Mar 31, 2015
1. Corporate Information:
Mega Corporation Limited (the company) is a public limited company
domiciled in India and was incorporated under the provisions of the
Indian Companies Act, 1956. Its Shares are listed on two Stock
Exchanges in India. The Company is a RBI registered NBFC and has been
engaged in Finance and Investments Business. The Company is also
providing Air Charter Services and presently owns one small passenger
aircraft.
2. Capital Commitments:
Estimated amount of contracts remaining to be executed on Capital
Account (Net of Advances) and not provided for: NIL (Previous Year:
NIL).
3. The Board has certified that all the income accrued to the Company
has been taken into consideration and belong entirely and exclusively
to the business of the Company.
4. In the opinion of Board of Directors the "Current / Non-Current
Assets" have a value on realisation in the ordinary course of business
at least equal to the amount at which they are stated in the Balance
Sheet, except the amount of Insurance Claim Receivable out came of
which shall depend on acceptance of claim by the Insurer.
5. Balances of Debtors, Creditors, Loans and Advances and Unsecured
Loans are subject to confirmation and reconciliation adjustment, if
any.
6. In the absence of receipt of information regarding small scale
industrial status from the parties, the details of names of Small Scale
Industrial Undertakings to which the company owe any sum together with
interest outstanding for more than 30 days could not be ascertained.
7. In pursuant to the enactment of Companies Act 2013, the company has
applied the estimated useful lives as specified in Schedule II, except
in case of Commercial Aircraft. Accordingly the unamortised carrying
value is being depreciated / amortised over the revised/ remaining
useful lives. The written down value of Fixed Assets whose lives have
been expired as at 1st April, 2014 have been adjusted up to depreciable
value, in the opening balance of Profit and Loss Account amounting to
Rs. 28,395/-.
8. Change in Estimation of Residual Value and Life of Tangible Assets:
The Company had revised its estimated residual value and useful life in
the case of Commercial Aircraft with effect from first day of the
financial year. Due to the change in estimation the depreciation for
the year has been lower by Rs. 64,76,620/-.
If there were no change in estimation, then Profit Before Tax, Profit
After Tax and Deferred Tax Assets would be Rs. (63,69,575/-), Rs.
(39,46,006/-) and Rs. 94,29,615/- respectively in place of 1,07,044/-,
5,29,338/- and 74,28,340/-.
9. Segment Reporting:
Identification of Segments
Primary Segment:
Business Segment: The Company's operating businesses are organised and
managed separately according to the nature of operations with each
segment representing a strategic business unit that carries out
different operations. The Company has two identified segments
comprising of Aircraft Charter Services and Finance & Investments.
Secondary Segment:
Geographical Segment: The Company does not have any identified segment
on the basis of geographical locations as company's operations are
mainly confined to single location.
Unallocable Items
Corporate income, expenses, capital and reserves are considered as part
of unallocable items which are not identifiable to any business
segment.
Primary Business Segments
Segment Revenues, Results and other information
10. Related Parties Disclosures: Disclosures in respect of Related
Parties as defined in Accounting Standard (AS) 18, with whom
transactions were carried out in the ordinary course of business during
the year as given below:
Related Parties and their Relationship:
a) Subsidiary Company: Mega Airways Limited
b) Directors, Key Management Persons (KMP) and their Relative: Mr.
Surendra Chhalani, Mr. H. M. Lalani Mr. Sachin Mehra, Mr. Ajay Chopra,
Mrs. Anisha Anand and Mr. Shurab Kumar
c) Other Related Parties where common control exists and with whom the
company had transactions during the year: M/s Anand Power Limited,
Plasopan Engineers (I) Private Limited, Mega Cabs Private Limited,
Crayons Advertising Private Limited, Ganges Radio Taxi Private Limited
and Omni Media Communications Private Limited
11. Previous year figures have been regrouped, reworked and
reclassified wherever necessary.
Mar 31, 2014
1. Corporate Information:
Mega Corporation Limited (the company) is a public limited company
domiciled in India and was incorporated under the provisions of the
Indian Companies Act, 1956. Its Equity Shares are listed on two Stock
Exchanges in India. The Company is a RBI registered NBFC and has been
engaged in Finance and Investments Business. It is also providing Air
Charter Services and presently owns one small passenger aircraft.
