Mar 31, 2015
1. CORPORATE INFORMATION
Everonn Education Limited (the 'Company') is a pioneer in using
technological breakthroughs to make quality education a reality even in
the most remote parts of the country. Everonn's passion for enabling
cutting-edge education delivery has seen us grow dramatically in the
past two decades. The company is a public listed company and is listed
on the Bombay Stock Exchange (BSE) and the National Stock Exchange
(NSE)
2. SHARE CAPITAL
a) Rights, preferences and restrictions attached to shares
Equity Shares: The Company has one class of equity shares having a par
value of Rs.10 per share. Each Shareholder is eligible for one vote per
share held. The equity shareholders are eligible to receive in the
remaining assets of the company after distribution of all preferential
amounts, in proportion to their shareholding.
b) During the year the company had issued 10,91,303 equity shares of
Rs. 10 each at the rate Rs.39.69 on account of conversion of Optionally
Convertible Debenture of Rs. 4,33,14 ('000) as per the terms of
Debenture Agreement
3. EMPLOYEE BENEFITS EXPENSE
The disclosure under Accounting Standard 15 "Employee Benefits"
notified in the notified under Section 133 of the Companies 2013, read
with Rule 7 of the Companies (Accounts) Rules, 2014, are given below
Defined benefit Plan
The Employees fund scheme managed by SBI Life Insurance Co. Limited is
a defined benefit Plan. The present value of obligation is determined
based on actuarial valuation using the Projected Unit Method.
4. CONTINGENT LIABILITIES AND COMMITMENTS TO BE UPDATED
Rs. in '000
Particulars As at As at
March 31 March 31,
2015 2014
a) Claims against the company not
acknowledged as debt
Income Tax Matters 9,78,339 10,84,200
Service Tax Matters - 11,155
b) Bank Guarantees 5,75,108 5,76,837
c) Corporate Guarantee issued by parent on behalf of Subsidiary
Companies Rs. 46,46,700 ('000) (PY Rs. 26,59,500 ('000)) against which
the loan outstanding is Rs. 18,70,078 ('000) and (PY Rs. 17,05,591
('000)respectively
d) Corporate Guarantee issued by parent to banks for Secured loans to
third party Rs. 3,20,000 ('000) (PY Rs. 4,20,000 ('000)) against which
the loan outstanding is Rs. 1,83,050 ('000) and (PY Rs. 3,13,118
('000)) respectively
In respect of items above, future cash outflows in respect of
contingent liabilities is determinable only on receipt of judgments
pending at various forum/ settlement of matter. The management believes
that, based on
legal advice or internal assessment, the outcome of these contingencies
will be favorable and the loss is not probable. Accordingly no
provisions have been made for the same.
e) A Civil suit has been filed by The ICFAI Academy for permanent
injunction for creating third party rights, or disposing the assets,
both tangible and intangible, in the plaintiff's campuses and control
offices from the academic year 2011 onwards. ICFAI has also claimed
damages of Rs.5,000('000) along with interest at the rate of 18% p.a
and the Company is contesting the case and the said suit is still
pending in the Hon'ble Madras High Court.
f) A Civil suit has been filed by Prometric BV towards damages
amounting to Rs. 15,000('000) (PY Rs. 15,000('000)) and the Company is
contesting the case.
g) A civil suit has been filed by M/s PAE for recovery of outstanding
Rs. 2498 ('000) (PY Nil) which is being contested
h) HPFS has initiated winding up proceeding against the Company for the
alleged nonpayment of lease charges. Since the claim made by HPFS is
disputed by the Company the said Winding up proceeding is not
maintainable. The Company is contesting the said Petition.
i) Estimated amount of contracts remaining to be executed on capital
account and not provided for is Rs. Nil (PY (Rs. Nil))
j) Counter guarantee from third parties have not been taken for the
corporate guarantee given on behalf of them.
k) The company has received notices from certain parties alleging
defaults in respect of services/payments due to them by the company.
The management is discussing with its legal team for evaluating the
financial impact of these claims. Any adjustments/disclosures, if
required, would be made, upon the claims being settled.
5. DIMUNITION IN VALUE OF INVESTMENT
The company has an investment of Rs 247.48 Crores in its subsidiaries
and Rs. 7.07 in other associates and has also extended loans and
advances of Rs. 150.40 Crores to these subsidiaries/associates as of
March, 31,2015. The proposals which were submitted by the consultants
for the consideration of management to realign its core investments and
recognize and eliminate those investments which have not yielded any
return till date has not been very encouraging and prima facie, these
proposals appears to be against the investor and stake holders'
interest, as it is expected to result in further net worth erosion at
least in the beginning. The company at present has approached one of
the leading consultants to advise regarding the future business
opportunities which these entities can exploit gainfully or whether the
operation of these entities need to be scaled down/revamped/wound of
all its subsidiaries. The management has decided to recognize the exact
quantum in the diminution in the value of investments upon receipt of
final proposal which is expected to be submitted shortly by the
consultants. The company at present is confident of arriving at a final
conclusion in this matter. As already stated elsewhere, the balance
available in BRR which has been approved by Honorable Madras High Court
allows a small flexibility to the company and a window to capture
appropriately the diminution in the value of investments.
6. OPERATING LEASES
The company has entered into operating lease arrangement for its office
facilities and equipment. These Leases are for a period ranging from 1
to 5 years with an option to the company for renewing at the end of the
initial term. Equipment rental/ Rental for operating leases is added
in Profit and Loss account for the year Rs. 2,212 ('000) (March 31 2014
Rs. 3,124 ('000))
The Future minimum lease payments under non-cancellable operating
leases are as follows
7. RELATED PARTY DISCLOSURE List of Related Parties
Name Nature of relationship
1. Everonn Educational Resources Solutions Subsidiary Companies
Limited (Direct and indirect
holding)
2. Toppers Tutorial Private Limited
3. Everonn Infrastructure Limited "
4. Everonn Business Education Limited "
5. Everonn Technical Education India "
Limited
6. Everonn Medical Education Limited "
7. Everonn School Limited "
8. Edifications India Limited "
9. Everonn Sport Management Limited "
10. Everonn knowledge & Education Corridor "
Limited
11. Everonn Skilling India Limited "
12. Everonn Skill Products Development "
Limited
13. Everonn Skill Development Limited "
14. AEG Skill Update Private Limited "
15. Everonn Dassani Literate Limited "
16. Varkey Group Limited Enterprise over which
some of the directors
17. SKIL Infrastructure Limited exercise significant
influence
18. Gems Education (Asia) 1 Limited "
19. The Concorde Residential Schools "
(Kerala) Private Limited
20. Premier Educational Establishments "
Private Ltd
21. Gems Education India Private Limited "
22. Zanskar Properties private Limited "
23. VG School Developments Private Ltd "
24. Dream Solutions Private Ltd "
25. Mr. A Srinivasan* Key Managerial
Personnel
26. Mr. N P MathiLingan "
27. Mr. Ganapathy Puranik* "
28. Mr. CN. Radhakrishnan "
29. Mr. Sandeep Maniyar "
*resigned during the year
8. SEGMENT REPORTING
The Company is engaged in the business of providing education and
training and related sale of equipment's. There being only one
'business segment' and 'geographical segment' the segment information
is not provided
9. DUES TO MICRO AND SMALL ENTERPRISES
The company has circulated a letter to all creditors to ascertain the
applicability of MSMED Act on the transaction which the company had
with them. Provision for interest if any under the Act will be made
upon receipt of their responses and after examining the validity of
their claim.
