Home  »  Company  »  IL&FS Investment Man  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of IL&FS Investment Managers Ltd.

Mar 31, 2013

1) Deferred Tax :

Deferred Tax provision has been made in accordance with the requirements under the Accounting Standard - 22 “Accounting for Taxes on Income”

i) During the current year ended March 31, 2013 the timing difference has resulted in a net deferred tax asset of Rs. 4,639,000/-

ii) The deferred tax asset recognised in the accounts as of March 31, 2013 are as follows:

2) Leases :

The Company has entered into Operating Lease arrangements towards provision for vehicles and Business Centre arrangement towards use of offce facility. The minimum future payments during non-cancellable periods under the foregoing arrangements in the aggregate for each of the following periods is as follows:

3) Dividend paid in Foreign Currencies to Non resident Shareholders :

No Dividend has been paid in Foreign Currencies to non-resident shareholders in current year and previous year

4) According to the records available with the Company, there were no dues to Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act 2006. Hence disclosures, if any, relating to amounts unpaid as at the period end together with the interest paid / payable as required under the said Act have not been given

5) Segment Reporting :

The Company is in the business of providing asset management and other related service. As such, there are no separate reportable business segment or geographical segment as per Accounting Standard 17 on “Segment Reporting”. It is considered appropriate by the Management to have a single segment i.e. “Asset Management and other related service

6) Figures for previous year have been regrouped and rearranged wherever considered necessary to conform with those of the current year


Mar 31, 2012

A) Proposed Dividend

The Company has proposed dividend for the year ended March 31, 2012, on Equity Shares @ Rs 1.50 per share aggregating to Rs 363,094,333/- inclusive of dividend distribution tax of Rs 50,681,218/-

b) Forfeited shares

During the financial year 1997-98 the Company had forfeited 10,000 equity shares of Rs.2 each on which amount paid up was Rs.20,000/-

(i) The effect of subdivision of each Equity share of Rs.10/- into Equity shares of Rs.2/-each and issue of bonus shares is considered in calculating the number of Options

(ii) The Company calculates the employee compensation cost using the Intrinsic Value of the Options. The Exercise Price of the Options granted is generally based on the Market Price as on the date of the Grant. The Company had issued 1,148,290 Options at an exercise price lower than the market price and accordingly, the Intrinsic Value of those Options was Rs 11,496,590/-, which has been already amortised over the vesting period in previous years

(iii) No Options were granted during the year

(iv) The weighted average market price at the dates of exercise for options during the year was Rs.28.66

b) Particulars relating to Accounting Standard 15 Employee Benefits (Revised) is provided below:

(i) Defined-Contribution Plans

The Company has recognized Rs.9,743,798/- (Previous year - Rs.9,044,138/) as expense in the Statement of Profit and Loss under Company's Contribution to Provident Fund, which is maintained with the office of Regional Provident Fund Commissioner and Rs.12,008,113/- (Previous year Rs.11,179,111/-) as Company's contribution to Superannuation Fund maintained with Life Insurance Corporation of India

Other Details :

The employer's best estimate of the contributions expected to be paid to the plan during the next 12 month Rs.Nil

The estimates of future salary increase considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors. The above information is certified by the actuary and relied upon by the Auditors

b) Unclaimed dividend of Rs.17,163,619/- relates to the period from FY 2004-2005 to FY 2010-2011. During the year an amount of Rs.672,887/- (Previous Year: Rs.517,111/-) has been transferred to the Investor Education and Protection Fund relating to amounts for the year ended March 31, 2004

(i) * Of the above an amount of Rs Nil (Previous year Rs 16,000,000/-) in Fixed Deposits are held with more than 12 months maturity

(ii) Of the above, the balances that meet the definition of Cash and Cash Equivalents as per AS-3 "Cash Flow Statements" are Cash on hand , Cheques on hand , Balances with bank in Current and EEFC accounts amounting to Rs 34,258,759/- (Previous year Rs 50,279,892/-)

1) Contingent Liabilities :

March 31, 2012 March 31, 2011

Particulars Rs. Rs.

Claims not acknowledged as debts:

Income tax demand contested by the Company 14,176,014 12,187,094

Estimated Project development Cost for Urjankur Nidhi Trust - 21,331,380

The Company does not expect any outflow of economic resources in respect of the above and therefore no provision is made in respect thereof

b) Miscellaneous Income includes Rs.5,361,200/- (Previous year Rs. 23,040,870/- ) being the reversal of excess provision for Performance Pay

c) Income from sale of Duty free licenses is based on invoices raised for licenses sold to related party

2) Dividend paid in Foreign Currencies to Nonresident Shareholders :

No Dividend has been paid in Foreign Currencies to non-resident shareholders in current year and previous year

3) According to the records available with the Company, there were no dues to Micro and Small Enterprises under the Micro, Small and Medium Enterprises Development Act 2006. Hence disclosures, if any, relating to amounts unpaid as at the period end together with the interest paid / payable as required under the said Act have not been given

4) Segment Reporting :

The Company is in the business of providing asset management and other related service. As such, there are no separate reportable business segment or geographical segment as per Accounting Standard 17 on 'Segment Reporting". It is considered appropriate by the Management to have a single segment i.e. "Asset Management and other related service.