2. a) Reconciliation of shares outstanding at beginning and at end of
the year
During the current year and in the previous year, there have been no
movements in the number of equity shares outstanding.
b) Terms / Rights attached to Equity Shares
The Company has only one class of share having a par value of Rs. 1/-
per share. Each holder of equity shares is entitled to one vote per
share. The Company declares and pays dividends in Indian rupees. The
dividend proposed by Board of Directors is subject to the approval of
shareholders in the ensuing Annual General Meeting.
During the year ended March 31,2014, the Company has not declared any
dividend.
In the event of liquidation of the Company, the holder of equity shares
will be entitled to receive remaining assets of the Company, after
distribution of preferential amounts. The distribution will be in
proportion of the number of fully paid equity shares held by
shareholders.
3. Contingent Liabilities not provided for:
(Amount in Rs. Lacs)
Particulars As at As at
31-03-2014 31-03-2013
Income Tax Matters* 396.57 396.57
Custom Duty on Import of Commercial Aircraft
(Amount paid under protest Rs. 236.82 Lacs**) 236.82 236.82
*The Company has disputed Income Tax demand of Rs. 396.57 Lacs for the
A.Y. 2006-07 made by the Income Tax Department. The Company has
deposited a sum of Rs. 263.23 Lacs against the aforesaid demand which
has been treated as amount refundable by Income Tax Department. The
Company has filed an appeal against above referred demand with
appellate authority which is pending for disposal before ITAT, Delhi.
The management of the Company has been advised that the order of the
assessing officer shall not be tenable before income tax appellate
authorities hence there will be no liability towards income tax.
**The Company has deposited a sum of Rs. 236.82 Lacs as additional
Custom Duty on Import of Aircraft in F. Y 2007-08. Though the Company
had disputed the said demand but had deposited the said amount in F. Y.
2008-09 under protest to safeguard its business interest. The matter is
still pending for disposal before the Customs Authorities. The Company
has been advised that the contention of the Customs Authorities is not
tenable hence there shall be no liability for payment of additional
customs duty
4. Capital Commitments:
Estimated amount of contracts remaining to be executed on Capital
Account (Net of Advances) and not provided for amounts to Rs. NIL (
Previous Year: NIL ).
5. The Board has certified that all the income accrued to the Company
has been taken into consideration and belong entirely and exclusively
to the business of the Company.
6. In the opinion of Board of Directors the "Current / Non-Current
Assets" have a value on realisation in the ordinary course of business
at least equal to the amount at which they are stated in the Balance
Sheet, except the amount of Insurance Claim Receivable out came of
which shall depend on acceptance of claim by the Insurer.
7. Balances of Debtors, Creditors, Loans and Advances and Unsecured
Loans are subject to confirmation and reconciliation adjustment, if
any.
8. In the absence of receipt of information regarding small scale
industrial status from the parties, the details of names of Small Scale
Industrial Undertakings to which the company owe any sum together with
interest outstanding for more than 30 days could not be ascertained.
9. Segment Reporting:
Identification of Segments
Primary Segment:
Business Segment: The Company''s operating businesses are organised and
managed separately according to the nature of operations with each
segment representing a strategic business unit that carries out
different operations. The Company has two identified segments
comprising of Aircraft Charter Services and Finance & Investments.
Secondary Segment:
Geographical Segment: The Company does not have any identified segment
on the basis of geographical locations as company''s operations are
mainly confined to single location.
Unallocable Items
Corporate income, expenses, capital and reserves are considered as part
of unallocable items which are not identifiable to any business
segment.
10. Related Parties Disclosures: Disclosures in respect of Related
Parties as defined in Accounting Standard (AS) 18, with whom
transactions were carried out in the ordinary course of business during
the year as given below:
Related Parties and their Relationship:
a) Subsidiary Company: Mega Airways Limited
b) Directors, Key Management Persons (KMP) and their Relative: Mr.
Surendra Chhalani, Mr. Sachin Mehra, Mr. Shurab Kumar, Mr. H.M. Lalani
and Mr. Ajay Chopra
c) Other Related Parties where common control exists and with whom the
company had transactions during the year: Mega Cabs Limited, and Omni
Media Communications Private Limited
11. Previous year figures have been regrouped, reworked and
reclassified wherever necessary.
