Mar 31, 2016
1. Net Loss on account of foreign exchange fluctuation Rs. 71.78 lakhs (Previous Year Net Gain Rs. 38.03 lakhs) has been accounted for in the Statement of Profit & Loss.
2. Based on information / documents available with the Company, Sundry Creditors include -
3. The Company is engaged in manufacturing of engineering goods only and therefore, there is only one reportable segment in accordance with Accounting Standard (AS 17).
4. Net Deferred Tax Asset / Liability of Rs. (224.78) lakhs has been recognized for the year to the statement of Profit and Loss on account of Employees benefits and Depreciation.
5. (a) Operating Lease Obligations :
Where the Company is a Lessee :
The Company has taken various commercial premises under operating lease or leave and license agreements. Lease Payments are recognized in the Profit & Loss Account.
6. (a) The accounts of Trade Receivables, Trade Payables and Advances are subject to reconciliation/confirmation. The Management does not expect any material difference affecting the financial statements on reconciliation.
7. In the opinion of the Company, Current Assets and Non-Current Assets, Loans and Advances have values on realization in the ordinary course of business at least equal to the amount at which they are stated.
8. There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at 31st March, 2016, except Dividend amounting to Rs. 2.00 lakhs, which is sub judice.
9. As per CDR Guidelines, Promoters have brought necessary contribution amounting to Rs. 1980 lakhs by way of Share Application Money which will be converted into Share Capital subject to approval of appropriate authorities.
10. The infrastructure industry, particularly in water and power segments, has not recovered as expected, resulting in delay in completion of projects and the recovery of dues. The company has assessed and provided for doubtful debts and advances amounting to Rs. 386.44 lakhs. The Company is optimistic of improvement in these industry sectors which will help in speedy execution of projects and resultant collection of its dues.
As on 31st March, 2016, the overdue amount on account of interest on various Term Loans, Working Capital Demand Loans, Letters of Credit and Installment of Term Loan was Rs. 12,379.19 lakhs.
11. In view of erosion of the Net Worth of the Company as at 31.03.2014, the Company filed a reference application u/s 15 (1) of Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) with Hon. Board for Industrial and Financial Reconstruction (BIFR) for determination of measures which may be adopted with respect to the Company. The said reference was registered as Case No. 62/2014.
The Hon. BIFR, in the hearing held on 05.10.2015, declared the Company a Sick Industrial Company in terms of Section 3(1)(o) of the Sick Industrial Companies (Special Provisions) Act, 1985 and appointed the lead bank, Central Bank of India as Operating Agency (OA) under section 17(3) of the Act to examine the viability of the Company and for formulating a Draft Rehabilitation Scheme (DRS) for revival of the Company with a Cut Off Date of 31.03.2016.
As per the directions of the Hon. BIFR, the Company has submitted the DRS to the OA, other consortium member banks/lenders and Hon. BIFR. Companyâs Techno Economic Viability Study (TEV) has also been carried out by a leading agency and a positive TEV has been submitted to the banks. The DRS is presently under consideration of the banks.
As the DRS is still to be approved by the lenders and Hon. BIFR, no effect of the restructuring proposal is considered in the books of account.
12. The Company is very positive about its viability, in lines with the DRS proposal and TEV submitted to the lenders. The Company is optimistic about its future and in view of the Companyâs ability to continue to execute its orders, despite adversities, it expects that Companyâs financials will show a marked improvement once the DRS proposal is accepted and implemented by the lenders and the Hon. BIFR. In view thereof, the Financial Statements have been prepared by the Management on a âGoing Concernâ basis. No adjustment is considered necessary to the recorded assets, recorded liabilities, contingent liabilities and other commitments for the reasons and perception of the Management.
13. The efforts of the Board of Directors to realize business value from DRS achieved progress with a formal submission of scheme in February 2016. Pending its final approval by the lenders and the Hon. BIFR, the Board of Directors believes, the DRS when implemented will alleviate the current resource crunch and help the Company to achieve robust financial health.
The Board of Directors is of the view that a deferred tax asset of Rs. 6390 lakhs would be available to the company for adjustment against future tax liability as may accrue and would be applicable to the Company. This has been envisaged in the said DRS proposal. Such a deferred tax asset does not consider tax demand of Rs. 3026 lakhs arising out of disallowances made in the assessment order recently received for Assessment Year 2013-14. The Board of Directors is of the view that such a tax demand is reversible during ongoing appeal proceedings, as per merits of the same, as advised to the company. However, as a prudent accounting policy, the said Deferred Tax Asset of Rs. 6390 lakhs has not been recognized in the books of account.
