| 1.OVERVIEW
The Company having its registered office at 5th floor,501, Copia
Corporate Suites, Distt. Centre - Jasola,
New Delhi - 110 025, is engaged in the business of manufacturing of
Color Picture Tubes for Color Televisions, Color Electron Guns and
Deflection Yoke in its manufacturing facilities located at Ghaziabad,
Distt. Gautam Buddh Nagar - (Uttar Pradesh), Kota - (Rajasthan) and
Parwanoo, Distt. Solan - (Himachal Pradesh). The Company is listed on
the National Stock Exchange of India and Bombay Stock Exchange of
India.
2. Rights, preferences and restrictions attached to Shares
The Company has only one class of Equity Shares having a par value of
Rs.10 per Share. Each Shareholder is eligible for one vote per Share
held. The Company declares dividends in Indian rupees. The dividend
proposed by the Board of Directors is subject to the approval of the
Shareholders in the ensuing Annual General Meeting, In the event of
liquidation, the Equity Shareholders are eligible to receive in
proportion to their Shareholding, the assets of the Company remaining
after distribution of preferential amount.
3.The Company has one class of &% Non Convertible Cumulative Redeemable
Preference Shares having a par value of Rs.100 per Share. Each
Shareholder (subject to section 87 of the Companies Act 1956 and CDR
Scheme) is eligible for one vote per Share held on resolution placed
before the Company which directly affect the rights attached to his
Preference Shares, entitled to Preferential Dividend at a fixed rate.
In the event of liquidation, the Preferential Shareholders are eligible
to receive the remaining assets of the Company in proportion to their
class of Shareholding. These Shares are redeemable in quarterly
installments commencing from June 2017 at a value of Rs,527,51 lacs
each.
4. The Company has one class of 0% Non Convertible Cumulative Redeemable
Preference Shares having a par value of Rs.100 per Share. Each
Shareholder (subject to section 87 of the Companies Act 1956 and CDR
scheme) is eligible for one vote per Share held on resolution placed
before the Company which directly affect the rights attached to his
Preference Shares, in the event of liquidation, the Preferential
Shareholders are eligible to receive the remaining assets of the Company
in proportion to their class of Shareholding. Among these, Shares
amounting to Rs.60.02 lacs were due for redemption at par in June 2011 &
amounting to Rs.909.14 lacs were due for redemption at par in September
2011.
5. Terms of Securities Convertible into Equity/ Preference Shares
alangwith earliest conversion date
* The Company had received in 2010-11, Rs.3,000 lacs against which
2,06,18,557 number of Share Warrants having optional right of
conversion into one Equity Share (against each Warrant) of face value
of Rs.10.00 each at a premium of Rs. 4.55 per Share to be issued to
Promoters Group Company in terms of CDR scheme. These Warrants are
convertible into Equity Shares on receipt of necessary approval from
the stock exchanges which is pending for want of an undertaking from
CDR lenders.
6. Forfeited Shares (amount originally paid up)
The Company has forfeited 6,000 number of Equity Shares having par
value of Rs.10 on which Rs. 5 was paid up. These Shares were forfeited
on 23 July, 1992. These Shares are available for reissue.
7. Hypothecation charge is created / to be created over current and
moveable assets and first charge over immoveable properties, by way of
deposit title deeds of the immoveable properties (both present and
future) of the Company on pari- passu basis in favour of 3i tnfotech
Trusteeship Services Limited (Security Trustee of CDR Lenders) pursuant
to Corporate Debt Restructuring (CDR) scheme.
8. personal Guarantee of Mr. Satish K. Kaura, Chairman and Managing
Director.
9.Pledge of 2,26,77,186 nos. (Previous year 2,26,77,186 nos.) equity
shares of Samtei Color Limited held by promoter Companies with Infotech
Trusteeship Services Limited (Security Trustee on behalf of CDR
Lenders).
10. Pledge IS,00,000 nos, (Previous year 15,00,000 nos.) shares of
Samtei Glass Limited with 3i infotech Trusteeship Services Limited
(Security Trustee on behalf of CDR "/TTX Lenders) pending creation of
security on the Kota leasehold land.