10. TRANSACTIONS WITH ASSOCIATED ENTERPRISES
The company has transactions with "Associated Enterprises" which are
subject to Transfer Pricing regulations in India. The Management of the
Company is of the opinion that such transactions with the associate
enterprises are at arm's length. Consequently, this will not have any
impact on the financial statements, particularly on account of tax
expenses and that of provision for taxation.
11. BALANCE CONFIRMATION
Confirmations of Balance from Sundry Debtors, Deposit accounts, Loans
and Advances, certain Banks and Sundry Creditors have not been
obtained. Accounts of certain sundry debtors, loans and advances,
deposits and creditors are being reviewed as an ongoing process. As
there is an inordinate delay in receipt of confirmations from
Government Contracts adjustments, if any will be made on completion of
review/ reconciliation/ identification of doubtful debts/advances.
12. IMPAIRMENT OF ASSETS
As explained under the head Business Reconstruction Reserve under the
Note No. 2.56 the company had utilized the BRR reserve by wring off the
balance appearing in Capital work in progress as well as certain long
outstanding non recoverable advances and receivables. In respect other
assets the company is confident that once restructuring exercise is
fully completed, it will have clearer picture with regard to exact
quantum of impairment that need to be recognized. The company is of the
view that these will be appropriately dealt during the next financial
year, after taking into account the available balance in BRR and the
write back if any that may arise due to the successful negotiations
with the creditors in respect of the outstanding of the company.
13. INCOME TAX
During the year, the Company reviewed the position with regard to the
income tax assessments till date and has taken certain decisions to
mitigate the tax outflow especially by filing revised
returns/computations in respect of all the pending assessments. The
company received assessment order for AY 2006-07 to 2012- 13 which is
also being contested. The various appeals filed by the company against
the demands raised by the Income tax department were heard subsequent
to close of the accounting year and based on the favorable
judgements rendered in other cases of similar natures; the management
is of the view that there is no need to recognize any additional tax
provision. The company has been advised that there are reasonable
chances of obtaining favorable orders reducing the quantum of demand to
a great extent (as against any additional outgo on account of new
demands) in case the judicial precedents are followed fully in deciding
these appeals, which will re-inforce the stand taken by the company.
No provision is made in this regard, as the Company has been advised
that the stand of the Company will be accepted in appeal. Any
additional tax provision arising out of the tax demands (inclusive of
interest and penalty) will be made upon reaching the finality in
respect of the assessments.
14. EXCEPTIONAL ITEMS
The break up is as under
15. Due to erosion in the net worth, the company's is unable to expand
in confident manner its various operations and also arrest the
continued losses sustained by it. The company's business plans that are
evaluated by the bankers have re-in forced the belief of the company
that its future lies in successfully exploiting its strength in running
schools across the country to take care of increasing demand. With the
funds raised from the bankers, the company has judiciously allocated
its resources so that its operations across the group especially the
operating companies are carried out in smooth manner without creating
any bottle necks. In other words the company continues to use the funds
raised for all common purposes so that the returns that expected flow
in near future will be adequate to defray all the possible liabilities
of the company.
The promoters of the company, who are one of the world leaders in
education and running schools of repute, all over the world, have
brought in major changes in the operation of the entire group's
activities, the emphasis now being focused on establishing and running
of high quality schools across the country. Accordingly, the
management of the company has now decided to shed all unviable
businesses which were started earlier by the old management and has now
decided to have a leaner structure without carrying on the multiple
subsidiary companies. The management is fully aware that any abrupt
closure of these subsidiaries without evaluating the risks attached in
relation thereto will further cripple the inflow of the bank finances
which are necessary for the running the operations of the company. At
the same time, the company has also consulted best legal minds who have
advised the management to take recourse to certain legal proceedings to
ensure that the interest of the company is fully secured, in recouping
its dues, which the management is of the view, has not been properly
safeguarded in the past. A new team of officials have been brought in,
almost at the beginning of the current calendar year who are constantly
pursuing various alternatives to ensure that some of the assets which
are held by the subsidiaries (whether in the form of loans/advances or
any interest in immovable properties - whether directly or otherwise)
properly realigned in the company's books so that the company's net
worth is fully protected.
The company's financial position has been constantly reviewed by the
lenders who have been monitoring closely all the activities and with
their cooperation the management is of the view that it will wipe out
all the legacy issues and embark on a new direction. The management is
of the view that despite the losses which are already forming part of
the holding company as well as in the books of certain inoperative
subsidiaries, the company is and will remain as a going concern and on
this basis the financials / assets / liabilities are stated in the
books of accounts. The Company is also taking various steps to reduce
costs and improve efficiencies to make its operations profitable and
accordingly the financial statements have been prepared on the basis
that the Company is a going concern.
16. In respect of advances given to various parties and Debts due from
government agencies and others, in view of legal advices and other
opinion received no provision is considered necessary at this juncture,
as the company at present is hopeful of recovering major portion of
outstanding dues.
17. BUSINESS RESTRUCTURING RESERVE
The Hon 'ble High Court of Madras permitted the Company to reduce the
Securities Premium Account to an amount not exceeding Rs. 150 Crores to
be transferred to a separate reserve styled as "Business Restructuring
Reserve"(BRR). The resolution passed by the Share Holders and approved
by the Court permitted the BRR should be utilized for setting off
against diminution in the value of investments, and consequent
impairment of goodwill and accumulated losses, unrealized debtors and
loans and advances etc.,
The Company has given effect to this order of the Hon 'ble High Court
by carving out of the Share Premium Account, a sum of Rs. 150 Crore to
BRR.
