Mar 31, 2016
1. Company has made Investment and loans aggregating to Rs,9,919.64 Lacs into its wholly owned subsidiary EMCO Power Limited, which is setting up power projects in the state of Chhattisgarh and Odisha through joint venture companies. Said Investment has been utilized towards project development expenditure like feasibility studies, acquisition of land, allocation of water, EIA studies and other pre-operative expenses. The work on these projects has been temporarily suspended by the management due to unfavorable economic scenario and uncertainties, especially in power sector. Looking at the stage of the project, management is of view that impairment of investment and loan aggregating to Rs,9,919.64 Lacs is not necessary.
2. The company has opted to avail the choice provided under paragraph 46A of AS 11: "Accounting for the effects of changes in the foreign exchange rates" as amended by notification no.: G.S.R. 914(E) dated 29th December 2011. Accordingly, the foreign exchange difference on long term foreign currency monetary items relating to depreciable assets, is adjusted in carrying cost of depreciable assets.
3 RELATED PARTY DISCLOSURE AS PER ACCOUNTING STANDARD - 18 A List of Related Parties over which control exists (i) Subsidiaries
EMCO Power Limited EMCO Renewable Energy Limited EMCO Infrastructure Limited EMCO Transmission Networks Limited EMCO Overseas Pte. Limited PT Setenco Investa Niaga
Shekhawati Transmission Service Company Limited EMCO Global DMCC (Incorporated on 21.01.2016)
B Name of the associates and joint ventures with whom transactions were carried out during the year
(i) Joint Ventures
PT Vardhaman Logistics PT Vardhaman Mining Services Rabaan (s) Pte. Limited.
Shyam EMCO Infrastructure Limited Kalinga Energy & Power Limited PT Bina Insan Sukses Mandiri
(ii) Association of Persons
Arki Aviation
4 Company has incurred total expenditure of Rs,184.76 Lakhs (Rs,78.79 Lakhs) on Research and Development activities.
5 The Company has only one reportable segment, i.e. Transmission and Distribution Segment within Power Sector.
6 The figure for the corresponding previous year have been restated / regrouped where ever necessary to make them comparable with the current period.
7 Balances of Trade Receivable, Trade Payable, Loans and Advances and other balances are as per books of account and subject to confirmation and reconciliation, if any. In the opinion of the management balances shown under Sundry Debtors, Accrued value of work done and Loans and Advances have approximately the same realizable value as shown in the accounts.
8 The company''s normal operating cycle in respect of operations relating to the Sub-station and Transmission Line may vary from project to project depending upon the size of the project, type of project, project complexities and related approvals. Operating cycle for all other business is based on twelve months period. Assets and liabilities have been classified into current and non-current based on the operating cycle of respective businesses.
9. As per Section 135 of the Companies Act 2013, out of total expenditure of Rs,14.79 Lakhs which was to be incurred on corporate social responsibility activity, the company has spent Rs,19.83 Lakhs during the year.
Mar 31, 2015
1. Nature of Operation:
The Company is primarily engaged in the power industry, the company
manufactures range of transformers. The Company's products include
transformers, energy metering system, substation and transmission
towers and lines which constitutes of generation, transmission,
distribution and manufacture of power equipment viz Generation
Equipment and T&D Equipment.
2. Company has made Investment and loans aggregating to Rs. 9,341.04
Lakhs into its wholly owned subsidiary EMCO Power Limited, which is
setting up power projects in the state of Chhattisgarh and Odisha
through joint venture companies. Said Investment has been utilised
towards project development expenditure like feasibility studies,
acquisition of land, allocation of water, EIA studies and other
pre-operative expenses. The work on these projects has been temporarily
suspended by the management due to unfavourable economic scenario and
uncertainties, specially in power sector. Looking at the stage of the
project, management is of view that impairment of investment and loan
aggregating to Rs. 9,341.04 Lakhs is not necessary.
3. The company has opted to avail the choice provided under paragraph
46A of AS 11: "Accounting for the effects of changes in the foreign
exchange rates" as amended by notification no.: G.S.R. 914(E) dated
29th December 2011. Accordingly, the foreign exchange difference on
long term foreign currency monetary items relating to depreciable
assets, is adjusted in carrying cost of depreciable assets.
4 RELATED PARTY DISCLOSURE AS PER ACCOUNTING STANDARD - 18 A
List of Related Parties over which control exists Subsidiaries
EMCO Power Limited
EMCO Renewable Energy Limited
EMCO Infrastructure Limited
EMCO Transmission Networks Limited
EMCO Overseas Pte. Limited
PT Setenco Investa Niaga
Shekhawati Transmission Service Company Limited
B Name of the associates and joint ventures with whom transactions were
carried out during the year (i) Joint Ventures
PT Vardhaman Logistics
PT Vardhaman Mining Services
Rabaan (s) Pte. Limited.
Shyam EMCO Infrastructure Limited
Kalinga Energy & Power Limited
PT Bina Insan Sukses Mandiri
(ii) Association of Persons
Arki Aviation
C Name of the associate & joint ventures with whom transactions were
carried out during the year (i) Key Management Personnel and their
Relatives
Mr. Rajesh S. Jain
Mr. Shailesh S. Jain
Ms. Meenakshi Jain
Ms. Ratna S. Jain
(ii) Entities where Key Management Personnel have Significant Influence
EMCO Foundation
EMCO Investments Private Limited
5 Company has incurred total expenditure of Rs. 78.79 Lakhs (Rs. 87.47
Lakhs) on Research and Development activities.
