Jun 30, 2010
IOL Netcom Limited (formerly known as IOL Broadband Ltd.) was incorporated on 18th February 1985. The Company is licensed to provide Internet Services (ISP) & Internet Protocol Television (IPTV) Services.
1. Contingent Liabilities not provided for:
Guarantees given by the Companys bankers on behalf of the Company amount to Rs.384 Lacs (P.Y. Rs. 384 Lacs)
Claims against the Company not acknowledged as debt are as under:
Name of the Claimant Amount (Rs. in Lacs) Status
M/s Supreme Telecommunications Ltd. 1,634.90 1,634.90 Under Arbitration
M/s B G Broadband Networks India Pvt. Ltd. 2,301.44 2,301.44 Counter claim under arbitration
M/s Dishnet Wireless Ltd. 35.18 35.18 Under Arbitration
Bharti Airtel 56.30 56.30 Under Arbitration
Indus Media Communications Ltd. 2.33 2.33 -
Notice of show cause from Service 454.27 467.88 -
TOTAL 4,484.42 4,498.03
2. The Company has not provided interest of Rs. 138.47 lacs (P.Y. Rs. 31.33 lacs) and Rs. 104 lacs (P.Y. Rs. 102 lacs) on delay in payment of statutory liabilities relating to Tax Deducted at Source and Service Tax respectively till June 2010. In view of the above, the accumulated losses and loss for the year are understated by 138.47 lacs and 31.33 lacs respectively and outstanding liabilities are understated by the same amount.
3. The Company has sent written notices to certain debtors and is in the process of taking legal action against the same. Further, there are some debit and credit balances that are subject to confirmation. However, the management is of the opinion that the realizable value of the above debtors is not less than the value stated in the Balance Sheet and accordingly no provision is considered necessary.
The assessment for A.Y. 2006-07, 2007-08, & 2008-09 have erosion out of section 144 assessment and are contested in appeals before the CIT (Appeals) and the ITAT.
4. The Company has converted 750000 zero coupan unsecured fully convertible debentures of the face value of Rs. 100/- each to 20,38,043 equity shares of Rs. 10/- each @ 36.80, price calculated as per SEBI (ICDR) Regulations, on December 29, 2009 which is compulsory convertible on or after Sept 30, 2009. We have given undertaking to exchange for share holder approval for delay in allotment.
5. The Authorized Capital is Rs. 70, 00, 00,000/- divided into 7, 00,00,000 of shares of Rs. 10 each in period 2008- 09, It was proposed.to increase the Authorized Capital. How ever, the same was shown erroneously in the last Balance Sheet 2008-09.
6. Employee Benefits
- Defined Contribution Plan: Amount recognized as expenses Rs.15.21 Lacs for the year ended 31s1 March, 2009.
- Defined Benefit Plan: During the year the company has not contributed to Defined Benefit Plan.
7. Segment Reporting
During the year the Company has operated in only one business segment and one geographic segment. Henee, in the opinion of the management, segment reporting is not considered as applicable.
8. Related party disclosures as required by AS-18 "Related Party Transactions" are given as below:
Key Managerial Personnel
Mr. Siddhartha Srivastava President
Mr. A. S. Oberoi Whole Time Director
9. In view of current and unabsorbed depreciation and losses, in the opinion of the management, no provision for tax is considered necessary.
10. In the opinion of the management, the realizable value of current assets including sundry debtors, loan and advances is not less than the value at which they are stated in the balance sheet, in the ordinary course of business.
11. The purchase & sale of software & broadcasting rights cannot be expressed in generic unit. Hence, it is not possible to give quantitative details of the same as required under Para 3 of Part II of Schedule VI to the Companies Act, 1956.
12. Micro, Small and Medium Enterprises Development Act, 2006
The management is currently in the process of identifying enterprises which have been provided goods and services to the company which qualify under the definition of medium and small enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006. Accordingly, the disclosure in respect of the amount payable to such Micro, Small, and Medium enterprises as at 31st March 2009 has not been made in the financial statements. However, in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material.
13. Previous years figures have been regrouped and / or rearranged wherever necessary to conform to current years classification.