Out of the balance of Rs. 150.00 Crores under head BRR, during the year
company has utilized a sum of Rs. 65.66 Crores, in accordance with the
permission granted by the Honorable High Court of madras. The reaming
balances will be utilized for the purposed approved by court in the
current financial year.
18. PREVIOUS YEAR FIGURES
Previous years' figures have been regrouped / reclassified wherever
necessary to conform to the current year presentation.
Mar 31, 2014
1 CORPORATE INFORMATION
Everonn Education Limited (the ''Company'') is a pioneer in using
technological breakthroughs to make quality education a reality even in
the most remote parts of the country. Everonn''s passion for enabling
cutting-edge education delivery has seen us grow dramatically in the
past two decades. The company is a public listed company and is listed
on the Bombay Stock Exchange Limited (BSE) and the National Stock
Exchange of India Limited (NSE)
2.0 CONTINGENT LIABILITIES AND COMMITMENTS TO BE UPDATED
Rs. in ''000
As at As at
March 31, 2014 March 31, 2013
a) Claims against the company not
acknowledged as debt Income Tax
Matters 10,84,200 4,13,174
Service Tax Matters 11,155 94,269
b) Corporate Guarantee issued on
behalf of Subsidiary Companies 19,17,300 17,38,172
c) Corporate Guarantee issued to
banks for secured loans to
third Party 3,13,118 6,80,029
d) Bank Guarantees 5,76,837 7,84,952
e) In respect of items above, future cash outflows in respect of
contingent liabilities is determinable only on receipt of judgments
pending at various forum/ settlement of matter. The management believes
that, based on legal advice or internal assessment, the outcome of
these contingencies will be favorable and the loss is not probable.
Accordingly no provisions have been made for the same.
f) A Civil suit has been filed by Prometric BV towards damages
amounting to Rs. 15,000(''000) (PY Rs. Nil)
g) Estimated amount of contracts remaining to be executed on capital
account and not provided for is Rs. Nil (PY (Rs. Nil))
h) Counter guarantee from third parties have not been taken for the
corporate guarantee given on behalf of them.
i) The company has received notices from certain parties alleging
defaults in respect of services/payments due to them by the company.
The management is discussing with its legal team for evaluating the
financial impact of these claims. Any adjustments/disclosures, if
required, would be made, upon the claims being settled.
2.1 DIMUNITION IN VALUE OF INVESTMENT
The company has an investment of Rs 247.58 Crores in its subsidiaries
and in other associates and has also extended loans and advances of Rs.
141.09 Crores to these subsidiaries/associates as of March, 31, 2014.
The management is in the process of making judicious evaluation of
businesses carried on by each of the entities in their respective
sphere of operations. The company is at present contemplating to
appoint consultants to advise regarding the future business
opportunities which these entities can exploit gainfully or whether the
operation of these entities need to be scaled down/revamped/wound up.
The company is carefully monitoring the losses if any that may arise is
to be kept at bare minimum on account of this proposed restructuring.
Pending the finalization of the above proposals which are in the
embryonic stage the company has not recognized in its accounts any
diminution in the value of its investments.
2.2 OPERATING LEASES
The company has entered into operating lease arrangement for its office
facilities and equipment. These Leases are for a period ranging from 1
to 5 years with an option to the company for renewing at the end of the
initial term. Equipment rental/ Rental for operating leases is added
in Profit and Loss account for the year Rs.3,124 (''000) (March 31 2013 Rs.
5,97,893 (''000))
The Lease arrangements for the above non-cancellable leases do not
provide for any escalation and the same has been factored in the future
minimum lease rentals as disclosed above.
During the year the company has approached/represented and renegotiated
some of its arrangements with the leasing companies and was successful
in revising the terms of the certain arrangements in the best possible
mannerthe same has been given effect to, in these financials. With
regards to other parties the company is pursuing vigorously and
resolution of these arrangements are likely to occur within the next
six months. Pending renegotiations, the company has not recognized a
sum of Rs. 2,28,600(''000) of lease charges during the current financial
year.
The company has taken over the Axis bank liability of Acorn Commodity
Exchange Private limited, towards leasing arrangement in view of the
corporate guarantees given to them in respect of Uttar Pradesh project.
This amount is now reflected as a loan and the company is now paying
interest. The Company is legally proceeding against the entity for the
recovery of the sum due to it together with interest. In view of the
above the lease rentals are not accrued in the books.
The DRT passed an interim order directing that the proceeds from
Haryana project should be shared between Standard Chartered bank and
the company at the ratio of 55:45 on account of corporate guarantee
given towards the leasing arrangements entered into between the company
and Spaarkon Trading Pvt Ltd. In view of the above the lease rentals
are not accrued in the books.
Nevertheless, at the end of project, the Company is obliged to transfer
all the assets to the Haryana and Uttar Pradesh State Authorities as
the project is on BOOT Model. This event is likely to occur in FY
2014-15 when these assets will be transferred on as is where basis
without any recourse to the Compensation.
3. AEG Skill Update Private Limited Subsidiary Company with 51% of
Holding
4. Everonn Dassani Literate Limited Subsidiary Company with 60% of
Holding
5. Varkey Group Limited Promoter Group Company
6. SKIL Infrastructure Limited Promoter Group Company
7. Gems Education (Asia) 1 Limited Promoter Group Company
8. The Concorde Residential Schools (Kerala) Private Limited Promoter
Group Company
9. Premier Educational Establishments Private Ltd Promoter Group
Company
10. Gems Education India Private Limited Promoter Group Company
11. Zanskar Properties Private Limited Promoter Group Company
12. Vg school developments Private Ltd Promoter Group Company
13. Dream Solutions Private Ltd Promoter Group Company
14. A Srinivasan Key Managerial Personnel
15. N P Mathi Lingan Key Managerial Personnel
16. Ganapathy Puranik Key Managerial Personnel
17. SEGMENT REPORTING
The Company is engaged in the business of providing education and
training and related sale of equipment''s. There being only one
''business segment'' and ''geographical segment'' the segment information
is not provided
18 DUES TO MICRO AND SMALL ENTERPRISES
The company has circulated a letter to all creditors to ascertain the
applicability of MSMED Act on the transaction which the company had
with them. Provision for interest if any under the Act will be made
upon receipt of their responses and after examining the validity of
their claim.