14. The figures of previous year are regrouped / rearranged wherever necessary.
Mar 31, 2015
1 The Company is engaged in manufacturing of engineering goods only
and, therefore, there is only one reportable segment in accordance with
Accounting Standard (AS 17).
2 As required by Accounting Standards - 18 "Related Parties
Disclosures" issued by the Institute of Chartered Accountants of India
are as follows:
List of Related Parties with whom transactions have taken place during
the year
(a) Subsidiary Companies : -
(b) Associate Companies : JSL Industries Ltd.
: Insutech Industries Ltd.
: Navrachana Educational Resources Ltd.
(c) Joint Venture : Jyoti Sohar Switchgear L.L.C.,Oman
(d) Key Management Personnel :
Chairman & Managing Director - Mr. Rahul Nanubhai Amin Non-Executive
Director - Mrs. Tejal Rahul Amin*
3 (a) The accounts of Trade Receivables, Trade Payables and Advances
are subject to reconciliation/confirmation. The Management does not
expect any material difference affecting the financial statements on
reconciliation.
(b) In the opinion of the Company, Current Assets and Non-Current
Assets, Loans and Advances have values on realization in the ordinary
course of business at least equal to the amount at which they are
stated.
4 There are no amounts due and outstanding to be credited to
Investor Education & Protection Fund as at 31st March, 2015, except
Dividend amounting to Rs, 2.00 lakhs, which is subjudice.
5 During the last Financial Year, the Banks have implemented CDR
Package involving Restructuring of their Loans, reduction in Interest
Cost, making available need based Working Capital Facilities and Term
Loans to support the Company's operations. The Management continues to
strive for reduction in operating and administrative costs, making
intensive drive for collection of receivables, improving order inflows
with higher margins and better cash flows, etc. to improve the
Company's operations and future cash flows to revive the Company.
6 As per CDR Guidelines, Promoters have brought necessary
contribution amounting to Rs, 1980.00 lakhs by way of Share Application
Money which is under the process of conversion into Share Capital
subject to approval of Shareholders and appropriate authorities.
7 As on 31st March, 2015 the accumulated losses of the Company are
Rs, 25353.04 lakhs, which exceeded its net worth. Accordingly during
the year, the Company was registered with the Board for Industrial and
Financial Reconstruction (BIFR) under Section 15(1) of the Sick
Industrial Companies (Special Provisions)Act, 1985 (SICA), for
determination of measures for its rehabilitation. The Company has
already initiated the process of declaring itself as a Sick Company.
Despite the continued losses, total erosion of the Net Worth and
Liquidity constraint, the Management believes that considering the
change in overall industrial outlook, current performance and trends of
the Company swell as efforts put in for cost reduction and collection
from receivables and measures initiated by the Company for
rehabilitation through BIFR, the Management is
optimistic of the future and therefore, the Financial Statements have
been prepared by the Management on a 'Going Concern' basis. No
adjustment is considered necessary to the recorded assets, recorded
liabilities, contingent liabilities and other commitments for the
reasons and perception of the Management.
8 On account of slowdown in the economy and various projects in
power and water segments being put on hold, the execution and resultant
realization of receivables in many projects have been delayed. The
Company has, therefore, provided for bad and doubtful trade receivables
and other advances to the extent of Rs, 1559.17 lakhs as per current
assessment. The Management is very hope full of recovery of balance
amounts in view of expected improvement in the business environment and
further improvement in pace of execution of various projects as well as
finalization of new orders.
9 The Company enters into Forward Exchange Contracts, being
derivative instruments, which are not intended for trading or
speculative purpose, but for hedging purposes, to establish the amount
of reporting currency required or available at the date of settlement
of certain payables and receivables. There is no outstanding position
and exposure as on 31st March, 2015.
As on 31st March, 2015, the overdue amount on account of interest on
various Term Loans, Working Capital Demand Loans, Letters of Credit and
Installment of Funded Interest Term Loan was Rs, 1853.48 lakhs (since
paid Rs, 1282.46 lakhs).
