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Notes to Accounts of Diamond Power Infrastructure Ltd.

Mar 31, 2015

1. Contingent Liabilities

(a) Letter of Credit opened as on March 31 2015 is Rs 864.29 Million (Previous Year Rs. 1933.09 Million); materials under all letters of credit have been received and accounted for as Creditors. Buyer's credit opened Rs. Nil Million (Previous Year Rs. 74.76 Million) materials under all Buyers' credit have been received and accounted for as Creditors.

(b) Outstanding Inland Bank Guarantees as of March 31, 2015 is Rs. 1397.98 Million (Previous Year Rs.1403.11 Million) and outstanding Foreign Bank Guarantees as of March 31,2015 is $ 3.48 Million ( Previous Year $5.51.Million)

(c) Pending Liabilities of the company which are not acknowledge as Debt:

Income tax demands: Rs. NIL (previous year Rs nil): the company was in settlement commission till the A.Y. 2012-13 for which demand has been quantified and paid, for the A.Y. 2013-14 the regular assessment is to start.

Sales tax/CST Demands: 2007-08 Rs. 4.36 MN (Appeal Pending in tribunal), 2009-10 Rs. 10.83 MN (Appeals pending at Commissioner level). excise and Service tax Demands: 5.44 MN show Cause Notice for service tax, pending at Commissioner level

(d) There are no outstanding Claims against the Company except of Rs. 1.77 MN of Sardar Sarovar Narmada Nigam Ltd., in our opinion the companies matters are on strong ground & no financial repercussions on the company

2. Balance confirmation letters were sent out to various debtors and creditors. The confirmation of most of the Debtors and creditors is received.

3. The method of valuation of inventories adopted by the company is in accordance with the requirements of Accounting Standard 2 (Valuation of Inventories and as revised from time to time) issued by the Institute of Chartered Accountants of India.

4. In the opinion of the Management all the current assets, loans and advances and deposits are realizable at value stated in the ordinary course of the business which are at least equal to the amount at which they are stated in the books unless otherwise explicit.

5. Segmental Reporting :

The company is primarily engaged in the manufacture of conductors, cables and selling out- sourced products and EPC Contracts. As the company's manufacturing facilities are inter woven/ inter- mix due to the nature of its business with the EPC business, it is not possible to directly and specifically attribute or allocate on a reasonable basis, the expenses, assets & liabilities in different Segments. The segmental Sales product wise are as follows:

6. Share Holding in Various Companies :

The Company holds the following shares

1) Diamond Power Transformers Ltd.

99.60% shares held by DPIL.

2) Diamond Power Global Holding:

100% shares in its Subsidiary are held by DPIL

3) Maktel Power and Maktel Control & Systems Ltd.

40% Shares Held by Diamond Power Transformer Ltd., further out of the Four Directors on board of Maktel, 2 directors are common in DPIL

7. Dues to micro, small and medium enterprises

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated August 26, 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated

After filing of the Memorandum in accordance with the 'Micro, Small and Medium Enterprises Development Act, 2006' ('the Act'). Accordingly, the disclosure in respect of the amounts payable to such enterprises as at March 31, 2011 has been made in the financial statements based on information received and available with the Company. Detail of the Small Scale Industries (SSI) units which have supplied the materials to the company and to whom the company owes a sum exceeding RS 1.00 Lacs and which is outstanding for more than 30 days is Nil

Note: The above Information regarding Small Scale Industrial undertaking has been determined to the extent such parties has been identified on the basis of information available with the company. The same has been relied upon by the Auditors. To confirm names/ figures

8. Sales include an amount of Rs Nil Million (Net of Duty) of inter-unit Transfer (Previous year Rs NIL Million).

9. Aggregate directors' remuneration is Rs. 29.67 Million (previous year Rs. 19.59 Million. The remuneration of directors is as per the approval accorded by remuneration Committee, shareholders and Central Government as per the provisions of section 311 read with Schedule XIII of the Companies Act, 1956.

10. Aggregate Auditor's remuneration is fixed at Rs. 1.62 Million (previous year Rs 1.62 Million.

Which includes Rs 1.50 Million as Audit Fees (Previous year Rs 1.50 Millions)?