6 The Company has only one reportable segment, i.e. Transmission and
Distribution Segment within Power Sector.
7 The figure for the corresponding previous year have been restated /
regrouped where ever necessary to make them comparable with the current
period.
8 As approved by the Members at their Extra Ordinary General Meeting
held on 22.01.2015, the Board of Directors have allotted 24,39,025
fully paid equity shares of the Company of Rs. 2/- each at a price of
Rs. 41/- per equity share (including share premium of Rs. 39/- per
equity share) under preferential allotment, to one of Promoter Group
entity, as per the applicable provisions of the SEBI (ICDR)
Regulations.
9 Balances of Sundry Debtors, Sundry Creditors, Loans and Advances and
other balances are as per books of account and subject to confirmation
and reconciliation, if any. In the opinion of the management balances
shown under Sundry Debtors, Accrued value of work done and Loans and
Advances have approximately the same realisable value as shown in the
accounts.
10 The company's normal operating cycle in respect of operations
relating to the Sub-station and Transmission Line may vary from project
to project depending upon the size of the project, type of project,
project complexities and related approvals. Operating cycle for all
other business is based on twelve months period. Assets and liabilities
have been classified into current and non-current based on the
operating cycle of respective businesses.
11 As per Section 135 of the companies act 2013, out of total
expenditure of Rs. 13.82 Lakhs which was to be incurred on corporate
social responsibility activity, the company has spent Rs. 23.50 Lakhs
during the year.
Mar 31, 2014
1. CONTINGENT LIABILITIES AND COMMITMENTS
I) Contingent Liabilities
(to the extent not provided for)
a) Bank Guarantees outstanding as at the
year end (gross) (Secured)
77,302.11 77,641.34
b) Letters of Credit outstanding as at
the year end (Secured) 7,012.36 11,409.38
c) Guarantee for Subsidiary Company 7,715.50 7,068.10
d) Disputed amount of Sales Tax. 120.53 272.03
e) Claim made by workmen for
re-instatement. Matter Subjudice. Amount
not ascertainable
f) Disputed amount of Income Tax. 306.88 272.24
g) Disputed amount of Excise duty 2,591.66 3,322.92
h) Disputed amount
of Service tax. 314.00 186.28
i) Claims against Company not
acknowledged as debt 126.37 141.33
II) Other Commitments
Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances)Claims for Liquidated
Damages against the company are recognised in the accounts based on
Management assessment of probable outcome with reference to available
information supplemented by experience of similar transactions.
Accordingly additional provision of Rs. 638.22 lakhs (Rs. 293.44 lakhs)
has been made to meet the future probable losses on this account and
cumulative provision as at year end Rs 1,231.66 lakhs (Rs. 593.44 lakhs).
b. Trade receivable includes contractual retention amounts billed to
customers of Rs. 18,020.57 lakhs (Rs. 18,839.29 lakhs). Management
expect to collect retentions in respect of running contracts on
completion of contract. In respect of com- pleted contract, management
is confident of realising contractual retention amount billed to
customers and Liquidated Damages withheld by the customers based on
past experience and ongoing correspondence with the customers.
2. Company has made Investment and net loan aggregating to 8,123.20
Lakhs into its wholly owned subsidiary EMCO Power L imited, which is
setting up power projects in the state of Chhattisgarh and Orissa
through joint venture companies. Said Investment has been utilised
towards project development expenditure like feasibility studies,
acquisition of land, allocation of water, EIA studies and other
pre-operative expenses. There are delays in these projects mainly on
account of economic scenario and uncertainty in coal allocation policy.
Looking at the stage of the project, management is of view that
impairment of investment or loan of Rs. 8,123.20 Lakhs is not
necessary.
3. The company has opted to avail the choice provided under paragraph
46A of AS 11: "Accounting for the effects of changes in the foreign
exchange rates" as amended by notification no.: G.S.R. 914(E) dated
29th December 2011. Accordingly, the foreign exchange difference on
long term foreign currency monetary items relating to depreciable
assets, is adjusted in carrying cost of depreciable assets.
4. RELATED PARTY DISCLOSURE
A List of Related Parties over which control exists (i) Subsidiaries
EMCO Power Limited
Shekhawati Transmission Service Company Limited (wef 01.02.2013)
EMCO Renewable Energy Limited
EMCO Infrastructure Limited
EMCO Transmission Networks Limited (Formaly known as East West Power
Generation Limited)
EMCO Overseas Pte. Limited
PT Setenco Investa Niaga
B Name of the associates and joint ventures with whom transactions were
carried out during the year (i) Joint Ventures
Shyam EMCO Infrastructure Limited
Kalinga Energy & Power Limited
PT Vardhaman Logistics
PT Vardhaman Mining Services
Rabaan (s) Pte. Limited.
PT Bina Insan Sukses Mandiri
(ii) Association of Persons
Arki Aviation
C Name of the key management personnel and their relatives with whom
transactions were carried out during the year. (i) Key Management
Personnel and their Relatives
Mr. Rajesh S. Jain
Mr. Shailesh S. Jain
Ms. Meenakshi Jain
Ms. Ratna S.Jain
(ii) Entities where Key Management Personnel have Significant Influence
EMCO Foundation
EMCO Power Quality Solutions Limited
5. Company has incurred total expenditure of Rs. 87.47 Lakhs (Rs.
120.90 Lakhs) on Research and Development activities.
6. Exceptional Expenditure Exceptional expenditure includes -
a Reversal of Excess Depreciation of Rs. NIL (Rs. 1304.99 Lakhs)
charged in earlier years on Windmill assets as per triple shift rates
instead of rates applicable to continuous process plants for plant and
machinery under schedule XIV of Companies Act, 1956
b Write off of Inventories / other assets of Rs. NIL Lakhs (Rs. 1220.03
Lakhs) on account of obsolence of technology.