11.Rupee Loan from ICICI Bank Limited towards Research and Development
projects secured by way of exclusive charge on the specific assets used
for the said projects for Rs.232.B4 lacs (Previous year Rs,252.34 lacs)
and personal guarantee of Mr. Satish K. Kaura, Chairman and Managing
Director of the Company.
12. Foreign Currency Loan from Rabo Bank Limited secured by way of
first pari- passu charge created on immoveable assets of the Company
situated at Plot no. 2, Greater Noida Industrial Area, Gautam Budha
Nagar, U.P. for Rs.lS4.02 lacs (Previous year Rs.176.69 lacs), .
13. Previous year's figures have been changed only due to impact of
forex fluctuation in respect of foreign currency loans.
14. Loans (against devolved Letter of Credits, which includes interest
amount debited by one of the bank) of Rs. 15,538.72 lacs (Previous year
Rs. 15,538.72 lacs) are secured as under:-
Hypothecation charge is created / to be created over current and
moveable assets and first charge over immoveable properties, by way of
deposit title deeds of the immoveable properties (both present and
future) of the Company on pari- passu basis in favour of 3i Infotech
Trusteeship Services Limited (Security Trustee of CDR Lenders) pursuant
to Corporate Debt Restructuring (CDR) scheme.
15. Personal Guarantee of Mr. Satish K. Kaura, Chairman and Managing
Director.
Pledge of 2,26,77,186 nos. (Previous year 2,26,77,186 nos.) equity
shares of Samtel Color Limited held by promoter Companies with 3i
Infotech Trusteeship Services Limited (Security Trustee on behalf of
CDR Lenders).
16. Pledge 15,00,000 nos. (Previous year 15,00,000 nos.) shares of
Samtel Glass Limited with 3i Infotech Trusteeship Services Limited
(Security Trustee on behalf of CDR Lenders) pending creation of security
on the Kota leasehold land.
17. Terms of Repayment of secured loan, defaults in repayment of loan
amount, interest and rate of interest thereon :
The loans from Banks amounting to Rs.15,538.72 lacs (Previous year Rs.
15,538.72 lacs) were due for payment upto 2012-13.
The rate of interest thereon varies from 4 % to 12 %. The amount of
interest due upto 31.3.2015 but not paid is Rs. 2,990.77 lacs (Previous
year Rs. 2,990.77 lacs) - included in note no. 10.
18. Terms of Repayment of unsecured loan, defaults in repayment of loan
amount, interest and rate of interest thereon :
The loans amounting to Rs. 494.08 lacs (Previous year Rs. 494.08 lacs)
were due for payment up to 2012 - 13. The rate of interest is 12 %. The
amount of interest due up to 31.3.2015 but not paid is Rs.211.80 lacs
(Previous year Rs.152.49 lacs) - included in note no. 10.
19. CONTINGENT LIABILITIES
i. Contingent Liabilities not provided for in respect of: (Rs. in lacs)
Description Current Year Previous Year
a) Guarantees issued by the
Company's Bankers on behalf of
the Company for which counter
guarantees have been 327.25 327.25
given by the Company*
b) Claims against theCompany
not acknowledged as debts:
Demands from Government
authorities, being contested
by the Company
Income Tax Matters 445.12 445.12
Sales Tax Matters 3,198.19 3,198.19
Excise Duty and Service Tax Matters 2,756.41 2,756.41
UP5EB claims 61.75 61.75
EOU de-bonding 758.80 758.80
Others 158.92 158.92
Transfer charges demanded by
Himachal Pradesh Housing 113.00 113.00
Board on account of erstwhile
merger of M/s Samtel Electron
Devices, Parwanoo with M/s
Samtel Color Limited
Differential stamp duty on
account of construction of 187.00 187.00
building on the leasehold land
of M/s Samtel Glass Limited
{Formerly known as Samcor
Glass Limited)
Customs authorities demand
on the account of fraudulent 38.64 38.64
DEBP claimed another party
and subsequently purchase
by the Company for bonafide
consideration -
Labour Cases, being contested
by the Company 232.51 232.51
Dividend in arrears contested
for 8% Non-convertible 1,403.73 1,207.54
Cumulative Redeemable
Preference Shares.