10 Pursuant to the enactment of the Companies Act, 2013, the Company
has applied the estimated useful lives as specified in Schedule II.
Accordingly, the carrying amount of the assets is depreciated over the
revised remaining useful life of the assets. In case of assets where
the useful life has already expired as at 1st April, 2014, the
difference between the carrying amount and the residual value,
amounting toRs, 103.09 lakhs (net of deferred tax), has-been adjusted
in the opening balance of the Profit and Loss Account.
11 In the Annual General Meeting held on 22nd September, 2014, the
Audited Financial Statements for the year ended on 31st March, 2014,
have not been adopted by the Shareholders as votes cast against were
more than votes cast in favor of the resolution and the Annual General
Meeting was adjourned sine die for adoption of Audited Financial
Statements in compliance with Section 137 of the Companies Act, 2013.
However, the Company has prepared Audited Financial Statements, on the
basis of the audited closing balance of the previous year as the
opening balance for the current financial year 2014-15.
12 In the Annual General Meeting held on 22nd September, 2014, the
ordinary resolution for re-appointment of Auditors of the Company for
the Financial Year ending 31st March, 2015 to 31st March, 2017, was not
passed as votes cast against were more than votes cast in favors of the
resolution.
However, based on the legal opinion obtained by the Company from the
prominent practicing company secretaries, the present statutory
auditors continue to be the auditors of the Company, as per the
provisions of Section 139(10) of the Companies Act, 2013.
13 The Board of Directors of the Company have taken up for
consideration availing of a financial package for rehabilitation. Such
a package, it is believed, will alleviate the current resource crunch
and help the Company to achieve robust financial health. In view of
this, the Company is of the view that aggregate carried forward and
current year financial losses and depreciation would enable availing of
tax permissible set off. Based on this understanding, the Board of
Directors is of the view that a deferred tax asset of Rs, 4789 lakhs is
available to the Company. The Board of Directors believes the Company
has intrinsic strengths to make use of such an asset against the
profits that would be generated out of business operations. As a
prudent accounting policy, the said Deferred Tax Asset of Rs, 4789
lakhs has not been recognized in the books of account.
14 The figures of previous year are regrouped / rearranged wherever
necessary. as my/our proxy to attend and vote (on a poll) for me/us
and on my/our behalf at the Seventy First Annual General Meeting of the
company, to be held on the 10th day of December, 2015 at 9.00 a.m. at
Registered Office of the Company situated at NanubhaiAmin Marg,
Industrial Area, P.O. Chemical Industries, Vadodara  390 003 and at
any adjournment thereof in respect of such resolutions as are indicated
below :
Resolution No.:
1 Adoption of Financial Statements - To receive, consider and adopt the
Financial Statements of the Company for the financial year ended on
31st March, 2015, including the audited Balance Sheet as at 31st March,
2015, the Statement of Profitand Loss for the year ended on that date
and the reports of the Board of Directors and Auditors thereon.
2 Re-appointment of Shri U. V. Desai (DIN: 00236530), who retires by
rotation and being eligible, offers himself for re-appointment.
3 Appointment of Statutory Auditors - To appoint Statutory Auditors of
the Company to hold office fromthe conclusion of this Annual General
Meeting until the conclusion of the second consecutive Annual General
Meeting and to fix their remuneration.
4 Appointment of Shri Tushar Dayal (DIN: 01055037) as an Independent
Director.
5 Appointment of Shri V.K. Gulati (DIN: 02127750) as an Independent
Director.
6 Appointment of Shri Shrikar Bhattbhatt (DIN: 00144208) as an
Independent Director.
7 Appointment of Dr. Rajesh Khajuria (DIN: 06980213) as an Independent
Director.
8 Appointment of Shri Marut Patel (DIN: 06980022) as Director.
9 Appointment of Smt. Tejal Amin (DIN: 00169860) as Director.
10 Approval of Remuneration of Cost Auditors of the Company.
11 Special Resolution under Section 180 (1) (a) of the Companies Act,
2013 for Creation of mortgage / charge for Borrowings / Financial
Assistance availed.
12 Special Resolution for adoption of newest of Articles of Association
of the Company as per the Companies Act, 2013.
Mar 31, 2014
The Company has only one class of equity shares having a par value of Rs.
