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Notes to Accounts of BF Investment Ltd.

Mar 31, 2015

1. Company Overview :

The Company is a Non Deposit taking Core Investment Company, as defined in the Core Investment Companies (Reserve Bank) Directions, 2011. Since the Company is not a Systemically Important Non Deposit taking Core Investment Company, it is not required to obtain Certificate of Registration under Sec. 45-IA of the Reserve Bank of India Act, 1934.

Operating Cycle of the Company is considered to be of 12 months.

(a) These shares have been allotted to the shareholders of BF Utilities Limited, on 15th March, 2010, without payment being received in cash, in terms of the Composite Scheme of Arrangement sanctioned by the Honourable High Court of judicature at Bombay on 5th February, 2010.

(b) The Company has only one class of shares referred to as equity shares having a par value of Rs. 5/-. Each holder of equity shares is entitled to one vote per share.

(c) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive surplus assets of the Company, remaining after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

As at As at 31st March, 2015 31st March, 2014 Amount Amount Rs. Rs.

2. Contingent Liabilities not provided for :

i) Corporate Guarantees given, in respect of loans borrowed by other companies(a)

Guarantee Amount 1,710,000,000 950,000,000

Balance outstanding 1,135,000,000 835,579,160

(a) Commitments of the Company under the Corporate Guarantee/s, inter alia, include undertaking not to dispose or encumber its present and future assets without the prior written consent of the lenders.

ii) The Company has issued a Letter of Comfort not amounting to Corporate Guarantee, to Axis Bank Limited, UAE, in respect of non-fund based limits aggregating to Euro 7,500,000 sanctioned to Kenersys Europe GmbH, whereby the Company had undertaken to ensure that the borrower company would fulfill the debt service obligation, when due. Axis Bank Ltd., U.A.E. has since released the Company from the said Letter of Comfort during the financial year covered by these statements.

iii) Conveyance deed of the Unascertainable Unascertainable ownership premises of the Company at Antariksha Bhawan, New Delhi has not been executed as yet. Liability, if any on that account has not been ascertained.

3. Segment Reporting :

The Company is a Non Deposit taking Core Investment Company, as defined in the Core Investment Companies (Reserve Bank) Directions, 2011 and all activities of the Company revolve around this business. Hence no separate segment is considered reportable.

4. Related Party Disclosures :

a) Related Parties and their relationships, where there are related party transactions or balances :

i) Associates

Kalyani Steels Ltd.

Epicenter Technologies Private Limited

Kalyani Financial Services Limited

Nandi Engineering Limited

ii) Joint Ventures

Automotive Axles Limited

Meritor HVS India Limited

M/s Sundaram Enterprises

iii) Investing enterprise in respect of which the Company is an associate

Sundaram Trading and Investment Pvt. Ltd.

iv) Key Management Personnel

Mr. Satish Kshirsagar, the Company Secretary

Mr. Jeewanprasad Patwardhan, the Chief Executive Officer and Chief Financial Officer, appointed on 31st March, 2015.

5. Legal title to some of the assets vested and transferred to the Company in pursuance of the Composite Scheme of Arrangement approved by the Honourable High Court of judicature at Bombay, as per Order dated 5th February, 2010 as already reported could not be transferred in the name of the Company as at 31st March, 2015. The Company is in the process of completing the required legal processes.

6. 3,000,000 6% Non-cumulative Redeemable Preference Shares of Rs.10/- each, fully paid in Kalyani Financial Services Limited are redeemable on or before 30th December, 2016.

7. 3,500,000 11% Non-cumulative Redeemable Preference Shares of Rs.10/- each, fully paid in KSL Holdings Pvt. Ltd. are redeemable on the expiry of 10 years from the date of allotment, i.e. on 28th September, 2022, with an option to the said Company to redeem the said preference shares, in one or more tranches, at any time on or after 28th December, 2012.

8. Of the 6,497,000 0% Fully Convertible Debentures (FCD) of Rs. 100/- each fully paid of Kalyani Financial Services Limited, 1,227,000 FCDs are compulsorily convertible into Equity Shares of Rs. 10/- each fully paid up at a premium of Rs. 20/- per share on or before 31st March, 2021, while 5,270,000 FCDs are compulsorily convertible into such number of fully paid up Equity Shares of Rs. 10/- each at such a price as shall be fixed by the said Company on or before 27th September, 2022.