11. As per Accounting Policy (10) on excise duty, the excise duty payable on finished goods in stocks at works amounting to Rs 218.9 Million (previous year Rs 7.13 Million) has been included in the expenditure and in such stocks. However, the same has no impact on the profit for the year.

12. There are no amounts due and outstanding to be credited to investor Education and Protection Fund.

13. Gratuity

The company operates one defined plans viz, gratuity for its employees. Under the gratuity plan every employee who has completed at least 5 years of services gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service.

The following tables summarize the components of net benefit expenses recognized in the statement of Profit & Loss and the liability as per report shown in Balance sheet

14. Bank interest and cost includes the amounts provided towards currency fluctuation towards entire year to calculate the quarter profits such amounts of yearend adjustments are to be excluded.

15. Annual Provision and provisions of expenses related to the commencement of the production from the new facilities resulted in increase in the cost of Q-4 2014-2015, the benefits of which are expected over the next year.


Mar 31, 2014

1.1 For the period of 5 years immediately preceding the date as at which the balance Sheet is prepared

a) Aggregate Number and Class of Shares allocated as fully paid up pursuant to contract(s) without payment have being received In cash NA

b) Aggregate Number and Class of 12402124 Equity Shares allocated as fully paid up by way of Bonus Shares in FY 2013-14 and 7015690 Equity shares allocated as fully paid up by way of bonus share in FY 2009-10

c) Aggregate Number and Class of Shares bought Back NA

1.2 The Company has one class of equity shares having a par value of Rs 10 per share & Preference Shares having per value of Rs10 per share. Each holder of equity shares is entitled to one vote per share.

1.3 Forfeited Shares

The Company had Forfeited 679750 Equity Shares on 29.04.2000 out of Issued Capital of 18250000 Equity Shares the forfeited Shares where due to Unpaid Shares calls of Rs. 7 Per.

(c) Rs Nil (Previous year Rs. 1454.52 Lacs) secured by 1st pari passu charge on all fixed assets of the company both present & future with in 60 days from the first disbursement. 2nd pari passu charge on all current assets of the company both present & future within 60 days from the 1st disbursement. The term loan is repayable in 11 equated quarterly instalment after moratorium period carries interest rate 12.25%.

(d) Rs. 10000 lacs (Previous Year Rs 10000 Lacs) (Non Convertible Debentures) secured by 1st pari passu charge on all fixed assets of the company both present & future with in 60 days from the first disbursement. 2nd pari passu charge on all current assets of the company both present & future within 60 days from the 1st disbursement repayment starting from 1st june 2014 carries interest rate 12.35%.

(e) Rs 33.04 Lacs (Previous Year Rs 73.64) Loans taken for the Vehicles the present rate of interest charged is at 10.83% PA the duration of loan are for period of 36 Months from the Date of Disbursement.

(f) Rs 50000.00 Lacs (Previous year Rs. Nil) secured by 1st pari passu charge on all fixed assets of the company both present & future with in 60 days from the first disbursement. 2nd pari passu charge on all current assets of the company both present & future within 60 days from the 1st disbursement The term loan is repayable in 11 equated quarterly instalment after moratorium period carries interest rate 12.25%.

Unsecured Loans

1. Rs 3000 Lacs (Previous Year Rs 4000 Lacs) are unsecured carrying interest rate of 12.90% and repayable within 90 days from the first Disbursement.

2. Rs 2704.20 Lacs (Previous Year Rs 15600.27) are towards contribution from the Promoters'' group for the ongoing expansion project. During the year 4392000 Warrants were issued @120 per warrants same during the year got converted into equity shares and additionally preference share of 4141500 @181 these was equally allotted to Diamond Projects Ltd and Madhuri Finserve Pvt Ltd.

2. Gratuity

The company operates one defined plans viz gratuity for its employees. Under the gratuity plan every employee who has completed at least 5 years of services gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service.

The following tables summarize the components of net benefit expenses recognized in the statement of Profit & Loss and the liability as per report shown in Balance sheet.

3. Bank interest and cost includes the amounts provided towards currency fluctuation towards entire year to calculate the quarter profits such amounts of year end adjustments are to be excluded.