c) Irrevocable Corporate Guarantees
issued by the Company in favour of
Bank, on account of financial
assistance availed by a Group Company :
M/s Samtel Electron Devices GmbH (**) 1,350.21 1,651.53
20. Besides the above, the Company has received notices from the
Bank towards non - deposition of their dues by the employees of the
Company in regard to loans taken by them. The Company was required to
deduct and deposit corresponding bank installment from the monthly
disbursement of salary to the employees. The exact amount of
outstanding loans, payable by the employees, can be ascertained only on
receipt of all the notices from the bank. The liability of the Company
is limited only to the extent of terminal benefits of the employees,
provided in the books, as and when it will be paid by the Company.
21. Commitments:
Estimated amount of contracts remaining to be executed
on capital account and not provided for {net of advances) - -
22. Includes Bank Guarantee of Rs. 227.25 lacs (Previous year Rs.
227.25 lacs) given to M/s Samsung C & T Corporation - Korea, which has
been devolved by the Bank during the year. The outstanding balance to
the party, as per books, is Rs. 1,233.24 lacs (Previous year Rs.
1,233.24 lacs). The actual amount can be determined on receipt of
confirmation from the party.
23 Secured by way of charge created / to be on immovable properties
and by the way of hypothecation of all movable properties of the
Company, save and except book debts, both present and future on first
pari-passu basis. The change in amount is only due to reinstatement of
foreign currency (Euro). During the earlier years, the Foreign Bank has
invoked the Bank Guarantee given by ICICI Bank Limited and a legal
notice has been issued by the ICICI Bank Limited to the Company to this
effect.
24 The amount shown in item (i) above represent guarantees given in the
normal course of the Company operation and are not expected to result
in any loss to the Company on the basis of the beneficiaries fulfilling
their ordinary commercial obligations.
25 The amount in the item (i) above represents in the best possible
estimates arrived at on the basis of available Explanation. The
uncertainties and the possible reimbursements are dependent on the
outcome of the different legal processes which have been invoked by the
Company or the claimants as the case may be and therefore, cannot be
predicted accurately. The Company engages reputed professional advisor
to protect its interests and has been advised that it has strong legal
position against such disputes.
26. Pursuant to the Employee Stock Option Scheme established by the
Company on 16th July 2001, the Company has granted 5,33,569 share
options to the eligible employees till 31st March 2015. Each option
entitles the eligible employees to apply for and be issued one equity
share. The shares, under these share options, will be issued at a price
being the closing price at Bombay Stock Exchange on the date of grant
of stock options. The vesting period for the share options varies over
a period of thirty six months.
27. POST EMPLOYEES BENEFITS
In accordance with the adoption of Accounting Standard -15 (Revised
2005) on "Employee benefits" the Company has accounted for the long
term benefits and contribution schemes as under:
28 Defined Benefit Schemes:
The Company provides for long term defined benefit schemes of Gratuity
and leave encashment on the basis of actuarial valuation on the balance
sheet based on the Projected Unit Credit method. In respect of
Gratuity, the Company funds the benefits through annual contributions
to Life Insurance Corporation of India (LIC) for certain categories of
employees. The actuarial valuation of the liability towards the
Retirement benefits of the employees is made on the basis of certain
assumptions with respect to the variable elements affecting the
computations including estimation of the interest rate of earnings on
the contribution to LIC. The Company recognises the actuarial gains and
losses in the Profit & Loss Statement as income and the expenses in the
period in which they occur.
29 Since the operations at all the manufacturing facilities were
suspended during the earlier years, the actuarial valuation in respect
of long term defined benefits i.e. Gratuity and leave encashment were
not done at the end of the year. The expenses have been booked on the
basis of actual liability.
