1.1 Basis for preparation of accounts:
The Accounts have been prepared to comply in all material aspects with
applicable Accounting Principles in India, the applicable Accounting
Standards notified under Section 2, Clause (2) of The Companies Act,
2013 and the relevant provisions thereof. Financial Statements are
prepared based on historical cost and on the basis of a going concern.
The Company follows the mercantile system of Accounting and recognizes
income and expenditure on an accrual basis.
1.2 Fixed Assets:
Fixed Assets are stated at cost of acquisition inclusive of freight,
taxes, insurance etc. relating to the acquisition including
installation/erection charges up to the date the asset is put to use,
Borrowing costs attributable to acquisition /construction or production
of a qualifying asset is capitalized as a part of cost of the asset.
The Company is providing depreciation on Written Down Value (WDV)
method in respect of all Fixed Assets capitalized up to 31st March,
In respect of additions from 1st April, 1997, the Company is providing
depreciation by adopting Straight Line method. Software, being
intangible asset is depreciated at 20% on straight line basis in line
with AS 26.
Leasehold land is amortized over the period of the Lease.
Depreciation on additions during the year is provided on pro-rata
The company has adopted useful lives in accordance with Part C of
Schedule II of the Companies Act, 2013 for all tangible fixed assets
and accordingly has revised the remaining useful life of all existing
tangible assets (other than Plant and Machinery and Electrical
Installation) as on 01.04.2014.
For Plant and Machinery and Electrical Installations based on internal
assessment and independent technical evaluation carried out by a
Chartered Engineer, the Company has adopted useful life as stated below
which is different from the Useful Life specified under Schedule II of
the Companies Act, 2013.
Asset Class Life AdoPted Life SPecified under Part C of Schedule 11
Asset iiass Life Adopted of the Companies Act 2013
Plant & Machinery 20 Years 15 Years
Electrical Installation 20 Years 10 Years
1.3 Revenue Recognition:
Sales are stated at net of returns and sales tax. The Excise Duty
relatable to sales is separately disclosed and deducted from Sales.
Sales Revenue is recognized when significant risks and rewards of
ownership of the goods have passed to the buyer.
Dividend income from investments is accounted for when the right to
receive the payment is established.
Interest Income is recognized on a time proportion basis taking in to
account the amount outstanding and the rate applicable.
Investments are classified into Current and Non Current investments.
Current investments are stated at the lower of cost and fair value. Non
Current investments are stated at cost.
1.5 Impairment of Assets:
Impairment loss, if any is provided to the extent, the carrying amount
of the assets exceeds their recoverable amount. Recoverable amount is
higher of an asset''s net selling price and its value in use. Value in
use is the present value of estimated future cash flows expected to
arise from the continuing use of an asset and from its disposal at the
end of its useful life.
1.6 Trade Receivables and Loans and advances:
Sundry Debtors and Loans and advances are stated after making adequate
provisions for doubtful balances.
A Provision is recognized when there is a present obligation as a
result of a past event, it is probable that an outflow of resources
will be required to settle the obligation and in respect of which
reliable estimate can be made. Provision is not discounted to its
present value and is determined based on the best estimate required to
settle the obligation at the year end date. These are reviewed at each
year end date and adjusted to reflect the best current estimate.
1.8 Retirement /Post Retirement Benefits:
The Company also provides for retirement/post retirement benefits in
the form of Gratuity, Pension and Leave Encashment. Such benefits are
provided for based on the valuations, as at the Balance Sheet date,
made by independent actuaries. Termination benefits are recognized as
an expense as and when incurred.
1.9 Taxes on Income:
Current Tax is determined as the amount of tax payable in respect of
taxable income for the period.
Deferred tax is recognized, subject to the consideration of prudence,
on timing differences, being the difference between the taxable incomes
and accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax assets are not
recognized on unabsorbed depreciation and carry forward of losses
unless there is virtual certainty that sufficient future taxable income
will be available against which such deferred tax asset can be
1.10 Foreign Currency Transactions:
Transactions in foreign currency are recorded at exchange rates
prevailing at the time of the transactions and exchange difference
arising from foreign currency transaction are dealt with in the profit
and loss account and capitalized where they relate to the Fixed Assets.
