 
 5.  Sundry Debtors (Schedule 7) includes the following balances
 outstanding in name of the Companies in which any director of the
 Company is interested:
 
 6.  Disclosure under Accounting Standard (AS) 19 on leased assets and
 lease rent.
 
 i) Lease payments recognized in the statement of Profit & Loss Account
 for the year ended 31.03.2009:
 
 a) Minimum lease rent paid Rs.5.40 crores (Previous year Rs. 5.49
 crores).
 
 ii) Total amount of future minimum lease rent payments under
 non-cancellable operating lease periods:
 
 a) not later than one year Rs.1.84 crores (Previous year Rs.5.33
 crores).
 
 b) later than one year but not later than five year Rs.0.03 crore
 (Previous year Rs.1.79 crores).
 
 c) The Company had acquired Leasehold Land at Singur (West Bengal) and
 Oragadam (Chennai). The total amount of future minimum lease rent
 payment under non-cancellable operating lease period for more than five
 years is Rs.1.02 crores.
 
 iii) General description of significant operating lease arrangements:
 
 a) Lease tenure 42 and 72 months in case of Land lease tenure is 6
 years & 90 years.
 
 b) In case of one lease agreement, advance notice of 60 days is
 required for cancellation of agreement on payment of Rs.20,000/- c) At
 the end of the lease period, the Company has options to return the
 equipments, right to purchase the equipments at fair market value or to
 enter into lease agreement for secondary period.
 
 7. The Company operates in manufacturing of Auto Components and
 Business Process Management (BPM) services. Revenue and profit/(loss)
 generated by BPM Division is less than 10% of total revenue &
 profit/(loss) of the Company, therefore this is not a reportable
 segment, and disclosure under Accounting Standard (AS-17) on Segment
 Report is not applicable.
 
 B.  Key Management Personnel
 
 Details of Key Managerial Personnel are as under:
 
 i) Shri Arvind Kapur - Vice Chairman, CEO & Managing Director
 
 ii) Shri Arun Kapur - Joint Managing Director
 
 i) Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advances) Rs. 30.59 crores
 (Previous year Rs.12.99 crores).
 
 ii) Banks have given guarantees on behalf of the Company for Rs.1.98
 crores (Previous year Rs.1.98 crores).
 
 iii) Letters of Credit outstanding in favour of suppliers for Rs.4.15
 crores (Previous year Rs.15.34 crores).
 
 iv) The Company has executed General Surety Bonds for Rs.1.00 crore
 (Previous year Rs.1.00 crore) in favour of The President of India,
 under Central Excise Act, 1944.
 
 v) Disputed statutory demands in appeals before relevant Honble
 Appellate Authorities :
 
 a) Sales Tax Rs.6.34 crores (Previous year Rs.6.34 crores).
 
 b) Central Excise & Service Tax Rs.3.79 crores (Previous year Rs.1.87
 crores).
 
 c) Local Area Development Tax (LADT) Rs.0.01 crore (Previous year
 Rs.0.01 crore).
 
 d) Income Tax Rs.0.91 crore (Previous year Rs. Nil).
 
 vi) Surety Bonds executed in favour of The President of India, under
 Export Promotion Capital Goods (EPCG) Scheme for importing Capital
 goods at concessional rate of custom duty, amounting to Rs.122.19
 crores (Previous year Rs.122.19 crores).
 
 Based on favourable judgements in similar cases, legal opinion taken by
 the Company, discussions with the solicitors etc. the Company believe
 that there is fair chance of decisions in favour in respect of the
 items listed at (v) (a) (b) (c) and (d) above. Hence no provision has
 been considered necessary against the same.
 
 8.  With effect from 1st April, 2008 the Company has chosen to follow
 the principles of Accounting Standard (AS-30) Financial Instruments
 Recognition and Measurement in respect of its derivative financial
 instruments that are not covered by (AS-11) Accounting for the Effects
 of changes in Foreign Exchange Rates and that relate to a firm
 commitment or a highly probable forecast transactions. In accordance
 with (AS-30), such derivative financial instruments, which qualify for
 cash flow hedge accounting and where the Company has met all the
 conditions of effective cash flow hedge accounting, are fair valued at
 March 31, 2009 and the resultant transitional exchange loss (notional)
 of Rs.2.82 crores is debited to the Hedging Reserve and credited to
 Provision for Fair valuation loss on Derivatives. The actual
 (gain)/loss, if any, would be recorded in profit and loss account of
 the years in which the underlying transactions are actually settled and
 reversed from the Hedging Reserve Account.
 
 9.  Managerial Remuneration to Managing Director & Joint Managing
 Director:
 
 The Company has paid Rs.1.39 crores as Managerial Remuneration to the
 Managing Director & Joint Managing Director, which is in excess of the
 limits under the Companies Act. Had the Company accounted for the
 managerial remuneration in accordance with the Act, the Profit after
 tax would have been higher by Rs.0.60 crore and Loans and Advances
 would have been higher by Rs.0.91 crore. The Company is in the process
 of filing an application to the Central Government for waiver of the
 excess remuneration.
 
 10.  The amount has been given in Crore Rupees unless otherwise stated.
 
 11.  Previous year figures have been re-grouped or re-arranged wherever
 found necessary.