10 per share. Each holder of equity shares is entitled to one vote per
share. In the event of liquidation of the company, the holders of
equity shares will be entitled to receive remaining assets of the
company, after distribution / repayment of all creditors. The
distribution will be in proportion to the number of equity shares held
by the shareholders.
2013-14 2012-13
(Rs. lakhs) (Rs. lakhs)
2. Estimated value of Capital
contracts yet to be executed
and not provided 770.89 929.99
3. Contingent liability to the
extent not provided for :
- Bills/Cheques discounted with
scheduled banks 763.80 4393.45
- Income Tax 50.61 111.11
- Service Tax / Excise Duty 15.94 15.56
- Compensation payable on
bank sacrifice under 451.20 -
CDR Scheme
- Claims against the Company/
disputed liabilities not 209.75 -
acknowledged as debts
4. An amount of Rs. 3.31 lakhs representing difference between
Depreciation on Revalued Assets and on original cost of assets is
transferred from Revaluation Reserve to Statement of Profit and Loss.
5. Net Loss on account of foreign exchange fluctuation Rs. 227.46 lakhs
(Previous Year Rs. 63.59 lakhs) has been accounted for in the Statement
of Profit & Loss.
As per requirement of Section 22 of Micro, Small & Medium Enterprises
Development Act, 2006 following information is disclosed to the extent
identifiable:-
6. Disclosures for defined benefit plans based on actuarial reports as
on 31st March, 2014
7. The Company is engaged in manufacturing of engineering goods only
and, therefore, there is only one reportable segment in accordance with
Accounting Standard (AS 17).
8. As required by Accounting Standard AS - 18 "Related Parties
Disclosures" issued by the Institute of Chartered Accountants of India
are as follows:
List of Related Parties with whom transactions have taken place during
the year
(a) Subsidiary Companies : Â
(b) Associate Companies : JSL Industries Ltd.
: Insutech Industries Ltd.
: Navrachana Educational Resources Ltd.
(c) Joint Venture : Jyoti Sohar Switchgear L.L.C.,Oman
(d) Key Management Personnel :
Chairman & Managing Director - Mr. Rahul Nanubhai Amin Wholetime
Director - Ms. Shubhalakshmi Rahul Amin*
Non-Executive Director - Mrs. Tejal Rahul Amin
9. Net Deferred Tax Asset / Liability of Rs. 354.97 lakhs for the year
on account of Employees benefits and Depreciation has been recognized
to the Statement of Profit & Loss.
10. (a) Finance Lease Obligations :
The Company has acquired certain hardware, software etc under finance
lease. Minimum lease payments outstanding as on 31st March 2014 in
respect of these assets are as follows:
(b) Operating Lease Obligations :
(i) Where the Company is a Lessee :
The Company has taken various commercial premises under operating lease
or leave and license agreements. Lease Payments are recognised in the
Profit & Loss Account.
Rs. In lakhs Payable not later than one year 19.99
11. (a) The accounts of Trade Receivables, Trade Payables and Advances
are subject to reconciliation/confirmation. The Management does not
expect any material difference affecting the financial statements on
reconciliation.
(b) In the opinion of the Board, Current Assets, Loans and Advances
have values on realization in the ordinary course of business at least
equal to the amount at which they are stated.
12. There are no amounts due and outstanding to be credited to
Investor Education & Protection Fund as at 31st March, 2014.
13. During the year ended 31.03.2014, the Banks have implemented CDR
Package involving Restructuring of their Loans, reduction in Interest
Cost, making available need based Working Capital Facilities and Term
Loans to support the Company''s operations. The Management has already
taken various actions, as mentioned hereunder, for reduction in
operating costs, making intensive drive for collection of receivables,
improving order inflows with higher margins and better cash flows, etc.
to improve the Company''s operations and future cash flows to revive the
Company and to meet these obligations:- A. The employees'' cost has
been reduced substantially by rationalizing of manpower and by taking
other measures.
B. The other overheads such as travelling, publicity, stationery,
postage, etc have also been reduced by exercising tight control.
C. The Company has also geared up collection drive by continuous
monitoring which has resulted in receiving from old outstandings large
amounts from various customers including more than Rs. 25 crores from a
single party from Karnataka State, which was stuck up for last about 15
months. The exercise is continued to get better collections which would
provide further liquidity to meet the operational requirements of the
Company. This will result in reduction in finance costs in the current
year.
D. All capital expenditure has been postponed barring absolutely
necessary operational requirements.