30. As a result of change in the policy as mentioned above, as on
31.03.2015, in respect of gratuity, the Company has accumulated
liability of Rs. 2,242.65 lacs against funded assets of Rs. Nil
(Previous year as on 31.03.2014, the Company had accumulated liability
of Rs. 2,123.44 lacs against funded assets of Rs. Nil). While in
respect of leave encashment, as on 31.03.2015, the Company has
accumulated liability of Rs. 134.07 lacs (Previous year as on
31.03.2014, the Company had accumulated liability of Rs. 134.07 lacs).
31. In absence of actuarial valuation in the earlier years and current
year, the reconciliation of opening and dosing balances of the present
value of the defined benefit obligation is not given.
32. The Company deposits an amount determined at a fixed percentages of
basic pay every month to the state to the administered provident fund
for the benefit of the employees. Accordingly, the Company contribution
during the year that has been charged to revenue amounts to Rs. Nil
(Previous Year Rs.3.32 lacs}
33. In accordance with the requirements of Accounting Standard (AS)-18
on Related Party Disclosures, the names of the related parties where
control exist and / or with whom transactions have taken place during
the year and description of relationships, as identified and certified
by the management, are :
A Names of related parties and description of relationship
a) Parties where control exists:
Subsidiaries
Paramount Capfin Lease Private Limited
Blue Bell Trade Links Private Limited
Associate
Samtel Glass Limited
b) Key Management Personnel
Mr. Satish K. Kaura (Chairman and Managing Director)
Mr. Prabhat K Nanda (Company Secretary)
c) Relatives of Key Management Personnel
Mrs. Alka Kaura (Wife of Mr. Satish K. Kaura)
Mr. Puneet Kaura (Son of Mr. Satish K. Kaura)
34. The Company has sought a status confirmation from its vendors to
classify them as Micro, Small and Medium Enterprises under the Micro,
Small and Medium Enterprises Development Act, 2006.
35. The Company had revalued its Plant and Machinery as on 1st October,
2010 on the basis of existing use value by an independent professional
valuer. Accordingly a sum of Rs. 1,013.91 lacs being the excess of the
depreciated value of Plant and Machinery over the existing use value,
had been charged to the Statement of Profit and Loss in the year
2010-11.
36.Depreciation on the revalued items of Plant and Machinery is
calculated on their respective revalued amounts at rates derived from
the remaining useful life of the items as determined by the valuer on
straight line method as against the methods / rates / bases which would
have otherwise been adopted for the purpose of the annual accounts of
the Company.
37. in view of the present scenario of Color Picture Tube business the
management is of the view that the existing demand of CPT can be
serviced by operating the manufacturing facility at Line #2 along with
the Color Electron Gun division of the Company, hence, the assets and
liabilities of the Company have the realizable value as per their book
values.
38. As the Company does not intend to further pursue the development of
'Plasma Display Panel' for its primary reportable business segment " TV
Picture Tube and Parts", being commercially unviable, it had impaired
the assets being Plant and Machinery used therein to its recoverable
amount (net selling price) during financial year 2010-11.
39. FINANCIAL RESTRUCTURING
At the request of the Company, the participating Financial Institutions
and Banks had approved the Debt Restructuring Scheme of the Company two
times i. e. 1st scheme in financial year 2006-07 and llnd scheme in
financial year 2009- 10 under the Corporate Debt Restructuring (CDR)
mechanism.
The salient features of the scheme inter alia were:
40. Effective Date: The cut off date of the scheme - 1st April' 2009
41 Restructuring of debt: The scheme envisaged restructuring of Core
Principal (hereinafter referred to as Debt), which included loan of Rs.
47,186 lacs, Preference Shares of Rs. 3,079 lacs and Zero Coupon Bond
(ZCB) Rs. 1,540 lacs.
42 The scheme envisaged two options for repayment of debt to lenders.
Under the settlement option of Rs. 23,036 lacs, the entire debt shall
be settled against total payment of Rs. 14,685 lacs in three years from
the effective date. Lenders opting for the restructuring option of Rs.
28,768 lacs shall get equity allotment of Rs. 4,642 lacs in addition to
existing Non Convertible Redeemable Preference Share of Rs. 2,110 lacs
and the balance debt of Rs. 22,016 lacs shall be repaid over a period
of 7 years from the effective date with applicable interest.