19 The company has transactions with "Associated Enterprises" which
are subject to Transfer Pricing regulations in India. The Management of
the Company is of the opinion that such transactions with the associate
enterprises are at arm''s length. Consequently, this will not have any
impact on the financial statements, particularly on account of tax
expenses and that of provision for taxation.
20. BALANCE CONFIRMATION
Confirmations of Balance from Sundry Debtors, Deposit accounts, Loans
and Advances and Sundry Creditors have not been obtained. Accounts of
certain sundry debtors, loans and advances, deposits and creditors are
being reviewed as an ongoing process. As there is g the inordinate
delay in receipt of confirmations from Government Contracts
adjustments, if any will be made on completion of
review/reconciliation/ identification of doubtful debts/advances.
21. IMPAIRMENT OF ASSETS
The company has initiated the process of review of impairment of assets
in the respect of the tangible, intangible and other current assets
including Capital Work in Progress carried in the Books, their results
in such impairment is awaited, The financial implication if any on the
above will be provided appropriately at later stage taking into account
the future operational plans and cash flows as prepared by the
management.
22. INCOME TAX
The company has received various demand notices of income tax and
interest thereon in respect of Assessment Years 2006-07 to 2011-12.
During the year, the Company reviewed the position with regard to the
income tax assessments till date and has taken certain decisions to
mitigate the tax outflow especially by filing revised
returns/computations in respect of all the pending assessments.
Although the department has not accepted the revised computation for
the Assessment year 2011-12, the company is hopeful that since the
revised computation is in line with the revised returns of other years,
the demand will ultimately get reduced and will reflect the income
disclosed in the revised statement. The company has filed an appeal
against the order of assessment and is hopeful of obtaining substantial
relief. The company is also pursuing other remedies (rectification
application, waiver application etc.,) as permitted under the law to
ensure that the tax liability is reduced as per law.
The company received a fresh assessment order for AY 2007-08 which is
also being contested. No provision is made in this regard, as the
Company has been advised that the stand of the Company will be accepted
in appeal.
Any additional tax provision arising out of the tax demands (inclusive
of interest and penalty) will be made upon reaching the finality in
respect of the assessments.
23. SERVICE TAX
Against the delay in remittance of service tax, the Department has
issued a show cause notice for levying penalty which is being contested
before the settlement commission. By way of abundant caution, the
company has at present, recognized a contingent liability of Rs. 1.05
Cr which is not provided for.
24. VAT
Assessment proceedings against the company under the Karnataka VAT Act
were successfully completed at the appellate level and the company got
substantial relief. The matter has since been remanded to the Assessing
Officer for passing the consequential order.
i. The company initially had an operating lease arrangement with
Reliance capital in respect of certain assets and the
overduestowardsthe lease rentals resulted in legal proceedings against
the company. The Company later concluded a revised arrangement with
Reliance Capital under which the operating lease arrangement was
substituted by a mortgage loan with EMIs being paid over a period of 8
years up to 2022. This mortgage loan together with existing mortgage
loan aggregate to Rs. 342,238 (''000) and is secured by the title deeds
of third floor of the property at Perungudi, Chennai.
The revised terms a necessitated a recognition of a onetime charge of
Rs. 16.54 Cr.
ii. The company initially had an option to acquire two floors
additionally in the office premises at Perungudi, Chennai. Accordingly,
the company made a deposit of Rs. 5,00,000 (''000) towards the
acquisition of three floors with the land lord. However, due to
financial constraints, the company acquired only the third floor and
surrendered the option to acquire the other two floors along with the
deposit of Rs. 33,333 (''000) which is now reflected as an exceptional
item as the negotiations were concluded during the current financial
year.
2.55 Due to huge losses incurred from the financial year 2012-13
onwards, and continuing defaults /delays by customers in settling their
dues andtheprevailing uncertain economic environment, the company had
very little financial resources available to it to carry on its
operations. Further, the dues from the Company''s customers are not
backed by any tangible security/assets, the Company''s recovery efforts
have to be very measured.,since the delays are attributable to the
liquidity constraints of the customers
The consequent financial crunch faced by the company resulted
inthecompanyhaving overdue amounts payable to creditors and certain
lendersand other business support service providers. The bankers,
agreed to restructure the loansandprovide fresh credit limitsprovided
the company executes a satisfactory documentation as also achieves
certain operating profits / financial ratios. As part of this approach
and due to persistent, cash crunch, the company opted to pool all the
resources of its various wholly owned subsidiaries as the business
segment of all the companies are common and operate in the same field
of providing ''education services'' and are structured as specific
entities for the purpose of serving a specific customer segment in the
same field -- educational services. These common funds were utilized to
tide over temporary liquidity issues and kept the companies and
subsidiaries remain as a going concern.
Debts across the group companies, namely, the Company and its wholly
owned subsidiaries, were adjusted with a view to comply with the
various covenants (including the maintaining of stipulated financial
ratios) set out by the bankers for grant of further infusion of working
capital limits and other loans. so that the company could continue its
future business plans by focusing on key thrust areas. The Company is
in negotiations with the, creditors and Bankers and is working on
various solutions with them to ensure settlement of their dues. The
Company is also taking various steps to reduce costs and improve
efficiencies to make its operations profitable and accordingly the
financial statements have been prepared on the basis that the Company
is a going concern.
It is expected that with the initiation of the above steps the company
will have adequate cash flowstofulfill, in aphased manner, its debt
obligations.
25 In respect of advances given to various parties, Capital work in
progress and Debts due from government agencies and others, in view of
legal advices and other opinion receivedno provision is considered
necessary at this juncture, as the company at present is hopeful of
recovering major portion of outstanding dues.
26. BUSINESS RESTRUCTURING RESERVE
The Hon ''ble High Court of Madras permitted the Company to reduce the
Securities Premium Account to an amount not exceeding Rs. 150 Crores to
be transferred to a separate reserve styled as "Business Restructuring
Reserve"(BRR). The resolution passed by the Share Holders and approved
by the Court permitted the BRR should be utilized for setting off
against diminution in the value of investments, and consequent
impairment of goodwill and accumulated losses, unrealized debtors and
loans and advances etc.,
The Company has given effect to this order of the Hon ''ble High Court
by carving out of the Share Premium Account, a sum of Rs. 150 Crore to
BRR. However, the Company is identifying the exact quantum of amounts
to be set off against BRR, which process is expected to be completed at
the time half yearly limited review results for the Current Financial
Year 2014-15.
27. PREVIOUS YEAR FIGURES
Previous years figures have been regrouped / reclassified wherever
necessary to conform to the current year presentation.