E. Efforts are on for reducing the material costs in every possible
manner. For major projects, materials are planned on the concept of
As-Late-As-Possible to avoid unnecessary blocking of funds in the
materials.
14. As per CDR Guidelines, Promoters have brought necessary
contribution amounting to Rs. 1980 lakhs by way of Share Application
Money which is under the process of conversion into Share Capital
subject to Shareholders'' approval.
15. As on March 31, 2014 the accumulated losses of the Company are Rs.
13,895.51 lakhs, which exceeded its net worth. Accordingly the Company,
in compliance with the provisions of section 15(1) of Sick Industrial
Companies (Special Provision) Act, 1985 will make a reference to Board
of Industrial and Financial Reconstruction (BIFR) in due course. The
Company''s operations were adversely affected during the year due to
slow down in the Economy, adverse Govt. policies and higher Raw
Material Cost. Further, considering the change in scenario, recent
performance and trends of the Company as well as overall industry
outlook, the Management believes that losses incurred in the past would
reasonably be made good, in due course. The financial statements, as
such have been prepared on a going concern basis on the strength of
Management''s plan of revival including reorganization of business.
16. On account of slowdown in the economy and various projects in
power and water segments being put on hold, the execution and resultant
realization of receivables in many projects have been delayed. The
Company has, therefore, provided for bad and doubtful trade receivables
and other advances to the extent of Rs. 2338.44 lakhs as per current
assessment. The Management is very hopeful of recovery of balance
amounts in view of expected improvement in the business environment and
further improvement in pace of execution of various projects as well as
finalization of new orders.
17. The Company enters into Forward Exchange Contracts, being
derivative instruments, which are not intended for trading or
speculative purpose, but for hedging purposes, to establish the amount
of reporting currency required or available at the date of settlement
of certain payables and receivables.
The outstanding position and exposure as on 31st March, 2014 is Rs. NIL.
18. The figures of previous year are regrouped / rearranged wherever
necessary.
Mar 31, 2013
1. Contingent liability to the extent not provided for :
- Bills/Cheques discounted with scheduled banks 4393.45 1802.04
- Income Tax 111.11 141.68
- Service Tax 15.56 14.70
2. An amount of Rs. 8.38 lakhs representing difference between
Depreciation on Revalued Assets and on original cost of assets is
transferred from Revaluation Reserve to Statement of Profit and Loss.
3. Net Loss on account of foreign exchange fluctuation Rs. 63.59 lakhs
(Previous Year Net Loss Rs. 64.45 lakhs) has been accounted for in the
Profit & Loss Account.
4. Based on information / documents available with the Company, Sundry
Creditors include :
5. The Company is engaged in manufacturing of engineering goods only
and, therefore, there is only one reportable segment in accordance with
Accounting Standard (AS - 17).
6. As required by Accounting Standard AS - 18 "Related Parties
Disclosures" issued by the Institute of Chartered Accountants of India
are as follows:
List of Related Parties with whom transactions have taken place during
the year
(a) Subsidiaries Company : Â
(b) Associate Companies : JSL Industries Ltd.
: Insutech Industries Ltd
(c) Joint Venture : Jyoti Sohar Switchgear L.L.C.
(d) Key Management Personnel :
Chairman & Managing Director - Mr. Rahul Nanubhai Amin Wholetime
Director - Ms. Shubhalakshmi Rahul Amin
Non-Executive Director - Mrs. Tejal Rahul Amin
7. (a) The accounts of Trade Receivables, Trade Payables and Advances
are subject to reconciliation. The management does not expect any
material difference affecting the financial statements on
reconciliation.
(b) In the opinion of the Board, Current Assets, Loans and Advances
have values on realization in the ordinary course of business at least
equal to the amount at which they are stated.
8. There are no amounts due and outstanding to be credited to
Investor Education & Protection Fund as at 31st March, 2013.
9. During the year ended 31.03.2013, the Company has incurred Cash
loss of Rs. 2766.41 lakhs. Secondly, there were liabilities to banks for
Buyer''s Credit aggregating to Rs. 3703.37 lakhs, which remained unpaid on
31.03.2013, out of which the Company has already paid Rs. 277.43 lakhs.
