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Notes to Accounts of Delton Cables Ltd.

Mar 31, 2015

Note 1

Corporate Information

Delton Cables Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act,1956. Its shares are listed on BSE in India. The company has three manufacturing units located in Dharuhera, Faridabad and Noida. The company is engaged in manufacturing and supplying of wires and cables. Delton is a prime supplier to the Power, Telecommunication, Railways, Steel and Mining sectors in India and has also firmly established itself in the International market.

Note 2

Basis of preparation

The financial statements have been prepared in accordance with applicable accounting standards and relevant presentation requirements of the Companies Act, 2013 and are based on the historical cost convention. The financial statements have been prepared on accrual basis and under the historical cost convention, except for certain fixed assets which are carried at revalued amounts.

Note 3 : Share capital

a. Terms/rights attached to equity shares

The company has only one class of equity shares having par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees.

During the year ended March 31,2015, the amount of per share dividend recognized as distributions to equity shareholders is Rs. NIL (March 31,2014:Rs. NIL).

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.

(ii) Defined Benefit plans

The employee's gratuity fund scheme managed by Life Insurance Corporation is a defined benefit funded plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employees benefit entitlement and measures each unit separately to built up the final obligation. The obligation for leave encashment is a defined unfunded benefit plan, which is recognized in the same manner as gratuity.

b) Details of assets taken on operating leases

The Company has entered into separate Cancellable Operating lease for Premises. The tenure of these agreements range between three to five years. The amount of lease rentals paid of Rs. 8,587,678 (March 31,2014: Rs. 5,989,689) has been charged under the head " Rent " in the Statement of Profit and Loss.

Note 4 : Segment Reporting

The company is engaged in manufacturing of Wire, cable and Switchgears. The operations are governed by different set of risk and returns. However, switchgear segment does not qualify as reportable segment in context of the Accounting Standard - 17 on "Segmental Reporting"notified by Companies (Accounting Standard) Rules,2006. The said treatment is in accordance with the guiding principles enunciated in the said Accounting Standard.

Note 5 : Disclosure of Related parties/ Related parties transactions : a) List of Related Parties and relationships

i) Enterprises having Significant influence of KMP's

Delton International Ltd. Vishranti Trading Enterprises Ltd. Saneh Industrial Investments Ltd. B & M Trading & Investment Company Ltd. Delton Cable Company Viga Trade Solutions Pvt.Ltd. Ram Kumar Gupta & Sons Ltd. Allied Promoters Ltd. Shrimati Shanti Devi Charity Trust

Note: Only the enterprises having the transactions during the year are disclosed.

ii) Key Management Personnel

Mr. V.K. Gupta, Chairman and Managing Director Mr. Vivek Gupta, Joint Managing Director Mr. Manoj Sharma, Chief Financial Officer Mr. Jitender Kumar, Company Secretary

iii) Relative of Key Management Personnel

Ms. Deepti Gupta (Daughter of V.K Gupta, Director)

During the year, compulsory acquisition of Dharuhera land was done by NHAI as per the notification Dt. 21.02.2013 issued by Ministry of Road Transport and Highways under NHAI Act and the company had received lumpsum consideration of Rs. 99.68 Lakhs against this acquisition and the profit on the same has been disclosed under the Note 27 in Financial statement as 'Exceptional Items'.

Note 6:

In view of the management, the current asssets, loans and advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet as at 31st March, 2015

As per Note No.12 of Part "C" of the Schedule II to the Companies Act, 2013 the carrying amount of the assets as at April 1,2014 has been depreciated as follows:

a) Carrying value of asset has been depreciated over the remaining useful life of assets and recognized in the Statement of Profit & Loss.

b) In case where the remaining useful life of an asset is nil the carrying amount of the assets after retaining the residual value has been recognized

in the opening balance of retained earnings.

The Company has wef 1st April 2014, computed depreciation in accordance with the useful life of the Fixed Assets as per schedule II of the Companies Act,2013. Consequently Depreciation charged for the year is lower by Rs. 1,372,289 and carrying value of the assets amounting to Rs. 3,136,128 (Net of Deferred Tax Rs. 1,402,408) after retaining the residual value, whose remaining useful life is nil has been adjusted from the opening balance of Retained Earnings.