Mar 31, 2013
1 CORPORATE INFORMATION
Everonn Education Limited (the ''Company'') is a pioneer in using
technological breakthroughs to make quality education a reality even in
the most remote parts of the country. Everonn''s passion for enabling
cutting-edge education delivery has seen us grow dramatically in the
past two decades. The company is a public listed company and is listed
on the Bombay Stock Exchange (BSE) and the National Stock Exchange
(NSE)
2.1 DIMUNITION IN VALUE OF INVESTMENT
The company has an investment of Rs. 25,46,600(''000) in its wholly and
partially owned subsidiaries and in others has also extended loans and
advance of Rs. 18,81,871 (''000) to these subsidiaries as on March,
31,2013.Thenetworth of these subsidiaries have declined. These
investments are for long term and strategic nature, and the management
is confident of turning around/recovering the near future. Hence it is
decided not to make any provision for diminution in the value of these
investments.
2.2 OPERATING LEASES
The company has entered into operating lease arrangement for its office
facilities and equipments. These Leases are for a period ranging from 1
to 5 years with an option to the company for renewing at the end of the
initial term. Equipment rental/ Rental for operating leases is added
in Profit and Loss account for the year Rs. 5,97,893(''000) (March 31 2012
Rs. 4,18,705 (''000))
2.3 SEGMENT REPORTING
The Company is engaged in the business of providing education and
training and related sale of equipment''s. There being only one
''business segment'' and ''geographical segment'' the segment information
is not provided
2.4 DUES TO MICRO AND SMALL ENTERPRISES
During the year under review, the company has not identified Micro,
Small and Medium Enterprises, as defined in the Micro, Small and Medium
Enterprises Development Act, 2006, and the resultant interest provision
are not ascertainable
2.5 The company has transactions with "Associated Enterprises" which
are subject to Transfer Pricing regulations in India. The Management of
the Company is of the opinion that such transactions with the associate
enterprise4s are at arms length. Consequently, this will not have nay
impact on the financial statements, particularly on account of tax
expenses and that of provision for taxation.
2.6 BALANCE CONFIRMATION
Confirmations of Balance from Sundry Debtors, Deposit accounts, Loans
and Advances and Sundry Creditors have not been obtained. Accounts of
certain sundry debtors, loans and advances, deposits and creditors are
being reviewed as on a going process. As there is g the inordinate
delay in receipt of confirmations from Government Contracts
adjustments, if any will be made on completion of
review/reconciliation/ identification of doubtful debts/advances.
2.7 IMPAIRMENT OF ASSETS
The company has initiated the process of review of impairment of assets
in the respect of the tangible, intangible and other current assets
their results in such impairment is awaited, The financial implication
if any on the above will be provide appropriately at later stage taking
into account thefuture operational plans and cash flows as prepared by
the management.
2.8 The company has received various demand notices of income tax and
interest thereon in respect of Assessment Years 2007-08 to 2010-11. The
matter pertains to various additions made by the department. The
company has disputed the issue and has filed appeal against the above
demand by the tax authorities including the stay of demand. The
management is of the view that the appropriate adjustments/provisions
will be made on the final outcome of these matters and hence no
provision has been made for the taxes, penalties, and interests for
non/delayed payments of these dues as these amounts are not determined.
2.9 The company has filed a petition with the honorable high court of
Chennai for approval of Business Restructuring Reserve up to Rs. 150
Cores, pursuant to the approval by the shareholders in their
Extraordinary General Meeting dated 29th June 2012.
2.10 PREVIOUS YEAR FIGURES
Previous years figures have been regrouped/re-classified wherever
necessary to conform to the current year presentation.
Mar 31, 2012
1 CORPORATE INFORMATION
Everonn Education Limited (the 'Company') is a pioneer in using
technological breakthroughs to make quality education a reality even in
the most remote parts of the country. Everonn's passion for enabling
cutting-edge education delivery has seen us grow dramatically in the
past two decades. The company is a public listed company and is listed
on the Bombay Stock Exchange (BSE) and the National Stock Exchange
(NSE)
a) Rights, preferences and restrictions attached to shares
Equity Shares: The Company has one class of equity shares having a par
value of Rs.10 per share. Each Share holder is eligible for one vote
per share held.The equity shareholders are eligible to receive in the
remaining assets of the company after distribution of all preferential
amounts, in proportion to their shareholding.
b) 68,54,748, equity shares were issued as bonus shares by
capitalization of securities premium account on 31/05/2006
c) During the year 6,00,000 partly paid share warrants of Rs.430.45/-
an amount equivalent to 25% of the issue price amounting to
Rs.6,45,68,000 were forfeited on 10th February 12 due to non exercise
of option by the warrant holders.
NATURE OF SECURITY
a) Working Capital Loans from State bank of India amounting to
Rs.5,55,785(in '000) (March 31 2011 :Rs.2,11,672(in '000)) are Secured
by Hypothecation of entire current assets, excluding specifically
charged assets, on pari-passu basis. Land & Building admeasuring
approx. 5886 sq.ft at Ooty S.No:1049/3 belonging to Mr.P.Kishore, and
Personal guarantee of Mr.P.Kishore
b) Working Capital Loans from Standard Chartered Bank amountingto
Rs.1,99,575(in '000) (March 31 2011:Rs.1,48,096(in '000)) are Secured
by 1. Paripassu first charge on the entire current assets of the
Company, Present and future 2. Rs.5,000(in '000)/- Cash deposit under
lien.
c) Working Capital Loans from IDBI Bank amounting to Rs.8,536 (in'000)
(March 31 2011:Rs.86,596(in '000))are secured by Paripassu first charge
on the entire current assets of the Company.
d) Working Capital Loans from Axis Bank Limited repayable amounting to
Rs.1,80,672 (in'000) (March 31 2011: Rs.1,40,375 (in '000))are secured
by Paripassu first charge on the entire current assets of the Company
e) Working Capital Loans from Yes Bank Limited repayable amounting to
Rs.79,977 (in'000) (March 31 2011:Rs.Nil)are secured by Paripassu first
charge on the entire current assets of the Company.
f) Working capital loan from ICICI bank Ltd amounting to Rs.6,56,001
(in'000) (March 31 2011; Rs.Nil) are secured by Paripassu first charge
on the entire current assets of the Company.
g) Loan from Related Party is from four wholly owned subsidiaries
carrying an interest rate of 10% and is repayable on demand.
b. Unfunded Leave encashment Rs.3, 781 (000) (March 31 2011: 3,781(000)
Leave encashment has been provided based on management computation and
not on actuarial valuation as provided under Accounting Standard 15
however for the current year the provision for leave encashment has not
been estimated and provided.