9. Deferred Tax asset in respect of unabsorbed depreciation and losses under the Income Tax Act, 1961 aggregating to $ 98,000 (Previous Year : Rs. 9,470,000) has not been recognized on considerations of prudence.

10. Long term loans given :

The Company has given letter of subordination to Nandi Economic Corridor Enterprises Ltd. (NECE) and Airro (Mauritius) Holdings V, whereby the Company has agreed to subordinate the loan of Rs. 1,160,520,067 (Previous Year : Rs. 1,160,520,067) granted by it to NECE, until the entire stakeholding of Airro (Mauritius) Holdings V in NECE Ltd. is completely sold off or all the amounts payable by NECE Ltd. to Airro (Mauritius) Holdings V in terms of the Shareholders Agreement dated 24th December, 2010, between Airro (Mauritius) Holdings V and NECE Ltd. are fully paid off.

11. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2014

1. Company Overview :

The Company is a Non Deposit taking Core Investment Company, as defined in the Core Investment Companies (Reserve Bank) Directions, 2011. Since the Company is not a Systemically Important Non Deposit taking Core Investment Company, it is not required to obtain Certificate of Registration under Sec. 45-IA of the Reserve Bank of India Act, 1934.

Operating Cycle of the Company is considered to be of 12 months.

As at As at 31st March, 2014 31st March, 2013 Amount Amount $ $

2.0 Contingent Liabilities not provided for :

i) Corporate Guarantees given, in respect of loans borrowed by other companies(a) Guarantee Amount 950,000,000 950,000,000

Balance outstanding 835,579,160 388,935,167 (a) Commitments of the Company under the Corporate Guarantee/s, inter alia, include undertaking not to dispose or encumber its present and future assets without the prior written consent of the lenders.

ii) The Company has issued a Letter of Comfort not amounting to Corporate Guarantee, to Axis Bank Limited, UAE, in respect of non-fund based limits aggregating to Euro 7,500,000 (Previous Year : Nil) sanctioned to Kenersys Europe GmbH, whereby the Company has undertaken to ensure that the borrower company would fulfill the debt service obligation, when due.

iii) Conveyance deed of the ownership premises of the Company at Antariksha Bhawan, New Delhi has not been executed as yet. Liability, if any on that account has not been ascertained.

2.1 Segment Reporting :

The Company is a Non Deposit taking Core Investment Company, as defined in the Core Investment Companies (Reserve Bank) Directions, 2011 and all activities of the Company revolve around this business. Hence no separate segment is considered reportable.

2.2 Related Party Disclosures :

a) Related Parties and their relationships, where there are related party transactions or balances :

i) Associates

Kalyani Steels Ltd.

Epicenter Technologies Private Limited Kalyani Financial Services Limited Nandi Engineering Limited

ii) Joint Ventures

Automotive Axles Limited Meritor HVS India Limited M/s Sundaram Enterprises

iii) Investing enterprise in respect of which the Company is an associate

Sundaram Trading and Investment Pvt. Ltd.

2.3 Exceptional Items :

a) In view of the continued illiquid financial position of Nandi Economic Corridor Enterprises Ltd. (NECE) and the representation in that respect made by NECE, the Company has written off accrued interest aggregating to $ 302,137,802 (Previous Year : $ 69,631,204) charged to and receivable from NECE, on prudent basis. On similar considerations, interest aggregating to $ 621,370 (Previous Year : Nil) charged to and receivable from Nandi Infrastructure Corridor Enterprise Ltd. (NICE) has also been written off. These amounts have been reflected as exceptional items in the Statement of Profit and Loss. The Principal amounts outstanding on the loans granted to the above companies are considered good and fully realizable by the Directors. The accrued interest written off comprised the following.

b) Profit on sale of long term investments includes profit of $ 312,518,422 /- on sale of 1,705,242 Equity Shares of $10/- each of Kalyani Investment Co. Ltd., an associate of the Company.

2.4 Legal title to all the assets vested and transferred to the Company in pursuance of the Composite Scheme of Arrangement approved by the Honourable High Court of judicature at Bombay, as per Order dated 5th February, 2010 as already reported could not necessarily be transferred in the name of the Company as at 31st March, 2014. The Company is in the process of completing the required legal processes.

2.5 3,000,000 6 % Non-cumulative Redeemable Preference Shares of $ 10/- each, fully paid in Kalyani Financial Services Limited are redeemable on or before 30th December, 2016.

