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Notes to Accounts of Eon Electric Ltd.

Mar 31, 2015

1. Company Overview :

Eon Electric Limited is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the National Stock Exchange of India Limited and Bombay Stock Exchange Limited. The company is engaged in the manufacturing and selling of Cables and Wires, Energy Efficient Lighting, Wiring accessories, Fans, Geysers, Lithium-ion Batteries, Mobile phone accessories and other electrical products. The Company's manufacturing facilities are located at Haridwar in Uttarakhand.

2. Terms/rights attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs. 5/- per share. Each holder of equity shares is entitiled to one vote per share. The Company declares and pays dividends in Indian rupees.

3. 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.

4. Contingent Liabilities and Commitments:-

a. Contingent Liabilities

i) Bank Guarantees Rs. 98,237,090/-(Previous year Rs. 49,965,592/-).

ii) Bond furnished to Custom & Central Excise Authorities for import of goods at Concessional Rate of Duty Rs. 72,500,000/- (Previous year Rs. 70,000,000/-).

iii) Excise duty demands against which the company has preferred appeals Rs. 54,136,865/- (Previous year Rs.52,314,146/-). The Company has already deposited a sum of Rs. 3,151,704/-(Previous year Rs.3,015,000/-) against the aforesaid demand.

iv) Central Excise and Service Tax Appeals filed by the Department Rs. 8,089,749/- (Previous year Rs. 2,065,676/-) for excise duty and Rs. 119,921/-(Previous year Rs. 119,921/-) for service tax.

v) Sales Tax / Value Added Tax Demands against which the company has preferred appeals Rs. 5,374,917/-(Previous year Rs. 15,967,682/-). The company has already deposited a sum of Rs. 806,702/- (Previous year Rs. 5,664,955/-) against the aforesaid demand.

vi) Income Tax demands against which the company has preferred appeals Rs. 109,426/- (Previous year Nil).

b. Commitments

i) Capital commitments (net of advance) Rs. 170,016/- (Previous year Nil).

ii) Commitment to pay balance amount towards contribution to the Share Capital of Zephyr Peacock India III Fund Rs. 6,629,015/- (Previous Year Rs. 7,379,015/-)

5. Provision for income tax has been made without considering some taxes and amounts which will be paid before filing of Income Tax Return as provided under Section 43-B of the Income Tax Act, 1961.

6. In the opinion of Board, the current assets, loans and advances are approximately of the value stated, if realized, in the ordinary course of business. The provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

7. The balances of Debtors, Advances and Creditors are subject to confirmation.

8. The company has paid annual listing fees to Bombay Stock Exchange Limited and National Stock Exchange of India Limited where its equity shares are listed.

9. Information on Segment Reporting of the Company for the year ended 31s' March 2015 Business Segments

In accordance with the Accounting Standard (AS) 17 "Segment Reporting", the Company's operations have been categorized into the following Business segments :-

Cable and Wires includes Wires and Cables etc.

Lighting includes Compact Fluorescent Lamps, Fluorescent TubeLights, LEDs and Luminaires etc.

Electrical Consumer Durables includes Fans, Water Heaters etc.

Others includes Modular Switches, Wiring Accessories, Home Automation, Lithium Ion Batteries, Mobile Phone Accessories etc.

Segment Revenue relating to each of the above business segments includes Other Income, where applicable.

The above business segments have been identified considering :

a) the nature of products and services

b) the differing risks and returns

c) the organization structure, and

d) the internal financial reporting systems.

There are no geographical segments as the operations of the company's existing Business Segments take place indigenously.

10.

I. Segment results represent Profit/(loss) before Interest and Tax.

ii. Capital Expenditure pertains to gross additions made to fixed assets during the year including capital work in progress.

iii. Segment Assets include Fixed Assets, Current Assets & Loans and Advances directly attributable to respective business segments.

iv. Segment Liabilities include Current Liabilities and Provisions directly attributable to respective business segments.

v. The accounting policies used to derive reportable segment results are consistent with those described in the "Significant Accounting Policies" note to the financial statements.

11. Related Party Disclosure

Disclosures as required byAccounting Standard (AS-18) "Related Party Disclosures"are given below: A Investing Parties with whom the Company is a Joint Venture Partner

1. Indo Simon Electric Private Limited (#)

(#) Ceased to be a Joint Venture during the year.

2. Luxtra Lighting Private Limited

B. Directors, Key Managerial Personnel

1. Mr. V.P.Mahendru

2. Mr. Vinay Mahendru

3. Mr. Vivek Mahendru

C. Relatives of Directors & Key Managerial Personnel

1. Mr.Vimal Mahendru

2. Ms.Ridhi Mahendru

D. Key Managerial Personnel

1. Mr. K.B.Satija

2. Mr. Kumar Indramani

E. Subsidiary Company

1. IAFL Power Distribution & Infrastructure Pvt. Ltd. (*)

(*) Ceased to be a Subsidiary during the year.

F. Group Company

1. IAFL Switchgears Private Limited

G. LLP firms in which Directors and their relatives are partners

1. VPM Industrial Services Corporation LLP

H. Company in which Directors and their relatives are Directors

1. VPM Electricals Private Limited

12. Lease Payments under an operating lease are recognised as an expense in the Statement of Profit and Loss on a straight line basis over the lease term. Accordingly Rs. 14,256,549/- has been charged to Statement of Profit and Loss during the year (Previous year Rs. 16,545,463/-).

13. The Company has terminated its Joint Venture Agreement with Simon Holding S.L., Spain on 8th September, 2014 and has accordingly agreed to transfer its entire share holding comprising of 22,849,462 Shares in the Joint Venture Company Indo Simon Electric Private Limited to M/s Simon Holding S.L., Spain.