4. The amounts of sales and profits include the sales from the companies Manufacturing operations Branches and fully owned subsidiaries i.e Diamond Power Transformers Ltd and Diamond Power Global Holding Ltd

5. Annual Provision and provisions of expenses related to the commencement of the production from the new facilities resulted in increase in the cost of Q-4 2013-2014 the benefits of which are expected over the next year.

Previous year figures are regrouped /reclassified where ever necessary to make them comparable with the current year.


Mar 31, 2013

1. Contingent Liabilities

a) Letter of Credit opened Rs.3879.16 Million Previous Year Rs 2001Million; materials under all letters of credit have been received and accounted for as Creditors.

(b) Outstanding Bank Guarantees as of March 31, 2013 is Rs. 1775 Million (Previous Year Rs.1226.37 Million).

(c) Income tax demands being in appeal not provided for Rs. Nil (previous year Rs Nil).

(d) There are no outstanding Claims against the Company.

(e) Corporate guarantees issued to wholly owned subsidiary – Diamond Power Transformers Ltd. In favour of Indian Overseas Bank

2. The company has been sanctioned the fund based and non-fund based working capital facilities of Rs. 1650 Millions from the Axis Bank Ltd.; Rs. 3500 Million from the Bank of India; Rs. 1980 Million from the ICICI Bank Ltd.,: Rs. 2200 Million from the Bank of Baroda, Rs. 1620 Million from Allahabad Bank & Rs. 660 Millions from Dena Bank, Rs. 552 Millions from Indian Overseas Bank & Rs. 500 Mn from State Bank of Mysore against the security of first pari passu charge on the entire current assets of the company by way of Hypothecation agreement and the second pari passu charge on the entire fixed assets of the company.

3. Balance confirmation letters were sent out to various debtors and creditors. The confirmation of most of the Debtors and creditors is received.

4. The method of valuation of inventories adopted by the company is in accordance with the requirements of Accounting Standard 2 (Valuation of Inventories and as revised from time to time) issued by the Institute of Chartered Accountants of India.

5. In the opinion of the Management all the current assets, loans and advances and deposits are realizable at value stated in the ordinary course of the business which are at least equal to the amount at which they are stated in the books unless otherwise explicit.

6. Segmental Reporting:

The company is primarily engaged in the manufacture of conductors, cables and selling out- sourced products and EPC Contracts. As the company''s manufacturing facilities are inter woven/ inter- mix due to the nature of its business with the EPC business, it is not possible to directly and specifically attribute or allocate on a reasonable basis, the expenses, assets & liabilities in different Segments. The segmental Sales product wise are as follows:

7. Share Holding in Various Companies: The Company holds the following shares

1. 99.60% in its Subsidiary Diamond Power Transformers Ltd.

2. 100% in its Subsidiary Diamond Power Global Holding Ltd. – Dubai

3. 100% in its Subsidiary Diamond Power Transmission Pvt Ltd .

8. Related Party Disclosures:

a) Particulars of Associates of the Company:

Name of the Related Party Nature of Relationship

Diamond Infosystems Ltd. Associate Company of DPIL

Diamond Projects Ltd. Associate Company of DPIL

b) Subsidiary Company:

Name of the Subsidiary Diamond Power Transformers Ltd Diamond Power Global Holding Ltd Diamond Power Transmission Pvt Ltd

c) Key Management Personnel and their Relatives:

Key Management Personnel and their Relatives Nature of Relationship

Mr. S.N.Bhatnagar Chairman

Mr. Amit Bhatnagar Managing Director

Mr. Sumit Bhatnagar Jt. Managing Director

d) Relatives of Key Management Personnel:

Key Management Relatives Smt Madhurilata Bhatnagar

Smt Mona Bhatnagar

Smt Richa Bhatnagar

e) Enterprise under Significant influence of Key Management Personnel: Not applicable

8. Dues to micro, small and medium enterprises

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated August 26, 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated. After filing of the Memorandum in accordance with the ''Micro, Small and Medium Enterprises Development Act, 2006'' (''the Act''). Accordingly, the disclosure in respect of the amounts payable to such enterprises as at March 31, 2011 has been made in the financial statements based on information received and available with the Company. Detail of the Small Scale Industries (SSI) units which have supplied the materials to the company and to whom the company owes a sum exceeding RS 1.00 Lacs and which is outstanding for more than 30 days is Nil

Note: The above Information regarding Small Scale Industrial undertaking has been determined to the extent such parties has been identified on the basis of information available with the company. The same has been relied upon by the Auditors. To confirm names/figures

11. Sales include an amount of Rs Nil Million (Net of Duty) of inter- unit Transfer (Previous year Rs 761.92 Million).

9 Aggregate directors'' remuneration is Rs. 17.12 Million (previous year Rs. 36.85 Million. The remuneration of directors is as per the approval accorded by remuneration Committee, shareholders and Central Government as per the provisions of section 311 read with Schedule XIII of the Companies Act, 1956.