Note 7:

Sundry debtors, creditors and loans and advances are subject to confirmation.

Note 8:

Figures are rounded to the nearest rupee.

Note 9:

Figures for the previous year have been reclassified/regrouped wherever considered necessary.


Mar 31, 2014

Note 1

Corporate Information

Delton Cables Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on BSE and DSE. in India. The company has four manufacturing units located in Dharuhera, Najafgarh, Faridabad and Noida. The company is engaged in manufacturing and supplying of wires and cables. Delton is a prime supplier to the Power, Telecommunication, Railways, Steel and Mining sectors in India and has also firmly established itself in the International market.

Note 2

Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention, except for certain fixed assets which are carried at revalued amounts.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

Note 3 : Share capital

a. Terms/rights attached to equity shares

The company has only one class of equity shares having par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays 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.

During the year ended March 31, 2014, the amount of per share dividend recognized as distributions to equity shareholders is Rs. NIL (March 31, 2013: Rs. NIL).

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.

Note 4 : Defined Benefit plans

The employee's gratuity fund scheme managed by Life Insurance Corporation is a defined benefit funded plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employees benefit entitlement and measures each unit separately to built up the final obligation. The obligation for leave encashment is a defined unfunded benefit plan, which is recognized in the same manner as gratuity.

Note 5 : Disclosure required by Accounting Standard (AS)-29 "Provisions, Contingent Liabilities and Contingent Assets

(Amount in Rs.)

For the For the year ended year ended Disclosures in respect of Contingent on March 31 on March liabilities 2014 31,2013

Claims against the company not acknowledged as debts

Sales Tax 15,813,547 19,631,595

Civil Suits 563,230 180,574

Excise Laws 1,029,000 1,029,000

LADT 5,732,507 5,732,507

Guarantee issued by Banks 143,482,565 178,718,761 (net of margin)

Letter of Credit 248,553,769 155,878,073

Sales Tax sureties given for 80,000 80,000 third parties 415,254,618 361,250,510

Note 6 : Segment Reporting

The company is engaged in manufacturing of Wire, cable and Switchgears. The operations are governed by different set of risk and returns. However, switchgear segment does not qualify as reportable segment in context of the Accounting Standard - 17 on "Segmental Reporting"notified by Companies (Accounting Standard) Rules, 2006. The said treatment is in accordance with the guiding principles enunciated in the said Accounting Standard.

Note 7 : Disclosure of Related parties/ Related parties transactions :

a) List of Related Parties and relationships

i) Enterprises having Significant influence of

Delton International Ltd.

Vishranti Trading Enterprises Ltd.

Saneh Industrial Investments Ltd.

B&M Trading & Investment Company Ltd.

Delton Cable Company Viga Trade Solutions Pvt.Ltd.

Ram Kumar Gupta & Sons Ltd.

Allied Promoters Ltd.

Shrimati Shanti Devi Charity Trust

Note; Only the enterprises having the transactions during the year are disclosed.

ii) Key Management Personnel

Mr. V.K. Gupta

Mr. Vivek Gupta

iii) Relative of Key Management Personnel Ms.Deepti Gupta ( Daughter of V.K Gupta, Director)

Note 8:

In view of the management, the current asssets, loans and advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet as at 31st March, 2014

Note 9:

Sundry debtors, creditors and loans and advances are subject to confirmation.

Note 10:

Figures are rounded to the nearest rupee.


Mar 31, 2013

Note 1

Corporate Information

Delton Cables Limited is a public company domiciled in India and incorporated under the provisions of the Comapnies Act, 1956. Its shares are listed on BSE and NSE. in India. The company has four manufacturing units located in Dharuhera, Najafgarh, Faridabad and Noida. The company is engaged in manufacturing and supplying of wires and cables.Delton is a prime supplier to the Power, Telecommunication, Railways, Steel and Mining sectors in India and has also firmly established itself in the International market.