7. The Company has only one reportable segment, i.e. Transmission and
Distribution Segment within Power Sector.
8. The figures for the corresponding previous year have been restated /
regrouped where ever necessary to make them comparable with the current
period.
9. Balances of Sundry Debtors, Sundry Creditors, Loans and Advances and
other balances are as per books of account and subject to confirmation
and reconciliation, if any. In the opinion of the management balances
shown under Sundry Debtors, Accrued value of work done and Loans and
Advances have approximately the same realisable value as shown in the
accounts.
10. The companies normal operating cycle in respect of operations
relating to the Sub-station and Transmission Line may vary from project
to project depending upon the size of the project, type of project,
project complexities and related approvals. Operating cycle for all
other business is based on twelve months period. Assets and liabilities
have been classified into current and non-current based on the
operating cycle of respective businesses.
11. The Ministry of Corporate Affairs, Government of India, vide General
Circular No. 2 and 3 dated 8th February 2011 and 21st February 2011
respectively has granted a general exemption from compliance with
section 212 of the Companies Act, 1956, subject to fulfillment of
conditions stipulated in the circular. The Company has satisfied the
conditions stipulated in the circular and hence entitled for the
exemption.
Mar 31, 2013
C) Employee Stock Option Scheme (ESOS)
i. 1,90,000 Equity Shares are reserved for allotment of equity shares
under Employee Stock Option Scheme 2006. Dur- ing the year Nil Equity
Shares have been issued and allotted to the Employees / Director
against exercise of Options under ESOS 2006. Details of which are given
as under :
# Against above option the eligible employee is entitled to acquire fi
ve equity share of Rs. 2 each of the Company.
* The option would vest over a maximum period of three years from the
date of grant.
Nature of Security and Repayment Terms
a) 500 (500) - 12.50% Non Convertible Debentures (NCD s) are secured on
fi rst charge (pari passu) by way of mortgage on building situated at
MIDC-Thane, Umala-Jalgaon and on land and building situated at
MIDC-Jalgaon and hypothecation on plant and machinery, furniture,
electrical and other installations, offi ce equipments and air
conditioners situated at MIDC-Thane, MIDC-Jalgaon, Umala-Jalgaon and
Dadra.
b) Vehicle Loans are secured by way of hypothecation on respective
vehicles fi nanced.
c) Term loan from banks referred in (c) (i) above loan amounting to
646.80 Lakhs ( 1,509.20 Lakhs) is secured by exclusive fi rst charge
by way of mortgage on the specifi c land on which the windmills are
installed in Maharashtra and exclusive fi rst charge by way of
hypothecation on movable fi xed assets (plant, machinery equipments)
pertaining to windmills.
d) Term loan from banks referred in (c) (ii) above loan amounting to
3,562.00 Lakhs ( 3,349.45 Lakhs) is secured on fi rst charge basis by
way of equitable mortgage on Solar Project s land and all other
immovable properties, present and future and also by way of
hypothecation on project s all movable, present and future, all book
debts, operating cash fl ows, receivables, commissions, revenues of
what so ever nature and where ever arising out of Solar Project.
e) Maturity Profi le of Long Term Borrowings
a) Working Capital Term Loan referred in (a) above is secured on fi rst
charge basis (pari passu) by way of equitable mortgage on Company s
immovable properties situated at MIDC-Thane and MIDC-Jalgaon both
present or future. Further the said working capital term loan is
secured on second charge (pari passu) by way of hypothecation on the
Company s movable assets including current assets except assets
exclusively fi nanced by other lenders i.e. Wind Mills and Solar farm.
b) Working Capital Loans from banks referred in (b), (c) and (d) above
and bank facilities mentioned in Note 26 (I) (a) and (b) are secured on
fi rst charge basis (pari passu) by way of hypothecation on current
assets of the Company such as raw Materials, stocks-in-process, fi
nished goods, consumable stores and spares, book debts, outstanding and
claims, receivable both present and future except book debts and
receivables pertaining to wind mill and solar farm which are
exclusively fi nanced by other lende Further the said working
capital facilities are secured on fi rst charge basis (pari passu) by
way of registered mortgage on the movable and immovable Properties
situated at Vadodara (Gujarat) Silvassa (UT-Dadara and Nagar Haveli)
and second charge by way of registered mortgage on the Company s all
movable fi xed assets and on immovable properties situated at
MIDC-Thane, MIDC-Jalgaon and Umala-Jalgaon.
# These fi gures do not include any amounts, due and outstanding, to be
credited to Investor Education and Protection Fund.
* Includes buyer s credit of 999.70 lakhs ( 901.42 lakhs)
Defi ned Benefi t Plans
The employees gratuity fund scheme managed by Life Insurance
Corporation of India is a defi ned benefi t 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 employee benefi t entitlement and
measures each unit separately to build up the fi nal obligation. The
obligation for leave encashment is recognised in the same manner as
gratuity.
The estimates of future salary increase, considered in actuarial
valuation, has been made after taking into account infl ation,
seniority, promotion and other relevant factors, such as supply and
demand in the employment market.
General Description of signifi cant defi ned plans
I Gratuity Plan
Gratuity is payable to all eligible employees of the Company on death,
resignation after fi ve completed year of service, retirement or
permanent disablement.