14. During the year ended 31st March, 2015, the Company has transferred 18,965,054 Shares of the face Value of Rs.10/-each aggregating to Rs. 189,650,540/- held by it in the said Joint Venture Company for a total consideration of Rs. 182,441,256/-. The loss of Rs. 7,209,284/- arising on the transfer of the above shares has been considered as an Exceptional Item. Further the Company has made a provision of Rs. 7,000,000/- towards diminution in the value of the remaining shares held by it in the said company which too has been considered as an Exceptional Item.

15. With a view to enhance management focus and provide undivided attention to the LED based Lighting business which is one of the core business activities of the company and has immense potential for growth and development, the Company has during the year ended 31st March, 2015, dis-invested its stake of 2,650,000 10% Convertible Preference Shares of the face Value of Rs.10/- each aggregating to Rs. 26,500,000/- held by it in IAFL Power Distribution & Infrastructure Private Limited, which is a subsidiary company as per Section 2(87) (ii) of the Companies Act, 2013 for a total consideration of Rs. 1,325,000/-. The loss of Rs. 25,175,000/- arising from the sale of the above shares has been considered as an Exceptional Item.

With the sale of the above shares, IAFL Power Distribution & Infrastructure Private Limited ceases to be subsidiary of the Company.

16. The provision in regard to Section 135 of The Companies Act, 2013 in regard to Corporate Social Responsibility is not applicable to the Company.

17. Figures for the previous year have been re-arranged / re-grouped where ever necessary to make them comparable with the current year.


Mar 31, 2014

Company Overview :

Eon Electric Limited is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the National Stock Exchange of India Limited and Bombay Stock Exchange Limited. The company is engaged in the manufacturing and selling of Cables and Wires, Energy Efficient Lighting, Wiring accessories, Fans, Geysers, Lithium-ion Batteries, Mobile phone accessories and other electrical products. The Company''s manufacturing facilities are located at Haridwar in Uttarakhand.

1.1.Disclosure under Accounting Standard 15 (Revised)

As per Accounting Standard (AS-15) (Revised 2005) "Employee Benefits", the disclosures of Employee benefits as defined in the Accounting Standard are given below:

2. Scheme of Arrangement

Pursuant to the Scheme of Arrangement ("Scheme") u/s 391 to 394 of the Companies Act, 1956 between Eon Electric Limited ("Eon") and Advance Metering Technology Limited ("AMTL") and their respective shareholders and creditors for demerger of the Metering Division and Power Generation Business of the company'' duly sanctioned by the Hon''ble High Court for the States of Punjab & Haryana at Chandigarh vide its order dated 27th March, 2013, the Metering Division and Power Generation Business of Eon stands demerged and transferred to and vested in AMTL with effect from 1st April, 2011 (Appointed Date) on a going concern basis.

The Scheme became effective on 8th April, 2012 (Effective Date) on filing of the Certified True Copy of the said Order of the Hon''ble High Court with the Registrar of Companies, NCT of Delhi & Haryana.

Pursuant to the above Scheme, the Authorised, Issued, Subscribed and Paid Up Share Capital of Eon as on 9th May, 2012 ("the Record Date") has been reduced to half by changing the face vale of the shares from Rs. 10/- to Rs. 5/- each. Accordingly, the Board of Directors of Eon and AMTL have at their respective meetings held on 12th May, 2012 allotted to all the eligible shareholders of Eon, one fully paid-up Equity Share of the Face Value of Rs. 5/- each of Eon and one fully paid-up Equity Share of the Face Value of Rs. 5/- each of AMTL in lieu of every one fully paid-up Equity Share of the face value of Rs. 10/- each held by them in Eon as on the Record Date.

The broad details of the assets and liabilities of the Metering Division and Power Generation Business transferred from the Company and vested with AMTL at the closing date are as under :

Necessary effects in respect of the aforesaid Scheme of Arrangement have been given in the books of accounts of the Company in the financial statements for the year ended 31st March, 2013.

3. Contingent Liabilities and Commitments:-

a. Contingent Liabilities

i) Bank Guarantees Rs. 49,965,592/- (Previous year Rs. 49,714,695/-).

ii) Bond furnished to Custom & Central Excise Authorities for import of goods at Concessional Rate of Duty Rs. 70,000,000/- (Previous year Rs. 30,000,000/-).

iii) Excise duty demands against which the company has preferred appeals Rs. 52,314,146/- (Previous year Rs. 52,314,146/-). The Company has already deposited a sum of Rs. 3,015,000/- (Previous year Rs. 3,015,000/-) against the aforesaid demand.

iv) Central Excise and Service Tax Appeals filed by the Department Rs. 2,065,676/- (Previous year Rs. 2,065,676/-) for excise duty and Rs. 119,921/- (Previous year Rs. 119,921/-) for service tax.

v) Sales Tax / Value Added Tax Demands against which the company has preferred appeals Rs. 159,676,682/- (Previous year Rs. 11,593,533/-). The company has already deposited a sum of Rs. 5,664,955/- (Previous year Rs. 4,086,662/-) against the aforesaid demand.

b. Commitments

i) Capital commitments (net of advance) Nil (Previous year Rs. 86,952,823/-).

ii) Commitment to pay balance amount towards contribution to the Share Capital of Zephyr Peacock India III Fund Rs. 7,379,015/- (Previous Year Rs. 7,754,015/-)

4. Provision for income tax has been made without considering some taxes and amounts which will be paid before filing of Income Tax Return as provided under Section 43-B of the Income Tax Act, 1961.

5. In the opinion of Board, the current assets, loans and advances are approximately of the value stated, if realized, in the ordinary course of business. The provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

6. The balances of Debtors, Advances and Creditors are subject to confirmation.

7. The company has paid annual listing fees to Bombay Stock Exchange Limited and National Stock Exchange of India Limited where its equity shares are listed.