10 Aggregate Auditor''s remuneration is fixed at Rs. 1.62 Million (previous year Rs. 2.43 Million. Which includes Rs 1.62 Million as Audit Fees (Previous year Rs. 2.43 Millions).

11 As per Accounting Policy (10) on excise duty, the excise duty payable on finished goods in stocks at works amounting to Rs 104.43 Million (previous year Rs 75.87 Million) has been included in the expenditure and in such stocks. However, the same has no impact on the profit for the year.

12. There are no amounts due and outstanding to be credited to investor Education and Protection Fund.

13. Details of Licensed, Installed Capacities and Production

Previous year figures are regrouped /reclassified where ever necessary to make them comparable with the current year.


Mar 31, 2012

1.1 For the period of 5 years immediately preceding the date as at which the balance Sheet is prepared NA

a) Aggregate Number and Class of Shares allocated as fully paid up pursuant to contract(s) without payment have being received In cash

b) Aggregate Number and Class of Shares allocated as fully paid up by way of bonus Shares

c) Aggregate Number and Class of Shares bought Back

1.2 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 dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

Term Loans from Banks

a) Rs 12500 Lacs (Previous year Rs 15000 Lacs) Secured 1st Pari Passu Charge on the entire Fixed Assets of the company both present and Future. The Term Loan is repayable in remaining 22 equal Quaterly Installments by 30th Sep 2016 and present intrest rate is 12.90% p.a

(b) Rs 2739.41 Lacs (Previous year Nil) Secured 1st Pari Passu Charge on the entire Fixed Assets of the company both Present and Future. The Term Loan is Repayable in 26 equally quaterlly installments commencing from 30th Sep 2014 and carries Intrest rate of 12.75% pa

(c) Rs 2909.08 Lacs (Previous year Rs. 4000 lacs) secured by 1st pari passu charge on all fixed assets of the company both present & future with in 60 days from the first disbursement. 2nd pari passu charge on all current assets of the company, both present & future within 60 days from the 1st disbursement,The term loan is repayble in 11 equated quarterly installments after moratorium period carries interest rate 12.25%

(d) Rs. 10000 lacs (Previous Year 6800 Lacs) (Non Convertible Debentures)secured by 1st pari passu charge on all fixed assets of the company both present & future with in 60 days from the first disbursement. 2nd pari passu charge on all current assets of the company, both present & future within 60 days from the 1st disbursement, repayment starting from 1st June 2014, carries interest rate 12.35%

(e) Rs 121.62 Lacs (Previous Year 48.41) Loans taken for the Vehicles the present rate of interest charged is at 10.83%PA the duration of loan are for period of 36 Months from the Date of Disbursment

Unsecured Loans

1. Rs 2850 Lacs (Previous Year 3000 Lacs) are unsecured carrying interest rate of 12.90% and repayable within 90 days from the first Disbursement

2 Rs 2200 Lacs (Previous Year Nil) are towards contribution from the Promoters' group for the ongoing expansion project.

Note to Standalone

Loans repayable on Demand

Rs 36234.07 Lacs (Previous Year 15477.11 Lacs) these entire loan are secured by the first Parri Passu Charge on Entire Current Assets of the company and second pari Passu Charge on the Fixed Assets of the company and rate of Interest charged on the entire loan is @ 13.50 to 14%

1. Contingent Liabilities

(a) Letter of Credit opened Rs.2001 Million Previous Year Rs 1145.25 Million; materials under all letters of credit have been received and accounted for as Creditors.

(b) Outstanding Bank Guarantees as of March 31, 2012 is Rs.1226.37 Million (Previous Year Rs. 948.73 Million

(c) There are no outstanding income tax demands under appeals.

