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NOTES TO ACCOUNTS

Galaxy Bearings Ltd.

You can view the entire text of Notes to accounts of the company for the latest year
Market Cap. (₹) 41.53 Cr. P/BV 1.30 Book Value (₹) 100.14
52 Week High/Low (₹) 227/83 FV/ML 10/1 P/E(X) 6.30
Bookclosure 25/09/2015 EPS (₹) 20.73 Div Yield (%) 0.00
Year End :2018-03 

1. Corporate Information

Galaxy Bearings Limited (referred to as ‘the company’) is a leading in manufacturing & trading of Ball and Taper Roller Bearing and Steel etc. The company has its registered office at T-18, Vikram Chambers, Ashram Road, Ahmadabad - 380009, Gujarat, India.

2 Contingent liabilities

Disputed Demand of Excise Rs. 2.85 I.acs (P.Y. Rs2.85 Lacs) [Against which company has paid Rs.0.21 Lacs (P.Y. Rs.0.21 Lacs) under protest which arc shown as Advances.

There is no Contract remaining outstanding to be executed on capital account

3 Segment Reporting

The Company’s management, consisting of the chief executive officer, the chief financial officer and the manager for corporate planning, monitors the operating results of the below business segments separately for the purpose of making decisions about resource allocation and performance assessment and accordingly, based on the principles for determination of segments given in Indian Accounting Standard 108 “Operating Segments “and in the opinion of management the Co. is primarily engaged in the business of Ball & Roller Bearings. All other activities of the Co. revolve around the main business and as such there is no separate reportable business segment.

The operations of the company are confined to India as well as outside India with export contributing to 62.34% (P.Y. 53.78 %) of annual turnover. Hence in view of the management India and exports market represents different geographical segment.

Secondary segment information for the year ended 31st March, 2018.

4 The financial statement are recommended for issue by the Audit Committee as at its meeting on 18th May 2018 and approved by the Board of Directors on 19th May, 2018.

5 The board has not recommended dividend.

6 Transition to Ind-AS

These financial statements, for the year ended 31 March 2018, are the first the company has prepared in accordance with Ind-AS.

The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and the opening Ind AS balance sheet at 1 April 2016 (the Company’s dale of transition to Ind AS). In preparing its opening Ind AS balance sheet the company has adjusted amount reported previously in financial statements in accordance with accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the act (previous GAAP). An explanation of how transition from previous GAAP to Ind AS has affected the Company’s financials position, financial performance and cash flows is set out in following tables and notes.

6.1 Exemptions and exceptions availed

Ind AS 101, permits a first time adopter to elect to continue with carrying value for ail of its property, plant and equipment as recognised in the financial statements as at date of transaction to Ind AS, measured as per previous GAAP and use that as demeed cost as at date of transition after making necessary adjustments. Accordingly, company has elected to measure of its properly, plant and equipment at their previous GAAP carrying value.

1 Trade Receivables

Under previous GAAP, provisions were made for specific receivables if collection was doubtful,. Under Ind AS 109, the Company has applied expected credit loss model for recognising allowance for doubtful debt. Expected credit loss model reflects an unbiased and probabilty-weighted amount that is determined by evaluating a range of possible outcomes and also includes loss for the time value of money.

2 Retained Earnings

Retained earnings as at April 1, 2015 has been adjusted consequent to the above Ind AS transition adjustments.

3 Deferred Tax Liabilities (Net)

Tax adjustments include deferred tax impact on account of differences between previous GAAP and Ind AS which are mainly on fair value of investment, expected credit loss allowance and employee benefit obligations.

4 Current Investments

Under previous GAAP, the company accounted for short term investments in mutual funds as investment measured at cost. As per Ind AS, investments in liquid mutual funds have been revalued at fair value. The resulting fair value changes of these investments have been recognised in profit and loss.

5 Remcasurement of post employment benefit obligations

As per Ind AS, remeasurement of defined benefit plans have been disclosed under ‘Other Comprehensive Income” (OCI), which was being debited to statement of profit and loss under previous GAAP. As a result, Company recognised Liabilty or (Asset) under Provisions or Other Current Assets respectively.

6 Excise Duty

Under previous GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is separately presented on the face of statement of profit and loss.

7 Other Comprehensive Income

As per Ind AS, re-measurement of defined benefit plans have been disclosed under ‘Other Comprehensive Income” (OCI). The impact of tax has been disclosed separetely. The re-measurement of defined benefit plans was being debited to statement of profit and loss under previous GAAP.

7. In the opinion of Management, any of the assets other than items of property, plant and equipment, intangible assets and Non-Current Investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated, unless otherwise stated.

8. Borrowing costs attributable to the acquisition or construction of Qualifying Assets amounting to Rs. Nil (Previous Year Rs. Nil) is capitalized by the company.

9. In the opinion of Management, any of the assets other than items of property, plant and equipment, intangible assets and Non-Current Investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated, unless otherwise stated.

10. On periodical basis and as and when required, the Company reviews the carrying amounts of its assets and found that there is no indication that those assets have suffered any impairment loss. Hence, no such impairment loss has been provided in the Financial Year 2017-18 (Previous Year Rs. Nil).

11. Balances of trade payables, trade receivables, loans & advances, advances from customers, other non -current/current liabilities have been taken as per books are subject to reconciliation / confirmation and consequential adjustments, if any.

12. Previous year’s figures have been regrouped and rearranged wherever necessary, to make them comparable with those of current year.

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