Stovec Industries Ltd.


Apr 28, 11:39
2465.00 -44.90 ( -1.82 %)
VOLUME : 175
BID PRICE(QTY.) 2466.00 (5)
2491.10 (5)
Stovec Industries Ltd. is not traded in NSE

Notes to Accounts

Market Cap.(`) 514.70 Cr. P/BV 5.72 Book Value (`) 430.62
Bookclosure 11/05/2017 FV/ML 10/1 P/E(X) 20.63
EPS (`) 119.47 Div Yield (%) 1.26
You can view the entire text of Notes to accounts of the company for the latest year
Year End :2015-12 
  1. General Information


Stovec Industries was incorporated in 1973, in Ahmedabad, Gujarat. The Company is listed on
Bombay Stock Exchange. The Company has three major Business Profile divisions : Textile
Machinery, Graphics and Galvanic Screens. It manufactures and markets Perforated Rotary and
Engraved Cylindrical Screens, Galvano Consumables and Screen Printing Machines.


Revised estimated useful life of the assets are as mentioned below:

Description of the asset

Useful Life (Years)


5 to 60

Plant and Equipment

7.5 to 15


3 to 6

Furniture and Fixtures


Office Equipments, Air Conditioners and Cooler etc.





Intangible Assets


Intangible Assets are stated at acquistion cost, net of accumulated amortization and accumulated
impairment losses, if any. Intangible Assets are amortized on a straight - line basis (pro-rata from
the date of additions) over there estimated useful lives. The useful lives are as under:


Description of the asset

Useful Life (Years)

Computer Software




Technical/ Commercial Know-how



  1. Foreign Currency Transactions


  2. Initial Recognition


On initial recognition, all foreign currency transactions are recorded by applying to the foreign currency
amount the exchange rate between the reporting currency and the foreign currency at the date of the


Subsequent Recognition


As at the reporting date, non-monetary items which are carried in terms of historical cost denominated
in a foreign currency are reported using the exchange rate at the date of the transaction. All monetary
assets and liabilities in foreign currency are restated at the end of accounting period.

Exchange differences on restatement of all monetary items are recognised in the Statement of Profit
and Loss.


Forward Exchange Contracts


The premium or discount arising at the inception of forward exchange contracts entered into to hedge
an existing asset / liability, is amortised as expense or income over the life of the contract. Exchange
differences on such a contract are recognised in the Statement of Profit and Loss in the reporting period
in which the exchange rates change. Any profit or loss arising on cancellation or renewal of such a
forward exchange contract are recognised as income or as expense for the period.


  1. Investments


Investments that are readily realisable and are intended to be held for not more than one year from the
date, on which such investment are made, are classified as Current Investment. All other Investments
are classified as Long Term Investments. Current Investments are carried at cost or fair value,
whichever is lower. Long Term Investments are carried at cost. However, provision for dimunition is
made to recognise a decline, other than temporary, in the value of the investments, such reduction
being determined and made for investment individually.


  1. Employee Benefits


  1. Short Term Employee Benefits:


The employees of the Company are entitled to leave encashment as per the leave policy of the
Company. The liability in respect of leave encashment of short term nature is provided, based on
an actuarial valuation carried out by an independent actuary as at the year-end.


  1. Long Term Employee Benefits:


Defined Contribution Plans


The Company has Defined Contribution plans for post employment benefits namely Provident Fund.
The Company contributes to a Government administered Provident Fund and has no further
obligation beyond making its contribution.


The Company makes contributions to state plans namely Employee's State Insurance Fund and
Employee's Pension Scheme 1995 and has no further obligation beyond making the payment to them.
The Company's contributions to the above funds are charged to Statement of Profit and Loss every

Defined Benefit Plans


The Company has Defined Benefit Plan comprising of Gratuity and Leave Encashment. The
Company contributes to the Gratuity Fund which is recognised by the Income Tax Authorities and
administered through its trustees.


Liability for Defined Benefit Plans is provided on the basis of actuarial valuation, as at the Balance
Sheet date, carried out by an independent actuary using the Projected Unit Credit Method.


