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Notes to Accounts of Hathway Bhawani Cabletel & Datacom Ltd.

Mar 31, 2015

Company Overview

Hathway Bhawani Cabletel and Datacom Limited (the Company) is a Public Company domiciled in India and incorporated under the provisions of the Companies Act. 1956. The Company is engaged in distribution of television channels through analog and digital cable distribution network and internet services through cable. Its equity shares are listed on Bombay Stock Exchange Limited (BSE) in India.

1.01 In the opinion of the Board, the loans & advances, trade receivables and all other assets have a realizable value in the ordinary course of business not less than the amount at which they are stated in the Balance sheet

1.02 Capital And Other Commitments

Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for aggregate to Rs. Nil (March 31, 2014: Rs. Nil).

The Company in its ordinary course of business has promoted / acquired interest in various entities. Considering the long-term involvement of the Company in these entities and strategic impact it has on the business of the Company, the Company has committed to provide operating and financial support to these entities.

1.03 Contingent Liabilities

(a) Claims against the Company not acknowledged, as debts are Rs. 2,100,000 (March 31, 2014: Rs. 2,100,000).

(b) Outstanding Bank Guarantees Rs. 1,200,000 /- (March 31, 2014: Rs. 1,200,000).

1.04 Employee Benefits

(a) Defined Benefit Plans:

The present value of the defined benefit obligations and the related current service cost were measured using the objected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.

1.05 Segmental Reporting

The Company has only one reportable segment. The Company's operations are based in India.

1.06 Related Party Disclosures

I. Controlled by:

a. Hathway Cable & Datacom Ltd.

II. Under the control of the Company

a. Hathway Bhawani NDS Network Pvt.Ltd.

b. Hathway Bhawani Sai Network Pvt.Ltd. (up to March 31, 2014)

III. Other related parties with whom the Company had transactions.

a. Mr. Samson Jesudas ( Managing Director with effect from June 1, 2014 )

b. Mr. Kuldeep Puri ( Managing Director- up to May 31, 2014)

c. Mr. Kulbhushan Puri as Karta Of M/s Kulbhushan Puri HUF (Relative Of Managing Director - up to May 31, 2014)

1.07 Leases

The Company has leasing arrangements in terms of Accounting Standard 19 on "Leases" as applicable. These leasing arrangements, which are cancelable, range between 11 months to 33 months and are usually renewable by mutual consent on mutually agreeable terms. The amount of such lease rentals debited to the Statement of Profit and Loss for the year is Rs 4,358,340/- (March 31, 2014: Rs 4,117,175/-).

1.08 The enactment of the Companies Act, 2013 requires that the Company should reassess useful life of its fixed assets and provide depreciation based on such re-assessment with effect from April 1, 2014. The Company has decided to provide depreciation on all fixed assets, except Set top boxes on straight line basis (SLM) as against written down value basis (WDV) based on useful life specified in Schedule II to the said Act. There is no change in the method of depreciation for Set top boxes.

(a) This change has resulted in net surplus of Rs. 2,566,759 (March 31, 2014 ; Rs. Nil) and is disclosed under as Exceptional Items. Had the Company continued to use the earlier method of depreciation, the debit to the statement of profit and loss after tax for the current period (year to date) would have been lower by Rs. 447,953 (March 31, 2014 ; Rs. Nil)

(b) Based on transitional provision provided in Note 7(b) of Schedule II to the Act, the charge to retained earnings in respect of assets having no useful life as on the effective date, net of deferred tax is Rs. 17,27,105 (March 31 2014 ; Rs. Nil).

1.09 Supplementary statutory information required to be given pursuant to Clause 32 of the listing agreement -Nil.

1.10 Previous year figures have been rearranged and regrouped wherever necessary.


Mar 31, 2014

1.01 In the opinion of the Board, the loans & advances, trade receivables and all other assets have a realizable value in the ordinary course of business not less than the amount at which they are stated in the Balance sheet

1.02 CAPITALAND OTHER COMMITMENTS

Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for aggregate to Rs. Nil (RY. Nil).

The Company in its ordinary course of business has promoted / acquired interest in various entities. Considering the long-term involvement of the Company in these entities and strategic impact it has on the business of the Company, the Company has committed to provide operating and financial support to these entities.