EMPLOYEE STOCK OPTION PLAN (ESOP)
During the financial year 2006-07, the Holding Company established
Employee Stock Option Scheme, 2006 under which 2,57,053 equity shares
have been allotted for Rs.10 each at par to Everonn Employee Welfare
Trust, a trust specifically formed for this purpose with an option
vesting period of 8 years. As per the scheme, the Compensation
Committee grants options to the employees deemed eligible for this
purpose. The options are granted at par and the shares granted vest
over a period of 1 to 3 years and can be exercised over a maximum
period of 3 years from the date of vesting.
1.1 CONTINGENT LIABILITIES AND COMMITMENTS
a) Claims against the company not acknowledged as debt
Income Tax Matters 2,13,046 -
Service Tax Matters 9,400 -
Sales Tax matters - 7,400
b) Corporate Guarantee issued on
behalf of Subsidiary Companies 3,67,600 4,16,000
c) Corporate Guarantee issued to
banks for secured loans to third Party 22,74,571 10,11,200
d) LC Issued by Banks 16,87,759 -
e) In respect of items above, future cash outflows in respect of
contingent liabilities is determinable only on receipt of judgments
pending at various forum/ settlement of matter. The management believes
that, based on legal advice or internal assessment, the outcome of
these contingencies will be favorable and the loss is not probable.
Accordingly no provisions have been made for the same.
f) A Civil suit has been filed by The ICFAI Academy for permanent
injunction for creating third party rights, or disposing the assets,
both tangible and intangible, in the plaintiff's campuses and control
offices from the academic year 2011 onwards. The plaintiff has claimed
damages of Rs.5,000('000) along with interest at the rate of 18% p.a.
and the main injunction is still pending in the High court.
g) Estimated amount of contracts remaining to be executed on capital
account and not provided for is Rs.Nil (PY (Rs.Nil))
h) Counter guarantee from third parties have not been taken for the
corporate guarantee given to them.
1.2 DIMUNITION IN VALUE OF INVESTMENT
Few subsidiaries of company have incurred losses and their Networth is
partially eroded. Having regard to the long term association of these
companies and their revival plans, these investments are considered
good and hence no provision is made.
1.3 OPERATING LEASES
The company has entered into operating lease arrangement for its office
facilities and equipments. These Leases are for a period ranging from 1
to 5 years with an option to the company for renewing at the end of the
initial term. Equipment rental/ Rental for operating leases is added in
Profit and Loss account for the year Rs.4,18,705('000) (March 31 2011
Rs.3,51,056/- ('000))
1.4 SEGMENT REPORTING
The Company is engaged in the business of providing education and
training and related sale of equipments. There being only one
'business segment' and 'geographical segment' the segment information
is not provided.
1.5 DUES TO MICRO AND SMALL ENTERPRISES
During the year under review, the company has not identified Micro,
Small and Medium Enterprises, as defined in the Micro, Small and Medium
Enterprises Development Act, 2006, and the resultant interest provision
are not ascertainable.
1.6 BALANCE CONFIRMATION
Confirmations of Balance from Sundry Debtors, Deposit accounts, Loans
and Advances, Certain Creditors have not been obtained. Accounts of
certain sundry debtors, loans and advances, deposits and creditors are
under review and reconciliation. Adjustments, if any will be made on
completion of review/reconciliation/ identification of doubtful
debts/advances.
1.7 IMPAIRMENT OF ASSETS
The Company has initiated the process of review of impairment of assets
in the respect of the tangible, intangible and other current assets
their results in such impairment is awaited, The financial implication
if any on the above will be provide appropriately at later stage.
1.8
The Company has been subjected to survey by Income Tax Department
during the year. The amount of demand from the Income Tax Department
for the preceding years are before appellate authority. Further notices
were issued by the assessing officer for reassessment of earlier years.
The assessment proceedings are in various stages and are yet to be
completed. The company is confident the matter shall be decided later
and financial implications on above cannot be ascertained as on date,
Hence no provision is made for such matters in the books.
1.9
The Company has filed a petition with the honorable high court of
Chennai for approval of business restructuring reserve up to Rs.150
Crores, pursuant to the approval by the shareholders in their
extraordinary general meeting dated 29th June 2012.
1.10 PREVIOUS YEAR FIGURES
The Financial statements for the year ended March, 31 2011 had been
prepared as per the then applicable, Pre-revised Schedule VI to the
companies act 1956.Consequent to the notification of Revised Schedule
VI under the Companies Act 1956, the financial statements for the year
ended 31 March 2012 are prepared as per Revised Schedule VI.
Accordingly, the previous year figures have also been reclassified to
conform to this year's classification. The adoption of Revised Schedule
VI for previous year figures does not impact recognition and
measurement of principles followed for preparation of financial
statements.
Mar 31, 2011
1. Issue of Warrants
During the year, the Company has allotted 6,00,000 convertible equity
warrants on 11th August, 2010 to Promoters/Persons forming Promoter
Group, entitling each holder to obtain allotment of one equity share
against each such warrant at a price of Rs.430.45/-. As per the terms
of issue of equity warrant, an amount equivalent to 25% of the issue
price aggregating to Rs.64,568 ('000) was received and is retained
under share warrants.
As per the terms of issue, the holder of equity warrants will have an
option to apply for and be allotted one equity share of the Company per
equity warrant at any time after the allotment of equity warrant but on
or before the expiry of 18 months from the date of allotment of equity
warrant, in one or more tranches.
2. Preferential Issue of Shares
During the year, the Company has issued 39,11,500 equity shares of
Rs.10/- each at a premium of Rs.510.87/- on preferential basis to M/s.
SKIL Infrastructure Limited on 9th December 2010. Post issue of shares,
M/s. SKIL Infrastructure Limited is categorised as Co- promoter.
3. Contingent liability
Rs. in' 000
Particulars Year Ended Year Ended
31.3.2011 31.3.2010
Bank Guarantee issued by
banks 3,74,849 4,24,966
Corporate Guarantee
issued on behalf of
Subsidiary Companies 4,16,000 Ã
Corporate Guarantee
issued to banks for secured
loans to third party 10,11,200 5,91,200
Bills Discounted à 1,89,896
LC Issued by Banks à 1,72,215
Taxes, Duties and others 7,400 Ã
4. Operating leases
The Company has entered into operating lease arrangement for its Office
facilities and equipments. These leases are for a period
ranging from 1 to 5 years with an option to the Company for renewing at
the end of the initial term. Equipment Rental / Rental for operating
leases is added in Profit and Loss Account for the year Rs.3,51,076/-
(000) (PY Rs.1,91,898/- (000))
The lease agreements for the above non- cancelable leases do not
provide for any escalation and the same has been factored in the future
minimum rentals as disclosed above.