8. Information on Segment Reporting of the Company for the year ended 31st March 2014 Business Segments

In accordance with the Accounting Standard (AS) 17 "Segment Reporting", the Company''s operations have been categorized into the following Business segments :-

Cable and Wires includes Wires and Cables etc.

Lighting includes Compact Fluorescent Lamps, Fluorescent TubeLights, LEDs and Luminaires etc.

Others includes Modular Switches, Wiring Accessories, Home Automation, Fans, Lithium Ion Batteries, Mobile Phone Accessories etc.

Segment Revenue relating to each of the above business segments includes Other Income, where applicable. The above business segments have been identified considering :

a) the nature of products and services

b) the differing risks and returns

c) the organization structure, and

d) the internal financial reporting systems.

There are no geographical segments as the operations of the company''s existing Business Segments take place indigenously.

Notes:-

i. Segment results represent Profit/(loss) before Interest and Tax.

ii. Capital Expenditure pertains to gross additions made to fixed assets during the year including capital work in progress.

iii. Segment Assets include Fixed Assets, Current Assets & Loans and Advances directly attributable to respective business segments.

iv. Segment Liabilities include Current Liabilities and Provisions directly attributable to respective business segments.

v. The accounting policies used to derive reportable segment results are consistent with those described in the "Significant Accounting Policies" note to the financial statements.

9. Related Party Disclosure

i) Disclosures as required by Accounting Standard (AS-18) "Related Party Disclosures"are given below:

A Investing Parties with whom the Company is a Joint Venture Partner

1. Indo Simon Electric Pvt. Ltd.

2. Luxtra Lighting Private Limited

B. Directors, Key Management Personnel

1. Mr. V.P.Mahendru

2. Mr. Vinay Mahendru

3. Mr. Vivek Mahendru

C. Relatives of Directors, Key Management Personnel

1. Mr.Vimal Mahendru

D. Group Company

1. IAFL Power Distribution & Infrastructure Pvt. Ltd.

E. LLP firms in which relatives of Directors are partners 1. VPM Industrial Services Corporation LLP

F. Company in which Directors are Directors

1. VPM Electricals Private Limited

10. Lease Payments under an operating lease are recognised as an expense in the Statement of Profit and Loss on a straight line basis over the lease term. Accordingly Rs. 16,545,463/- has been charged to Statement of Profit and Loss during the year (Previous year Rs. 16,157,643/-).

The total of future minimum lease rent payable under operating lease for each of the following periods is as under

The financial data in respect of Indo Simon Electric Pvt. Ltd. for the year 31st March,2014 and Luxtra Lighting Private Limited for year ended 31st March, 2014 is based on their Provisional Accounts whereas the figures for the previous year are based on their Audited Accounts.

The aggregate amount of each of the Assets, Liabilities, Income and Expenditure related to interest of the Company in the jointly controlled entities are as under.


Mar 31, 2013

Company Overview :

Eon Electric Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the National Stock Exchange of India Limited and Bombay Stock Exchange Limited. The company is engaged in the manufacturing and selling of Cables and Wires, Energy Efficient Lighting, Wiring accessories, Fans, Geysers and other electrical products. The Company has also entered into business of Lithium-ion Batteries and Mobile Phone Accessories.

2. Discontinuing Operations

Pursuant to the Scheme of Arrangement ("Scheme") u/s 391 to 394 of the Companies Act, 1956 between Eon Electric Limited ("Eon") and Advance Metering Technology Limited ("AMTL") and their respective shareholders and creditors for demerger of the Metering Division and Power Generation Business of the company'' duly sanctioned by the Hon''ble High Court for the States of Punjab & Haryana at Chandigarh vide its order dated 27th March, 2012, the Metering Division and Power Generation Business of Eon stands demerged and transferred to and vested in AMTL with effect from 1st April, 2011 (Appointed Date) on a going concern basis.

''The Scheme became effective on 8th April, 2012 (Effective Date) on filing of the Certified True Copy of the said Order of the Hon''ble High Court with the Registrar of Companies, NCT of Delhi & Haryana. Upon the coming into effect of Scheme and in terms of the Scheme :

a) The business and operations of the De-merged Undertaking is deemed to be de-merged from the Company with retrospective effect from 1st April, 2011.

b) The related assets and liabilities of the De-merged Undertaking at the opening of business on 1st April, 2011 are deemed to have been transferred from the Company to AMTL with effect from that date at their respective book values.

c) The business of the De-merged Undertaking is deemed to have been carried out by the Company, in trust for and on behalf of AMTL from the Appointed date till the Effective date.

The Demerger of the Metering Division and Power Generation Business with effect from 1st April, 2011 constitutes " Discontinued Operations " within the meaning of Accounting Standard (AS) 24 on " Discontinuing Operations."

3. Contingent Liabilities and Commitments:-

a. Contingent Liabilities

i) Bank Guarantees Rs. 49,714,695/- (Previous year Rs. 52,387,744/-).

ii) Bond furnished to Custom & Central Excise Authorities for import of goods at Concessional Rate of Duty

Rs. 30,000,000/- (Previous year Rs. 30,000,000/-)

iii) Excise duty demands against which the company has preferred appeals Rs. 52,314,146/- (Previous year Rs. 52,314,146/-). The Company has already deposited a sum of Rs. 3,015,000/- (Previous year Rs. 3,015,000/-) against the aforesaid demand.

iv) Central Excise and Service Tax Appeals filed by the Department Rs. 2,065,676/- (Previous year Rs. 1,703,840/-) for excise duty and Rs. 119,921/- (Previous year Rs. 119,921/-) for service tax.

v) Sales Tax / Value Added Tax Demands against which the company has preferred appeals Rs. 11,593,533/-

(Previous year Nil) the company has already deposited a sum of Rs. 4,086,662/- (Previous year Nil) against the aforesaid demand.

b. Commitments

i) Capital commitments (net of advance) Rs. 86,952,823/- (Previous year Rs. 70,736,161/-).

ii) Commitment to pay balance amount towards contribution to the Share Capital of Zephyr Peacock India III Fund Rs. 7,754,015/- (Previous Year Nil)

4. Provision for income tax has been made without considering some taxes and amounts which will be paid before filing of Income Tax Return as provided under Section 43-B of the Income Tax Act, 1961.