1.03 CONTINGENT LIABILITIES

(a) Claims against the Company not acknowledged, as debts are Rs.2,100,000/-(Previous Year Rs. 2,100,000/-).

(b) Outstanding Bank Guarantees Rs.1,200,000 /- (Previous Year Rs. 1,200,000/-).

1.04 EMPLOYEE BENEFITS

(a) Defined Benefit Plans:

The present value of the defined benefit obligations and the related current service cost were measured using the objected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.

The following table provides the disclosures in accordance with Revised AS 15.

Reconciliation of opening and closing balance of the present value of the defined benefit obligation and plan assets:

b) Defined Contribution Plans:

"Contribution to provident and other funds" is recognised as an expense in the Statement of Profit and Loss Account.

1.05 SEGMENTAL REPORTING

The Company is a Multi System Operator providing Cable Television Network Services, Internet Sea''ices and allied services which is considered as the only reportable segment. The Company''s operations are based in India.

1.06 RELATED PARTY DISCLOSURES

I. Enterprise where control exists:

a. Hathway Cable & Datacom Ltd.

II. Under the control of the Company

a. Hathway Bhawani NDS Network Pvt.Ltd.

b. Hathway Bhawani Sai Network Pvt.Ltd.

III. Other related parties with whom the Company had transactions.

a) Mr. Kuldeep Puri as Managing Director- Key Management Personnel

1.07 LEASES

The Company has leasing arrangements in terms of Accounting Standard 19 on "Leases" as applicable. These leasing arrangements, which are cancelable, range between 11 months to 33 months and are usually renewable by mutual consent on mutually agreeable terms. The amount of such lease rentals debited to the Statement of Profit and Loss for the year is Rs.4,117,175/- (Previous Year Rs. 4,040,339/-).

1.08 Pursuant to introduction of DAS, in terms of TRAI Regulations the Company is required to inter alia generate subscriber level billing and enter into inter connect agreements with local cable operators with effect from 1st November 2012 However due to market conditions, the Company had still to fully implement the regulations as stipulated by TRAI. Accordingly, Subcription income recognized by the management for the period beginning from 1st November 2012 amounting to Rs. 447.29 Lacs is on their best estimate basis. The management has reviewed the outstanding receivables and are certain that it is stated at realizable amount and no provisions / reversal is required.

1.09 Supplementary statutory information required to be given pursuant to Clause 32 of the listing agreement -Nil.

1.10 Previous year figures have been rearranged and regrouped wherever necessary.


Mar 31, 2013

1.1 In the opinion of the Board, the long term loans & advances, trade receivables and all current assets have a realizable value in the ordinary course of business not less than the amount at which they are stated in the Balance sheet

1.2 The Trade Receivables includes amount due from disconnected / inactive customers and outstanding in excess of one year. The Company is taking adequate steps for recovery of overdue debts and advances and wherever necessary, adequate provisions have been made. In the opinion of the Board, long-term Loans & Advances, Trade Receivables and Current Assets have a realizable value in the ordinary course of business not less than the amount at which they are stated in the Balance Sheet.

1.3 CAPITAL OTHER COMMITMENT

Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for aggregate to Rs.Nil (P.Y. Nil).

The Company in its ordinary course of business has promoted / acquired interest in various entities. Considering the long-term involvement of the Company in these entities and strategic impact it has on the business of the Company, the Company has committed to provide operating and financial support to these entities.

1.4 CONTINGENT LIABILITIES : (a) Claims against the Company not acknowledged, as debts are Rs.2,100,000/-(Previous Year Rs. 2,100,000/-).

(b) Outstanding Bank Guarantees Rs.1,200,000 /- (Previous Year Rs. 1,200,000/-).

4.7 EMPLOYEE BENEFITS

a) Defined Benefit Plans:

The present value of the defined benefit obligations and the related current service cost were measured using the objected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.

The following table provides the disclosures in accordance with Revised AS 15. Reconciliation of opening and closing balance of the present value of the defined benefit obligation and plan assets:

b) Defined Contribution Plans:

"Contribution to provident and other funds" is recognized as an expense in the Statement of Profit and Loss Account.

