Home  »  Company  »  Indsil Hydro Power a  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Indsil Hydro Power and Manganese Ltd.

Mar 31, 2018

1. Company Overview

A. Long term investments as FVTOCI

Under previous GAAF long term investments were measured at cost less diminution in value which is other than temporary. Under Ind AS, these financial assets have been classified as FVTOCI. On the date of transition to Ind AS, these financial assets have been measured at their fair value which is higher than the cost as per previous GAAF, resulting in an increase in carrying amount by Rs. 39,38,343/- as at March 31, 2017 and Rs. 39,10,718/- as at April 01, 2016. The corresponding deferred taxes amounting to Rs.13,02,135/- have also been recognised as at March 31, 2017 and April 01, 2016. These changes do not affect profit before tax or total profit for the year ended March 31, 2017 because the investments have been classified as FVTOCI.

B. Deferred Taxes

Under previous GAAFJ deferred taxes were to be accounted on timing differences arising between the accounting profit and tax profit. However, such method has been replaced with balance sheet approach in Ind AS, wherein deferred taxes are to be accounted for the differences arising between the accounting balance sheet and tax balance sheet. Accordingly, deferred taxes has been accounted for such temporary differences.

C. Other comprehensive income

Under previous GAAP there was no concept of other comprehensive income. Under Ind AS, specified items of income, expense, gains or losses are required to be presented in other comprehensive income.

D. Actuarial gains and losses

Under previous GAAP actuarial gains and loss were recognised in profit or loss. Under Ind AS, the actuarial gains and losses form part of re-measurement of the net defined benefit liability/asset is recognised in other comprehensive income. Consequently, the tax effect of the same has also been recognised in the other comprehensive income under Ind AS instead of profit or loss. The actuarial loss for the year ended March 31, 2017 were Rs.15,27,338/- and the tax effect thereon Rs. 5,04,984/-

i) Terms/rights attached to equity shares:

The company has only one class of issued shares referred to as equity shares having a par value of 10 each. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors, if any, is subject to the approval of shareholders in the Annual General Meeting.

The Company has availed 5 Crores Rupee term loan from Export Import Bank of India repayable in 16 equal quarterly instalments. The Loan is secured by way of pari passu charge on the movable and immovable assets of the Company and second pari passu charge on the entire current assets of the Company.

The Company has availed 11 Crores Rupee term loan from Yes Bank during the year 2017 repayable in 16 equal quarterly instalments. The Loan is secured by way of pari passu charge on entire fixed assets and second pari passu charge on the current assets of the Company.

The Company has availed 10 Crores Rupee term loan from RBL Bank during the year 2017 repayable in 12 equal monthly instalments. The Loan is secured by way of pari passu charge on entire fixed assets and second pari passu charge on the current assets of the Company.

The Company has availed 5 Crores Rupee term loan from Yes Bank during the year 2016 repayable in 16 equal quarterly instalments. The Loan is secured by way of pari passu charge on entire fixed assets and second pari passu charge on the current assets of the Company.

The Company has availed 10 Crores Rupee term loan from ICICI Bank during the year 2015 repayable in 16 equal monthly instalments. The Loan is secured by way of pari passu charge on entire fixed assets and second pari passu charge on the current assets of the Company.

Working capital facilities from State Bank of India (Formerly State Bank of Travancore), IDBI Bank Ltd, RBL Bank, The Federal Bank Ltd Karnataka Bank Ltd, and Yes Bank Ltd have pari passu first charge on the entire current assets of the company and pari passu second charge on entire fixed assets of the Company. Working capital facilities from State Bank of Travancore, RBL Bank and Yes Bank Ltd are further guaranteed by the personal guarantee of Sri Vinod Narsiman, Managing Director to the extent of limit sanctioned.

Working Capital facilities from Banks are repayable on demand and carries interest rates varying from 10% to 12.75% p.a. Packing credit in Foreign Currency is repayable on demand. For buyers credit in foreign currency is repayable on demand.

d) In the past, the Kerala State Electricity Board has raised certain demands on the Company relating to payment of electricity charges and other charges on account of working of the hydro electric power division of the Company. These charges we re more than that warranted for, when specifically considering the working agreement between the Company and KSEB for operation of the hydro electric power plant. These demands remain in dispute and have been challenged by the Company in various forums including the Hon’ble High Court of Kerala. Such matters remain sub - judice and in some cases, where necessary, pending judgement, adequate provisions have been made. The Company is confident of positive redressal by the appropriate forums where no provisions has been made and in cases where the Company has deposited sums/advances, pending judgements, it is expected that those sums would be refunded.

e) During the year the company has received bill from Majan Electricity Distribution Company SAOC (Majan) in respect of distribution charges of INR 30,21,02,346 (RO 1820159) for the year ended 31 December 2017. The company has raised the matter with the Ministry of Finance and Commerce and had meetings with Majan, Sohar Free Zone and Ministry representative during the year for waiver of these charges. Management believes that it has valid grounds for waiver of these distribution charges and accordingly believes these will be waived by the Government of Oman.

