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Notes to Accounts of ADC India Communications Ltd.

Mar 31, 2015

2.1. CORPORATE INFORMATION

ADC India Communications Limited ("the Company") is a public company domiciled in India. The Company is engaged in providing versatile, reliable and cost effective connectivity solutions to suit individual enterprise and telecom service provider requirements. The Company provides copper and fiber physical connectivity in telecommunications and data networking solutions including structured cabling.

2.2 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956 ("the 1956 Act"), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year except for change in the accounting policy for depreciation as more fully described in Note 37.

2.3 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

2.4 Inventories

Inventories are valued as follows:

Raw materials, components, Lower of cost and net realizable value. consumable and packing However, materials and other items held materials for use in the production of inventories (including materials are not written down below cost if the in transit) finished products in which they will be incorporated are expected to be sold at or above cost. Cost is determined on a weighted average basis.

Work-in-progress and Lower of cost and net realizable value. finished Cost includes direct materials and labour goods (including materials and a proportion of manufacturing in transit) overheads based on normal operating capacity. Cost of finished goods includes excise duty. Cost is determined on a weighted average basis.

Traded goods(including Lower of cost and net realizable materials in transit) value. Cost is determined on a weighted average basis.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion (as appropriate) and estimated costs necessary to make the sale.

2.5 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

2.6 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

2.7 Depreciation and amortization

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Depreciation on tangible fixed assets has been provided on the straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013.

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.

Intangible assets are amortized on a straight line basis over the estimated useful economic life ranging from two to five years. The amortization period and the amortization method are reviewed at each financial period / year end. If the expected useful life of the asset is significantly different from previous estimates, the amortization period is changed accordingly.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

2.8 Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Revenue from sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, which normally coincides with the delivery of goods in terms of the arrangements with the customer. Sales include Excise duty but exclude Sales tax and Value added tax.

Revenue from Turnkey contracts, which are generally time bound fixed price contracts, are recognised over the life of the contract using Proportionate Completion method, with contract costs determining the degree of completion. Foreseeable losses on such contracts are recognised when probable.

Revenue from service contracts are recognised, when the rendering of services under a contract is completed or substantially complete.

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Rental income is accounted on accrual basis.

2.9 Fixed Assets (Tangible / Intangible)

Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

2.10 Foreign currency transactions and translations

1 Initial recognition

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

2 Conversion

Foreign currency monetary items are reported using the closing rate. Non-monetary items are carried at historical cost.

3 Exchange differences

Exchange differences arising on the settlement of monetary items or on reporting company''s monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or as expenses in the year in which they arise.

2.11 Employee Benefits Defined contribution plans

The Company''s contribution to provident fund, superannuation fund and employee state insurance scheme are considered as defined contribution plans and are charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees.

Defined benefit plans

For defined benefit plans in the form of gratuity fund, the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the schemes.

Short-term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the service. These benefits include performance incentive and compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service.

The cost of short-term compensated absences is accounted as under :

(a) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and

(b) in case of non-accumulating compensated absences, when the absences occur.

2.12 Segmental Reporting

(i) Identification of segments:

The Company''s operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. The analysis of geographical segments is based on the location in which the customers are situated.

(ii) Allocation of common costs:

Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.

(iii) Segment policies:

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

2.13 Leases

Where the Company is lessee

Finance leases, which effectively transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the lower of the fair value and present value of the minimum lease payments at the inception of the lease term and disclosed as leased assets. Lease payments are apportioned between the finance charges and reduction of the lease liability based on the implicit rate of return. Finance charges are charged directly against income. Lease management fees, legal charges and other initial direct costs are capitalised.

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognized as an expense in the Statement of profit and loss on a straight-line basis over the lease term.

Where the Company is lessor

Where the Company as a lessor leases assets under finance leases, such amounts are recognised as receivables at an amount equal to the net investment in the lease and the finance income is recognised based on a constant rate of return on the outstanding net investment. Operating lease receipts are recognized as other income in the Statement of profit and loss on a straight-line basis over the lease term.

2.14 Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

2.15 Taxes on income

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit and loss.

Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date. Deferred income tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit and loss.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the Company has unabsorbed depreciation or carry forward tax losses and items relating to capital losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

At each reporting date, the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each reporting date. The Company writes-down the carrying amount of deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current tax assets against current tax liabilities and the deferred tax assets and deferred taxes relate to the same taxable entity and the same taxation authority.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

2.16 Impairment of assets

The carrying values of assets / cash generating units at each balance sheet date are reviewed for impairment if any indication of impairment exists.