43 Promoter Contribution: The Promoters / their associates shall bring
in a sum of Rs. 3,000 lacs through a preferential issue to be
subscribed, Rs. 1,000 lacs within 6 months of the approval of the
scheme and balance of Rs. 2,000 lacs within 18 months of the sanction
of the scheme. Further, the promoters shall also undertake to arrange
additional equity contribution of Rs. 2,000 lacs during the financial
year 2011 -12.
44 Security: The debts (both term and working capital) to be secured
by a first pari - passu charge on all the assets of the
Company and the security to be pooled together among all the term
lenders and working capital lenders. The debts shall also be secured by
a personal guarantee of the Chairman and Managing Director of the
Company In addition, the promoters shall pledge 33% of the equity of the
Comgany with lenders to further secure the debts.
45 Right of Recompense: Lenders opting for restructuring option shall
have the right to recompense the reliefs / sacrifices / waivers
extended by the lenders as per the prevalent guidelines under the CDR
mechanism.
46 Right to reverse the Waivers: In the event of default, lenders
shall have the right to reverse the waivers with the approval of CDR
EG.
47 Pursuant to the implementation of above CDR scheme, the total
outstanding debts remained in the books of accounts of the Company to
the tune of Rs. 38,811 lacs. (Rs. 14,685 lacs due to lenders opting
settlement option, Rs. 2,110 lacs of Non Convertible Cumulative
Redeemable Preference Shares and Rs. 22,016 lacs due to lenders opting
restructuring option).
48 The Company has made repayment of Rs. 10,337 lacs towards principal
loan amount up to 31st March' 15 out of total outstanding debts of Rs.
38,811 lacs. During the last three years, no payment has been made.
Hence, there is no change in the outstanding debts except forex
fluctuation impact on the outstanding foreign currency loans.
49 During the year 2012-13, Yes Bank limited has assigned its debts in
the Company in favour of M/s Amberley Estates Private Limited. The
necessary formalities to effect the changes will be completed in due
course.
50 During the previous year, Export Import Bank of India has assigned
its debts in the Company in favour of M/s Edelweiss Asset Reconstruction
Company Limited.
51. During the year, State Bank of India has assigned its debts in the
Company in favour of M/s Edelweiss Asset Reconstruction Company
Limited.
52. During the earlier years, due to continuous decrease in the demand
of color picture tubes and continuous liquidity crises, the Company's
operations were affected adversely and operations of all manufacturing
facilities were remained * suspended during the year. All of these have
resulted into heavy losses.
53.Since the net worth of the Company was fully eroded at the end of the
year 2012-12, the Company had made a reference under section 15(1) of
the Sick Industrial Company (Special Provisions) Act, 1985 (SICA) with
Board of Industrial and Financial Reconstruction (B1FR). The aforesaid
reference has been registered in the BIFR as case no. 58/2012,
54 During the year, BIFR declared the Company a sick Industrial Company
under section 3(1) (o) of SICA, 1985 vide order dated 03.12.2014. ICICI
Bank has been appointed as an Operating Agency.
Significant events for assessing the appropriateness of going concern
assumptions are as:
55 Due to liquidity crisis and heavy losses during the earlier years,
there were defaults in repayment of principle amount of secured loans ,
over dues to the Banks / Financial Institution amounting to Rs.
15,042.55 lacs (Rs. 14,073.39 lacs debts and Rs. 969.16 redemption of
0 % NCCRPS) to CDR lenders and Rs. 416.36 lacs to Non CDR' lenders, as
on 31st March 2015.
The defaults for Unsecured loans, devolved LC are Rs. 1,104.11 lacs and
Rs. 15,538.72 lacs respectively.
* This include - Zero Coupon Bonds Rs. 484.63 lacs and Zero percent
Non-Convertible Cumulative Redeemable Preference Shares - Rs. 969.16
lacs.