2. Pursuant to the Scheme of Amalgamation santioned by the National Company Law Tribunal, Chennai Bench vide order dated 4th May 2018 & 8th May 2018, the company has accounted for the said merger under the ''Pooling of Interest'' method as prescribed in Ind AS - 103 "Accounting for Business Combinations". The previous year do not reflect the figures of the merged entity though the merger is effective from 01st April 2017

3. All figures are in Rupees unless otherwise stated

Amounts have been rounded-off to the nearest Rupee and previous year''s figures regrouped wherever necessary.

4. Operating Lease:

The Company has entered into operating lease, having a lease period ranging from 1 -5 years, with an option to renew the lease The future minimum lease payments are as follows:


Mar 31, 2016

1. Dividends recommended by Board of Directors is provided for in accounting pending Shareholder''s approval.

2. All figures are in Rupees unless otherwise stated

Amounts have been rounded-off to the nearest Rupee and previous year''s figures regrouped wherever necessary.

3. Operating Lease: The Company has entered into operating lease, having a lease period ranging from 1-5 years, with an option to renew the lease

2.46 Interest In Joint Venture

The Company has entered into an agreement by which the Company is a party to a Joint Venture viz. Al - Tamman Indsil Ferro Chrome LLC.

The Company has invested 12,67,834 OMR in the capital of47,62,746 equity shares of 1 OMR each which is equivalent to an ownership interest of26.62%

The following represents the Group''s share of assets and liabilities and income and results of the Joint Venture included in the Balance Sheet and Statement of Profit and Loss.

Note: The audited accounts of Al-Tamman Indsil Ferro Chrome LLC., Joint Venture for the year ended 31st December, 2015 is based on the International Financial Reporting Standards (IFRS).

The relevant details on the Joint Venture Al-Tamman Indsil Ferro Chrome LLC are already furnished in note 2.46 appearing in page No. 82 of this Annual Report.


Jun 30, 2015

1. The Dividends proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

2. All figures are in Rupees unless otherwise stated Amounts have been rounded-off to the nearest Rupee and previous year's figures regrouped wherever necessary.

3. Interest In Joint Venture

The Company has entered into an agreement by which the Company is a party to a Joint Venture viz. Al - Tamman Indsil Ferro Chrome LLC.

The Company has invested 12,67,834 OMR in the capital of 47,62,746 equity shares of 1 OMR each which is equivalent to an ownership interest of 26.62%

The following represents the Group's share of assets and liabilities and Income and results of the Joint Venture included in the Balance Sheet and Statement of Profit and Loss.

Note: The audited accounts of Al-Tamman Indsil Ferro Chrome LLC., Joint Venture for the year ended 31st December, 2014 is based on the International Financial Reporting Standards (IFRS). For the purposes of consolidation with Indsil Hydro Power and Manganese Limited, certain expenses like project salaries/ electricity charges/ rent for the leased land for the factory under construction which have been charged-off in the Statement of Profit & Loss in the JV enterprises have been capitalised as pre-operative expenses (RO 10,10,978) in the consolidated financial statements as per Indian Accounting Standards as the same is specifically attributable to the Ferro Chrome Project.