Note 2

Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention, except for certain fixed assets which are carried at revalued amounts.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

NOTE 3 : SEGMENT REPORTING

The company is engaged in manufacturing of Wire, cable and Switchgears.The operations are governed by different set of risk and returns. However, switchgear segment doesnot qualify as reportable segment in context of the Accounting Standard -17 on "Segmental Reporting"notified by Companies (Accounting Standard) Rules,2006. The said treatment is in accordance with the guiding principles enunciated in the said Accounting Standard.

4. DISCLOSURE OF RELATED PARTIES/ BELATED PARTIES TRANSACTIONS: a. Name of the Related Parties and description of relationship

i) Enterprises having Significant influence of KMP''s Delton International Ltd.

Vishranti Trading Enterprises Ltd.

Saneh Industrial Investments Ltd.

B & M Trading & Investment Company Ltd.

Delton Cable Company

Viga Trade Solutions Pvt.Ltd.

Ram Kumar Gupta & Sons Ltd.

Allied Promoters Ltd.

Note: Only the enterprises having the transactions during the year are disclosed. ii) Key Management Personnel Mr. V.K. Gupta

Mr. Vivek Gupta ill) Relative of Key Management Personnel Ms. Deepti Gupta (Daughter of V.K Gupta, Director)

5. In view of the management, the current asssets, loans and advances have a value on realisation in the ordinary course of buisness at least equal to the amount at which they are stated in the balance sheet as at 31st March, 2013

6. Sundry debtors, creditors and loans and advances are subject to confirmation.

7. Derivative Contracts entered into by the company and outstanding as on 31st March 2013 for Hedging Currency and Interest Rate Related Risks:

(i) Nominal amount of derivatives including forward contracts entered into by the company and outstanding as on March

31,2013 amounts to Rs. 51,836,910 (March 31,2012: Rs.47,406,423). (ii) All Derivative contracts entered into by the company are for hedging purposes only. (iii) During the year the company has booked a gain of Rs.250,750 towards premium on forward exchange contracts. (March 31,2012: Rs. (310,263)).

8. Figures are rounded to the nearest rupee.


Mar 31, 2010

1. Land, Building,Computers and Plant & Machinery purchased prior to 30th June 1985 were revalued by an approved valuer as on that date. The resultant surplus over the written down value amounting to Rs.57,205,184 was charged to the gross block of the respective assets. Depreciation charge for the year includes Rs. 226,063 (Previous Year Rs.226,063), which is necessitated on account of revaluation of these fixed assets. An amount equivalent to the aforesaid additional depreciation charge is transfered to the credit of the Profit & Loss Account from revaluation of Fixed Assets.

2 Sundry Debtors

- are shown as-net of claims of Rs.11,735,521 (Previous year Rs.9,981,759).

- over six months unsecured and considered good in Schedule 8 includes old outstanding aggregating to Rs. 10,173,725 (Previous year Rs. 10,173,725) due from customers for which no provision is considered necessary as the management is of the view that these are recoverable.

3 The Company has not received infromation from vendors regarding their status under Micro, Small and Medium Enterprises Devlopment Act,2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid/payable under this Act have not been given.

4 Cash & Bank Balances in schedule 9 includes Rs. 281,975 (RY. Rs. 281,975) standing due from Banaras State Bank Ltd..Consequent upon the scheme of amalgamation vide notification FNo. 15/02/2000-BOA (I) dated 19.06.2002 and FNo. 15.02.2000-BOA (II) dated 19.06.2002, the 85.85% of total assets and liabilities of erstwhile Banaras State Bank Ltd. have been taken over by the Bank of Baroda. As per the notice of Bank of Baroda, the unpaid balances due to company by Banaras State Bank Ltd. of Rs .95,430 will be paid on settlement of claims by the Deposit Insurance and Credit Guarantee Corporation of India (DJCGCI) and balance amounting to Rs. 186,545 would be paid as and when assets classified as *not readily realizable are realized.The interest on the above dues had not been provided, for on account of uncertainity on the recoverability of the above dues.

* Notes: 1. The above remuneration is within the limit prescribed under the schedule XIII of the Companies Act, 1956.