Mar 31, 2013
1. Corporate Information:
Mega Corporation Limited (the company) is a public company domiciled in
India and was incorporated under the provisions of the Indian Companies
Act, 1956. Its Equity Shares are listed on two Stock Exchanges in
India. The Company is a RBI registered NBFC and has been engaged in
Finance and Investments Business. It is also providing Air Charter
Services and presently owns one small passenger aircraft.
2. Capital Commitments:
Estimated amount of contracts remaining to be executed on Capital
Account (Net of Advances) and not provided for amounts to Rs. NIL
(Previous Year: NIL).
3. The Board has certified that all the income accrued to the company
has been taken into consideration and belong entirely and exclusively
to the business of the Company.
4. In the opinion of Board of Directors the "Current / Non-Current
Assets have a value on realisation in the ordinary course of business
at least equal to the amount at which they are stated in the Balance
Sheet.
5. Balances of Debtors, Creditors, Loans and Advances and Unsecured
Loans are subject to confirmation and reconciliation adjustment, if
any.
6. In the absence of receipt of information regarding small scale
industrial status from the parties, the details of names of small scale
industrial undertaking to which the company owe any sum together with
interest outstanding for more than 30 days could not be ascertained.
7. Segment Reporting:
Identification of Segments
Primary Segment:
Business Segment: The Company''s operating businesses are organised and
managed separately according to the nature of operations with each
segment representing a strategic business unit that carries out
different operations. The Company has two identified segments
comprising of Aircraft Charter Services and Finance & Investments.
Secondary Segment:
Geographical Segment: The Company does not have any identified segment
on the basis of geographical locations as company''s operations are
mainly confined to single location.
Unallocable Items
Corporate income, expenses, capital and reserves are considered as part
of unallocable items which are not identifiable to any business
segment.
8. Related Parties Disclosures:
Disclosures in respect of Related Parties as defined in Accounting
Standard (AS) 18, with whom transactions were carried out in the
ordinary course of business during the year as given below:
Related Parties and their Relationship:
(a) Subsidiary Company: Mega Airways Limited
(b) Directors, Key Management Persons ( KMP )and their Relative:
Mr. Surendra Chhalani, Mr. Sachin Mehra and Mr. Shurab Kumar, Mr.
Manish Dhariwal and AVM K.S. Venkataraman (Retd).
(c) Other Related Parties where common control exists and with whom the
company had transactions during the year: M/s Mega Cabs Ltd., Ecotec
Developers Pvt. Ltd. and Omni Media Communications Pvt. Ltd.
Mar 31, 2012
1. Corporate Information:
Mega Corporation Limited (the company) is a public company domiciled in
India and was incorporated under the provisions of the Indian Companies
Act. 1956. Its Equity Shares are listed on two Stock Exchanges in
India. The Company is a RBI registered NBFC and has been engaged in
Finance and Investments Business. It is also providing Air Charter
Services and presently ownsone small passenger aircraft.
a) Reconciliation of shares outstanding at beginning and at end of the
year
During the current year and in the previous year, there have been no
movements in the number of equity shares outstanding.
b) Terms / Rights attached to Equity Shares
The company has only one class of share having a par value of Rs. 1/
per share. Each holder of equity shares is entitled to one vote per
share. The company declares and pays dividends in Indian rupees. The
dividend proposed by Board of Directors is subject to the approval of
shareholders in the ensuing Annual General Meeting.
During the year ended March 31,2012, the company has not declared any
dividend.
In the event of liquidation of the company, the holder of equity shares
will be entitled to receive remaining assets of the company. after
distribution of preferential amounts. The distribution will be in
proportion of the number of fully paid equity shares held by
shareholders.
b) Nature of Security, Term of repayment:
Secured Loans from banks amounting to Rs. 6,34,672/ (previous year Rs.
49,94,251/ ) are secured by way of hypothecation of Motorhomes. These
Loans carries interest @11 % p.a. and is repayable in equal monthly
installments.