STATEMENT IN PURSUANCE OF SECTION 129 OF THE COMPANIES ACT, 2013:

Name of the Subsidiary Company : Sree Mahalakshmi Smelters Private Ltd

Financial of the Subsidiary ended on : 31st March, 2015

Holding Company's interest in the subsidiary : 51% (21,88,847 Equity shares of Rs. 10/- each)

Net Aggregate amount of the Profit/(Loss) of the subsidiary and not dealt within the Holding Company's Accounts:

a) for the Current financial year of the subsidiary Company : Rs, (75,07,896/-)

b) for the previous financial year of the subsidiary Company : Rs, (1,89,35,898/-)

Net Aggregate amount of the Profit/(Loss) of the subsidiary dealt within the Holding Company's Accounts:

a) for the Current financial year of the subsidiary Company : Not Applicable

b) for the previous financial year of the subsidiary Company : Not Applicable

1. Name of the Wholly Owned Subsidiary Indsil Hydro Global (FZE)

2. Financial of the Wholly Owned Subsidiary ended on 30th April, 2015

3. Holding Company's interest in the WOS 100% (1,50,000 Equity shares of AED 1/- each)

4. Net Aggregate amount of the Profit/(Loss) of the WOS and not dealt within the Holding Company's Accounts:

a) for the Current financial year of the Wholly Owned Subsidiary Rs, 3,27,98,301/- b) for the previous financial year of the Wholly Owned Subsidiary Rs, 1,01,01,684/- 5. Net Aggregate amount of the Profit/(Loss) of the subsidiary dealt within the Holding Company's Accounts:

a) for the Current financial year of the Wholly Owned Subsidiary - Not Applicable

b) for the previous financial year of the Wholly Owned Subsidiary - Not Applicable

Disclosure of Information relating to Subsidiary Companies as required by the Ministry of Corporate Affairs, Government of India vide General Circular No.2/2011 dated 8th February 2011:


Jun 30, 2014

1.1 CONTINGENT LIABILITIES As at As at 30.04.2012 30.06.2013

a) Claims against the Company not acknowledged as debts - -

b) Contingent liabilities in respect of Bills discounted fully secured by LCC - 89,75,471

c) Letters of Credit issued by Banks on behalf of the Company 7,47,39,060 2,80,24,250

d) Guarantees issued by Banks on behalf of the Company 1,92,00,675 2,13,70,691

e)Corporate guarantee given 33,50,55,838 35,22,21,290

f) In the past, the Kerala State Electricity Board has raised certain demands on the Company relating to payment of electricity charges and other charges on account of working of the hydro electric power division of the Company. These charges were more than that warranted for, when specifically considering the working agreement between the Company and KSEB for operation of the hydro electric power plant. These demands remain in dispute and have been challenged by the Company in various forums including the Hon''ble High Court of Kerala.Such matters remain sub - judice and in some cases, where necessary, pending judgement, adequate provisions have been made. The Company is confident of positive redressal by the appropriate forums where no provisions has been made and in cases where the Company has deposited sums/advances, pending judgements, it is expected that those sums would be refunded.

1.2 RELATED PARTY DISCLOSURES:

a) Subsidiary : Sree Mahalakshmi Smelters Private Limited Indsil Hydro Global (FZE),

b) Associates : Sunmet Holdings India P. Ltd, Indsil Energy and Electrochemicals Ltd.

c) Key Management Personnel : Sri. S.N.Varadarajan Sri.Vinod Narsiman

d) Relatives of Key Management Personnel : Smt. D.Pushpa Varadarajan (W/o Sri S.N. Varadarajan)

e) Joint Venture : Al-Tamman Indsil Ferro Chrome LLC

1.3 Dividends recommended by Board of Directors is provided for in accounding pending Shareholder''s approval.

1.4 All figures are in Rupees unless otherwise stated Amounts have been rounded-off to the nearest Rupee and previous year''s figures regrouped wherever necessary.

1.5 Operating Lease:

The Company has entered into operating lease, having a lease period ranging from 1-5 years, with an option to renew the lease. The future minimum lease payments are as follows

1.6 Interest In Joint Venture

The Company has, during the year, entered into an agreement by which the Company is a party to a Joint Venture viz. Al Tamman Indsil Ferro Chrome LLC.

The Company has invested 12,67,834 OMR in the capital of47,62,746 equity shares of 1 OMR each which is equivalent to an ownership interest of26.62% ( Previous year: OMR 37,500 in the capital of 1,50,000 equity shares of 1 OMR each which is equivalent to an ownership interest of 25%)

The Following represents the Group''s share of assets and liabilities and Income and results of the Joint Venture included in the Balance Sheet and Statement of Profit and Loss.

Note: The audited accounts of Al-Tamman Indsil Ferro Chrome LLC., Joint Venture for the year ended 31st December 2013 is based on the International Financial Reporting Standards (IFRS). For the purposes of consolidation with Indsil Hydro Power and Managanese Limited, certain expenses like project salaries/ electricity charges/ rent for the leased land for the factory under construction which has been charged-off in the Statement of Profit & Loss in the JV enterprises have been capitalised as pre-operative expenses (RO 10,97,183) in the consolidated financial statements as per Indian Accounting Standards as the same is specifically attributable to the Ferro Chrome Project.