5. In the opinion of Board, the current assets, loans and advances are approximately of the value stated, if realized, in the ordinary course of business. The provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

6. The balances of Debtors, Advances and Creditors are subject to confirmation.

7. The company has paid annual listing fees to Bombay Stock Exchange Limited and National Stock Exchange of India Limited where its equity shares are listed.

8. Information on Segment Reporting of the Company for the year ended 31st March 2013 Business Segments

In accordance with the Accounting Standard (AS) 17 "Segment Reporting", the Company''s operations have been categorized into the following Business segments :- Cable and Wires includes Wires and Cables etc.

Lighting includes Compact Fluorescent Lamps, Fluorescent TubeLights, LEDs and Luminaires etc.

Others includes Modular Switches, Wiring Accessories, Home Automation, Fans, Lithium Ion Batteries, Mobile Phone Accessories etc.

Metering and Power Generation includes Energy Meters and Power Generation,

The Metering and Power Generation business has been demerged and vested with Advance Metering Technology Limited w.e.f. 1st April, 2011.

Segment Revenue relating to each of the above business segments includes Other Income, where applicable. The above business segments have been identified considering :

a) the nature of products and services

b) the differing risks and returns

c) the organization structure, and

d) the internal financial reporting systems.

There are no geographical segments as the operations of the company''s existing Business Segments take place indigenously. Notes:-

i. Segment results represent Profit/(loss) before Interest and Tax.

ii. Capital Expenditure pertains to gross additions made to fixed assets during the year including capital work in progress.

iii. Segment Assets include Fixed Assets, Current Assets & Loans and Advances directly attributable to respective business segments.

iv. Segment Liabilities include Current Liabilities and Provisions directly attributable to respective business segments.

v. The accounting policies used to derive reportable segment results are consistent with those described in the "Significant Accounting Policies" note to the financial statements.

9. Related Party Disclosure

Disclosures as required by Accounting Standard (AS-18) "Related Party Disclosures"are given below:

i) Related Party

A. Subsidiary Company

IAFL Cables Ltd.

(Ceased to be a subsidiary w.e.f. 1st April, 2011 pursuant to Scheme of Arrangement)

B. Investing Parties with whom the Company is a Joint Venture Partner

1. Indo Simon Electric Pvt. Ltd.

2. Saudi National Lamps and Electricals Company Limited

(Ceased to be a Joint Venture w.e.f.1st April, 2011 pursuant to Scheme of Arrangement)

3. Luxtra Lighting Private Limited

C. Directors, Key Management Personnel

1. Mr. V.P.Mahendru

2. Mr. P.K.Ranade( Resigned w.e.f 23 rd March, 2013)

3. Mr. Vinay Mahendru

4. Mr. Vivek Mahendru

D. Relatives of Directors, Key Management Personnel

1. Mr.Vimal Mahendru

2. Mr. Vikram Ranade(*)

3. Mr. Prashant Ranade(*)

(*) (Transferred to Resulting company pursuant to Scheme of Arrangement)

E. Group Company

1. IAFL Power Distribution & Infrastructure Pvt. Ltd.

F. LLP firms in which relatives of Directors are partners

1. VPM Industrial Services Corporation LLP

10. Lease Payments under an operating lease are recognised as an expense in the Statement of Profit and Loss on a straight line basis over the lease term. Accordingly Rs.16,157,643/- has been charged to Statement of Profit and Loss during the year (Previous year Rs. 11,565,977/-).

11. Figures for the previous year have been re-arranged, re-grouped & re-classified where ever necessary to make them comparable with the current year.


Mar 31, 2012

Company Overview :

Eon Electric Limited (formerly known as Indo Asian Fusegear Limited) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the National Stock Exchange of India Limited and Bombay Stock Exchange Limited. The company is engaged in the manufacturing and selling of Cables and wires, Energy efficient lighting, Energy meters and other electrical products. The Company has recently also entered into Business of Wind power generation.

(a) Pursuant to the special resolution passed at the Extra Ordinary General Meeting of the members of the Company held on 6th May, 2010, the company had made preferential allotment of 890,000 Zero Coupon Warrants to the Promoters,each warrant convertible into one equity share of Rs. 10/- each at a price of Rs. 70/- per equity share at any time within 18 months from the date of allotment of Warrants on preferential basis by private placement to the promoters of the Company as per Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009.

During the year, the Company has converted the said Warrants into 890,000 fully paid up Equity Shares of Rs.10/- each . The difference between the Conversion Price and the face value of the equity shares has been credited to Securities Premium Reserve.

(b) The Board of Directors of the Company approved the Buy-back of its fully paid up Equity Shares of Rs. 10/- each from the existing owners of Equity Shares other than the Promoters / Persons in Control up to 6.45% of the paid-up capital and free reserves,at a price not exceeding Rs.130/- per Equity Share payable in cash, for an aggregate amount not exceeding Rs. 23.19 Crore from the open market through the Stock Exchange(s). During the year, the company has bought back and extinguished 17,84,162 Equity Shares of Rs.10/- each.

(c) During the year ended 31st March, 2011, the Company has redeemed 10% Cumulative Redeemable Preference Shares worth Rs.10,000,000/- held by Heinrich Kopp GmbH, Germany at par along with up to date Preference Dividend thereon.