Secured Loans from N BFCs/Others amounting to Rs. Nil (Previous Year
Rs.3,34,361/ ) were secured by way of hypothecation of non commercial
vehicles acquired out of loan proceeds received by the company. These
Loans carried interest @ 13% to 14% p.a. and were repayable in equal
monthly installments.
Unsecured Loans from Corporate Bodies amounting to Rs. 1,82,75,950/
(Previous Year Nil) carries interest @ 12% to 16.2% p.a. and repayable
on demand.
Unsecured loans from Mega Cabs Limited, an Associate Company, amounting
to Rs. Nil (Previous Year Rs.6,50,00,000/ ) carried interest @ 14% p.a.
and was repayable on demand. The company has repaid full amount of
above referred loan alongwith due interest in the current financial
year.
2. Contingent Liabilities not provided for:
(Amount in Rs. Lacs)
Particulars As at 31 03 2012 As at 31 03 2011
Income Tax Matters* 396.57 396.57
Custom Duty on Import of
Commercial Aircraft
(Amount paid under protest
Rs.236.82 Lacs") 236.82 236.82
Un Expired Bank Guarantees 14.00 14.00
*The Company has disputed Income Tax demand of Rs. 396.57 Lacs for the
A Y. 2006 07 made by the Income Tax Department. The company has filed
an appeal against above referred demand with appellate authority which
is pending for disposal before ITAT, Delhi. The management of the
company has been advised that the order of the assessing officer shall
not be tenable before income tax appellate authorities hence there will
be no liability towards income tax.
"The company has deposited a sum of Rs. 236.82 Lacs as additional
Custom Duty on Import of Aircraft in F Y. 2007 08. Though the company
had disputed the said demand but had deposited the said amount in F. Y.
2008 09 under protest to safeguard its business Interest. The matter is
still pending for disposal before the Customs Authorities. The company
has been advised that the contention of the Customs Authorities is not
tenable hence there shall be no liability for payment of additional
customs duty
3 Employees Benefits;
The liability for Gratuity is provided on the basis of in house
calculation made in accordance with the provisions of Payment of
Gratuity Act, 1972 at the end of each financial year and charged to the
Statement of Profit and Loss.
Retirement benefits in the form of Provident Fund are charged to the
Statement of Profit and Loss for the year when the contributions to the
respective funds are due.
Leave encashment benefit is accounted for on the basis of valuation
made at the end of each financial year by the Company and charged to
the Statement of Profit and Loss.
4 Capital Commitments:
Estimated amount of contracts remaining to be executed on Capital
Account (Net of Advances) and not provided for amounts to Rs. NIL
(Previous Year: NIL).
5 In the opinion of Board of Directors the "Current/Non Current
Assets" have a value on realisation in the ordinary course of business
at least equal to the amount at which they are stated in the Balance
Sheet.
6 Balances of Debtors, Creditors, Loans and Advances and Unsecured
Loans are subject to confirmation and reconciliation adjustment, if
any.
7 In the absence of receipt of information regarding small scale
industrial status from the parties, the details of names of small scale
industrial undertaking to which the company owe any sum together with
interest outstanding for more than 30 days could not be ascertained.
8 Segment Reporting:
Identification of Segments
Primary Segment:
Business Segment: The Company's operating businesses are organised and
managed separately according to the nature of operations with each
segment representing a strategic business unit that carries out
different operations. The Company has two identified segments
comprising of Aircraft Charter Services and Finance & Investments.
Secondary Segment:
Geographical Segment: The Company does not have any identified segment
on the basis of geographical locations as company's operations are
mainly confined to single location.
Unallocable Items
Corporate income, expenses, capital and reserves are considered as part
of unallocable items which are not identifiable to any business
segment.
9 Related Parties Disclosures:
Disclosures in respect of Related Parties as defined in Accounting
Standard (AS) 18, with whom transactions were carried out in the
ordinary course of business during the year as given below:
Related Parties and their Relationship: Mega Airways Ltd. (Subsidiary
Company).
Directors, Key Management Persons and their Relative: Mr. Surendra
Chhalani, Mr. Sachin Mehra, Mr. Manish Dhariwal andAVM K. S.
Venkataraman (Retired).