Jun 30, 2013

1.1 CONTINGENT LIABILITIES

As at 30.6.2013 As at 30.6.2012 a) Claims against the Company not acknowledged as debts

b) Contingent liabilities in respect of Bills discounted (fully secured by LCs) 89,75,471 2,70,91,558

c) Letters of Credit issued by Banks on behalf of the Company 2,80,24,250 11,28,59,194

d) Guarantees issued by Banks on behalf of the Company 2,13,70,691 2,13,71,840

e) Corporate guarantee given on behalf of subsidiary 9,00,00,000 17,00,00,000

f) In the past, the Kerala State Electricity Board has raised certain demands on the Company relating to payment of electricity charges and other charges on account of working of the hydro electric power division of the Company. These charges were more than that warranted for, when specifically considering the working agreement between the Company and KSEB for operation of the hydro electric power plant. These demands remain in dispute and have been challenged by the Company in various forums including the Hon''ble High Court of Kerala. Such matters remain sub - judice and in some cases, where necessary, pending judgement, adequate provisions have been made. The Company is confident of positive redressal by the appropriate forums where no provisions have been made and in cases where the Company has deposited sums/advances, pending judgements, it is expected that those sums would be refunded.

1.2 Dividends recommended by Board of Directors is provided for in accounding pending Shareholder''s approval.

1.3 All figures are in Rupees unless otherwise stated

Amounts have been rounded-off to the nearest Rupee and previous year''s figures regrouped wherever necessary.

1.4 Interest In Joint Venture

The Company has, during the year, entered into an agreement by which the Company is a party to a Joint Venture viz. Al Tamman Indsil Ferro Chrome LLC.

The Company has invested OMR 37,500 in the capital of 1,50,000 equity shares of OMR 1 each which is equivalent to an ownership interest of 25%

The Following represents the Group''s share of assets and liabilities and Income and results of the Joint Venture included in the Balance Sheet and Statement of Profit and Loss.

Note: The audited accounts of Al-Tamman Indsil Ferro Chrome LLC., Joint Venture for the year ended 31st December 2012 is based on the international Financial Reporting Standards (IFRS). For the purposes of consolidation with Indsil Hydro Power and Managanese Limited, certain expenses like project salaries/rent for the leased land for the factory under construction which has been charged-off in the Statement of Profit & Loss in the JV enterprises have been included as a part of construction work in progress (CWIP - RO.11,964 Previous year - RO. 58,525) in the consolidated financial statements as per Indian Accounting Standards as the same is specifically attributable to the Ferro Chrome Project.


Jun 30, 2011

1. a) The Term Loan (ECB from Standard Chartered Bank) is secured by first pari passu charge on the fixed assets funded out of ECB and second charge on the current assets of the Company.

b) Working capital facilities from Banks are secured by hypothecation of stocks of raw materials, consumables, finished goods, book debts etc., and also by a second charge on the fixed assets of the Company. A portion of these facilities are further guaranteed by the personal guarantee of Sri Vinod Narsiman, Managing Director to the extent of Rs.4,065 lakhs.

2. CONTINGENT LIABILITIES

As at As at 30.6.2011 30.6.2010 (Rs. in Lakhs) (Rs. in Lakhs)

a) Claims against the Company not acknowledged as debts - -

b) Contingent liabilities in respect of Bills discounted 218.63 668.28 (fully secured by LCs)

c) Letters of Credit issued by Banks on behalf of the Company 465.00 449.31

d) Guarantees issued by Banks on behalf of the Company 281.49 152.66

3. The Kerala State Electricity Board (KSEB) has raised certain demands on the Company towards payment of maximum demand charges and certain other charges related to the working of the hydro electric power division of the Company. The Company has disputed these demands on account of the fact that these demands are not in line with the existing agreement between the Company and KSEB for operation of the hydro electric power plant. The Company is confident of getting these demands withdrawn, waived or cancelled at various forums and hence no provision is made for these disputed amounts.

4. The Company has not received information from vendors regarding their status under the "Micro, Small and Medium Enterprises Development Act, 2006". Consequently the amount paid/payable to these parties during the year is Nil. During the year the Company has paid no interest in terms of Section 16 of the said Act.