1.5 SEGMENTAL REPORTING

The Company is a Multi System Operator providing Cable Television Network Services, Internet Services and allied services which is considered as the only reportable segment. The Company''s operations are based in India.

1.6 RELATED PARTY DISCLOSURES

I. Enterprise where control exists:

a. Hathway Cable & Datacom Ltd.

II. Under the control of the Company

a. Hathway Bhawani NDS Network PvtLtd.

b. Hathway Bhawani Sai Network PvtLtd.

III. Other related parties with whom the Company had transactions.

a) Mr. Kuldeep Puri as Managing Director- Key Management Personnel

b) Mr. Kulbhushan Puri as Karta of M/s Kulbhushan Puri HUF

1.7 LEASES

The Company has leasing arrangements in terms of Accounting Standard 19 on "Leases'' as applicable. These leasing arrangements, which are cancelable, range between 11 months to 33 months and are usually renewable by mutual consent on mutually agreeable terms. The amount of such lease rentals debited to the Statement of Profit and Loss for the year is Rs.4,040,339 (Previous Year Rs. 3,676,492/-).

1.8 With effect from November 01, 2012 vide notification no S.0.1408(E) dated June 21, 2012, DAS was introduced in the four metropolitan cities of the country. Under DAS scenario, the Company as well as other Multi System Operators are in the process of finalizing the fresh terms of revenue sharing arrangement with the Local Cable Operators through whom cable television services are rendered to ultimate subscribers. Pending finalization of legally enforceable contracts / arrangements, the Company has estimated activation fees and subscription and has raised invoices. Such estimation is based on ongoing discussions with LCOs, market trend and also considering the collections made till date. Since such estimation are on conservative basis, the management has reasonable certainty of collecting the amount billed to the LCOs. The management has reviewed the status on constant basis and wherever felt necessary, has issued credit notes to reverse the revenue.*

1.9 Supplementary statutory information required to be given pursuant to Clause 32 of the listing agreement -Nil.

1.10 previous year figures have been rearranged and regrouped wherever necessary.


Mar 31, 2012

A) The Company has only one class of shares referred to as equity shares having a face value ofRs.10/-. Each holder of equity shares is entitled to one vote per share and proportionate amount of dividend if declared to the total number of shares. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remainging assets of the company, after distribution of all preferential amounts in proportion to the number of equity shares held by the share holders.

In the absence of virtual certainty of availability of taxable business income in near future against which the deferred tax assets can bo adjusted, the Company has not recognized deferred tax assets on unabsorbed depreciation and business losses.

*As per the information available with the Company, none of the creditors qualify as supplier under The Micro, Small and Medium Enterprises Development Act, 2006 ("the Act") and accordingly no disclosure is made pursuant to section 22 of the Act.

1.1 Additional information as required under para 5 (viii) of part ii of Revised Schedule VI to the Companies Act, 1956 has been given to the extent applicable to the company.

1.2 In the opinion of the Board, the long term loans & advances, trade receivables and all current assets have a realizable value in the ordinary course of business not less than the amount at which they are stated in the Balancesheet

1.3 The Trade Receivables includes amount due from disconnected / inactive customers and outstanding in excess of one year. The Company is taking adequate steps for recovery of overdue debts and advances and wherever necessary, adequate provisions have been made. In the opinion of the Board, long-term Loans & Advances, Trade Receivables and Current Assets have a realizable value in the ordinary course of business not less than the amount at which they are stated in the balance sheet.

1.4 CAPITAL COMMITMENT

Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for aggregate to Rs.Nil (P.Y.Rs.Nil).

The Company in its ordinary course of business has promoted / acquired interest in various entities. Considering the long-term involvement of the Company in these entities and strategic impact it has on the business of the Company, the Company has committed to provide operating and financial support to these entities.

1.5 CONTINGENT LIABILITIES

(a) Claims against the Company not acknowledged, as debts are Rs.2,100,000/-(Previous Year Rs. 2,100,000/-).

(b) Outstanding Bank Guarantees Rs.1,200,000 /- (Previous Year Rs. 1,228,090/-).

1.6 EMPLOYEE BENEFITS

a) Defined Benefit Plans:

The present value of the defined benefit obligations and the related current service cost were measured using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.