The Management has already taken various actions for operating cost
reduction, improving order inflow, making intensive drive for
collection of receivables, etc. to improve the Company''s future cash
flow to meet these obligations. It has also proposed to the banks to
restructure loan repayments and to provide other supportive measures,
preferably under Corporate Debt Restructuring (CDR) mechanism so that
the Company can have further flexibility to manage its future cash flow
in much better manner.
Accordingly, these financial statements have been prepared on a Going
Concern basis and no adjustments are considered necessary.
10. The Company enters into Forward Exchange Contracts, being
derivative instruments, which are not intended for trading or
speculative purpose, but for hedging purposes, to establish the amount
of reporting currency required or available at the date of settlement
of certain payables and receivables.
The outstanding position and exposure as on 31st March, 2013 is NIL.
11. The figures of previous year are regrouped / rearranged wherever
necessary.
Mar 31, 2012
Note :
The above includes:
1) 6,25,000 Shares alloted as fully paid-up Bonus shares by
Capitalisation of General Reserve (1,25,000 Bonus shares were issued in
1969 and 5,00,000 issued in 1976-77)
The Company has only one class of equity shares having a par value of Rs.
10 per share. Each holder of equity shares is entitled to one vote per
share. In the event of liquidation of the company, the holders of
equity shares will be entitled to receive remaining assets of the
company, after distribution / repayment of all creditors. The
distribution will be in proportion to the number of equity shares held
by the shareholders. The company declares dividends in Indian rupees.
The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting. For
the year ended on 31st March 2012, an amount of Rs. 1 of dividend per
equity share was proposed for the equity shareholders (P.Y. Rs. 1.20 per
equity share)
Notes :-
1) a) The term loans and cash credit facilities carry interest @ 13% to
14.25% p.a.
b) The term loans, cash credit facilities, interest accrued and due
thereon and non-fund based facilities are secured by a first charge
created in favors of consortium banks, on the stocks of raw
materials, semi finished and finished goods, consumable stores and
spares, bills receivables and book debts, furniture, fixtures, office
equipments and all other movable and immovable properties, (except
those created in favour of Technology Development Board), both present
and future, of the company situated at Kasba, Dist. Vadodara, Gorwa,
Dist. Vadodara, Mogar, Dist. Anand and Moje Sama in registration
District and Sub-District of Vadodara, all in the State of Gujarat.
2) The term loan from Technology Development Board carries interest @
5% and is secured by first charge on the assets created for Wind
Turbine Project both, present and future.
3) Further, these facilities are also secured by the personal guarantee
of Promoter Directors.
4) Please refer note 17(18) for repayment schedule.
Notes:
1) Vehicles include gross value of Rs. 270.94 lakhs and Plant & Machinery
includes gross value of Rs. 741.80 lakhs purchased under hire purchase
arrangements & lease finance.
2) See Note No. 17(C) (vi) for impairment of Rs. 9.81 lakhs (Previous
Year Rs. 6.80 lakhs)
3. An amount of Rs. 8,38,462 representing difference between
Depreciation on Revalued Assets and on original cost of assets is
transferred from Revaluation Reserve to Statement of Profit and Loss.
4. Net Loss on account of foreign exchange fluctuation Rs. 64.45 lakhs
(Previous Year Net Gain Rs. 10.39 lakhs) has been accounted for in the
Profit & Loss Account.
5. Based on information / documents available with the Company, Sundry
Creditors include :
As per requirement of Section 22 of Micro, Small & Medium Enterprises
Development Act,2006 following information is disclosed to the extent
identifiable.
6. The Company is engaged in manufacturing of engineering goods only
and, therefore, there is only one reportable segment in accordance with
Accounting Standard (AS 17).
7. As required by Accounting Standard AS - 18 "Related Parties
Disclosures" issued by the Institute of Chartered Accountants of
India are as follows:
8. Net Deferred Tax Asset / Liability of Rs. 281.52 lakhs for the year
on account of Leave Pay, Gratuity, Super Annotation, VRS and
Depreciation has been recognized to the Statement of Profit & Loss.
9. (a) The accounts of Trade Receivables, Trade Payables and Advances
are subject to reconciliation. The management does not expect any
material difference affecting the financial statements on
reconciliation.
(b) In the opinion of the Board, Current Assets, Loans and Advances
have values on realization in the ordinary course of business at least
equal to the amount at which they are stated.
10. There are no amounts due and outstanding to be credited to
Investor Education & Protection Fund as at 31st March, 2012.