1.1 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 entitiled to one vote per share. The Company declares and pays dividends in Indian rupees.

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.

2. Discontinuing Operations

Pursuant to the decision in the meeting of the Board of Directors of the Company held on 22nd July, 2010 and the approval of the Shareholders of the Company through Postal Ballot, the Company has transferred the entire business of developing, manufacturing and selling Low Voltage Miniature Circuit Breakers, Residual Current Circuit Breakers, Air Circuit Breakers, Moulded Case Circuit Breakers, Distribution Boards, Fuses, Fuse Bases, Switches, Feeder Pillars, Contractors, Thermal Overload Relays("Switchgear Business"), which is a separate segment as per AS 17, Segment Reporting, to a wholly owned subsidiary of Legrand France SA by way of Slump Sale as defined under Section 2(42C) of the Income Tax Act, 1961 on a going concern basis w.e.f. 9th September, 2010 for a total value of Rs. 530,00,00,000/- on a Cash and Debt free basis.

The Slump sale of Switchgear Business constitutes "Discontinuing Operations" within the meaning of Accounting Standard (AS 24) on "Discontinuing Operations".

3. Contingent Liabilities and Commitments:- a. Contingent Liabilities

i) Bank Guarantees Rs. 52,387,744/- (Previous year Rs. 67,825,138/-).

ii) Guarantees to Banks and others on behalf of Joint Venture Company Rs. 117,324,044/- (Previous year Rs. 97,143,925/-).

iii) Excise duty demands against which the company has preferred appeals Rs. 52,314,146/- (Previous year Rs. 52,314,146/-). The Company has already deposited a sum of Rs. 3,015,000/- (Previous year Rs. 3,015,000/-) against the aforesaid demand.

iv) Central Excise and Service Tax Appeals filed by the Department Rs. 1,703,840/- (Previous year Rs. 1,703,840/-) for excise duty and Rs. 119,921/- (Previous year Rs. Nil) for Service Tax.

b. Commitments

i) Capital commitments (net of advance) Rs. 70,736,161/- (Previous year Rs. 9,432,473/-).

ii) Commitment to pay balance amount towards contribution to the Share Capital of Luxtra Lighting Private Limited, a Joint Venture Company Rs. 1,870,000/- (Previous Year Rs. Nil).

4. Provision for income tax has been made without considering some taxes and amounts which will be paid before filing of Income Tax Return as provided under Section 43-B of the Income Tax Act, 1961.

5. In the opinion of Board, the current assets, loans and advances are approximately of the value stated, if realized, in the ordinary course of business. The provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

6. During the year, the Company has made provision for excise duty on stocks lying at the year end in various units amounting to Rs. 465,312/- (Previous year Rs. 525,118/-) and has included the said amounts in the valuation of inventories. This has no effect on the profit for the year.

7. The balances of Debtors, Advances and Creditors are subject to confirmation.

8. The company has paid annual listing fees to Bombay Stock Exchange Limited and National Stock Exchange of India Limited where its equity shares are listed.

9. Information on Segment Reporting of the Company for the year ended 31st March 2012

Business Segments

In accordance with the Accounting Standard (AS) 17 "Segment Reporting", the Company's operations have been categorized into the following Business segments :-

Switchgear includes MCBs, HRC Fuses, Feeder Pillars, RCCBs, Distribution Boards, Switches etc. The Switchgear Segment has been discontinued w.e.f. 9th September, 2010.

Cable and Wires includes Wires and Cables etc.

Lighting includes Compact Fluorescent Lamps, Fluorescent TubeLights and Luminaires etc.

Metering and Power Generation includes Energy Meters and Power Generation,

Others includes Modular Switches, Wiring Accessories, Home Automation, Fans, Lithium Ion Batteries, Mobile Phone Accessories etc.

Segment Revenue relating to each of the above business segments includes Other Income, where applicable.

The above business segments have been identified considering :

a) the nature of products and services

b) the differing risks and returns

c) the organization structure, and

d) the internal financial reporting systems.

There are no geographical segments as the operations of the company's existing Business Segments take place indigenously.

Notes:-

i. Segment results represent Profit/(loss) before Interest and Tax.

ii. Capital Expenditure pertains to gross additions made to fixed assets during the year including capital work in progress.

iii. Segment Assets include Fixed Assets, Current Assets & Loans and Advances directly attributable to respective business segments.

iv. Segment Liabilities include Current Liabilities and Provisions directly attributable to respective business segments.

v. The accounting policies used to derive reportable segment results are consistent with those described in the "Significant Accounting Policies" note to the financial statements.

10. Related Party Disclosures

i) Disclosures as required by Accounting Standard (AS-18) "Related Party Disclosures"are given below:

A. Subsidiary Company

IAFL Cables Ltd. (Formerly Indo Asian Cables Ltd.)

B. Investing Parties with whom the Company is a JV Partner

1. Indo Simon Electric Pvt. Ltd.(Formerly Indo Asian Simon Pvt. Ltd.)

2. Saudi National Lamps and Electricals Company Limited

3. Luxtra Lighting Private Limited

C. Directors, Key Management Personnel

1. Mr. V.P.Mahendru - Chairman cum Managing Director

2. Mr.P.K.Ranade - Joint Managing Director

3. Mr. Vinay Mahendru - Executive Director

D. Relatives of Directors, Key Management Personnel

1. Mr. Vivek Mahendru - President (Operations)

2. Mr.Vimal Mahendru - President(Corporate Affairs)

3. Mr. Vikram Ranade - Vice President(Technologies)

4. Mr. Prashant Ranade - Vice -President(Procurement)

5. Mrs. Bela Mahendru*

6. Mrs. Ratna Mahendru*

7. Mrs. Richa Mahendru*

8. Mrs. Kaushalya Gujral*

9. Mr. O.P.Mahendru*

10. Mrs. Ameeta Ranade#

11. Mrs. Asha Chaturvedi#

12. Mrs.Shama Guleri#

13. Mrs. Uma Sharma#

14. P.K.Ranade(H.U.F.)#

*Relatives of Mr. V.P.Mahendru

#Relatives of Mr. P.K.Ranade

E. Group Company

IAFL Power Distribution & Infrastructure Pvt. Ltd.