Broad Category of plan assets relating to Gratuity as a percentage of
total plan assets.
II Leave Plan
Leaves standing at the end of the calendar year are carried forward in
the next calendar year. Eligible employees will get encashment of their
unutilized leaves beyond the threshold limit, in the month of April
every year. In case of death, permanent disablement and resignation,
the employees will get encashment of their unutilized leaves forthwith.
Claims for Liquidated Damages against the company are recognised in the
accounts based on Management assessment of probable outcome with
reference to available information supplemented by experience of
similar transactions. Accordingly additional provision of 293.44
lakhs ( 300.00 lakhs) has been made to meet the future probable losses
on this account and cumulative balance of such provision as at year end
is 593.44 lakhs ( 300.00 lakhs).
b. Trade receivable includes contractual retention amounts billed to
customers of 18,839.29 lakhs ( 22,468.62 lakhs). Management expect
to collect retentions in respect of running contracts on completion of
contract. In respect of completed contract, management is confi dent of
realising dues based on past experience and on going correspondence
with the custome
1 The fi gures for the corresponding previous year have been restated
/ regrouped where ever necessary to make them comparable with the
current period.
2 The company has opted to avail the choice provided under paragraph
46A of AS 11: "Accounting for the effects of changes in the foreign
exchange rates" as amended by notifi cation no.: G.S.R. 914(E) dated
29th December 2011. Accordingly, the foreign exchange difference on
long term foreign currency monetary items relating to depreciable
assets, is adjusted in carrying cost of depreciable assets.
B Name of the associates and joint ventures with whom transactions were
carried out during the year (i) Joint Ventures
PT Vardhaman Logistics
PT Vardhaman Mining Services
Rabaan (s) Pte. Limited
Shyam Emco Infrastructure Limited
Kalinga Energy & Power Limited
PT Bina Insan Sukses Mandiri
(ii) Association of Persons
Arki Aviation
C Name of the key management personnel and their relatives with whom
transactions were carried out during the year. (i) Key Management
Personnel and their Relatives
Mr. Rajesh S. Jain
Mr. Shailesh S. Jain
Mr. Ajay K. Dhagat (up to 04.11.2011)
Ms. Meenakshi Jain
Ms. Ratna S. Jain
(ii) Entities where Key Management Personnel have Signifi cant Infl
uence
Emco Foundation
Emco Power Quality Solutions Limited
* Loans and advances shown above fall under the category of "Short term
loans and advances" in the nature of loans and is repayable on demand.
** Loans and advances shown above fall under the category of "Long term
loans and advances" in the nature of loans and is repayable within 5 to
7 yea
Investment by the lonee in the shares of the Company
None of the lonnes and lonees of subsidiary companies have, per se,
made investments in shares of the Company.
3 Company has incurred total expenditure of 120.90 Lakhs ( 425.05
Lakhs) on Research and Development activities.
4 Exceptional Expenditure Exceptional expenditure includes -
a Reversal of Excess Depreciation of 1,304.99 Lakhs charged in
earlier years on Windmill assets as per triple shift rates instead of
rates applicable to continuous process plants for plant and machinery
under schedule XIV of companies act 1956
b Write off of Inventories / other assets of 1,220.03 Lakhs on
account of obsolence of technology.
5 The Company has only one reportable segment, i.e. Transmission and
Distribution Segment within Power Sector.
6 Balances of Sundry Debtors, Sundry Creditors, Loans and Advances and
other balances are as per books of account and subject to confi rmation
and reconciliation, if any. In the opinion of the management balances
shown under Sundry Debtors, Accrued value of work done and Loans and
Advances have approximately the same realisable value as shown in the
accounts.
7 The company''s normal operating cycle in respect of operations
relating to the Sub-station and Transmission Line may vary from project
to project depending upon the size of the project, type of project,
project complexities and related approvals. Operating cycle for all
other business is based on twelve months period. Assets and liabilities
have been classifi ed into current and non-current based on the
operating cycle of respective businesses.
8 The Ministry of Corporate Affairs, Government of India, vide General
Circular No. 2 and 3 dated 8th February 2011 and 21st February 2011
respectively has granted a general exemption from compliance with
section 212 of the Companies Act, 1956, subject to fulfi lment of
conditions stipulated in the circular. The Company has satisfi ed the
conditions stipulated in the circular and hence is entitled to the
exemption.
Mar 31, 2012
A) Employee Stock Option Scheme (ESOS)
i. 1,90,000 Equity Shares are reserved for allotment of equity shares
under Employee Stock Option Scheme 2006. Out of this Nil Equity Shares
have been issued and allotted to the Employees / Director against
exercise of Options under ESOS 2006. Details of which are given as
under
TERMS OF SECURED LOAN
a. 500 (500) - 12.50% Non Convertible Debentures (NCD) of Rs. 6.67 lakhs
(Rs. 10.00 lakhs) each are secured on first charge (pari passu) by way of
mortgage on building situated at MIDC-Thane, Umala-Jalgaon and on land
and building situated at MIDC-Jalgaon and hypothecation on plant and
machinery, furniture, electrical and other installations, office
equipments & air conditioners situated at MIDC-Thane, MIDC-Jalgaon,
Umala-Jalgaon and Dadra.
b. Vehicle Loans are secured by way of charge of respective vehicles
financed.
c. Term loan from banks referred in (c) (i) above loan amounting to Rs.