5) Consequent to the "NOTIFICATION NO. S.O. 447(E), DATED 28-2-2011 [AS AMENDED BY NOTIFICATION NO F.NO 2/6/2008-CL- V, DATED 30-3-2011] the financial statements have been presented in accordance with the Revised Schedule VI. As required under the said notification , the corresponding amounts for the previous year have been reclassified and presented in accordance with the current year presentation


Mar 31, 2011

1) Contingent Liabilities:

a) Claims against the Company not acknowledged as debts: (Amount in Rs.)

Particulars March 31,2011 March 31,2010

The Company has preferred appeals against the income tax demands and 12,187,094 5,138,137 the same are pending with CIT(A) and ITAT (Appeals). The Company is hopeful of succeeding in the appeals.

b) ContingentLiability of Rs.21,331,380/-(previous year NIL) towards estimated project development cost

c) The effect of subdivision of each Equity share of Rs. 10/- into Equity shares of Rs. 21- each and issue of bonus shares is considered in calculating the numberof Options

d) The Company calculates the employee compensation cost using the Intrinsic Value of the Options. The Exercise Price of the Options granted is generally based on the Market Price as on the date of the Grant. The Company had issued 1,148,290 Options at an exercise price lower than the market price and accordingly, the Intrinsic Value of those Options was Rs. 11,496,590/-, which has been already amortised overthe vesting period in previous years

e) No Options were granted during the year and hence calculation of the weighted average Fair Value of Options granted during the year (based on the calculation of external valuers using Black Scholes Model) is not applicable

f) In the event the Company had used the Fair Value of Options for calculating the employee compensation cost, the employee compensation cost of the Options granted would have been Rs. 343,135/- which would have reduced the Profit before Tax of the Company by Rs. 343,135/- and the Basic and Diluted EPS would have reduced to Rs.1.84/- and Rs.1.81 /- respectively

g) The weighte daverage marketprice at the dates of exercise for options during the year was Rs.39.15

h) The range of Exercise Price for Stock Options outstanding as at March 31, 2011 is Rs. 4.80/- to Rs. 19.20/- and the weighted average remaining contractual life is 1.13 years

Method and significant assumptions used to estimate the Fair Value of the Option for the ESOP 2004 and ESOP 2006 schemes:

The Fair Value of Options has been calculated by an independent valuer. The valuation has been done using the Black-Scholes model based on the assumptions, which are as below:

a) Expected Life of Options is the period within which the Options are expected to be exercised. The Options can be exercised immediately on vesting. All the Options vest at the end of one to three years from the date of Grant. The Options can be exercised at any time upto 4 years from the vesting date

b) Considering the above the average life of option period has been assumed as expected life of Options

c) Risk free interest rate has been assumed at 7.5%

d) Share Price is the market price on the National Stock Exchange with reference to the Grant date

e) Volatility is calculated based on period to represent a consistent trend in the price movement after adjusting abnormal events, if any

f) Expected dividend yield has been calculated as follows:

Dividend per share / Market price of the share on the Grant Date

4) Deferred tax provision has been made in accordance with the requirements under the Accounting Standard - 22 "Accounting for Taxes on Income"

a) During the current year ended March 31,2011 the timing difference has resulted in a net deferred tax asset of 13,659,000/-

5) Unclaimed dividend of Rs. 14,477,207/- (Previous Year Rs. 11,047,386/-) relates to the period from the year ended March 31, 2004 to the year ended March 31,2010. During the year an amount of Rs.517,111/-(Previous Year Rs.529,527/-)has been transferred to the Investor Education and Protection Fund relating to amounts forthe yearended March 31,2003

6) Derivative Instruments

7) Segment Reporting

The Company is in the business of providing asset management and other related service. As such, there are no separate reportable business segment or geographical segment as per Accounting Standard 17 on "Segment Reporting" and the Company operates in a single segment i.e. "Asset Management and other related service"

8) Disclosure as required underAccounting Standard -15 on "Employee Benefits" is as under:

a) The Company has recognised Rs. 9,044,138/- (Previous Year- Rs. 8,038,080/-) in the Profit and Loss Account as Companys Contribution to Provident Fund, which is maintained with the office of Regional Provident Fund Commissioner

13) The Company has entered into Operating Lease arrangements towards provision for vehicles and Business Centre arrangement towards use of office facility. The minimum future payments during non-cancellable periods under the foregoing arrangements in the aggregate for each of the following periods is as follows:

(i) Not laterthan one year- Rs. 24,132,204/- ii) Laterthan one year and not laterthan five years - Rs. 27,362,158/- (iii) Laterthan five years-Rs. Nil

During the current year ended March 31, 2011 the lease payments recognised in the Profit and Loss account for the aforesaid arrangement amounts tor 25,194,690/-