56 In accordance with Accounting Standard 28 - 'Impairment of Assets':
(I) During the year 2012-13, the Company had identified its production
Lines 3 , 5 and Deflection Yoke unit of its manufacturing facilities
located at Village Chhapraula, Gautam Budh Nagar (Uttar Pradesh),
Village Naya Nohra, Kota (Rajasthan) and Parwanoo (Himachal Pradesh)
respectively as a separate cash generating units (CGUs). These CGUs
were engaged in manufacture of 21" True Flat Color Picture Tube, 21"
Pin Free Color Picture Tube and Color Deflection Yoke. During the year
ended 31st March 2013, the Company on the basis of projected scale of
operations and prevailing market conditions assessed that the
recoverable value of the CGUs was lower as compared to the carrying
value, thus, indicating impairment.
(ii) During the year 2011-12 , the Company had identified its
production Lines 1 and 4 of its manufacturing facility located at
Village Chhapraula, Gautam Budh Nagar (Uttar Pradesh) as a separate
cash generating units (CGUs). These CGUs were engaged in manufacture of
15", 20" and 29" Color Picture Tubes. During the year ended 31 March
2012, the Company on the basis of projected scale of operations and
prevailing market conditions assessed that the recoverable value of the
CGUs was lower as compared to the carrying value, thus, indicating
impairment.
57 As a result of the impairment testing carried out as at 31st March
2013, impairment loss of Rs. 27,977.06 lacs in the year 2012-13 (In the
year 2011-12 Rs. 3,866.91 lacs) was recognized based on a comparison of
the carrying value of the asset vis-a-vis recoverable value. The
recoverable amount is higher of the followings:
58 Net Selling Price: In the year 2012-13, It was the management
estimated sale value of Plant and Machinery (Rs. 1,680.00 lacs i.e. 2.5%
of the gross assets value). This rate of reserve sale value is based on
earlier years basis of reserve sale value of Plant & Machinery of Rs.
554.57 lacs, as decided by CDR lenders in Its Assets Sale Committee
meeting held on 4th July' 2012.
59 Value in Use: It is the present value of future cash flow of CGUs
(Line 3, Line 5 and Deflection Yoke unit in earlier years and Line 1 and
Line 4 in year 2011-12). As the Company does not expect operations in
these lines in future, thus no cash will be generated in future from
these CGUs, hence the value in use is taken NIL.
60. Accordingly, a sum of Rs. 27,977.06 lacs in the year 2012-13 (Rs.
3,866.91 lacs in the year 2011-12) has been charged to the Statement of
Profit and Loss as Impairment Loss. Further, Stores and Spares related
to these production lines have also been impaired and accordingly a sum
of Rs. 410.35 lacs in year 2012-13 ( Rs. 512.28 lacs in year 2011-12)
has been charged to the Statement of Profit and Loss as Impairment
Loss.
61. Debtors and Creditors balances are subject to reconciliations and
confirmations. *
62 Due to suspension of operations in all the manufacturing facilities,
the physical verification of stocks were not carried out as on 31st
March 2015.
63 Due to suspension of operations in all the plants during the earlier
years, the fixed assets were not verified by the management.
64 Non deduction of tax deducted at source and other statutory dues on
some of the provisions of expenses, made during the year.
65 During the year, the diminution in value of long term investments in
Samtel Glass Limited (SGL) has not been done as in the view of Company,
the Samtel Glass Limited is in the process of selling its Land and
Building and the discussions for disposal are in advance stage. The
management is also of the view that the realization value of Land will
be much higher after setting off all its liabilities. Hence, the value
of long term investments of Samtel Glass Limited does not require any
diminution.
66.During the previous year, the Company has made provision for
diminution in long term investments in some of its group companies
amounting to Rs. 937.87 lacs. In case of Samtel Glass Limited, the
investment value is taken on the basis of three years average book
value. The Profit after tax of Samtel Glass Limited had been taken on
the basis of un audited financial statements for the financial year
ended March 31, 2014. In view of the management, the basis of
considering three years average book value for computing the diminution
in the value of investments is reasonable.
67 During the previous year the Company had received notice u/s 13(4)
of The Securitization and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002 from the lead Bank. Pursuant
to this notice the Company has not provided interest on loans from CDR
lenders w. e. f. quarter ended December, 2013.