  1. Termination benefits are recognised as an expense as and when incurred.


  2. Actuarial gains and losses comprise experience adjustments and the effects of changes in actuarial
    assumptions and are recognised immediately in the Statement of Profit and Loss as income or


  1. Research and Development Expenditure

Research and development expenditure is charged to revenue under the natural heads of account in the
year in which it is incurred. However, development expenditure qualifying as an intangible asset, if any,
is capitalised, to be amortized over the economic life of the product. Research and development
expenditure on fixed asset is depreciated in accordance with the useful life specified in paragraph (d)


  1. Operating Leases


As a lessee:

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor
are classified as operating leases. Payments made under operating leases are charged to the
Statement of Profit and Loss on a straight-line basis over the period of the lease.


As a lessor:

The Company has leased certain tangible assets and such leases where the Company has substantially
retained all the risks and rewards of ownership are classified as operating leases. Lease income on
such operating leases are recognised in the Statement of Profit and Loss on a straight line basis over
the lease term.


j) Taxes on Income


Provision for tax for the year is made on the assessable income at the tax rate applicable to the relevant
assessment year.


Deferred tax is recognised for all the timing differences, subject to the consideration of prudence in
respect of deferred tax assets. Deferred tax assets are recognised and carried forward only to the
extent that there is a reasonable certainty that sufficient future taxable income will be available against
which such deferred tax assets can be realised.


Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been
enacted or substantively enacted by the Balance Sheet date. At each Balance Sheet date, the
Company re-assesses unrecognised deferred tax assets, if any.
k) Warranty

A provision is recognised for expected warranty claims on products sold, based on past experience of
level of repairs and returns. Assumptions used to calculate the provision for warranties are based on
current sales level and current information available about returns.


J) Impairment of Assets

The Company assesses at each Balance Sheet date whether there is any indication that asset may be
impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the cash generating unit to which
the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is recognised in the Statement of Profit and


  1. Provisions and Contingent Liabilities


Provisions: Provisions are recognised when there is a present obligation as a result of a past event, it
is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at
the best estimate of the expenditure required to settle the present obligation at the Balance sheet date
and are not discounted to its present value.


Contingent Liabilities: Contingent liabilities are disclosed when there is a possible obligation arising from
past events, the existence of which will be confirmed only by the occurrence or non occurrence of one
or more uncertain future events not wholly within the control of the Company or a present obligation
that arises from past events where it is either not probable that an outflow of resources will be required
to settle or a reliable estimate of the amount cannot be made, is termed as a contingent liability.

n) Accounting Estimates


The preparation of financial statements requires estimates and assumptions to be made that affect the
reported amounts of assets and liabilities on the date of financial statements and the reported amounts
of revenue and expenses during the reporting period. Difference between the actual results and the
estimates are recognised in the year in which the results are known/ materialised.






As at

As at


December 31, 2015

December 31, 2014


( ' )

( ' )

3) Share Capital

2,900,000 (December 31, 2014: 2,900,000)
Equity Shares of ' 10/- each



10,000 (December 31, 2014: 10,000)
Preference Shares of ' 100/- each






Issued, Subscribed and Paid-up:

2,088,016 (December 31, 2014: 2,088,016)
Equity Shares of ' 10/- each fully paid-up






a) Reconciliation of number of shares




For the year ended
December 31, 2015

For the year ended
December 31, 2014


(No. of Shares)


(No. of Shares)


Balance at the beginning of the year





Add: Shares issued during the year





Balance as at the end of the year





  1. Rights, preferences and restrictions attached
    to shares

Equity shares: The Company has one class of
equity shares having a par value of ' 10 per share.

Each shareholder is eligible for one vote per share
held. In the event of liquidation, the equity
shareholders are eligible to receive the remaining
assets of the Company after distribution of all
preferential amount, in proportion to their

  1. Shares in the company held by its Holding
    Company and subsidiaries of Holding Company
    in aggregate

1,483,777 (December 31, 2014: 1,482,493)

Equity shares of ' 10/- each fully paid up are 14,837,770 14,824,930

held by SPGPrints B.V. The Netherlands, the Holding


  1. Details of equity shares held by shareholders
    holding more than 5% shares of the aggregate
    shares in the Company

Number of shares 1,483,777 1,482,493

SPGPrints B.V. - The Netherlands, the Holding

Company 71.06% 71.00%

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