5. The Extraordinary item represents the loss of investment in Good Earth Indsil Natural Resources Limited amounting to Rs. 22,50,000/-.

6. Deferred tax liability of Rs.14.15 lakhs as on 30.6.2011 is on account of timing difference relating to depreciation.

7. Amounts have been rounded off to the nearest rupee and previous year figures regrouped wherever necessary.


Jun 30, 2010

1. a) The Term Loans from Banks are secured by first equitable mortgage on all Companys immovable properties, both present and future and a second charge by way of hypothecation of all Companys movable properties including book debts and subject to prior charges created or to be created in favour of Companys Bankers on Companys stocks of raw materials, consumables and such other movables for securing Companys working capital requirements. The term loans are further guaranteed by personal guarantees of Sri S.N.Varadarajan, Chairman. Aggregate of such personal guarantees is Rs.2,200 lakhs. A portion of the term loans to the extent of Rs. 1,000 lakhs have also been guaranteed by Sri Vinod Narsiman, Managing Director.

b) Working capital facilities from State Bank of Travancore, The Federal Bank Ltd. IDBI Bank Ltd and Standard Chartered Bank are secured by hypothecation of stocks of raw materials, consumables, book debts etc., and also by a second charge on immovable properties of the Company. A portion of these facilities are further guaranteed by the personal guarantee of Sri Vinod Narsiman, Managing Director to the extent of Rs.4,065 lakhs.

2. CONTINGENT LIABILITIES As at As at 30.6.2010 30.6.2009 (Rs. in Lakhs) (Rs. in Lakhs)

a) Claims against the Company not acknowledged as debts

b) Contingent liabilities in respect of Bills discounted (fully secured by LCs) 443.06 668.28

c) Letters of Credit issued by Banks on behalf of the Company 1,808.45 449.31

d) Guarantees issued by Banks on behalf of the Company 232.03 152.66

3. SEGMENT REPORT

4. RELATED PARTY DISCLOSURES:

a) Associates Sunmet Holdings India P. Ltd, Indsil Energy and Electrochemicals Ltd.

b) Key Management Personnel Sri. S.N.Varadarajan

Sri. Vinod Narsiman

c) Relatives of Key Management Personnel : Smt. D.Pushpa Varadarajan

d) Joint Venture : Al-Tamman Indsil Ferro Chrome LLC

Joint Venture is expected to commence operations during next year. Investment made represents initial capital contribution.

5. REMUNERATION TO STATUTORY AUDITORS (excluding service tax):

6. COMPUTATION OF COMMISSION PAYABLE TO CHAIRMAN, MANAGING DIRECTOR AND NON-EXECUTIVE DIRECTORS :

7. a) During the financial year 2008-09, the Company has granted 64,500 options under the Indsil Employees Stock Options Scheme 2008 (ESOS) to the eligible employees of the Company as approved by the Compensation Committee of the Board and the Board of Directors pursuant to the said Scheme. Accordingly, the Company has allotted 64,500 shares to the Indsil ESOS Trust during the current year. As per the scheme, the vesting being graded vesting 25% of the total Options were exercised by the eligible employees resulting in transfer of 16,125 shares from the Trust out of the 64,500 shares allotted. The remaining 75% of the options are still to be exercised till January 2012 and appropriate number of shares would be transferred to the eligible employees based on their exercising their options through the vesting period.

b) During the year yet another 18,500 options were granted to another batch of eligible employees under the Scheme. Such options have a graded vesting as perthe Scheme. The vesting period has not yet been completed.

8. The Kerala State Electricity Board (KSEB) has raised certain demands on the company towards payment of maximum demand charges and certain other charges related to the working of the hydro electric power division of the company. The company has disputed these demands on account of the fact that these demands are not in line with the existing agreement between the company and KSEB for operation of the hydro electric power plant. The company is confident of getting these demands withdrawn, waived or cancelled at various forums and hence no provision is made for these disputed amounts.

9. The Company has not received information from vendors regarding their status under the "Micro, Small and Medium Enterprises Development Act, 2006". Consequently the amount paid/payable to these parties during the year is nil. During the year the Company has paid no interest in terms of Section 16 of the said Act.

10. Deferred tax liability of Rs.2.30 lakhs as on 30.6.2010 is on account of timing difference relating to depreciation.

11. Amounts have been rounded off to the nearest rupee and previous year figures regrouped wherever necessary.

Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X