If the carrying amount of the assets exceed the estimated recoverable amount, an impairment is recognised for such excess amount. The impairment loss is recognised as an expense in the Statement of Profit and Loss, unless the asset is carried at revalued amount, in which case any impairment loss of the revalued asset is treated as a revaluation decrease to the extent a revaluation reserve is available for that asset.

The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor.

When there is indication that an impairment loss recognised for an asset (other than a revalued asset) in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, to the extent the amount was previously charged to the Statement of Profit and Loss. In case of revalued assets such reversal is not recognised.

2.17 Provisions and Contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognised in the financial statements.

2.18 Operating Cycle

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

(b) Terms/ rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. Interim dividend is declared by Board of Directors. The final 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 of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

3. Segment Information

Business Segments : The Company has organized its operations into two major businesses:

Telecommunication and IT- Networking.

Geographical Segments : The Company''s operations are predominantly carried out in India and hence geographical segment information is not separately furnished in this note.

4. Related Party Disclosure

Names of related parties and related party relationship

Related parties where control exists

Holding Company Tyco Electronics AMP GmbH* (TE Germany)

Ultimate Holding Company TE Connectivity Ltd, Switzerland (TE Switzerland)

Related Parties with whom transactions have taken place during the year/period

Fellow Subsidiaries ADC Communications (Australia) Pty Ltd. (ADC Australia)

TE Connectivity Networks Inc. (TE USA)

ADC Telecommunications Inc., USA (ADC Telecom)

TE Connectivity, Wuxi, China (TE Wuxi)

TE Connectivity, Hongkong Ltd. (TE HK Ltd)

TE Connectivity India Pvt Ltd. (TE Connectivity)

TE Connectivity, New Zealand (TE New Zealand)

Tyco Electronics Technology (Kunshan) Co. Ltd (TE Technology)

Key Management Personnel Mr. Mylaraiah J.N, Managing Director (on deputation from TE Connectivity India Private Limited) 5. Leases

The Company has entered into non-cancellable operating leases for office premises that are renewable on a periodic basis. Lease rental expense (net of reimbursements) debited to Statement of profit and loss for the year is Rs. 6,320,801 (March 31,2014: Rs.4,722,167). The future minimum lease payments under non-cancellable operating leases are as follows:

6. Contingent Liabilities (Amount in Rs.)

Particulars March 31, 2015 March 31, 2014

Central sales tax demands - 12,401,527 contested by the Company

Income Tax demands contested 65,372,424 - by the Company

Customs duty, excise duty & service tax demand contested by the Company - 1,216,783

Total 65,372,424 13,618,310

7. Employee benefit plans

Defined Contribution Plans

The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 823,213 (Year ended 31 March, 2014 Rs. 696,859) for Provident Fund contributions, Rs. 177,864 (Period ended 31 March, 2014 Rs. 277,369) for Superannuation Fund contributions and Rs. 57,220 (Period ended 31, March, 2014 Rs. 73,450) for Employee State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

Defined benefit plans Gratuity benefit plan

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance Company in the form of a qualifying insurance policy. The following tables summarises the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognised in the balance sheet.

9. Previous year figures have been regrouped or reclassified wherever necessary to conform to current year’s grouping or classification.


Mar 31, 2014

1. CORPORATE INFORMATION

ADC India Communications Limited ("the Company") is a public company domiciled in India. The Company is engaged in providing versatile, reliable and cost effective connectivity solutions to suit individual enterprise and telecom service provider requirements. The Company provides copper and fber physical connectivity in telecommunications and data networking solutions including structured cabling.

2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notifed under Section 211(3C) of the Companies Act,1956 ( Accounting Standards) Rules, 2006 (as amended) ("the 1956 Act") (which continue to be applicable in respect of Section 133 of the Companies Act,2013 ("the 2013 Act") in terms of General Circular 15/2013 dated 13 September, 2013 of the Ministry of Corporate Affairs) and the relevant provisions of 1956 Act/ Companies Act, 2013 as apllicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those followed in the previous year.

3. Segment Information

Business Segments : The Company has organized its operations into two major businesses: Telecommunication and IT- Networking.

Geographical Segments : The Company''s operations are predominantly carried out in India and hence geographical segment information is not separately furnished in this note.