Other Related Parties where common control exists and with whom the
company had transactions during the year:
M/s Mega Cabs Ltd., Ecotec Developer Pvt. Ltd., Chandramukhi Goods Pvt.
Ltd, and Omni Media Communications Pvt. Ltd.
10 Till the year ended at March 31, 2011 the company was using pre
revised Schedule VI to the Companies Act, 1956, for preparation and
presentation of its Financial Statements. During the year ended March
31, 2012 the revised Schedule VI notified under the companies Act, 1956
became applicable to the company, for preparation and presentation of
its Financial Statements. The company has taken twelve months as its
operating cycle. Accordingly, the Company has reclassified / regrouped
previous figures to confirm to this year's classification.
Mar 31, 2010
1. Contingent liabilities not provided for:
Particulars . As at As at
31-03-2010 31-03-2009
a) Income Tax Matters *396.57 Lacs 396.57 Lacs
b) Custom Duty on Import
of Commercial Aircraft
(Amount paid under
protest Rs. 236.82 Lacs**) 236.82 Lacs
c) Un-Expired Bank
Guarantees and Letters
of Credit NIL 15.00 Lacs
*The Company has been assessed U/S 143(3) for the A.Y. 2006-07 by the
Income Tax Department and the assessing officer has made certain
additions to the returned income of the assessee resulting in creation
of additional demand of Rs. 396.57 Lacs. The company has filed appeal
against above referred demand with appellate authority which is pending
for disposal. The management of the company has been advised that the
order of the assessing officershall not tenable before income tax
appellate authorities hence there will be no liability towards income
tax.
**The company was issued an enquiry notice by the Superintendent of
Customs (Preventive) in F. Y 2008-09 in connection with Custom duty on
import of Commercial Aircraft by the Company in the F.Y. 2007-08.
During the course of proceedings before above said authority the
Company was asked to deposit a sum of Rs. 236.82 Lacs as additional
Custom Duty. The company had deposited the said amount in F.Y. 2008-09
under protest to safeguard its interest. The matter is still pending
for disposal before the Customs Authorities. The company has been
advised that the contention of the Customs Authorities is not tenable
hence there shall be no liability for payment of additional customs
duty.
2. Capital Commitments:
Estimated amount of contracts remaining to be executed on Capital
Account (Net of Advances) and not provided for amounts to Rs.
NIL(PreviousYear: NIL)
3. Secured Loans:
a) Loans from banks amounting to Rs. 3,79,066/- (Previous Year Rs.
99,98,127/-) and from NBFCs/Others amounting to Rs. 4,29,245/-
(Previous Year Rs. 3,34,97,932/-) are secured by way of hypothecation
of commercial/non-commercial vehicles acquired out of loan proceeds
received by the Company.
b) Term Loan of Rs. 4,66,45,186/- (Previous Year Rs. 5,98,70,786/-)
taken from State Bank of India, Nehru Place, New Delhi is secured by
way of hypothecation of companys air craft and its present/future
accessories, spares & parts, etc purchased out of term loan proceeds.
The Term Loan is further secured by way of Equitable Mortgage of
properties belonging to a relative of a Director and Associate Company.
The said loan is also secured by way of personal guarantee of Mr. Kunal
Lalani, Chairman & Managing Director of the Company, Mrs. Vimi Lalani
wife of Mr. Kunal Lalani and corporate guarantee of M/s
CrayonsAdvertising Limited.
4. In the opinion of Board of Directors the "Current Assets, Loans and
Advances" have a value on realisation in the ordinary course of
business at least equal to the amount at which they are stated in the
Balance Sheet.
5. During the year the Company has transferred its Radio Taxi Services
Division along with all of its assets and liabilities to M/s Mega Cabs
Limited on a going concern basis with effect from 01-11-2009 under a
Business Transfer Agreement (BTA) at a consideration of Rs. 375 Lacs.
6. Balances of Debtors, Creditors, Loans & Advances and Unsecured
Loans are subject to confirmation and reconciliation adjustment, if
any.
7. The Board has certified that all the income accrued to the company
has been taken into consideration and belong entirely & exclusively to
the business of the Company.
