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Notes to Accounts of DIL Ltd.

Mar 31, 2015

NOTE 1. (i) - INTEREST IN JOINT VENTURE: (Refer Note 12)

Company has invested an aggregate of Rs, 188.51 Lakhs in VasKo Glider s.r.o. Czechoslovakia, a joint venture. Out of the above, Rs, 1.96 Lakhs (Czech Koruna 1 Lakh) is towards basic capital and Rs, 186.55 Lakhs (Czech Koruna 95.24 Lakhs) is towards voluntary additional contribution to capital. VasKo Glider is involved in manufacture of wheelchairs based on Levitation Movement Technology, acquired from the joint venture partner under the technology transfer agreement with effect from March 18, 2005 and the patent of which is registered in Czechoslovakia in the name of the joint venture partner. The joint venture partner has applied for registration of patent in various countries and the same has been registered in USA, India and Australia.

NOTE 2. (ii) - During the current year, the Company has reached a commercial settlement of its Certificate of investment in Allegro of Rs, 325 Lakhs and agreed to convert this investment into Inter corporate deposit of Rs, 325 Lakhs @ 12% p.a. retrospectively for a period from November 11, 2011 to March 31 2015. Accordingly, company has accrued interest as at March 31, 2015 amounting to Rs, 132.17 Lakhs for the said period.

A) Primary Segments - Business Segments

The primary reporting of the Company has been performed on the basis of business segment namely: Property - Renting of properties Treasury - Investment in shares, securities and mutual funds

B) Secondary Segments

The Company has revenue / assets in India and accordingly, there is only one reportable geographical segment.

NOTE 3.- RELATED PARTY DISCLOSURES

a. Parties where control exists

Mr. Krishna Datla - Managing Director, Party controlling holding company.

Holding company

DVK Investments Private Ltd

Subsidiaries

1. Aegean Properties Ltd.

2. CC Square Films Limited

3. Fermenta Biotech Ltd.

4. Fermenta Biotech (UK) Ltd. (100% subsidiary of Fermenta Biotech Ltd.)

5. G. I. Biotech Private Ltd. (62.50% subsidiary of Fermenta Biotech Ltd.)

NOTE 4 - RELATED PARTY DISCLOSURES (contd.):

b. Other related party relationships where transactions have taken place during the year

Fellow Subsidiary

V M Café De Art Private Ltd.

I) Key Management Personnel

1. Mr. Krishna Datla - Managing Director

2. Mr. Keshav H Kashid - Chief Financial Officer

3. Mr. Srikant N Sharma - Company Secretary

II) Relative of Key Management Personnel

1. Ms. Rajeshwari Datla

2. Ms. Anupama Datla

c. Joint Venture VasKo Glider s.r.o. *

d. Associates

1. Health and Wellness India Private Ltd

2. Zela Wellness India Private Limited

e. Enterprises owned or significantly influenced by key management personnel or their relatives Magnolia FNB Private Limited

f. Related party relationship is identified by the Company on the basis of available information.

NOTE 5. During the previous year, Company has entered into an agreement with other investors to invest additional amount in the operations of Health & Wellness India Private Limited (H&W) & Zela Wellness India Private Limited (Zela) (associate companies) and also agreed to merge the operations of these two associates into one single entity. Pursuant to this agreement the outstanding Loans and advances, of Rs, 309.86 Lakhs with H&W & Rs,25 Lakhs with Zela given by the Company has been converted into share application money. Post the completion of merger operations and shareholding alignment, the company will own 50.94% stake in the combined operations In addition to the above, during the year the Company has invested Rs, 100 Lakhs towards additional share subscription money which will result in prorata increase in equity stake of Company in the consolidated post merged operation.

NOTE 6. - Previous year's figures have been regrouped wherever necessary to confirm with current year's preparation.