1,509.20 lakhs (Rs. 2,371.60 lakhs) is secured by exclusive first charge
by way of mortgage on the specific land on which the windmills are
installed in Maharashtra and exclusive first charge by way of
hypothecation on movable fixed assets (plant, machinery equipments)
pertaining to windmills.
d. Term loan from banks referred in (c) (ii) above loan amounting to Rs.
3,349.45 lakhs (Nil) is secured on first charge by way of mortgage on
Solar Project's all immovable properties, present and future and a
first charge by way of hypothecation on project's all movable, present
and future, all book debts, operating cash flows, receivables,
commissions, revenues of what so ever nature and where ever arising out
of Solar Project.
a Working Capital Term Loan referred in (a) above is secured on first
charge basis (pari passu) by way of equitable mortgage on Company's
immovable properties situated at MIDC-Thane and MIDC-Jalgaon both
present or future. Further the said working capital term loan is
secured on second charge (pari passu) by way of hypothecation on the
Company's movable assets including current assets except assets
exclusively financed by other lenders i.e. Wind Mills and Solar farm.
b Working Capital Loans from banks referred in (b), (c) and (d) above
are secured on first charge basis (pari passu) by way of hypothecation
on current assets of the Company such as Raw Materials,
Stocks-in-process, Finished Goods, Consumable Stores and Spares, Book
Debts, outstanding and claims, receivable both present and future
except book debts and receivables pertaining to wind mill and solar
farm which are exclusively financed by other lenders. Further the said
working capital facilities are secured on first charge basis (pari
passu) by way of registered mortgage on the Movable and Immovable
Properties situated at Vadodara (Gujarat) Silvassa (UT-Dadara & Nagar
Haveli) and Second Charge by way of registered mortgage on the
Company's all movable fixed assets and on immovable properties situated
at MIDC-Thane, MIDC-Jalgaon and Umala-Jalgaon.
Disclosure as required by Accounting Standard 19 'Leases'
Operating Lease
a. Building includes Commercial / Residential premises given on
operating lease having original cost of Rs. 89.84 lakhs (Rs. 23.44 lakhs)
and accumulated depreciation of Rs. 24.68 lakhs (Rs. 7.36 lakhs) as at 31st
March 2012. Depreciation on the above assets for the current year is Rs.
1.46 lakhs ( Rs. 0.38 lakhs). In respect of the above arrangements, lease
rent receivable are recognized in the Statement of Profit and Loss for
the year and included under Other Income.
b. The Company's significant leasing arrangements are in respect of
premises taken on lease. The arrangements are generally from 1 month to
60 months. Under these agreements, generally refundable interest-free
deposits have been given. In respect of above arrangements, lease
rentals payable are recognized in the Statement of Profit and Loss for
the year and included under Rent and Compensation (Refer Note 24).
Defined Benefit Plans
The employees' gratuity fund scheme managed by Life Insurance
Corporation of India is a defined benefit 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 employee benefit entitlement and
measures each unit separately to build up the final obligation. The
obligation for leave encashment is recognized in the same manner as
gratuity.
General Description of significant defined plans
I Gratuity Plan
Gratuity is payable to all eligible employees of the Company on death,
resignation after five completed year of service, retirement or
permanent disablement.
II Leave Plan
Leaves standing at the end of the calendar year are carried forward in
the next calendar year. Eligible employees will get encashment of their
unutilized leaves beyond the threshold limit, in the month of April
every year. In case of death, permanent disablement and resignation,
the employees will get encashment of their unutilized leaves forthwith.
1. CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF
1. a) Bank Guarantees outstanding
as at the yearend (gross)
-(Secured) 67,058.78 70,062.51
b Letters of Credit outs
tanding (net) as at the
year end (Secured) 8,818.85 9,284.84
c) Guarantee for Subsidiary
Company Nil 5,307.60
d) Disputed amount of Sales Tax. 230.54 93.54
e) Claim made by workmen for
re-instatement, Matter
Subjudice. Amount Not Ascertainable
f) Disputed amount of Income Tax. 27.79 590.13
g) Disputed amount of Excise
duty and Service tax. 2,869.86 2,336.80
h) Claims against Company not
acknowledged as debt 151.18 153.01
2 Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) amounting to Rs. 98.87
lakhs (Rs. 8,055.69 lakhs)
Claims for Liquidated Damages against the company are recognized in the
accounts based on Management assessment of probable outcome with
reference to available information supplemented by experience of
similar transactions. Accordingly provision of Rs. 300.00 lakhs has been
made to meet the future probable losses on this account.
b. Trade receivable includes contractual retention amounts billed to
customers of Rs. 22,468.62 lakhs (Rs. 23,174.30 lakhs) Management expect to
collect retentions in respect of running contracts on completion of
contract. In respect of completed contract, management is confident of
realizing dues based on past experience and ongoing correspondence
with the customers.
3. CHANGE IN PRESENTATION AND DISCLOSURES OF FINANCIAL STATEMENTS
During the year ended 31st March 2012, the revised schedule VI notified
under the Companies Act 1956, has become applicable to the company, for
preparation and presentation of its financial statements. The adoption
of revised schedule VI does not impact recognition and measurement
principles followed for preparation of financial statement. However, it
has significant impact on presentation and disclosure made in financial
statements. The company has also reclassified the previous year figures
in accordance with the requirement applicable in current year.
4. The company has opted to avail the choice provided under paragraph
46A of AS 11: "Accounting for the effects of changes in the foreign
exchange rates" as amended by notification no.: G.S.R. 914(E) dated
29th December 2011. Accordingly, the foreign exchange difference on
long term foreign currency monitory items relating to depreciable
assets, is adjusted in carrying cost of depreciable assets, which would
be depreciated over the balance life of assets.