2.6 3,500,000 11 % Non-cumulative Redeemable Preference Shares of $10/- each, fully paid in KSL Holdings Pvt. Ltd. are redeemable on the expiry of 10 years from the date of allotment, i.e. on 28th September, 2022, with an option to the said Company to redeem the said preference shares, in one or more tranches, at any time on or after 28th December, 2012.

2.7 Of the 6,497,000 0% Fully Convertible Debentures (FCD) of $ 100/- each fully paid of Kalyani Financial Services Limited, 1,227,000 FCDs are compulsorily convertible into Equity Shares of $10/- each fully paid up at a premium of $ 20/- per share on or before 31st March, 2021, while 5,270,000 FCDs are compulsorily convertible into such number of fully paid Equity Shares of $ 10/- each at such a price as shall be fixed by the said Company on or before 27th September, 2022.

2.8 Deferred Tax asset in respect of unabsorbed depreciation and losses under the Income Tax Act, 1961 aggregating to $ 9,470,000 (Previous Year : $ Nil) has not been recognized on considerations of prudence.

2.9 Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2013

1. Company Overview :

The Company is a Non Deposit taking Core Investment Company, as defined in the Core Investment Companies (Reserve Bank) Directions, 2011. Since the Company is not a Systemically Important Non Deposit taking Core Investment Company, it is not required to obtain Certificate of Registration under Sec. 45-IA of the Reserve Bank of India Act, 1934.

2.1 Disclosure pursuant to Accounting Standard - 15 (Revised) on ''Employee Benefits''

a) Defined contribution plans :

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution retirement benefit plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to the funds. The Company did not have any employees during the financial year covered by these statements. The Company recognized $ NIL (Previous Year : $ 95,148/-) for the provident and superannuation fund contributions in the statement of profit and loss. The contributions payable to this plan by the Company are at the rates specified in respective legislations.

b) Defined benefits plans :

The Company makes annual contributions to the Employees'' Group Gratuity cum Life Insurance Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for the qualified employees. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days'' salary payable for each completed year of service or part thereof, in excess of six months, for continuous service upto 15 years and equivalent to one month''s salary payable for each completed year of service or part thereof, in excess of six months, for continuous service of more than 15 years. Vesting occurs upon completion of five years of service.

The present value of defined benefit obligation and the related current service costs were measured using the Projected Unit Credit method, with actuarial valuations being carried out at each balance sheet date.

2.2 Segment Reporting :

The Company is a Non Deposit taking Core Investment Company, as defined in the Core Investment Companies (Reserve Bank) Directions, 2011 and all activities of the Company revolve around this business. Hence no separate segment is considered reportable.

2.3 Related Party Disclosures :

a) Related Parties and their relationships :

i) Associates Kalyani Steels Limited

Kalyani Investment Company Limited

KSL Holdings Private Limited

Epicenter Technologies Private Limited

Kalyani Agro Corporation Limited

Carpenter Kalyani Special Alloys Private Limited

Kalyani Financial Services Limited

Nandi Engineering Limited

Synise Technologies Limited

ii) Joint Ventures Automotive Axles Limited

Meritor HVS India Limited Seinumero Machine Tools Limited M/s Sundaram Enterprises

2.4 At the request of Nandi Economic Corridor Enterprises Ltd. (NECE), the Company has renegotiated the interest terms in respect of long term loan of $1,160,520,067 granted to NECE and reduced the rate of interest chargeable on the said loan from 12% p.a. to 6% p.a. with retrospective effect from 1st April, 2012. The excess interest of $ 69,631,204 charged to NECE has accordingly been written off.

2.5 The Company does not owe any moneys to the suppliers registered under the Micro, Small and Medium Enterprises Development Act, 2006.

2.6 Legal title to all the assets vested and transferred to the Company in pursuance of the Composite Scheme of Arrangement approved by the Honourable High Court of judicature at Bombay, as per Order dated 5th February, 2010 as already reported could not necessarily be transferred in the name of the Company as at 31st March, 2013. The Company is in the process of completing the required legal processes.

2.7 3,000,000 6 % Non-cumulative Redeemable Preference Shares of $10/- each, fully paid in Kalyani Financial Services Limited are redeemable on or before 31st December, 2013.