Mar 31, 2014

1. Corporate information

DIL Limited (''the Company'') is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay stock exchange. The Company is engaged in the business of renting properties, motion film production and distribution and in treasury operation. Treasury operation mainly includes investment of surplus funds. The Company also has strategic invest- ments in subsidiary / associate companies primarily dealing in manufacturing of bulk drugs and providing services of sporting and health awareness/education activities and in joint venture dealing in manufacturing of wheelchairs based on Levitation Movement Technology.

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 in case of assets for which provision of impairment is made.

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

a) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period.

There is no movement in the number of issued, subscribed and paid up equity shares at the beginning and at the end of the financial year.

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 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 was Rs. 10/- (March 31, 2013: Rs. 22,50)

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:

1 Land includes Rs. 8,06 Lakhs (March 31, 2013 Rs. 8,06 Lakhs) being cost of land held in trust by Directors of the Company

2 Major portion of the building at Thane has been given on lease

3 Plant and equipment includes:

Assets held for disposal - Gross block Rs.26,53 Lakhs (March 31, 2013 -Rs.26,53 Lakhs)

- Net block Rs. Nil (March 31, 2013 - Rs. Nil)

4 Vehicles includes hypothecated to banks - Gross block Rs. 143,20 Lakhs (March 31, 2013 - Rs. 143,20 Lakhs)

- Depreciation charge for the year Rs. 59,04 Lakhs(March 31, 2013: Rs. 17,00 Lakhs)

- Accumulated depreciation Rs. 84,16 Lakhs (March 31, 2013: Rs. 42,04 Lakhs)

- Net block Rs. 84,16 Lakhs (March 31, 2013 - Rs. 101,16 Lakhs)

5 Leasehold improvements includes cost of construction of office premises for which the tenancy rights are with the Companyand given on lease,

ix) a) The discount rate is considered based on market yield on government bonds having currency and terms consistent with the currency and terms of post-employment benefit obligations,

b) Expected rate of return on assets assumed by the Insurance Company is generally based on their investment pattern as stipulated by the Government of India,

c) The estimates of rate escalation in salary considered in the actuarial valuation take in to account inflation, seniority promotion and other relevant factors including supply demand in the employment market,

d) The Company is expected to contribute to the Gratuity fund during 2014-15 Rs. Nil (March 31, 2013 Rs. Nil during 2013-14)

NOTE 3

During the current year, Company has entered into an agreement with other investors to invest additional amount in the operations of Health & Wellness India Private Limited (H&W) & Zela Wellness India Private Limited (Zela) (associate companies) and also agreed to merge the operations of these two associates into one single entity, Pursuant to this agreement the outstanding Loans and advances, of Rs. 309,86 Lakhs with H&W & Rs. 25 Lakhs with Zela given by the Company has been converted into share application money, Post the completion of merger operations and shareholding alignment, the company will own 50,94% stake in the combined operations.

NOTE 4

CONTINGENT LIABILITIES:

March 31, 2014 March 31, 2013 Rs. in Lakhs Rs. in Lakhs

Claims against the company not acknowledged as debts Service tax department raised demand of Rs. 22,50 Lakhs consisting of Service Tax of Rs. 7,50 Lakhs and penalty of Rs. 15,00 Lakhs in connection with services rendered post demerger of the pharmaceutical division,Commissioner of Service Tax Mumbai has upheld the order of JointCommissioner of Service Tax, Company has preferred an appeal to CESTAT pending final disposal. 22.50 15,00

The Deputy Commissioner of sales tax has confirmed theorder of the Asst, Commissioner of sales tax Vapi, Gujarat for year 1992-93 and 1993-94 for demand of interest andpenalty due to shortfall in tax payment on account ofcomputation of purchase tax setoff, Company has preferredan appeal to sales tax tribunal Ahmedabad, Gujarat andobtained stay against the order/demand of the Asstt, Commissioner pending final disposal. 4.63 4,63

27.13 19,63


Mar 31, 2013

1. Corporate information

DIL Limited (''the Company'') is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay stock exchange. The Company is engaged in the business of renting properties, motion film production and distribution and in treasury operation. Treasury operation mainly includes investment of surplus funds. The Company also has strategic invest- ments in subsidiary / associate companies primarily dealing in manufacturing of bulk drugs and providing services of sporting and health awareness/education activities and in joint venture dealing in manufacturing of wheelchairs based on Levitation Movement Technology.