4. Related Party Disclosure

1. Names of related parties and related party relationship Related parties where control exists

Holding Company Tyco Electronics AMP GmbH* (TE Germany)

Ultimate Holding Company TE Connectivity Ltd, Switzerland

Related Parties with whom transactions have taken place during the year/period

Fellow Subsidiaries

ADC Communications (Australia) Pty Ltd. (ADC Australia)

TE Connectivity Networks Inc.

(Formerly known as ADC USA Incorporated) (TE USA)

ADC Telecommunications Inc., USA (ADC Telecom)

ADC Telecommunications Sales Inc.

(Formerly known as ADC Digital Communications Inc.)

(ADC Sales, USA)

ADC Telecom Equipment (Shanghai) Company Ltd (ADC Shanghai)

TE Connectivity, Wuxi, China (TE Wuxi)

TE Connectivity, Hongkong Ltd. (TE HK Ltd)

TE Connectivity India Pvt Ltd. (TE Corporation)

TE Connectivity Solutions Gmbh (TE Solutions)

Key Management Personnel

Mr. Mylaraiah J.N, Managing Director

Mr. Sanjay Handu, Managing Director [Upto 5th September, 2013]

*ADC GmbH, the earlier Holding Company merged with Tyco Electronics AMP GmbH effective 1st May, 2012

5. Leases

Operating Lease:

The Company has non-cancellable operating leases for office premises that are renewable on a periodic basis. Lease rental expense (net of reimbursements) debited to Statement of Profit and loss for the year is Rs. 6,407,445 (March 31, 2013: Rs.1,483,309). The future minimum lease payments under non- cancellable operating leases are as follows:

6. Contingent Liabilities (Amount in Rs.) Particulars March 31, 2014 March 31, 2013 Central sales tax demands contested by the Company 12,401,527 12,401,527 Customs duty, excise duty & service tax demand contested by the Company 1,216,783 1,216,783 Bank guarantees 42,548,358 39,585,746 Total 56,166,668 53,204,056

7. Employee benefit plans Defined Contribution Plans

The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme con- tributions which are Defined contribution plans, for qualifying employees. Under the Schemes, the Compa- ny is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 638,266 (Year ended 31 March, 2013 Rs. 1,200,950) for Provident Fund contributions, Rs. 277,369 (Period ended 31 March, 2013 Rs. 254,105) for Superannuation Fund contributions and Rs. 73,450 (Period ended 31, March, 2013 Rs. 72,726) for Employee State Insurance Scheme contribu- tions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

Defined benefit plans Gratuity benefit plan

The Company has a Defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance Company in the form of a qualifying insurance policy.

The following tables summarises the components of net benefit expense recognized in the statement of Profit and loss and the funded status and amounts recognised in the balance sheet.

Statement of Profit and loss

Net employee benefit expense (recognised in Employee Cost).

The expected rate of return on plan assets is determined after considering several applicable factors such as the composition of the plan assets, investment strategy, market scenario, etc.. In order to protect the capital and optimise returns within acceptable risk parameters, the plan assets are well diversifed. The discount rate is based on the prevailing market yields of Government of India securities as at the balance sheet date for the estimated term of the obligations.

The estimates of future salary increases, considered in actuarial valuation, take account of infation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. Mortality rates are published under the Indian Assured Lives Mortality (2006-08) Ult table

8. During the previous year ended March 31, 2013 the Company restructured its operations by outsourcing manu- facturing to a third party vendor. Consequent to this, the Company foated a Voluntary Retirement Scheme (VRS) for its employees during the year ended March 31, 2013 and the cost under the VRS of Rs. 41,303,656 has been treated as an exceptional item in the Statement of Profit and Loss for that year.

9. The Company has book Profit u/s 115JB of the Income Tax Act 1961 (the "Act") and the minimum alternate tax (MAT) there on is higher than the tax liability under the normal provisions of the Act. Thus, the provision towards tax liabilities has been made based on MAT. Correspondingly, the Company has also recognised credit for MAT under section 115JAA of the said Act, which is disclosed as MAT credit entitlement in the Statement of Profit and Loss.

10. Previous period comparatives:

Previous year fgures have been regrouped or reclassified wherever necessary to conform to current year''s classification.


Mar 31, 2013

1. CORPORATE INFORMATION

ADC India Communications Limited ("the Company") is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company is engaged in providing versatile, reliable and cost effective connectivity solutions to suit individual enterprise and telecom service provider requirements. The Company provides copper and fber physical connectivity in telecommunications and data networking solutions including structured cabling.