5. Do not include contribution to gratuity fund , since the same are paid/determined for the company as a whole.

6 Contingent Liabilities not provided for

(a) (i) Guarantee issued by Banks 255,102,604 279,003,805

(ii) Letter of Credit 119,717,967 109,719,739

(iii) Sales Tax sureties given for third parties 80,000 80,000

(iv) Counter Guarantee given to Directors 577,179,429 746,481,456

952,080,000 1,135,285,000

(b) Claims against the company not ack nowledged as debt

(i) Sales Tax 14,183,088 6,921,822

(ii) Civil Suits 24,843,337 23,600,324

(iii) Income Tax 1,131,417 1,131,417

40,157,842 31,653,563

7 Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for Nil (P.Y Rs. 1,050,650).

Note: The above amount have been debited under the head "Legal and Professional charges and service tax recoverable. 9 Employees Benefits

(b) Defined Benefit plans

The employees gratuity fund scheme managed by Life Insurance Corporation is a defined benefit funded plan. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional unit of employees benefit entitlement and measures each unit separately to built up the final obligation. The obligation for leave encashment is a defined unfunded benefit plan, which is recognized in the same manner as gratuity.

Notes : The estimate of rate of escalation in salary considered in actuarial valution, taken into account inflation, seniority, promotion and other relevant factors on long term basis including supply and demand in the employment market.

8 Lease

(i) Operating Lease

(a) The Company has taken Office Premise on Operating Lease. The tenure of lease is 3 years with the initial lock in period of 1 year. The lock in period commences from December 2008 and extends upto November 2009. The amount payable in pursuance to such lock in period is Nil (P.Y Rs 68,000) The amount of lease rentals paid of Rs 102,000 (P. Y Rs.34,000) has been charged under the head "Rent and Lease Rent" in Schedule 15.

(b) The Company has entered into separate Cancellable Operating lease for Premises and Vehicles. The tenure of these agreements range between three to five years.

The amount of lease rentals paid of Rs 4,518,246 (P. Y Rs.4,156,324) has been charged under the head " Rent and Lease Rent" and " Travelling and Conveyance" in Schedule 15.

( c) The Company has Sub Leased premises on Cancellable Operating Lease. The aggregate amount of lease rentals received amounting to Rs. 37,200 (RY 37,200) have been credited under the head "Miscellaneous Income" in Schedule 13.

(ii) Finance Lease

(a) In respect of Fixed Assets acquired on finance lease, the minimum lease rentals outstanding as on 31st March, 2010 are as follows:

9 Earnings in foreign exchange

10 Expenditures in Foreign Exchange (on payment basis)

11 CIF value of imports

12 Prior period Income/Expenditures includes

13 Details of Raw Materials Consumed

14. Percentage of Raw Material Consumption

15 Sales (Manufactured Goods)

16 The company is also in the business of manufacturing "Switchgears". This segment doesnot qualify as reportable segment in context of the Accounting Standard - 17 "Segmental Reporting"notified by Companies (Accounting Standard) Rules,2006. Hence disclosure as required by the said standard is not required.

17 Disclosure of Related parties/ Related parties transactions :

A. Name of the Related Parties and description of relationship

I. Associates Delton International Ltd.

Vishranti Trading Enterprises Ltd.

Saneh Industrial Investments Ltd.

B & M Trading & Investment Company Ltd.

Senor Microwave Pvt. Ltd.

Ram Kumar Gupta & Sons Ltd.

Delton Cable Company

Srimati Shanti Devi Charitable Trust

Abaskar Constructions (P) Ltd

Element Arts (P) Ltd

VIGA Trade Solutions (P) Ltd

II Key Management Personnel Mr. V.K. Gupta

Mr. Vivek Gupta

Mr. S. S Malhotra

18 Deferred Taxation

19 Earning per Share

20 In view of the management, the current asssets, loans and advances have a value on realisation in the ordinary course of buisness at least equal to the amount at which they are stated in the balance sheet as at 31st March, 2010.

21 Sundry debtors, creditors and loans and advances are subject to confirmation.

22 Figures are rounded to the nearest rupee.

23 Previous years figures have been regrouped /rearranged/reworked wherever considered necessary.

 
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