2.8 3,500,000 11 % Non-cumulative Redeemable Preference Shares of $10/- each, fully paid in KSL Holdings Pvt. Ltd. are redeemable on the expiry of 10 years from the date of allotment, i.e. on 28th September, 2022, with an option to the said Company to redeem the said preference shares, in one or more tranches, at any time on or after 28th December, 2012.

2.9 Of the 11,600,000 0% Fully Convertible Debentures (FCD) of $ 100/- each fully paid of Kalyani Financial Services Limited, 6,330,000 FCDs are compulsorily convertible into Equity Shares of $10/- each fully paid up at a premium of $ 20/- per share on or before 31st March, 2021, while 5,270,000 FCDs are compulsorily convertible into such number of fully paid Equity Shares of $ 10/- each at such a price as shall be fixed by the said Company on or before 27th September, 2022.

2.10 Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2012

As at As at

31st March, 2012 31st March, 2011

$ $

1.1 Contingent Liabilities not provided for :

Corporate Guarantee given on behalf of other company 90,000,000 90,000,000 Liability on account of conveyance deed of the ownership premises of the Company at Antariksha Bhawan, New Delhi has not been executed as yet. The Company has incurred expenditure of Rs.2,911,223 during the year ended 31st March, 2012 on conveyance of the property, which has been recognised in the Statement of Profit and Loss.

Unascertainable Unascertainable

1.2 Disclosure pursuant to Accounting Standard on 15 (Revised) on "Employee Benefits"

a) Defined contribution plans :

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution retirement benefit plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to the funds.

The Company recognized $ 95,148/- (Previous Year : $ 177,420/-) for the provident and superannuation fund contributions in the profit and loss account. The contributions

payable to this plan by the Company are at the rates specified in respective legislations.

b) Defined benefits plans :

The Company makes annual contributions to the Employees' Group Gratuity cum Life Insurance Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for the qualified employees. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days' salary payable for each completed year of service or part thereof, in excess of six months, for continuous service upto 15 years and equivalent to one month's salary payable for each completed year of service or part thereof, in excess of six months, for continuous service of more than 15 years. Vesting occurs upon completion of five years of service.

The present value of defined benefit obligation and the related current service costs were measured using the Projected Unit Credit method, with actuarial valuations being carried out at each balance sheet date.

The following table sets out the funded status of the gratuity plan and the amounts recognized in the financial statements for the year ended 31st March, 2012.

1.3 Segment Reporting :

The Company is a core investment company and all activities of the Company revolve around this business. Hence no separate segment is considered reportable.

1.4 The Company does not owe any moneys to the suppliers registered under the Micro, Small and Medium Enterprises Development Act, 2006.

1.5 Legal title to all the assets vested and transferred to the Company in pursuance of the Composite Scheme of Arrangement approved by the High Court of judicature at Bombay, as per Order dated 5th February, 2010 as already reported could not necessarily be transferred in the name of the Company as at 31st March, 2012. The Company is in the process of completing the required legal processes.

1.6 3,000,000 6 % Non-cumulative Redeemable Preference Shares of $10/- each, fully paid in Kalyani Financial Services Limited are redeemable on or before 31st December, 2013.

1.7 Each of the 6,330,000 (Previous Year : 5,000,000) 8% Fully Convertible Debentures of $ 100/- each fully paid of Kalyani Financial Services Limited are compulsorily convertible into Equity Shares of $ 10/- each fully paid up at a premium of $ 20/- per share on or before 31st March, 2021.

1.8 The Revised Schedule VI has become effective from 1st April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2011

Previous Year Rupees Rupees

1. Contingent liabilities not provided for in respect of :

Liability on account of conveyance deed of the ownership Unascertainable Unascertainable premises of the Company at Antariksha Bhawan, New Delhi has not been executed as yet.

Corporate Guarantee given on behalf of other company 90,000,000 90,000,000

Estimated amount of contracts remaining to be executed on - 5,988,000

capital account and not provided for

2. Disclosure pursuant to Accounting Standard - 15 (Revised) on "Employee Benefits"

a) Defined contribution plans :

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution retirement benefit plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to the funds.

The Company recognized S 177,420/- (Previous Year : Rs. 169,619/-) for the provident and superannuation fund contributions in the profit and loss account. The contributions payable to this plan by the Company are at the rates specified in respective legislations.

b) Defined benefits plans :

The Company makes annual contributions to the Employees Group Gratuity cum Life Insurance Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for the qualified employees. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof, in excess of six months, for continuous service upto 15 years and equivalent to one months salary payable for each completed year of service or part thereof, in excess of six months, for continuous service of more than 15 years. Vesting occurs upon completion of five years of service.