68 Since the Company has registered in B1FR wherein it has given revival
plan for operating some of its manufacturing facilities, the Company is
quite hopeful to get financial assistance by infusion of funds in terms
of waiver of interest / term liabilities. In the meanwhile, Company is
also exploring option for revival through restructuring its
manufacturing facilities at some of the locations. On overall
assessment of aforesaid considerations, the Company is of the view that
Going Concern is not affected and hence there is no need to reinstate
the assets and liabilities at net realizable value.
69. SEGMENT REPORTING
The Company's operating business is organized and managed according to
a single primary reportable business segment namely "T.V. Picture Tube
and Parts" in India only and there are no separate reportable segments
in accordance with the principles outlined in AS - 17 on Segment
Reporting, notified by Central Government under Companies (Accounting
Standards) Rules 2006, hence segment reporting is not applicable.
70 Deferred tax assets and liabilities are being offset as they relate
to taxes on income levied by the same governing taxation iaws.
71 Break - up of deferred tax assets/ liabilities:-
The tax impact for the above purpose has been arrived at by applying the
prevailing tax rate for Indian Companies under the Income Tax Act, 1961.
72 The deferred tax liability generated during the earlier years has
been adjusted against the carry forward deferred tax assets leaving
unrecognized balance of net deferred tax assets of Rs. 19,464.14 lacs as
on 31.03.2015 (Previous year Rs. 18,381.56 lacs) which will be adjusted
against deferred tax liability as and when it arises.
73. Revenue expenses on account of Research and Development activities
included in these accounts under various heads are Rs. Nil (Previous
year Rs. Nil). The additions to Fixed Assets include additions
aggregating Rs. Nil (Previous year Rs. Nil) acquired for Research and
Development activities.
74. A) Finance Lease: The Company acquires vehicles under a finance
lease agreement. The lease agreement provides for transfer of ownership
to the Company at the end of the lease term. Initial direct cost,
maintenance and insurance of the assets are borne by the Company.
75 Operating Lease: The Company has taken depots and offices on lease
with an option of renewal at the end of lease term. These leases have an
escalation clause and are in the nature of cancelable operating leases.
The lease amount paid / provided Rs. 44.49 lacs (Previous year Rs. 62.00
lacs) has been charged to Statement of Profit and Loss,
76. from its Kota plant. The sale proceeds of the same, being no
operations in the plants, have been accounted for in other income_in_the
Statement of Profit and Loss. The same proceeds has been used for
disbursement of dues of the workmen at Kota plant pursuant to the
agreement with them.
44. The Company has not booked the statutory liabilities on the
provision for expenses made during the year as the quantum of exact
statutory liability can not be ascertained in the present scenario,
77. Borrowing cost capitalized during the year Rs. Nil (Previous year
Rs. Nil)
78. There is no other information apart from the information already
disclosed pursuant to the relevant clauses of new schedule VI as
inserted in the Companies Act, 1956 by the Notification- S.O. 447(E),
dated 28th February 2011 (As amended by Notification No F. NO.
2/6/2008-CL-V, Dated 30th March 2011).
79. The useful life of those Fixed Assets which are at variance with the
useful life given in Schedule II of The Companies Act, 2013 are as per
the technical assessment of the Fixed Assets in October, 2010 by an
independent professional valuer.
80. Current year financial statements are prepared as per Accounting
Standard prescribed under section 133 read with rule 7 of Companies
(Accounts) Rules, 2014 and relevant provisions of Companies act 2013 and
previous year financial statement were prepared as per relevant
provisions of the Companies Act, 1956 (refer General circular 08/2014
dated 04/04/2014 of the Ministry of Corporate Affairs for applicability
of relevant provisions/ schedules/ rules of the Companies Act, 1956 for
the financial statements prepared for the financial year commenced
earlier than 01.04.2014) and the provisions of the Companies Act, 2013
(to the extent applicable).
81. Previous year figures have been regrouped / rearranged wherever
necessary to conform to this year's classification.
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