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 in case of assets for which provision of impairment is made.

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

NOTE 3 - EMPLOYEE BENEFITS:

The Company operates employee benefit plan namely i) defined contribution plan, which includes Provident fund and ii) defined benefit plan which includes contribution to gratuity fund (funded) and provision for long term compensated absence.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the respective plans.

NOTE 4 - INTEREST IN JOINT VENTURE: (Refer Note 12)

Company has invested an aggregate of Rs. 188.51 Lakhs in VasKo Glider s.r.o. Czechoslovakia, a joint venture. Out of the above, Rs.1.96 Lakhs (Czech Koruna 1 Lakh) is towards basic capital and Rs.186.55 Lakhs (Czech Koruna 95.24 Lakhs) is towards voluntary additional contribution to capital. VasKo Glider is involved in manufacture of wheelchairs based on Levitation Movement Technology, acquired from the joint venture partner under the technology transfer agreement with effect from March 18, 2005 and the patent of which is registered in Czechoslovakia in the name of the joint venture partner. The joint venture partner has applied for registration of patent in various countries and the same has been registered in USA, India and Australia.

The proportionate share in the assets, liabilities, income and expenditure of the above joint venture is based on accounts prepared as per local laws as amended and issued by the Ministry of Finance of the Czech Republic, governing financial statement for business and translated by the Management as per Indian GAAP, is as follows:-

NOTE 5 - SEGMENT INFORMATION

A) Primary Segments - Business Segments

The primary reporting of the Company has been performed on the basis of business segment namely: Property - Renting of properties

Treasury - Investment in shares, securities and mutual funds

Entertainment - Production and distribution of motion films, providing services for event management and film production. Segments have been identified and reported based on the nature of the services, the risk and returns, the organisation structure and the internal financial reporting systems.

NOTE 6 - RELATED PARTY DISCLOSURES

a. Parties where control exists

Mr. Krishna Datla - Managing Director, Party controlling holding company.

Holding company

DVK Investments Private Ltd

Subsidiaries

1. Aegean Properties Ltd.

2. CC Square Films Limited

3. Fermenta Biotech Ltd.

4. Fermenta Biotech (UK) Ltd. (100% subsidiary of Fermenta Biotech Ltd.)

5. G. I. Biotech Private Ltd. (62.50% subsidiary of Fermenta Biotech Ltd.) *

b. Other related party relationships where transactions have taken place during the year

Fellow Subsidiary

VM Café de Art Private Ltd.

Key Management Personnel 1. Mr. Krishna Datla - Managing Director

c. Joint Venture VasKo Glider s.r.o. *

d. Associates

1. Evotec (India) Private Ltd. (upto September 30, 2011)

2. Health and Wellness India Private Ltd

3. Zela Wellness India Private Limited (w.e.f. March 14, 2012)

e. Enterprises owned or significantly influenced by key management personnel or their relatives Magnolia FNB Private Limited

f. Related party relationship is identified by the Company on the basis of available information.

NOTE 7 - CONTINGENT LIABILITIES:

March 31, 2013 March 31, 2012 Rs. in Lakhs Rs. in Lakhs

Contingent liabilities not probable and hence not provided by the Company in respect of;

Tax matters

- Service tax - matter under appeal 15.00 15.00

- Sales tax - matter under appeal 4.63 4.63

19.63 19.63

NOTE 8 - Previous year figures have been regrouped wherever neessary


Mar 31, 2012

1. Corporate information

DIL Limited ('the Company') is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on Bombay stock exchange. The Company is engaged in the business of renting properties, motion film production and distribution and in treasury operation. Treasury operation mainly includes investment of surplus funds. The Company also has strategic investments in subsidiary / associate companies primarily dealing in manufacturing of bulk drugs and contract research services and providing services of sporting and health awareness/education activities and in joint venture dealing in manufacturing of wheelchairs based on Levitation Movement Technology.