11. The Company has forfeited 5,30,000 No. of Equity Warrants @ Rs.
20.75 (25% of warrant price) aggregating to Rs. 1,09,97,500 due to
non-exercising of warrants by warrant holders and the same amount
transferred to Capital Reserve.
12. In reference with the Guidance Note on Accounting for Credit
Available in respect of Minimum Alternative Tax under Income Tax Act,
1961, during the year the amount of Rs. 225.60 lakhs has been recognized
against the MAT provision.
MAT Credit Entitlement is recognized as Asset under the head "Loans
and Advances". Hence, in the Statement of Profit and Loss, the
Current Tax is reflected as under:
Current Tax (MAT Provision) Rs. 225.60 lakhs
Less : MAT Credit Entitlement Rs. 225.60 lakhs
Net Current Tax Expens -
13. The Company enters into Forward Exchange Contracts, being
derivative instruments, which are not intended for trading or
speculative purpose, but for hedging purposes, to establish the amount
of reporting currency required or available at the date of settlement
of certain payables and receivables.
14. The Company has earlier got sanctioned Loan of Rs. 10.00 crores from
the Technology Development Board (TDB) at concessional rate of 5% for
the project of Design and Development of 850 kw Wind Energy Converter
System. Since the project is under progress and the Company has only
drawn loan up to Rs. 2.50 crores, the Company has requested TDB to extend
project completion date along with relevant loan re-payment schedule,
which proposal is under active consideration by TDB.
15. During the year ended 31st March, 2012 the Revised Schedule VI
notified under the Companies Act, 1956 has become applicable to the
Company for preparation and presentation of its financial statements.
The adoption of Revised schedule VI does not impact recombination and
measurement principles followed for preparation of financial
statements. However, it has significant impact on presentation and
disclosures made in the financial statements. The company has also
reclassified the previous year's figures in accordance with the
requirements applicable in the current year. In view of this
reclassification, certain figures of current year are not strictly
comparable with those of the previous year.
Notes : i) Previous year figures are regrouped wherever necessary.
ii) Figures in brackets indicate negative figures.
Mar 31, 2010
1. An amount of Rs. 8,38,462 representing difference between
Depreciation on Revalued Assets and on original cost of assets is
transferred from Revaluation Reserve to Profit and Loss Account.
2. In respect of Income Tax Assessments for earlier years, the Company
has preferred appeals against the relevant demands which are pending
before the Appellate Authorities. The company expects no liability on
this account.
3. Net Gain on account of foreign exchange fluctuation Rs. 2,95,453
(Previous Year Loss Rs. 20,89,235) have been accounted for in the
Profit and Loss Account.
4. The Company is engaged in manufacturing of engineering goods only
and therefore there is only one reportable segment in accordance with
Accounting Standard (AS 17).
5. As required by Accounting Standard (AS) - 18 "Related Parties
Disclosures" issued by the Institute of Chartered Accountants of India
are as follows:
List of Related Parties with whom transactions have been taken place
during the year
(a) Subsidiaries Company : -
(b) Associate Companies/Firm : JSL Industries Ltd.
Insutech Industries Pvt. Ltd (Formerly Insutech Industries)
(c) Joint Venture : Jyoti Sonar Switchgear LLC.
(d) Key Management Personnel
Chairman & Managing Director - Mr. Rahul Nanubhai Amin
Wholetime Director - Ms. Keki Rambhai Patel
Non-Executive Director - Smt. Tejal Rahul Amin
6. Interest and Financial charges include recompense amount of Rs.
538.82 lacs paid / payable to Consortium of Banks under Corporate Debt
Restructuring (CDR) Mechanism, for the Company to exit from CDR. Final
adjustments required, if any, will be made on approval by the CDR
Empowered Group.
7. (a) The accounts of Debtors, Creditors and Advances are subject to
confirmation / reconciliation.
The management does not expect any material difference affecting the
financial statements on reconciliation / adjustments.
(b) In the opinion of the Board, Current Assets, Loans and Advances
have a value on realisation in the ordinary course of business atleast
equal to the amount at which they are stated.
8. Excise duty on finished goods stock has been accounted / included
in the profit and loss account under the head Consumption of Raw
Materials, Components and Others.
9. The figures of previous year are regrouped / rearranged wherever
necessary.