The present value of defined benefit obligation and the related current service costs were measured using the Projected Unit Credit method, with actuarial valuations being carried out at each balance sheet date.

c) Other Long Term Employee Benefits :

The table below gives summary of the Companys obligations for other long term employee benefits in the form of compensated absences.

3. The Company does not owe any moneys to the suppliers registered under the Micro, Small and Medium Enterprises Development Act, 2006.

4. Related Party Disclosures :

A. Related Parties and their Relationship

1 Associates a) Kalyani Steels Limited

b) Kalyani Financial Services Limited

c) Kalyani Investment Company Limited

2 Joint Venture a) Meritor HVS India Limited

b) M/s Sundaram Enterprises

5. Legal title to all the assets vested and transferred to the Company in pursuance of the Composite Scheme of Arrangement approved by the High Court of judicature at Bombay, as per Order dated 5th February, 2010 as already reported could not necessarily be transferred in the name of the Company as at 31st March, 2011. The Company is in the process of completing the required legal processes.

6. In pursuance of the Composite Scheme of Arrangement, sanctioned by the High Court of the judicature at Bombay, vide Order dated 12th March, 2010, the Company has received allotment of 1,705,237 Equity Shares of Rs.10/- each, fully paid, in Kalyani Investment Company Limited, in the ratio of one such share for every ten shares of Kalyani Steels Limited, held by the Company on the record date being 23rd April, 2010. The cost of acquisition of shares of Kalyani Steels Limited has accordingly been adjusted in the books of the Company.

7. Each of the 5,000,000 8% Fully Convertible Debentures of Rs. 100/- each fully paid of Kalyani Financial Services Limited are compulsorily convertible into Equity Shares of Rs. 10/- each fully paid up at a premium of Rs. 20/- per share on or before 31st March, 2021.

8. In the absence of any notification by the Central Government, as to the rate and effective date for payment of cess under section 441A of the Companies Act, 1956, no provision, for the same, has been made in these accounts.

9. Since the statement of cash flows has been drawn up for the first time by the Company, corresponding figures for the previous year have not been given therein.

10. Previous years figures have been regrouped and rearranged, wherever necessary.

11. Balance Sheet Abstract and the Companys General Business Profile is attached, herewith.


Mar 31, 2010

A. Company Overview :

a) BF Investment Limited, is a public limited company incorporated on 26th May, 2009. The Company received the Certificate of Commencement of Business on 20th July, 2009. The Company is an investment company and it is also engaged in the business of real estate.

b) In a Composite Scheme of Arrangement approved by the High Court of judicature at Bombay, as per Order dated 5* February, 2010, Bhalchandra Investment Limited, Forge Investment Limited, Mundhwa Investment Limited, Jalakumbhi Investment and Finance Limited, Jalakamal Investment and Finance Limited and Kalyani Utilities Development Limited (the Amalgamating Companies) amalgamated with BF Utilities Limited (the Amalgamated Company and the Demerged Company) with retrospective effect from the Appointed Date, being 1st April, 2009. The Investment Business Under- taking of BF Utilities Limited was transferred to and vested in BF Investment Limited (the Resulting Company), on going concern basis, with retrospective effect from the Appointed Date, being 1st April, 2009. The Investment Business Undertaking comprised all investment and real estate business as also all the assets and properties, whether moveable or immoveable, real or personal, in possession or reversion, corporeal or incorporeal, tangible or intangible, present or contingent and liabilities, which relate thereto or are necessary therefor, as specified in the Scheme.

c) The said Scheme became effective from 26th February 2010 (the Effective Date) upon which, the Business of the Investment Business Undertaking together with all related assets and liabilities, as stated above, was deemed to have been transferred to and vested in the Company with retrospective effect from 1st April 2009.

d) The Business of the Investment Business Undertaking was deemed to have been carried out by BF Utilities Limited, in trust for the Company from the Appointed Date till the Effective Date. Any income or profit accruing or arising to BF Utilities Limited in relation to the Investment Business Undertaking and all costs, charges, expenses and losses incurred by BF Utilities Limited, in relation to the said undertaking, are for all purposes, to be treated as the income, profits, costs, charges, expenses and losses, as the case may be of BF Investment Limited in accordance with the Scheme. Accordingly, these financial statements incorporate the result of the activities carried out by BF Utilities Limited in trust for the Company from 1st April, 2009 to 26th February, 2010.

e) The Company is a Core Investment Company holding 90% of its assets in investments in shares of or debts in Croup Companies. In view of the interpretation of the extant regulatory frame work applicable to core investment compa- nies, as could be seen in the Press Release No. 2009-2010/1428 dated 21st April, 2010, it is not required to obtain Certificate of Registration under Section 45-IA of the Reserve Bank of India Act, 1934.