(Formerly Indo Asian Power Distribution & Infrastructure Pvt. Ltd.)

F. LLP firms in which relatives of Directors are partners

1. VPM Industrial Services Corporation LLP

2. PKR Hitech Industrial Corporation LLP

11. Subsequent events

The Hon'ble High Court for the States of Punjab & Haryana at Chandigarh vide its order dated 27th March, 2012, has approved the Scheme of Arrangement ("Scheme") u/s 391 to 394 of the Companies Act, 1956 between Eon Electric Limited ( "Eon" or "the Company") and Advance Metering Technology Limited ("AMTL") and their respective shareholders and creditors for demerger of the Metering Division and Power Generation Business ("De-merged Undertaking") of the company and transfer/vesting of the said undertaking in favour of AMTL with effect from 1st April, 2011 (Appointed Date) on a going concern basis.

The Scheme became effective on 8th April, 2012 (Effective Date) on filing of the Certified True Copy of the said Order of the Hon'ble High Court with the Registrar of Companies, NCT of Delhi & Haryana.

In terms of the Scheme, the Authorized, Issued, Subscribed and Paid up Share Capital of Eon , as on the Record Date, will be reduced to half by changing the face value of the shares from Rs. 10/- to Rs. 5/- each. All the members whose name appear in the records of Eon on the Record Date shall become the holders of the same number of Equity Shares of the face value of Rs. 5/- each credited as fully paid up of Eon and AMTL on the same terms, conditions and rights in the records of the respective companies.

Upon the coming into effect of Scheme and in terms of the Scheme :

a) The business and operations of the De-merged Undertaking shall be deemed to be de-merged from the Company with retrospective effect from 1st April, 2011.

b) The related assets and liabilities of the De-merged Undertaking at the opening of business on 1st April, 2011 shall be deemed to have been transferred from the Company to AMTL with effect from that date at their respective book values.

c) The business of the De-merged Undertaking shall be deemed to have been carried out by the Company, in trust for and on behalf of AMTL from the Appointed date till the Effective date.

Necessary effects in respect of the aforesaid Scheme of Arrangement would be given in the books of accounts of the Company during the next Financial Year.


Mar 31, 2011

1. Contingent Liabilities :-

i) Capital commitments (net of advance) Rs. 94.32 lacs (Previous year Rs. 644.98 lacs).

ii) Bank Guarantees Rs. 678.25 lacs (Previous year Rs.1,976.33 lacs).

iii) Guarantees to Banks and others on behalf of Joint Venture Company Rs. 948.00 lacs (Previous year Rs. 874.02 lacs)

iv) Bills Discounted with Banks outstanding as at 31st March, 2011 -Nil (Previous year Rs. 179.81 lacs).

v) Income Tax demands against which the Company has preferred appeals - Nil (Previous year Rs. 335.75 lacs).

vi) Sales Tax demands against which the company has preferred appeals - Nil (Previous year Rs. 3.10 lacs).

vii) Excise duty demands against which the company has preferred appeals Rs 523.14. lacs (Previous year Rs. 124.94 lacs). The Company has already deposited a sum of Rs.30.15 lacs (Previous year Rs. 32.34 lacs) against the aforesaid demands.

viii) Central Excise Appeal filed by the Department Rs 17.04 lacs (Previous year Nil)

2. Provision for income tax has been made without considering some taxes and amounts which will be paid before filing of Income Tax Return as provided under Section 43-B of the Income Tax Act, 1961.

3. In the opinion of Board, the current assets, loans and advances are approximately of the value stated, if realized, in the ordinary course of business. The provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

4. During the year, the Company has made provision for excise duty on stocks lying at the year end in various units amounting to Rs.525,1181- (Previous year Rs. 3,030,585/-) and has included the said amounts in the valuation of inventories. This has no effect on the profit for the year.

5. Lease Payments under an operating lease are recognised as an expense in the statement of Profit and Loss on a straight line basis over the lease term. Accordingly Rs.16,908,094/- has been charged to Profit and Loss Account during the year (Previous year Rs. 18,808,046/-).

6. The Company has incurred Rs.2,223,933/- (Previous year Rs. 4,621,272/-) on Research & Development during the year which has been debited to Establishment and Miscellaneous Expenses.

7. Export sales include Indirect Export amounting to Rs.5,363,225/- (Previous year Rs. 18,463,116/-).

8. The balances of Debtors, Advances and Creditors are subject to confirmation.

9. The company has paid annual listing fees to Bombay Stock Exchange Limited and National Stock Exchange of India Limited where its equity shares are listed.

10. Pursuant to the special resolution passed at the Extra Ordinary General Meeting of the members of the Company held on 6th May, 2010, the company has made preferential allotment of 890,000 Zero Coupon Warrants to the Promoters.each warrant convertible into one equity share of Rs. 10/- each at a price of Rs.70/- per equity share at any time within 18 months from the date of allotment of Warrants on preferential basis by private placement to the promoters of the Company as per Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009.

11. During the year ended 31st March, 2011, the Company has converted 845,000 Zero Coupon Convertible Warrants issued by private placement on preferential basis to the promoters of the Company into 845,000 fully paid Equity Shares of Rs. 10/- each at a price of Rs.50/- per Warrant. The difference between the Conversion Price and the face value of the equity shares has been credited to Securities Premium Account.