8. The total Share Capital of the subsidiary, Mega Holidays Ltd. Rs.
30 Lacs and accumulated losses said subsidiary as at 31-03-2010 is Rs.
29.87 Lacs (Previous Year 29.39 Lacs). The investment made by the
Company is strategic in nature and in the opinion of Board of Directors
of the Company the subsidiary is expected to make profits going
forward. As such, above diminution, in the opinion of management being
temporary in the nature does not require to be recognised in the
accounts.
9. Loans and Advances in the nature of Loans given to Subsidiaries and
Associates etc:
10. In the absence of receipt of information regarding small scale
industrial status from the parties, the details of names of small scale
industrial undertaking to which the company owe any sum together with
interest outstanding for more than 30 days could not be ascertained.
11. Sundry Debtors of the Company includes a sum of Rs. 39,15,778/-
(Previous Year Rs. 2,76,945/-) due from Companies in which Directors of
the Company/their relatives are interested as Directors. Maximum amount
due during the year was Rs. 39,15,778/- (Previous Year Rs. 3,90,396/-)
12. Advertising Expenses includes a sum of Rs. 1,17,013/- (Previous
Year Rs. 1,43;695/-) paid to a company in which directors of the
Company are interested as Directors.
13. The Companys main business activity during the year was operation
of Radio Taxi & Air Charter Services. Owing to the nature of operations
of the Company it is not possible to give the quantitative details of
safes & services and certain other information which is required under
paragraph 3,4C & 4D of part II of Schedule VI to the Companies Act,
1956.
14. Employee Benefits:
The company is in process of adopting AS -15 (Revised) issued by the
Institute of Chartered Accountants of India in respect recognition of
Retirement Benefits in the Financial Accounts. So far no actuarial
valuation has been carried out in respect of Gratuity Liability or
liabilities in respect of other retirement benefits payable by the
Company therefore any impact thereof on the Profit or Loss of the
Company forthe year, ifany, is not quantifiable.
Presently as per the policies of the company the following benefits are
being provided to the employees:
Provident Fund - Contributions made by the company are periodically
deposited with appropriate authorities and charged to
Profit & Loss Account
Gratuity -Gratuity Liability is provided on the basis of in house
calculation made in accordance with the provisions of Payment of
Gratuity Act, 1972 at end of each financial year.
Leave Encashment- Provision for Leave Encashment payable to the
employees is provided on the basis of in house calculation
made by the Company and charged to Profit & Loss Account.
15. SEGMENT REPORTING POLICIES:-
(a) Identification of segments
(i) Primary Segments
Business Segment: The Companys operating businesses are organised and
managed separately according to the nature of operations with each
segment representing a strategic business unit that carries out
different operations. The Company has three identified segments
comprising of Radio Taxi Operations, Aircraft Charter Services and
Finance & Investments.
(ii) Secondary Segment
Geographical Segment: The Company does not have any identified segment
on the basis of geographical locations as companys operations are
mainly confined to single location.
(b) Unallocable Items
Corporate income, expenses, capital & reserves are considered as part
of unallocable items which are not identifiable to any business
segment.
16. Disclosures in respect of Related Parties as defined in Accounting
Standard (AS) 18, with whom transactions were carried out in the
ordinary course of business during the year as given below:
A. Subsidiary Companies (Direct Holding)
Mega Airways Ltd. and Mega Holidays Ltd.
B. Other Associate Concern where common control exists and with whom
the Company had transaction during the year
Crayons Advertising Ltd., Plasopan Engineers (I) Pvt. Ltd., Omni Media
Communications Pvt. Ltd, Mega Cabs Ltd., Tabasko Hospitality Pvt. Ltd.,
Kolkata Call Taxi Pvt. Ltd., Indication Instruments Ltd. and Vimi
Investments & Finance Pvt. Ltd.
C. Directors, Key Management Personnel and their relatives
Mr. Kunal Lalani Chairman & Managing Director
Mr. Manish Dhariwal Whole Time Director
Mr. Surendra Chhalani Whole Time Director
Mr. H. M. Lalani, Capt
A. K. Soni,
Mr. Sachin Mehra, andAVM K. S.
Venkataraman (Retd.) Directors
Mr. T M. Lalani &
Mr. Vishal LalaniRelatives of
Directors
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