2. BASIS OF PREPARATION

The fnancial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these fnancial statements to comply in all material respects with the accounting standards notifed under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956.

The accounting policies adopted in the preparation of fnancial statements are consistent with those of previous year.

3. Related Party Disclosure

1. Names of related parties and related party relationship Related parties where control exists

Holding Company Tyco Electronics AMP GmbH* (TE Germany)

Ultimate Holding Company TE Connectivity Ltd, Switzerland

Related Parties with whom transactions have taken place during the period

Fellow Subsidiaries ADC Communications Hongkong Ltd (ADC Hongkong)

ADC Communications (Australia) Pty Ltd. (ADC Australia)

TE Connectivity Networks Inc. (Formerly known as ADC USA Incorporated) (TE USA)

ADC Telecommunications Inc., USA (ADC Telecom)

ADC Telecommunications Sales Inc. (Formerly known as ADC Digital Communications Inc.) (ADC Sales, USA)

ADC Telecom Equipment (Shanghai) Company Ltd (ADC Shanghai)

TE Connectivity, Shanghai

TE Connectivity, Wuxi, China (TE Wuxi)

LGC Wireless Inc (LGC Wireless)

Shenzehen Century Man Communication (Shenzehen)

TE Logistics GmbH, Germany (TE Logistics Germany)

TE Connectivity India Pvt Ltd. (TE Corporation)

TE Connectivity Solutions Gmbh (TE Solutions)

ADC Communications (SEA) Pte. Ltd. (ADC Singapore)

Key Management Personnel Mr. Sanjay Handu, Managing Director

*ADC GmbH, the earlier Holding Company merged with Tyco Electronics AMP GmbH effective 1st May, 2012

4. Leases

Operating Lease:

The Company has non-cancellable operating leases for offce premises that are renewable on a periodic basis. Lease rental expense (net of reimbursements) debited to Statement of proft and loss for the year is Rs.1,483,309 (March 31, 2012: Rs.670,171). The future minimum lease payments under non-cancellable operating leases are as follows:

5. Contingent Liabilities

(Amount in Rs.)

Particulars March 31, 2013 March 31, 2012

Central sales tax demands contested by the Company 12,401,527 17,350,167

Customs duty, excise duty & service tax demand contested by the Company 1,216,783 180,269

Bank guarantees 39,585,746 52,499,038

Total 53,204,056 70,029,474

6. Employee beneft plans Defned Contribution Plans

The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme contributions which are defned contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specifed percentage of the payroll costs to fund the benefts. The Company recognised Rs. 1,200,950 (Year ended 31 March, 2012 Rs. 1,174,381) for Provident Fund contributions, Rs. 254,105 (Period ended 31 March, 2012 Rs.385,646) for Superannuation Fund contributions and 72,726 (Period ended 31, March, 2012 Rs. 71,951) for Employee State Insurance Scheme contributions in the Statement of Proft and Loss. The contributions payable to these plans by the Company are at rates specifed in the rules of the schemes.

Defned beneft plans Gratuity beneft plan

The Company has a defned beneft gratuity plan. Every employee who has completed fve years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance Company in the form of a qualifying insurance policy.

The following tables summarises the components of net beneft expense recognized in the statement of proft and loss and the funded status and amounts recognised in the balance sheet.

7. During the year the Company decided to restructure its operations by outsourcing manufacturing to a third party vendor. Consequent to this, the Company foated a Voluntary Retirement Scheme (VRS) for its employees and the cost under the VRS of Rs. 41,303,656 is treated as an exceptional item in the Statement of Proft and Loss.

8. Previous period comparatives:

Previous period fgures have been regrouped or reclassifed wherever necessary to conform to current period''s classifcation. The current year fgures are for the 12 months ended March 31, 2013, whereas previous period ended March 31, 2012 was for 6 months and hence not comparable.


Sep 30, 2011

1. Figures in brackets represent amounts for previous year ended September 30, 2010.

2. Expenses reimbursed (includes management service fees, rent, freight charges etc.) have been debited / credited to the respective heads of expenses in the profit and loss account.

3. Remuneration paid to directors is disclosed below under Note 8.

4. Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for amounts to Rs. Nil (Previous year - Rs. 227,230).

* The above amount includes Rs.1,058,000 paid as severance pay towards compensation for loss of office.

Note: Remuneration to Managing Director for the previous year is as per limits specified in Schedule - XIII of the Companies Act, 1956.