12. Figures of the previous year have been regrouped/re-classified wherever necessary to make them comparable with the current years figures.

13. The Board of Directors had declared a special interim dividend of Rs. 10 per share (100%) amounting to Rs.169,516,280/- in its meeting held on 11th October, 2010 which has since been paid. The tax on special interim dividend amounting to Rs.28,154,535/- has also been paid.

14. During the year, the Company has paid arrears of Dividend on 10% Cumulative Redeemable Preference Shares upto 31* March, 2010 amounting to Rs.4,000,000/-. The tax on the above Preference Dividend amounting to Rs.664,350/- has also been paid.

15. During the year, the Company has redeemed 10% Cumulative Reedemable Preference Shares worth Rs. 10,000,000/- held by Heinrich Kopp GmbH, Germany at par alongwith Preference Dividend of Rs. 1,000,000/- for year ended 31st March, 2011. The tax on the above Preference Dividend amounting to Rs. 166,088/- has also been paid.

16. Related Party Disclosure

i) Disclosures as required by Accounting Standard (AS-18) "Related Party Disclosures"are given below:

A. Subsidiary Company

IAFL Cables Ltd. (Formerly Indo Asian Cables Ltd.)

B. Investing Parties with whom the Company is a JV Partner

1. Indo Simon Electric Pvt. Ltd.(Formerly Indo Asian Simon Pvt. Ltd.)

2. Saudi National Lamps and Electricals Company Limited

C. Directors, Key Management Personnel

1. Mr. V.P.Mahendru- Chairman cum Managing Director

2. Mr.P.K.Ranade- Joint Managing Director

3. Mr. Vinay Mahendru- Executive Director

D. Relatives of Directors, Key Management Personnel

1. Mr. Vivek Mahendru -President (Operations)

2. Mr.Vimal Mahendru - President(Corporate Affairs)

3. Mr. Vikram Ranade -Vice President(Technologies)

4. Mr. Prashant Ranade -Vice-President(Procurement)

5. Mrs. Bela Mahendru*

6. Mrs. Ratna Mahendru*

7. Mrs. Richa Mahendru*

8. Mrs. Kaushalya Gujral*

9. Mr. O. P. Mahendru*

10. Mrs. Ameeta Ranade#

11. Mrs.AshaChaturvedi#

12. Mrs.Shama Guleri#

13. Mrs. Uma Sharmafl

14. RK.Ranade(H.U.F.)# Relatives of Mr. V.P.Mahendru #Relatives ofMr.RK.Ranade

E. Group Company

IAFL Power Distribution & Infrastructure Pvt. Ltd.

(Formerly Indo Asian Power Distribution & Infrastructure Pvt. Ltd.)

F. LLP firms in which relatives of Directors are partners

1. VPM Industrial Services Corporation LLP

2. PKR Hitech Industrial Corporation LLP

17. Slump Sale of Switchgear Business

Pursuant to the decision in the meeting of the Board of Directors of the Company held on 22nd July, 2010 and the approval of the Shareholders of the Company through Postal Ballot, the Company has transferred the entire business of developing, manufacturing and selling Low Voltage Miniature Circuit Breakers, Residual Current Circuit Breakers, Air Circuit Breakers, Moulded Case Circuit Breakers, Distribution Boards, Fuses, Fuse Bases, Switches, Feeder Pillars, Contractors, Thermal Overload RelaysfSwitchgear Business"), which is a separate segment as per AS 17, Segment Reporting, to a wholly owned subsidiary of Legrand France SA by way of Slump Sale as defined under Section 2(42C) of the Income Tax Act, 1961 on a going concern basis w.e.f. 9th September, 2010 for a total value of Rs.530.00 Crores on a Cash and Debt free basis

18. Segment Information for the year ended 31st March 2011 Information about Business segments - Primary Business Segments

The company has considered business segment as the primary segment for disclosure. The products included in each of the reported business segments are as follows :-

Switchgear includes MCBs, HRC Fuses, Feeder Pillars, RCCBs, Distribution Boards, Switches etc.

Lighting includes Compact Fluorescent Lamps, Fluorescent Tube Lights and Luminaires etc.

Cable and Wires includes Wires and Cables etc.

Segment Revenue relating to each of the above business segments includes Other Income, where applicable.

The above business segments have been identified considering:

a) the nature of products and services

b) the differing risks and returns

c) the organization structure, and

d) the internal financial reporting systems.

19. The Company has given interest bearing inter corporate loan aggregating to Rs. 268.00 lacs (Previous Year Rs. Nil) to Indo Simon Electric Pvt. Ltd.(Formerly Indo Asian Simon Pvt. Ltd.), a Company with whom it is a Joint Venture Partner during the year. The maximum amount outstanding during the year was Rs. 278.87 lacs (Previous Year Rs. Nil). The Balance outstanding as on 31.03.11 is Rs. 278.87 lacs (Previous Year Nil). The above loan is re-payable on demand.


Mar 31, 2010

1. Contingent Liabilities :-

i) Capital commitments (net of advance) Rs.644.98 lacs (Previous year Rs. 732.44 lacs).

ii) Bank Guarantees Rs.1,976.33 lacs (Previous year Rs. 2,312.34 lacs).

iii) Guarantees to Banks and others on behalf of Joint Venture Company Rs. 874.02 lacs (Previous year Rs. 874.02 lacs)

iv) Bills Discounted with Banks outstanding as at 31st March, 2010 Rs. 179.81 lacs (Previous year Rs. 616.45 lacs).

v) Income Tax demands against which the Company has preferred appeals - Rs.335.75 lacs (Previous year Rs. 335.75 lacs). The Company has already deposited a sum of Rs.100.00 lacs (Previous year Rs. 100.00 lacs) against the aforesaid demand.

vi) Sales Tax demands against which the company has preferred appeals - Rs.3.10 lacs (Previous year Rs. 3.10 lacs). The Company has already deposited a sum of Rs.1.55 lacs (Previous year Rs. 1.55 lacs) against the aforesaid demand.

vii) Excise duty demand against which the company has preferred appeals Rs. 124.94 lacs (Previous year Rs. 135.60 lacs). The Company has already deposited a sum of Rs. 32.34 lacs (Previous year Rs. 12.68 lacs) against the aforesaid demand.