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 in case of assets for which provision of impairment is made.

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 in point 2.1(a).

NOTE 3 - EMPLOYEE BENEFITS:

The Company operates two employee benefit plans namely i) defined contribution plan, which includes Provident fund and Superannuation scheme ii) Defined benefit plan which includes contribution to gratuity fund (funded) and provision for long term compensated absence.

The following table summarizes the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the respective plans.

NOTE 4 - INTEREST IN JOINT VENTURE:

Company has invested an aggregate of Rs. 188.51 Lakhs in VasKo Glider s.r.o. Czechoslovakia, a joint venture. Out of the above, Rs. 1.96 Lakhs (Czech Koruna 1 Lakh) is towards basic capital and Rs. 186.55 Lakhs (Czech Koruna 95.24 Lakhs) is towards voluntary additional contribution to capital. VasKo Glider is involved in manufacture of wheelchairs based on Levitation Movement Technology, acquired from the joint venture partner under the technology transfer agreement with effect from March 18, 2005 and the patent of which is registered in Czechoslovakia in the name of the joint venture partner. The joint venture partner has applied for registration of patent in various countries and the same has been registered in USA, India and Australia.

NOTE 5 - SEGMENT INFORMATION

Primary Segments - Business Segments

The primary reporting of the Company has been performed on the basis of business segment Property - Renting of properties

Treasury - Investment in shares, securities and mutual funds

Entertainment - Production and distribution of motion films, providing services for event management and film production. Segments have been identified and reported based on the nature of the services, the risk and returns, the organisation structure and the internal financial reporting systems.

NOTE 6 - RELATED PARTY DISCLOSURES

a. Parties where control exists

Mr. Krishna Datla - Managing Director, Party controlling holding company.

Holding company

DVK Investments Private Ltd

Subsidiaries

1. Aegean Properties Ltd.

2. CC Square Films Limited (wef December 27, 2010)

3. Fermenta Biotech Ltd.

4. Fermenta Biotech (UK) Ltd. (100% subsidiary of Fermenta Biotech Ltd.)

5. G. I. Biotech Private Ltd. (62.50% subsidiary of Fermenta Biotech Ltd.) *

b. Other related party relationships where transactions have taken place during the year

Fellow Subsidiary

VM Café de Art Private Ltd.

Key Management Personnel

1. Mr. Krishna Datla - Managing Director

2. Mr. Satish Varma - Executive Director (upto April 30, 2010/Director w.e.f. May 01, 2010)

c. Joint Venture VasKo Glider s.r.o. **

d. Associates

1. Evotec (India) Private Ltd. (upto September 30, 2011)

2. Health and Wellness India Private Ltd (w.e.f. March 15, 2011)

e. Enterprises owned or significantly influenced by key management personnel or their relatives Magnolia FNB Private Limited

f. Related party relationship is identified by the Company on the basis of available information.

NOTE 7 - CONTINGENT LIABILITIES:

March 31, 2012 March 31, 2011 Rs. in Lakhs Rs. in Lakhs

Claims against the Company not acknowledged as debts

Service tax 15.00 15.00

Sales tax 4.63 4.63

Excise duty - 67.21

19.63 86.84

NOTE 8 - PREVIOUS YEAR FIGURES

Till the year ended 31 March 2011, the company was using pre-revised Schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. During the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company. The company has reclassified previous year figures to conform to this year's classification. Except accounting for dividend on investments in subsidiaries, the adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of balance sheet. The following is a summary of the effects that revised Schedule VI had on presentation of balance sheet of the company for the year ended 31 March 2011:

 
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