5. Employee Stock Option Scheme (ESOP)
During the financial year 2006-07, the Company has established Employee
Stock Option Scheme, 2006 under which 2,57,053 equity shares have been
allotted for Rs.10/- each at par to Everonn Employee Welfare Trust, a
trust specifically formed for this purpose with an option vesting
period of 8 years. As per the scheme, the Compensation Committee grants
options to the employees deemed eligible for this purpose. The options
are granted at par and the shares granted vest over a period of 1 to 3
years and can be exercised over a maximum period of 8 years from the
date of vesting.
* The money realised by exercise of options by the employees has been
transferred to the Everonn Employees Welfare Trust as shares given to
the employees were transferred from the Trust.
Notes:
1. Represents issue of Convertible equity warrants to
a. Mr. P.Kishore Rs.53,806 (000) (Previous Year Nil)
b. Mrs. Susha John Rs.10,762 (000) (Previous Year Nil)
2. Includes remuneration to
a. Mr. P.Kishore Rs.10,012 (000) (Previous Year Rs.5,959 (000))
b. Mrs. Susha John Rs.7,442 (000) (Previous Year Rs.4,274 (000))
3. Includes investment made in
a. Everonn Infrastructure Limited Rs.15,000 (000) (Previous Year Nil)
b. Toppers Tutorial Private Limited Rs.65,000 (000) (Previous Year
Rs.65,000 (000))
c. Everonn Educational Resources Solutions Limited Rs.Nil (000)
(Previous Year Rs.40,000(000))
d. Everonn Skill Development Limited Rs.30,000 (000) (Previous Year
Rs.30,500 (000)) (During the year 100% shares transferred to M/s.
Edifications India Limited (100% Subsidiary Company of the Company)
e. Everonn Business Education Limited Rs.2,20,000 (000) (Previous Year
Rs.500 (000))
f. Everonn School Limited Rs.60,500 (000) (Previous Year Nil)
g. Everonn Medical Education Limited Rs.500 (000) (Previous Year Nil)
h. Everonn Technical Education India Limited Rs.500 (000) (Previous
Year Nil)
i. Everonn Sport Management Limited Rs.500 (000) (Previous Year Nil)
j. Edifications India Limited Rs.2,10,500 (000) (Previous Year Nil)
k. Everonn Dassani Literate Limited Rs.300 (000) (Previous Year Nil)
l. Everonn Knowledge & Education Corridor Limited Rs.500 (000)
(Previous Year Nil)
6. Acquisitions/Subscriptions
During the year, the Company has subscribed 52,000 equity shares for a
total consideration of Rs.65,000 (000) in its wholly owned subsidiary
in Toppers Tutorial Private Limited.
During the year, the Company has subscribed 15,00,000 equity shares for
a total consideration of Rs.15,000 (000) in its wholly owned subsidiary
in Everonn Infrastructure Limited.
During the year, the Company has subscribed 20,00,000 equity shares for
a total consideration of Rs.30,000 (000) in its wholly owned subsidiary
in Everonn Skill Development Limited.
During the year, the Company has subscribed 22,00,000 equity shares for
a total consideration of Rs.2,20,000 (000) in its wholly owned
subsidiary in Everonn Business Education Limited.
During the year, the Company has subscribed 24,50,000 equity shares for
a total consideration of Rs.60,500 (000) in its wholly owned subsidiary
in Everonn School Limited.
During the year, the Company has subscribed 50,000 equity shares for a
total consideration of Rs.500 (000) in its wholly owned subsidiary in
Everonn Medical Education Limited.
During the year, the Company has subscribed 50,000 equity shares for a
total consideration of Rs.500 (000) in its wholly owned subsidiary in
Everonn Technical Education India Limited.
During the year, the Company has subscribed 50,000 equity shares for a
total consideration of Rs.500 (000) in its wholly owned subsidiary in
Everonn Sport Management Limited.
During the year, the Company has subscribed 60,50,000 equity shares for
a total consideration of Rs.2,10,500 (000) in its wholly owned
subsidiary in Edifications India Limited.
During the year, the Company has subscribed 50,000 equity shares for a
total consideration of Rs.500 (000) in its wholly owned subsidiary in
Everonn Knowledge & Education Corridor Limited.
During the year, the Company has subscribed to 60% stake (30,000 equity
shares) in Everonn Dassani Literate Limited for a total consideration
of Rs.300 (000).
7. Circulation of Confirmation of balances from Debtors and Creditors
have been made during the year but in few cases the same is yet to be
received from customers/ parties.
8. Disclosures under Micro, Small and Medium Enterprises Development
Act, 2006 There are no dues to Micro, Small and Medium Enterprises, as
defined in the Micro, Small and Medium Enterprises Development Act,
2006 which are identified by the Company based on enquiries with the
parties and information available with the Company and are relied upon
by the auditors.
9. The Company is engaged in the business of providing education and
training and related sale of equipments. There being only one Ãbusiness
segmentà and Ãgeographical segmentà the segment information is not
provided.
10. The Company has entered into an agreement for purchase of 130,000
sq.ft. of office space at Plot Nos. 96-99, Perungudi Industrial
Estate, Chennai 600 096 for a consideration of Rs.55.00 Crores payable
after 36 months together with interest @ HDFC base PLR plus additional
3%.
The Company has purchased III floor measuring 43,000 sq.ft. for a
consideration of Rs.1,91,200 (000). The Company has advanced Rs.48,811
(000) against acquisition of balance two floors.
11. During the year, the Company has charged interest on advances given
to subsidiaries at 10% per annum.
12. Secured Loans
i. The Debentures are secured by way of a first pari-passu charge on
certain moveable assets.
ii. Cash Credit facility availed from banks is secured by Hypothecation
of entire current assets, excluding specifically charged assets, on
pari pasu basis with the lending banks, First charge on the company's
entire fixed assets excluding assets specifically charged. The Loan is
also secured by immovable properties of third parties and personal
Property of the Managing Director. The Loan is further secured by the
Personal Guarantee of the Managing Director and Corporate guarantee of
M/s. Tourism Resorts (Private) Limited.
iii. Bank Overdraft is secured against Project Receivables.
iv. Loans against Deposits are secured by related deposits against
which loans are raised.
v. Term Loans from various banks are secured by exclusive first charge
on the equipments and other fixed assets(Including Intangible assets)
created out of the respective loans.Term Loan from state Bank of India
is secured by First charge on the company's entire fixed assets
excluding assets specifically charged and hypothecation of receivable
relating to the projects to be financed and further secured by
immovable properties of third parties and personal Property of the
Managing
Director and also by the Personal Guarantee of the Managing Director
and Corporate guarantee of M/s. Tourism Resorts Private Limited.