* It is not practicable to furnish quantitative information in view of the large number of items which differ in size and nature, each being less than 10% in value of the total.

b) Defined Benefit Scheme

Gratuity benefit plan:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

The following tables summarise the components of net benefit expense recognised in the profit and loss account and the funded status and amounts recognised in the balance sheet.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

5. Unhedged Foreign Exchange Exposure

Particulars of Unhedged Foreign Currency Exposure as at the Balance Sheet date

6. Previous period comparatives

Previous period figures have been regrouped or reclassified wherever necessary to conform to current period's classification.


Sep 30, 2010

1. NATURE OF OPERATIONS

ADC India Communications Ltd. (formerly Krone Communications Limited) ("the Company") is engaged in providing versatile, reliable and cost effective connectivity solutions to suit individual enterprise and telecom service provider requirements. The Company provides copper and fibre physical connectivity in telecommunications and data networking solutions including structured cabling.

The Company is headquartered at Bangalore and has its manufacturing facility at Peenya and Regional sales offices in New Delhi, Mumbai, Chennai, Hyderabad and Pune.

2. Segment Information

Business Segments :

The Company has organized its operations into two major businesses: Telecommunication and IT- Networking.

3. Related Party Disclosure

1. Names of related parties

Holding Company ADC GmbH., Germany

Ultimate Holding Company ADC Telecommunications Inc., USA

Fellow Subsidiaries

ADC Communications Hongkong Ltd.

ADC Communications (Australia) Pty Ltd.

ADC USA Incorporated.

ADC Digital Communications Inc.

ADC Communications (UK) Ltd.

ADC Communications (SEA) Pte Ltd.

ADC (India) Communications & Infotech Pvt Ltd.

ADC Telecom Equipment (Shanghai) Company Ltd.

LGC Wireless Inc.

Shenzehen Century Man Communication.

Key Management Personnel

Mr. K Bala Chandran, Chairman & Managing Director

4. Leases

(a) Finance Lease :

The Company had entered into finance lease arrangements for vehicles. The period of lease was 4 years and there are no remaining lease obligation outstanding as at the year-end for such arrangements.

(b) Operating Lease:

The Company has operating leases for office premises that are renewable on a periodic basis and cancellable at its option. Lease rental expense debited to Profit and Loss Account for the period is Rs. 4,554,551 (Previous period: Rs. 3,021,234). The future minimum lease payments for operating lease for the period that the facilities are expected to be occupied is as follows:

5. Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for amounts to Rs. 227,230 (Previous period - Rs. 887,660).

6. Contingent Liabilities not provided for (Amount in Rs.)

30 Sep. 2010 30 Sep. 2009

Sales tax demands contested by the Company. 11,223,615 14,385,303

Letters of Credit 267,336 544,647

Bank guarantees 121,181,984 80,405,716

7. Previous period comparatives

Previous period figures have been regrouped or reclassified wherever necessary to conform to current periods classification. The previous period figures are for the eleven months period ended September 30, 2009 and hence not comparable with those of the current year ended September 30, 2010.


Sep 30, 2009

1. NATURE OF OPERATIONS

Krone Communications Ltd. ("the Company") is engaged in providing versatile, reliable and cost effective connectivity solutions to suit individual enterprise and telecom service provider requirements. The Company provides copper and fibre physical connectivity in telecommunications and data networking solutions including structured cabling.

The Company is headquartered at Bangalore and has its manufacturing facility at Peenya and Regional sales offices in New Delhi, Mumbai, Chennai, Hyderabad and Pune.

2. Segment Information Business Segments:

The Company has organized its operations into two major businesses: Telecommunication and IT- Networking.

3. Related Party Disclosure

1. Names of related parties

Holding Company ADC GmbH

Ultimate Holding Company ADC Telecommunications Inc.

Fellow Subsidiaries ADC Communications (Australia) Pty Ltd.

ADC Communications Hongkong Ltd.

ADC Communications (NZ) Ltd.

ADC Communications (UK) Ltd

ADC USA Incorporated

ADC Communications (Shanghai) Company Ltd

ADC Digital Communications Inc.

ADC Communications (SEA) Pte Ltd.

Key Management Personnel

Mr. K Bala Chandran, Chairman & Managing Director

4. Previous year comparatives

Previous year figures have been regrouped or reclassified wherever necessary to conform to current periods classification. The current period figures are forthe eleven month period ended September 30,2009 and hence not comparable with those of the previous year ended October 31, 2008.

 
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