(d) There are no outstanding Claims against the Company.

(e) Corporate guarantees issued on behalf of wholly owned subsidiary - Diamond Power Transformers Ltd. in favour of SICOM Limited and Indian Overseas Bank

2. The company has been sanctioned the fund based and non-fund based working capital facilities of Rs. 1650 Million from the Axis Bank Ltd.; Rs. 2314 Million from the Bank of India; Rs. 1980 Million from the ICICI Bank Ltd.,: Rs. 2200 Million from the Bank of Baroda, Rs 1620 Million from Allahabad Bank & Rs 660 Million from Dena Bank and Rs 552 Million from Indian Overseas Bank against the security of first pari passu charge on the entire current assets of the company by way of Hypothecation agreement and the second pari passu charge on the entire fixed assets of the company.

3. Balance confirmation letters were sent out to various debtors and creditors. The confirmation of most of the Debtors and creditors is received.

4. The method of valuation of inventories adopted by the company is in accordance with the requirements of Accounting Standard 2 (Valuation of Inventories and as revised from time to time) issued by the Institute of Chartered Accountants of India.

5. In the opinion of the Management all the current assets, loans and advances and deposits are realizable at value stated in the ordinary course of the business which are at least equal to the amount at which they are stated in the books unless otherwise explicit.

6. Segmental Reporting:

The company is primarily engaged in the manufacture of conductors, cables, towers, transformers and selling out- sourced products and EPC Contracts. As the company's manufacturing facilities are inter woven/ inter- mix due to the nature of its business with the EPC business, it is not possible to directly and specifically attribute or allocate on a reasonable basis, the expenses, assets & liabilities in different Segments. The segmental Sales product wise are as follows:

7. Share Holding in Various Companies:

The Company holds the following shares

1. 99.60% in its Subsidiary Diamond Power Transformers Ltd

2. 100% in its wholly owned Subsidiary Diamond Power Global Holdings Ltd

Note: The above information has been determined to the extent such parties have been identified on the basis of information provided by the Company and approved by the Board of Directors of the Company, which has been relied upon by the Auditors. Enterprise under the same management include Wholly Owned Subsidiary Diamond Power Transformers Ltd.

8. Dues to micro, small and medium enterprises

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated August 26, 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated.

After filing of the Memorandum in accordance with the 'Micro, Small and Medium Enterprises Development Act, 2006' ('the Act'). Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31st March, 2012 has been made in the financial statements based on information received and available with the Company. Detail of the Small Scale Industries (SSI) units which have supplied the materials to the company and to whom the company owes a sum exceeding RS 1.00 Lacs and which is outstanding for more than 30 days is Nil.

Note: The above Information regarding Small Scale Industrial undertaking has been determined to the extent such parties has been identified on the basis of information available with the company. The same has been relied upon by the Auditors. To confirm names/figures

9. Sales include an amount of Rs 761.92 Million (Net of Duty) of inter- unit Transfer (Previous year Rs 1121.25 Million).

10. Aggregate directors' remuneration is Rs. 36.85 Million (previous year Rs. 22.48 Million. The remuneration of directors is as per the approval accorded by remuneration Committee, shareholders and Central Government as per the provisions of Section 311 read with Schedule XIII of the Companies Act, 1956.

11. Aggregate Auditor's remuneration is fixed at Rs. 2.32 Million (previous year Rs 1.04 Million. Which includes Rs 1.02 Million as Audit Fees (Previous year Rs 1.02 Million).

12. As per Accounting Policy (10) on excise duty, the excise duty payable on finished goods in stocks at works amounting to Rs 75.87 Million (previous year Rs 18.61 Million) has been included in the expenditure and in such stocks. However, the same has no impact on the profit for the year.

13. There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.

Consumption of Assorted Wire / Wire rods is not provided, as they are totally consumed in-house for manufacture of conductors. Installed capacity and capacity utilization are as certified by the management and not verified by the auditors being a technical matter. The quantity in Kms. cannot comparable as the weight per Kms of each conductor varies on the cross section area and current carrying capacity. Hence, the production has been shown in Kms. The Quantity are usually taken as per relevant IS standards.

Previous year figures are regrouped /reclassified where ever necessary to make them comparable with the current year.

 
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