5. RELATED PARTY DISCLOSURE
A. List of Related Parties with whom the Company had transactions
(i) Key Management Personnel and their Relatives
Mr. Rajesh S. Jain Mr. Shailesh S. Jain
Mr. Ajay K. Dhagat (up to 4th November 2011)
Mr. R. S. Shah (up to 19th April 2010)
Ms. Meenakshi Jain Ms. Ratna S. Jain
Ms. Urmila R. Shah (up to 19th April 2010)
(ii) Entities where Key Management Personnel have Significant Influence
EMCO Foundation
EMCO Power Quality Solutions Limited
(iii) Subsidiaries
EMCO Power Limited
EMCO Renewable Energy Limited
EMCO Infrastructure Limited
East West Power Generation Limited
EMCO Overseas Pte. Limited
EMCO Edison Transformer Pty. Limted
PT Setenco Investa Niaga
(iv) Joint Ventures
PT Vardhaman Logistics PT Vardhaman Mining Services Rabaan (s) Pte.
Limited Shyam EMCO Infrastructure Limited Kalinga Energy and Power
Limited PT Bina Insan Sukses Mandiri
(v) Association of Persons
Arki Aviation
D. Disclosure with respect to Related Party Transaction
1) Key Management Personnel and their relatives
a) Remuneration Paid to Key Management Personnel and their relative : Rs.
118.98 lakhs (Rs. 79.99 lakhs) includes Remuneration paid to Mr. Rajesh
Jain Rs. 47.41 lakhs (Rs. 24.00 lakhs), Mr. Shailesh Jain Rs. 47.40 lakhs
(Rs. 24.00 lakhs) , Mr. Ajay Kumar Dhagat Rs. 18.17 lakhs (Rs. 22.80
lakhs), Mr. R S Shah Nil (Rs. 2.94 lakhs).
b) Salary paid to Key Management Personnel and their relative : Rs. 33.65
lakhs (Rs. 33.65 lakhs) paid to Ms. Meenakshi Jain.
c) Rent Expenses paid to Key Management Personnel and their relative :
Rs. 25.63 lakhs (Rs. 24.80 lakhs) paid to Ms. Ratna S Jain.
2) Entities where Key Management Personnel have Significant Influence
a) Rent recovered from EMCO Power Quality Solutions Private Limited : Rs.
0.38 lakhs (Rs. 0.37 lakhs).
b) Expenses incurred and recovered from EMCO Foundation : Rs. 9.79 lakhs
(Nil)
c) Donation given to EMCO Foundation Rs. 20.00 lakhs (Rs. 63.20 lakhs)
3) Transaction with Subsidiaries
a) Business Advance Given to Subsidiaries Rs. 6,425.78 lakhs (Rs. 2,045.02
lakhs) includes EMCO Overseas Pte Limited (Singapore) Rs. 3,690.06 lakhs
(Rs. 948.62 lakhs), EMCO Power Ltd Rs. 2,735.72 lakhs (Rs. 1,094.35 lakhs),
East West Power Generation Co Limited Nil (Rs. 1.81 lakhs), EMCO Power
Infrastructure Limited Nil (Rs. 0.14 lakhs) and EMCO Infrastructures
Limited Nil (Rs. 0.10 lakhs).
b) Business Advance Received Back from EMCO Overseas Pte Limited
(Singapore) Rs. 2,849.36 lakhs (Rs. 2.05 lakhs)
c) Recovery of Overheads from EMCO Power Limited Rs. 600.86 lakhs (Rs.
151.99 lakhs).
d) Expenses incurred on behalf of Subsidiaries Rs. 0.84 lakhs (Nil)
includes EMCO Infrastructure Limited Rs. 0.06 lakhs (Nil), EMCO Renewable
Energy Limited Rs. 0.06 lakhs (Nil), East West Power Generation Co
Limited Rs. 0.72 lakhs (Nil)
e) Interest Accrued on Loan of Subsidiaries Rs. 994.55 lakhs (Nil)
includes EMCO Overseas Pte Limited (Singapore) Rs. 517.33 lakhs (Nil),
EMCO Power Limited Rs. 477.22 lakhs (Nil).
4) Association of Person
a) Advance given to Arki Aviation Nil (Rs. 85.03 lakhs).
b) Share of Flying and Maintenance Expenses to Arki Aviation Rs. 60.47
lakhs (Rs. 62.29 lakhs).
6. Company has incurred total expenditure of Rs. 425.05 lakhs (Rs. 42.07
lakhs) on Research and Development activities.
7. The Company has only one reportable segment, i.e. Transmission and
Distribution Segment within Power Sector
8. Balances of Sundry Debtors, Sundry Creditors, Loans and Advances
and other balances are as per books of account and subject to
confirmation and reconciliation, if any. In the opinion of the
management balances shown under Sundry Debtors, Accrued value of work
done and Loans and Advances have approximately the same realisable
value as shown in the accounts.
9. The company's normal operating cycle in respect of operations
relating to the Sub-station and Transmission Line may vary from project
to project depending upon the size of the project, type of project,
project complexities and related approvals. Operating cycle for all
other business is based on twelve months period. Assets and liabilities
have been classified into current and non- current based on the
operating cycle of respective businesses.
10. The Ministry of Corporate Affairs, Government of India, vide
General Circular No. 2 and 3 dated 8th February 2011 and 21st February
2011 respectively has granted a general exemption from compliance with
section 212 of the Companies Act, 1956, subject to fulfillment of
conditions stipulated in the circular. The Company has satisfied the
conditions stipulated in the circular and hence is entitled to the
exemption.