2. Provision for income tax has been made without considering some taxes and amounts which will be paid before filing of Income Tax Return as provided under Section 43-B of the Income Tax Act, 1961.

3. In the opinion of Board, the current assets, loans and advances are approximately of the value stated, if realized, in the ordinary course of business. The provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

4. During the year, the Company has made provision for excise duty on stocks lying at the year end in various units amounting to Rs.30,30,585/- (Previous year Rs. 33,47,640/-) and has included the said amounts in the valuation of inventories. This has no effect on the profit for the year.

5. The Company has incurred Rs.46,21,272/- (Previous year Rs. 17,52,394/-) on Research & Development during the year which has been debited to Establishment and Miscellaneous Expenses.

6. Export sales include Indirect Export amounting to Rs.1,84,63,116/- (Previous year Rs.1,26,02,083/-).

7. The balances of Debtors, Advances and Creditors are subject to confirmation.

8. The company has paid annual listing fees to Bombay Stock Exchange Limited and National Stock Exchange of India Limited where its equity shares are listed.

9. Pursuant to the special resolution passed at the Extra Ordinary General Meeting of the members of the Company held on 25" January, 2010, the company has made preferential allotment of 16,45,000 Zero Coupon Warrants to the Promoters, each warrant convertible into one equity share of Rs. 10/- each at a price of Rs.50/- per equity share at any time within 18 months from the date of allotment of Warrants on preferential basis by private placement to the promoters of the Company as per Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009.

Out of the above the Company has converted 8,00,000 Zero Coupon Convertible Warrants into 8,00,000 fully paid Equity Shares of Rs. 10/- each at a price of Rs.50/- per Warrant. The difference between the Conversion Price and the face value of the equity shares has been credited to Securities Premium Account.

10. During the year ended 31 st March, 2009, the company issued 19,00,000 Zero Coupon Warrants each convertible into one equity share of Rs. 10/- each at a price of Rs. 130/- per equity share at any time within 18 months from the date of allotment of Warrants. As the allotees did not exercise the option for conversion of the said warrants into shares, Rs 2,47,00,000/- being 10 % of the amount received on allotment of the warrants stands forfeited and has been transferred to Capital Reserve.

11. Advances Recoverable in Cash or in Kind include Rs.10,57,76,000/- paid towards Share Application Money to Indo Asian Cables Ltd amounting to Rs. 8,06,56,000/-, Indo Asian Power Distribution and Infrastructure Private Ltd amounting to Rs.2,47,20,000/- and Indo Asian Simon Pvt. Ltd. amounting to Rs 4,00,000/- for subscribing to the equity shares.

12. Figures of the previous year have been regrouped/re-classified wherever necessary to make them comparable with the current years figures.

13. The Company has set up a new unit for the manufacture of Energy Meters Products at Noida, which has commenced commercial production during the year.

14. Related Party Disclosure

i) Disclosures as required by Accounting Standard (AS-18) "Related Party Disclosures"are given below:

A. Associate Companies

Indo Asian Power Distribution & Infrastructure Pvt. Ltd. Indo Asian Cables Ltd.

B. Directors, Key Management Personnel and their relatives

1. Mr. V.P.Mahendru - Chairman cum Managing Director

2. Mr.P.K.Ranade - Joint Managing Director

3. Mr. Vinay Mahendru - Executive Director

4. Mr. Vivek Mahendru - President (Operations)

5. Mr. Vimal Mahendru - President(Corporate Affairs)

6. Mr. Vikram Ranade - Vice President(Technologies)

7. Mr. Prashant Ranade - Vice-President(Procurement)

8. Mrs. Bela Mahendru*

9. Mrs. Ratna Mahendru*

10. Mrs. Richa Mahendru*

11. Mrs. Kaushalya Gujral*

12. Mr. O.P.Mahendru*

13. Mrs. Ameeta Ranade#

14. Mrs.AshaChaturvedi#

15. Mrs.Shama Guleri#

16. Mrs. Uma Sharma# •Relatives of Mr. V.P.Mahendru #Relatives of Mr.P.K.Ranade

C. Investing Parties with whom the Company is a JV Partner

-Indo Asian Simon Pvt. Ltd.

-Saudi National Lamps and Electricals Company Limited

15. Segment Information for the year ended 31st March 2010

Information about Business segments - Primary

Business Segments

The company has considered business segment as the primary segment for disclosure. The products included in each of the reported business segments are as follows :-

Switchgear includes MCBs, HRC Fuses, Feeder Pillars, RCCBs, Distribution Boards, Switches etc.

Lighting includes Compact Fluorescent Lamps, Fluorescent TubeLights and Luminaires etc.

Cable and Wires includes Wires and Cables etc.

The Cable & Wires segment has been identified as a reportable segment in the current year.

Segment Revenue relating to each of the above business segments includes Other Income, where applicable.

The above business segments have been identified considering :

a) the nature of products and services

b) the differing risks and returns

c) the organization structure, and

d) the internal financial reporting systems.

16. The 10% Cumulative Redeemable Preference shares are redeemable at par within a period of 20 years from the date of allotment i.e.17th February, 2001. The Cumulative amount of dividend remaining unpaid as on 31st March,2010 on the said shares is Rs.40,00,000/-.