Rupees 1. Contingent liabilities not provided for in respect of : Liability on account of conveyance deed of the ownership premises of the Company at Antariksha Bhawan, New Delhi has been executed as yet. Unascertainable Corporate Guarantee given on behalf of other company 90,000,000 Estimated amount of contracts remaining to be executed on capital account and not provided for 5,988,000

2In the Composite Scheme of Arrangement approved by the High Court of judicature at Bombay, as stated, hereinabove, the Investment Business Undertaking of BF Utilities Limited was transferred to and vested in BF Investment Limited, on going concern basis, with retrospective effect from the Appointed Date, being 1st April, 2009. Consequently, the business of the said undertaking, alongwith the under mentioned assets and liabilities stand transferred in favour of the Company, which have been accounted for in the method and manner, prescribed in the above mentioned Scheme.

3. a) In terms of the said Composite Scheme of Arrangement, the Company has alloted 37,667,628 Equity Shares of Rs. 5/- each, fully paid up (the New Equity Shares) to the shareholders of BF Utilities Limited, whose names appeared in the register of members on the Record Date, fixed for this purpose, which was 12th March, 2010. Thus all the said equity shares have been allotted by the Company for consideration, other than cash.

b) Simultaneously with the issue and allotment of the New Equity Shares by the Company, the 4,000,000 Equity Shares of Rs. 5/- each, issued to the subscribers to the Memorandum of Association and transferred to the Company in the said Scheme are cancelled on 15th March, 2010.

4. This being, the first year, since incorporation, no statement of cash flows has been drawn up.

5. Disclosure pursuant to Accounting Standard - 15 (Revised) on "Employee Benefits"

a) Defined contribution plans :

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution retirement benefit plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to the funds.

The Company recognized Rs. 169,619/- for the provident and superannuation fund contributions in the profit and loss account. The contributions payable to this plan by the Company are at the rates specified in respective legislations.

b) Defined benefits plans :

The Company makes annual contributions to the Employees Croup Gratuity cum Life Insurance Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for the qualified employees. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 1 5 days salary payable for each completed year of service or part thereof, in excess of six months. Vesting occurs upon completion of five years of service.

The present value of defined benefit obligation and the related current service costs were measured using the Projected Unit Credit method, with actuarial valuations being carried out at each balance sheet date.

The following table sets out the funded status of the gratuity plan and the amounts recognized in the financial statements for the year ended 31st March, 2010.

6. Fixed Deposits Receipts for an aggregate amount of Rs. 165,000,000/- have been pledged with banks in respect of loans borrowed by Nandi Highway Developers Limited.

7. The amount of Rs. 81,527,043/- receivable from BF Utilities Limited in respect of transactions from the Appointed Date and Effective Date as per the Composite Scheme of Arrangement, referred to hereinbefore, has been included under "Advances recoverable in cash or in kind or for value to be received."

8. Eventhough, the Company is not required to obtain the Certificate of Registration under Section 45-IA of the Reserve Bank of India Act, 1934, it has set aside amount to Reserve Fund as required under Section 45-IC of the said Act, on prudent basis.

9. Dues to Micro, Small and Medium Enterprises :

The Company does not owe any moneys to the suppliers registered under the Micro, Small and Medium Enterprises Development Act, 2006.

10. There are no "Related Parties," within the meaning of the Accounting Standard - 18 on "Related Party Disclosures."

11. In the absence of any notification by the Central Government, as to the rate and effective date for payment of cess under section 441A of the Companies Act, 1956, no provision, for the same, has been made in these accounts.

12. This being the first year, since incorporation, the question of giving figures pertaining to previous year does not arise.

13. Balance Sheet Abstract and the Companys General Business Profile is attached, herewith.

 
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