Mar 31, 2011
1. Contingent Liabilities Not Provided For in Respect of:
Rs in lakhs
Sr. Particulars 31-Mar-11 31-Mar-10
No.
a) Bank Guarantees outstanding
as at the yearend (Gross) -(Secured) 70,062.51 70,420.10
b) Bank Guarantees outstanding as
at the yearend (Gross) -(Secured)
Given for erstwhile NIL 60.63
Subsidiary, EMCO Energy Limited
(Subsidiary upto 24th July 2009)
c) Letters of Credit outstanding
(net) as at the yearend (Secured) 9,284.84 8,583.42
d) Guarantee given for Subsidiary
Company 5,307.60 5,415.60
e) Disputed amount of Sales Tax
in respect of which appeals have been
filed. 93.54 31.02
f) Claims made by workmen for
re-instatement. Matters Subjudice. Amount not ascertainable
g) Disputed amount of Income Tax
in respect of which rectifcation has
been filed 590.13 357.78
h) Disputed amount of Excise duty
and Service tax in respect of which
the Company is in 2,336.80 1,847.69
appeal.
i) Claim of about Rs 28.36 lakhs (Rs 26.42 lakhs) by suppliers against
the Company. The matter is Subjudice.
j) Suit of Rs 107 lakhs (Rs 107 lakhs) filed by a Sub-Contractor against
the company, proceeding is pending before Sole Arbitrator.
k) Summary suit of Rs 10.13 lakhs (Rs 10.13 lakhs) filed by one supplier
against the Company. The matter is Subjudice.
l) Claim filed against the company for compensation not acknowledged as
debt Rs 7.52 lakhs (Rs 27.36 lakhs).
2. The Company has filed a suit against one customer claiming damages
of Rs 110.91 lakhs (Rs 110.91 lakhs) and also fled a suit for an order
restraining invocation of bank guarantee amounting to Rs 8.50 lakhs (Rs
8.50 lakhs) from the customer.
3. Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) amounting to Rs 8,055.69
lakhs (Rs 672.73 lakhs)
4. Terms of Secured Loans (Refer Schedule 3)
a. 500 - 12.5% Non Convertible Debentures of Rs 10 lakhs each referred
in (1) of Schedule 3 are secured by way of Mortgage on Building
situated at MIDC-Thane, Umala-Jalgaon and on Land and Building situated
at MIDC-Jalgaon and hypothecation on Plant & Machinery, Furniture,
Electrical & other installations, Offce Equipments & Air conditioners
situated at MIDC- Thane, MIDC-Jalgaon, Umala-Jalgaon and Dadra. This
will be redeemed in three equal annual instalment commencing from 24
December 2011.
b. Vehicle Loans referred in (2) of Schedule 3 are secured by way of
charge of respective vehicles fnanced.
c. Term loans referred in 3(a) of Schedule 3 is secured by frst
pari-passu charge on all the Company's immovable properties situated at
MIDC-Thane and MIDC-Jalgaon purchased or to be purchased and the frst
charge by way of hypothecation of all the Company's movables Fixed
Assets and also subject to exclusive charges and/or to be created on
specifc items of plant and machinery/equipments.
d. Term loan referred in 3(b) of Schedule 3 is secured by exclusive
frst charge by way of mortgage on the specifc land on which the
windmills are installed in Maharashtra and exclusive frst charge by way
of hypothecation on movable fxed assets (plant, machinery, equipments)
pertaining to windmills.
e. Working Capital Loans from Banks referred in 4(a), 4(b) & 4(c) of
Schedule 3 and Bank facilities mentioned in Note No. 2 (a), (b) & (c)
above are secured against hypothecation by way of frst charge on Raw
Materials, Stocks-in-process, Finished Goods, Consumable Stores and
Spares, Book Debts except book debts and receivables pertaining to wind
mill, Outstanding and Claims both present and future. This is further
secured by Second Charge on the Company's all movable Fixed Assets
except pertaining to wind mill and on immovable properties situated at
MIDC-Thane, MIDC-Jalgaon and Umala-Jalgaon.
5. Extraordinary Item:
During the previous year ended 31st March 2010, Company has sold one of
its subsidiaries ÃEMCO Energy Limitedà which was setting up power plant
at Warora, Maharashtra and has net gain of Rs 9,849.32 lakhs (net of tax
of Rs 2,885.38 lakhs)). Being non-recurring in nature same has been
treated as an extraordinary item.
6. Related Party Disclosure:
A. List of Related Parties with whom the Company had transactions
(i) Key Management Personnel and their Relatives
- Mr. Rajesh S. Jain
- Mr. Shailesh S. Jain
- Mr. Ajay K. Dhagat
- Mr. R. S. Shah (upto 19th April 2010)
- Ms. Meenakshi Jain
- Ms. Ratna S. Jain
- Ms. Urmila R. Shah (upto 19th April 2010)
(ii) Entities where Key Management Personnel have Signifcant Infuence:
- Purna Properties and Investments Private Limited
- EMCO Foundation
- EMCO Power Quality Solutions Limited
(iii) Subsidiaries
- EMCO Energy Limited (Upto 24th July 2009)
- EMCO Power Limited
- EMCO Renewable Energy Limited (Previously known as EMCO Power
Infrastructure Limited)
- EMCO Overseas Pte Limited
- EMCO Infrastructure Limited (Previously known as Warora Power Company
- East West Power Generation Company Limited
- EMCO Edison Transformer Pty. Limited
- PT Setenco Investa Niaga (from 26th November 2010)
(iv) Joint Ventures
- PT Vardhaman Logistics
- PT Vardhaman Mining Services
- Rabaan (s) Pte. Limited.