Current Assets and Liabilities at year end are being converted at
closing rates and exchange gains /losses are dealt with in the profit
and loss account, as per AS 11.
1.11 Grant / subsidies
Grant / subsidy received under Central Investment Subsidy Scheme is
directly credited to capital reserve.
Inventories are valued at lower of cost, computed on a weighted average
basis and estimated net realizable value, after providing for cost of
obsolescence and other anticipated losses, wherever considered
necessary. Finished goods and Work in Progress include cost of
conversion and other costs incurred in bringing the inventories to
their present location and condition.
1.13 Borrowing costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of cost of
such asset. As per AS-16 Borrowing costs, a qualifying asset is one
that takes necessarily substantial period of time to get ready for its
intended use. All the other borrowing costs are expensed as and when
1.14 Earnings per share
Basic earnings per share is calculated by dividing the net profit or
loss for the year attributable to equity share holders by weighted
average number of equity shares outstanding during the year. For the
purpose of calculating diluted earnings per share, the net profit or
loss for the year attributable to equity share holders and weighted
average number of shares outstanding during the year are adjusted for
the effects of dilutive part of equity shares, if any.
1.15 Segment Reporting
Identification of Segments
The Company has complied with AS 17 Segment Reporting with the
business as its primary segment. The risk and returns are very similar
in different geographical areas and hence there is no reportable
secondary segment as defined in AS-17.
Revenues have been identified to segments on the basis of their
relationship to the operative activities of the segment. Revenues and
expenses that relate to the enterprise as a whole and are not allocable
to segments on a reasonable basis have been included under
Un-allocable expenses .
2.32 The previous year''s figures have been regrouped and reclassified
wherever necessary to make them comparable with the figures of the
2.33 (a) The company has created a Trust which has taken a Group
Gratuity Policy with the Life Insurance Corporation of India for future
payment of gratuity to retired / resigned employees. Based on the
actuarial valuation, provision has been made for the full value of the
gratuity benefits as per the requirements of Accounting Standard
(AS-15) (Revised) issued by The Institute of Chartered Accountants of
(b) The Company contributes to a Superannuation Fund covering specified
employees. The Contributions are by way of annual premia payable in
respect of a superannuation policy issued by the Life Insurance
Corporation of India, which confers benefits to retired / resigned
employees based on policy norms. No other liabilities are incurred by
the Company in this regard.
(c) Leave encashment benefit has been charged to Profit & Loss account
on the basis of actuarial valuation as at the year end in line with the
Accounting Standard (AS -15) (Revised) issued by The Institute of
Chartered Accountants of India.
DEFINED BENEFIT PLAN:
The Employees'' Gratuity Fund Scheme managed by a Trust is defined
The present value of obligation is determined based on actuarial
valuation using Projected Unit Credit method which recognizes each
period of service as giving rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation as per Para 65 of the Accounting Standard AS - 15 (Revised),
issued by the Institute of Chartered Accountants of India.
The obligation for Leave Encashment is recognized in the same manner as
2.37 Based on data received from Vendors, the amount due to MSMED is
ascertained as Rs. 2050.28 lakhs. There are no over dues.
2.38 The company has two segments namely Kitchen Appliances and
Property & Investment for reporting purposes.
2.39 Related Party transactions as per Accounting Standard - 18:
(a) The Company has transactions with the following entities
Related Party - Enterprises over which Key Management personnel have
significant control TTK Health Care Limited, TTK Protective Devices
Limited, TT Krishnamachari & Co., TTK Services (P) Limited.
Key Management Personnel and their Relatives:
Mr. T.T. Jagannathan, Mr. T.T. Raghunathan, Mr. S. Ravichandran, Mr. K.
Shankaran, Dr. (Mrs.) Latha Jagannathan, Dr. T.T. Mukund, Mr. T. T.
Venkatesh, Mrs. Bhanu Raghunathan, Mrs. Shanthi Ranganathan, Mr. V.