The Company has remitted dividend in foreign currencies equal to INR
11,36,570 to one Non- resident shareholder.Dividends remitted to
Non-resident shareholders in INR to their bank accounts maintained in
India are not included in the above table.
13. Previous Years figures have been regrouped to conform to the
classifications for the current year.
Mar 31, 2010
1. Forfeiture of Warrants
During the year ended Mar. 31, 2009, the company had allotted 1062634
convertible equity warrants to Non-Promoters and Promoter/Person from
Promoter group, entitling each holder to obtain allotment of one equity
share against each such warrant at a price of Rs. 720.04. As per the
terms of issue of equity warrants an amount equivalent to 10% of the
issue price aggregating to Rs. 76514 (Ã000) was received and is
retained under share warrants. The holder of the said equity warrants
have had an option to apply for and be allotted one equity share of the
company per equity warrant at the time after the allotment but on or
before the expiry of 18 months from the date of allotment, in one or
more tranches. Further in case the investors do not opt for conversion
of the warrants, the upfront amount so paid stands forfeited by the
Company and all the rights attached to the warrants lapse
automatically.
None of the warrant holders exercised the option to convert any of the
aforesaid warrants till the last date of conversion within 18 months
from their respective entitlements. Accordingly, during the financial
year under review, the Company forfeited the amount of Rs. 76514 (Ã000)
paid on the warrants due to non exercise of the option by the warrant
holders. This amount has been credited to Capital Reserve Account.
2. Contingent liability
Rs. inà 000
Particulars Year Ended Year Ended
31.3.2010 31.3.2009
Bank guarantee issued by
banks 424,966 319,210
LC Issued by Banks 172,215 --
Corporate Guarantee issued 591,200 --
to banks for secured loans
to third party
Bills discounted 189,896 --
3. Operating leases
The Company has entered into operating lease arrangement for its Office
facilities and equipments. These leases are for a period ranging from 1
to 5 years with an option to the company for renewing at the end of the
initial term. Equipment Rental / Rental for operating leases is added
in Profit and Loss Account for the year Rs. 191,898/- (Ã000Ãs ) (PY Rs.
65,272/- (Ã000Ãs ))
4. Employee Stock Option Scheme (ESOP)
During 2006-07, the company established Employee Stock Option Scheme
2006 under which 2,57,053 equity shares have been allotted at Rs,10
each at par to Everonn Employee Welfare Trust, a trust specifically
formed for this purpose with an option vesting period of 8 years. As
per the scheme, the compensation committee grants options to the
employees deemed eligible for this purpose. The options are granted at
par and the shares granted vest over a period of 1 to 3 years and can
be exercised over maximum period of 8 years from the date of vesting
5. Estimated value of contract remaining to be executed on capital
account and not provided for is Rs. Nil (previous year Rs. 140,000
(Ã000).
6. Circulation of Confirmation of balances from Debtors and Creditors
has been made during the year but in few cases the same is yet to be
received from customers / parties
7. Employee Benefits
The disclosures required under Accounting Standard 15 ÃEmployee
Benefitsà notified in the Companies ( Accounting Standards) Rules 2006,
are given below:-
8. Disclosures under Micro Small and Medium Enterprises Development
Act 2006
The dues to Micro, Small and Medium Enterprises, as defined in the
Micro, Small and Medium Enterprises Development Act, 2006, are
identified by the company based on enquiries with the parties and
information available with the company are relied upon by the auditors.
9. The company is engaged in the business of providing education and
training and related sale of equipments. There being only one
Ãbusiness segmentà and Ãgeographical segmentà the segment information
is not provided.
10. The company has entered into an agreement for purchase of 130000
Sqft of office space at 96-99, Industrial Estate, Perungudi,
Chennai-600 096, for a consideration of Rs. 55.00 Cr payable after 36
months together with interest thereon.
The company has so for advanced Rs. 110000 (000) against the above
purchase/acquisition.
The Company has purchased III Floor measuring 43,000 Sqft.,for a
consideration of Rs.191200(Ã000). The Company has advanced
Rs.48811(Ã000) against acquisition of Balance two floors.
11. During the year the company has charged interest on advances given
to subsidiaries in the current year at 10% per annum
12. Secured Loans
i. During the year the company has issued following debentures
200000 14% Secured Non - Convertible Debentures of Rs.100 each Rs.
20000 (000) (PY Nil)
1000000 4% Secured Non - Convertible Debentures of Rs.100 each Rs.
100000 (000) (PY Nil)
218000 6% Secured Non - Convertible Debentures of Rs.100 each Rs. 21800
(000) (PY Nil)
The above debentures are secured by way of a first pari passu charge on
certain movable assets.
ii. Cash Credit facility availed from banks is secured by Hypothecation
of entire current assets, excluding specifically charged assets, on
pari pasu basis with the lending banks, First charge on the companyÃs
entire fixed assets excluding assets specifically charged. The Loan is
also secured by immovable properties of third parties, and personal
Property of the Managing Director. The Loan is further secured by the
Personal Guarantee of the Managing Director and Corporate guarantee of
Tourism Resorts private Limited.
iii. Bank Overdraft is secured against Project Receivables.
iv. Loan against Deposits are secured by related deposits against which
loans are raised.
v. Term Loans from various banks are secured by exclusive first charge
on the equipments and other fixed assets(Including Intangible assets)
created out of the respective loans.Term Loan from state Bank of India
is secured by First charge on the companyÃs entire fixed assets
excluding assets specifically charged and hypothecation of receivable
relating to the projects to be financed and further secured by
immovable properties of third parties, and personal Property of the
Managing Director, and also by the Personal Guarantee of the Managing
Director and Corporate guarantee of Tourism Resorts private Limited.
13. Profit on sale of assets includes (Rs. Nil) (Previous year Rs.3300
(000) being profit on sale of assets on account of sale and lease back
transaction entered by the company during the year.
14. Previous Years figures have been regrouped to conform to the
classifications for the current year.
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