15) On the basis of the information available with the Company there are no suppliers registered under the Micro, Small, Medium Enterprises Development Act, 2006. The disclosure under Schedule 8 is done accordingly

16) Figures for the previous year have been regrouped and rearranged wher ever considered necessary to conform with those of the current year


Mar 31, 2010

1) Contingent Liabilities :

Claims against the Company not acknowledged as debts :

Particulars March 31,2010 March 31,2009

Income-tax Demands 5,138,137 35,604,531

The Company has preferred appeals against the income tax demands and the same are pending with ITAT (Appeals)

2) Employee Stock Option Plan

a) The effect of subdivision of each Equity share of Rs 10/- into Equity shares of Rs 21- each and issue of bonus shares is considered in calculating the numberof Options

b) The Company calculates the employee compensation cost using the Intrinsic Value of the Options. The Exercise Price of the Options granted is generally based on the Market Price as on the date of the Grant. The Company had issued 1,148,290 Options at an exercise price lower than the market price and accordingly, the Intrinsic Value of those Options was Rs 11,496,590/-, which has been already amortised over the vesting period in previous years

c) No Options were granted during the year and hence calculation of the weighted average Fair Value of Options granted during the year (based on the calculation of external valuers using Black Scholes Model) is notapplicable

d) In the event the Company had used the Fair Value of Options for calculating the employee compensation cost. the employee compensation cost of the Options granted would have been Rs 2,820,973/- which would have reduced the Profit before Tax of the Company by Rs 2,820,973/- and the Basic and Diluted EPS would have reduced to Rs 1.95/- and Rs 1.92/- respectively

e) The weighted average market price at the dates of exercise for options during the yearwas Rs 41.85

f) The range of Exercise Price for Stock Options outstanding as at March 31, 2010 is Rs 4.80/- to Rs 15.84/- and the weighted average remaining contractual life is 2.08 years

Method and significant assumptions used to estimate the Fair Value of the Option for ESOP 2004 and ESOP2006 :

The Fair Value of Options has been calculated by an independent valuer. The valuation has been done using the Black-Scholes model based on the assumptions, which are as below :

a) Expected Life of Options is the period within which the Options are expected to be exercised. The Options can be exercised immediately on vesting. All the Options vest at the end of one to three years from the date of Grant. The Options can be exercised at any time upto 4 years from the vesting date

b) Considering above the average life of option period has been assumed as expected life of Options

c) Riskfree interest rate has been assumed at 7.5%

d) Share Price is the market price on the National Stock Exchange with reference to the Grant date

e) Volatility is calculated based on period to represent a consistent trend in the price movement after adjusting abnormal events, if any

f) Expected dividend yield has been calculated as follows: Dividend pershare / Market price of the share on the Grant Date

3) Deferred Tax provision has been made in accordance with the requirements under the Accounting Standard - 22 "Accounting for Taxes on Income"

a) During the current year ended March 31, 2010 the timing difference has resulted in a net deferred tax asset of Rs 214,000/-

4) Unclaimed dividend of Rs 11,047,386/- (Previous Year Rs 7,412,578/-) relates to the period from FY 2002-2003 to FY 2008-2009. During the year an amount of Rs 529,527/- (Previous Year Rs 653,128/-) has been transferred to Investor Education and Protection Fund pertaining to FY2001-02

5) Derivative Instruments

a) Transactions with Key Management Personnel togetherwith Relatives of such Personnel

Key Management Personnel :

DrArchana Hingorani CEO & Executive Director Mr Alok Bhargava Executive Director Upto December 31,2008: Mr Shahzaad Dalai Vice Chairman & Managing Director Mrs Nafisa Dalai Spouse of Mr Shahzaad Dalai

6) Segment Reporting

The Company is in the business of providing asset management and other related service. As such, there are no separate reportable business segment or geographical segment as per Accounting Standard 17 on "Segment Reporting". It is considered appropriate by the Management to have a single segment i.e. "Asset Management and otherrelated service"

7) Disclosure as required underAccounting Standard 15 on "Employee Benefits" is as under :

a) The Company has recognised Rs 7,712,398/- (Previous Year Rs 8,793,833/-) in Profit and Loss Account under Companys Contribution to Provident Fund, which is maintained with the office of Regional Provident Fund Commissioner

8) The Company has entered into Operating Lease arrangements towards provision for vehicles and Business Centre arrangement towards use of office facility. The minimum future payments during non-cancellable periods under the foregoing arrangements in the aggregate for each of the following periods is as follows:

(i) Not laterthan one year Rs 28,115,837/-

(ii) Laterthan one yearand not laterthan five years Rs 52,985,939/-

(iii) Laterthan five years Rs Nil

During the current year ended March 31, 2010 the lease payments recognised in the Profit and Loss account for the aforesaid arrangement amounts to Rs 28,292,292/-

9) On the basis of the information available with the Company there are no suppliers registered under the Micro, Small. Medium Enterprises DevelopmentAct, 2006

10) Figures for the previous year have been regrouped and rearranged whereverconsidered necessary

 
Subscribe now to get personal finance updates in your inbox!