The following table provides the disclosures in accordance with Revised AS 15.

b) Defined Contribution Plans:

"Contribution to provident and other funds" is recognised as an expense in note no 3.5 of the Statement of Profit and Loss Account.

1.7 SEGMENTAL REPORTING

The Company is a Multi System Operator providing Cable Television Network Services, Internet Services and allied services which is considered as the only reportable segment. The Company's operations are based in India.

1.8 RELATED PARTY DISCLOSURES

I. Enterprise where control exists:

a. Hathway Cable & Datacom Ltd.

II. Under the control of the Company

a. Hathway Bhawani NDS Network Pvt.Ltd.

b. Hathway Bhawani Sai Network Pvt.Ltd.

III. Other related parties with whom the Company had transactions.

a) Mr. Kuldeep Puri as Managing Director- Key Management Personnel

b) Mr. Kulbhushan Puri as Karta Of M/s Kulbhushan Puri HUF

1.9 LEASES

The Company has leasing arrangements in terms of Accounting Standard 19 on "Leases" as applicable. These leasing arrangements, which are cancelable, range between 11 months to 33 months and are usually renewable by mutual consent on mutually agreeable terms. The amount of such lease rentals debited to the Statement of Profit and Loss for the year is Rs.3,676,492 (Previous Year Rs. 3,303,810).

1.10 INTANGIBLE ASSETS

Based on factors such as past experience, industry trends, value added services and quality of services provided by the Company, trends in other countries, various changes proposed in the regulations governing the industry, future business plans, estimated residual value etc., the Company is of the opinion that the useful life of the Cable Television Franchise acquired by the company will exceed twenty years. Accordingly, the same has been amortised over a period of twenty years from date of acquisition.

1.11 Supplementary statutory information required to be given pursuant to Clause 32 of the listing agreement -Nil.

1.12 Till the year ended March 31, 2011, pre-revised Schedule VI to the Companies Act 1956 was being used for preparation and presentation of financial statements. During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company. Accordingly, the company has reclassified previous year figures to confirm to this year's classification. On adoption of the revised Schedule VI, there has been no significant impact on recognition and measurement principles followed for preparation of financial statements.


Mar 31, 2010

1) Under the Micro, Small and Medium Enterprises Development Act, 2006, certain disclosures are required to be made relating to Micro & Small Enterprises. The Company is in the process of compiling relevant information from its supplier about their coverage under the said Act. Since the relevant information is not readily available, no disclosures have been made in the accounts. However, in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of this Act is not expected to be material.

2) Debtors, Creditors, Loans & advances and deposits are taken as appearing in the books and are subject to confirmation. In the opinion of the management, the Debtors and Loans & advances have a realisable value in the ordinary course of business not less than the amount at which they are stated in the Balance Sheet and wherever necessary, adequate provision have been made.

3) CONTINGENT LIABILITIES

(a) Claims against the Company not acknowledged, as debts are Rs.2,100,000/- (Previous Year Rs. 2,532,647/-).

(b) Outstanding Bank Guarantees Rs. 1,228,090/-(Previous Year Rs. 1,714,090/-).

4) REVISED ACCOUNTING STANDARD 15 a) Defined Benefit Plans:

The present value of the defined benefit obligations and the related current service cost were measured using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.

5) SEGMENTAL REPORTING

The Company is a Multi System Operator providing Cable Television Network Services, Internet Services and allied services which is considered as the only reportable segment. The Companys operations are based in India.

6) LEASES

The Company has leasing arrangements in terms of Accounting Standard -19 on "Leases" as applicable. These leasing arrangements, which are not non-cancelable generally, range between 11 months to 33 months and are usually renewable by mutual consent on mutually agreeable terms. The amount of such lease rentals debited to the Profit & Loss Account for the year is Rs. 3,250,532 (Previous Year Rs. 2,821,379).

7) INTANGIBLE ASSETS

Based on factors such as past experience, industry trends, value added services and quality of services provided by the Company, trends in other countries, various changes proposed in the regulations governing the industry, future business plans, estimated residual value etc., the Company is of the opinion that the useful life of the Cable Television Franchise acquired by the company will exceed twenty years. Accordingly, the same has been amortised over a period of twenty years from date of acquisition.

8) Supplementary statutory information required to be given pursuant to Clause 32 of the listing aqreement.Nil

 
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