- Shyam EMCO Infrastructure Limited
- Kalinga Energy & Power Limited
- PT Bina Insan Sukses Mandiri (from 26th November 2010)
(v) Association of Persons
- Arki Aviation
7. Segment Reporting:
The Company has only one reportable segment, i. e. Transmission and
Distribution Segment within the Power Sector.
8. Research and Development
Company has incurred total expenditure of Rs 42.07 lakhs (Rs 183.93
lakhs) on Research and Development activities.
9. Balances of Sundry Debtors, Sundry Creditors, Loans and Advances
and other balances are as per books of accounts and subject to
confrmation and reconciliation, if any.
10. Figures of previous year have been regrouped/rearranged, wherever
necessary, to conform to those of the current year.
Mar 31, 2010
1. Contingent Liabilities not provided for in respect of:
31-Mar-10 31-Mar-09
Sl,
No. Particulars (Rupees In
Lakhs) (Rupees in
Lakhs)
a) Bank Guarantees outstanding as at
the year end (Gross)- 70,420.10 60,012.79
(Secured)
b) Bank Guarantees outstanding as at
the year end (Gross) - 60.63 60.63
(Secured) Given for erstwhile
Subsidiary, EMCO Energy
Limited (Subsidiary upto
24th july 2009)
c) Letters of Credit outstanding
(Net) as at the year end 8,583.42 6,286.01
(Secured)
d) Guarantee given for Subsidiary Company 5,415.60 NIL
e) Disputed amount of Sales Tax in
respect of which appeals 31.02 88.11
have been filed.
f) Claims made by workmen for
re-instatement Matters
Subjudice Amount not ascertainable
g) Disputed amount of Income Tax
in respect of which 357.78 425.88
rectification has been filed.
h) Disputed amount of Excise duty
and Service tax in respect of 1,847.69 1,341.13
which the Company is in appeal.
i) Claim of about Rs. 26.42 lakh (Rs. 26.42 lakh) by suppliers against
the Company. The matter is Subjudice.
j) Suit of Rs. 107 lakh (Rs. 107 lakh) filed by a Sub-Contractor
against the Company, proceeding is pending
before Sole Arbitrator.
k) Summary suit of Rs. 10.13 lakh (Rs. 10.13 lakh) filed by one
supplier against the Company. The matter is Subjudice.
l) Claim filed against the Company for compensation not acknowledged as
debt Rs. 27,36 lakh (Rs. 29.93 lakh).
2. The Company has filed a suit against one customer claiming damages
of Rs. 110.91 lakh (Rs. 11 0.91 lakh) and also filed a suit for an
order restraining invocation of bank guarantee amounting to Rs. 8.50
lakh (Rs. 8.50 lakh) from the customer.
3, Estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) amounting to Rs. 672.73
lakh (Rs. 828.29 lakh)
4. Employee Stock Option Scheme (ESOS):
In accordance with the ESOS of the Company in earlier years, the
employees were offered options for 21 3,350 equity shares (Option I),
20,000 equity shares (Option II), 4,000 equity shares (Option III), 1
6,500 equity shares (Option IV), 2,000 equity shares (Option V), 5,000
equity shares (Option VI), 39,500 equity shares (Option VII), and 5,500
equity shares (Option VIII) as per eligible criteria fixed under the
scheme. Against each of the above option the eligible employee is
entitled to acquire five equity share of Rs. 2 each of the Company at a
price of Rs. 90, Rs. 126, Rs.174, Rs. 256, Rs, 302, Rs. 185, Rs. 1
50,and Rs. 1 09 for Option I, II, III, IV,V,VI,VII and VIII
respectively,
5. Preferential Issue of Share Warrants:
Pursuant to the approval of members by way of Special Resolution passed
at an Extra Ordinary General Meeting of the Company held on 22nd June
2009, the Company has allotted 6,300,000 warrants to one of the
promoters who is also Chairman and Managing Director of the Company on
04th July 2009, Each warrant carries option/entitlement to subscribe to
one equity share of Rs. 2 each at a premium of Rs, 60, Out of these
warrants 3,090,000 warrants have been exercised and accordingly
3,090,000 equity share of Rs, 2 each at a premium of Rs, 60 were
allotted on 26th March 2010,
6. Extraordinary Item:
During the year Company has sold one of its subsidiaries "EMCO Energy
Limited" which was setting up power plant at Warora, Maharashtra and
has net gain of Rs. 9,849.33 lakh (net of tax of Rs. 2,885.38 lakh).
Being non-recurring in nature same has been treated as an Extraordinary
item.
General Description of significant defined plans
I. Gratuity Plan
Gratuity is payable to ail eligible employees of the Company on death,
resignation after five completed year of service, retirement or
permanent disablement.
7. Disclosure as required by Accounting Standard 19 Leases:
Operating Lease
- The Companys significant leasing arrangements are in respect of
residential flats, office premises taken on lease. The arrangements
are generally from 1 month to 60 months. Under these agreements,
generally refundable interest-free deposits have been given. In respect
of above arrangements, lease rentals payable are recognised in the
Profit and Loss Account for the year and included under Rent and
Compensation (Disclosed under Schedule 1 2). Total of Minimum lease
payment for a period: -